Easington Council hopes to bounce back from a no-star Audit Commission rating by pursuing an arm's-length management option for its 11,500 homes.
Consultant Hacas Chapman Hendy has recommended an ALMO as the best option to upgrade stock in the council, which is in County Durham, including Peterloo New Town and isolated ex-mining communities.

The decision was due to be ratified at a full council meeting yesterday, and will be followed by consultation and the appointment of a tenant adviser.

Easington estimates that only one in three of its homes meets the decent homes standard, and that £35m is needed to upgrade the rest.

Head of housing Paul Tanney said: "We had a negative equity situation, which meant large-scale transfer was probably not the best option."