... or plans for a single inspection service could mean an independent body will be set up
The housing corporation will lobby to become the sector's sole inspector. The surprise announcement that a single body will be established to inspect all social landlords was made by Gordon Brown in Monday's comprehensive spending review.

Deputy prime minister John Prescott will outline his plans for the new inspector today. But it is unlikely any move will be made without a lengthy review first.

The news could mean that the Audit Commission's housing inspectorate is absorbed by the Housing Corporation, or vice-versa. Alternatively, an independent body could be set up.

National Housing Federation chief executive Jim Coulter warned against the "extra bureaucracy or double regulation" that an entirely new inspection service may bring.

A statement from the Office of the Deputy Prime Minister said a single inspector for social housing would "open up delivery of social housing to new forms of social landlord."

The Audit Commission refused to comment ahead of Prescott's statement. But Housing Corporation chief executive Norman Perry said he hoped the corporation would take over from the commission's inspectorate.

"Prescott has to review all the options," said Perry. "That won't be quick. It will certainly be weeks rather than days, possibly months rather than weeks."

Perry said the corporation had long believed it could carry out inspections across social housing, and would be making a case for a role as sole regulator in the longer term.

He said: "Look at Communities Scotland. That's a single regulator and it used to be the Scottish branch of the corporation before devolution." But Perry stressed the Housing Corporation could remain an effective regulator without an inspection role.

Alistair McIntosh, director of consultant the Housing Quality Network, said the commission and corporation's inspection teams were both equally equipped to do the job. He believed they both had the respect of their respective sectors.

He said: "What I would like to see is a breakdown of the savings that are going to be produced as a result of this and the gains in efficiency that will be made."