Inspector dubs Shaftesbury 'one of worst'

In a report published yesterday, the inspectors identified a "range of weaknesses" at the Surrey-based registered social landlord, including poor management of empty homes and sheltered housing. Last month Shaftesbury was placed under supervision (24 October, page 13).

The report has also heightened concerns, particularly at the National Housing Federation, that inspection has become too tough under the Audit Commission, which took over as regulator in April.

The commission, which has inspected almost 40 associations so far, has now called on Shaftesbury to urgently improve its gas, water and electricity safety work and its repairs and maintenance service.

Bernadette Fry, senior inspector at the commission, said: "Unfortunately, many of Shaftesbury's tenants are currently being let down by inadequate services. Radical improvements to its services and the way it is run … are urgently needed."

Charles Clayton, Shaftesbury's group chief executive, said: "We are well-placed to respond positively. We have committed management, the resources and have already instituted change."

A statement added that the association's financial viability remains unaffected by the report.

In August, a Housing Corporation assessment of Shaftesbury's regulatory and development performance also highlighted weaknesses at the association.

The section of the assessment on management read: "The performance of Shaftesbury and its subsidiaries has been below that expected of an association of this size for a number of years."

Two Leeds arm's-length management organisations stand to receive more than £25m in additional funding after they won the commission's seal of approval.

Housing services in the west and north-east of the city were both awarded a "good" two-star rating on 4 November. Leeds' four remaining ALMOs have been inspected and reports are expected before Christmas.

Ten out of 17 second-round ALMOs have now met the standard required to release extra government funding.