Inspectors will work together after single body is chosen

The government expects both the Housing Corporation and Audit Commission to continue their work for two years or more after announcing which will become the single inspectorate.

The body that will become the single inspectorate will be chosen in September, but the legislation needed will not be completed until 2003 at the earliest.

In the meantime the commission and corporation will be told to draw up a joint regime to provide the same service to all landlords.

They will be expected to establish inspection criteria so comparisons can be made across different types of landlord.

Deputy prime minister John Prescott is likely to make a decision at the end of the month on the long-term future of the service. He heard presentations from each organisation two weeks ago (HT 22 August, page 9).

Currently the commission has no powers to inspect housing associations, and the corporation cannot inspect councils.

The Local Government Association has held informal meetings with ministers on the issue. It is pressing for an inspectorate that supports landlords and promotes change, along the lines of the Improvement and Development Agency that the LGA sponsors.

"We don't want an Ofsted or Benefit Fraud Inspectorate approach because it interferes with looking at how services are provided," said one insider.

A key issue for councils is to get a broader approach established that is not limited to landlord services. They want landlords' role in preventing homelessness and promoting social inclusion integrated into inspections.

Audit Commission chief housing inspector Roy Irwin, who took part in the presentation to Prescott, said: "We are looking forward to further discussions culminating in an announcement of a final position later in the autumn."