Easington district council has been slated by the Audit Commission for the way it runs its repairs service just weeks before the council is due to consider stock options for its 11,805 homes.
Inspectors gave the service a no-star rating. Their report criticised the council's repairs service for having no challenging targets and low standards of customer care, and for failing to involve tenants in raising standards. However, they said the service had promising prospects of future improvement.

At present, the council estimates that two-thirds of its stock does not meet the government's decent homes standard. Investment of at least £35m is thought to be required to bring the stock up to standard, but only £6.3m was allocated in repairs and maintenance for 2002/03.

Consultant Hacas Chapman Hendy is due to present a stock options appraisal to the council on 26 February.

Alan Caygill, Easington's director of housing and public services, said consultation with the local tenants and residents federation had found widespread support for establishing an arm's-length management organisation. But he stressed that all options for the homes' future would be considered. "Staying the same is not an option," he said.

Cayhill said the council was well placed to make rapid improvement following the commission's report.

The council has vowed to continue with a programme to reduce its stock by 400 each year – around 900 of its homes are currently void.