Two Leeds ALMOs get one star as Audit Commission toughens up

The second-round ALMOs, Leeds North-west Homes and Leeds South Homes, needed two stars for immediate access to more than £8m in additional government funding. Both got just one, albeit with excellent prospects for improvement, from the commission.

Inspectors marked down Leeds North-west because its staff were difficult to contact and it failed to engage sufficiently with tenants. Leeds South was criticised for letting properties in an unsatisfactory condition.

The results, released on Monday, break a run that has seen 18 first- and second-round ALMOs awarded two stars since 2002.

The Leeds ALMOs, two of the six set up by Leeds council, will have another shot at the additional funds when the inspectors return in six months' time.

Richard Lewis, the council's executive member for housing, said he expected the ALMOs to be given two stars at reinspection. He said the weaknesses identified by the commission could be remedied within six months. "It is definitely achievable," he said. "Staff at all the ALMOs have taken great steps already in their work."

Inspection reports have got tougher since round one – there needs to be a level playing field

Gwyneth Taylor, NHF policy officer

Lewis added that the setback would not affect the decent homes standard across its 69,000 homes, as the money was still there to be accessed. He expected it would be available immediately after the reinspections.

Earlier this month the Leeds North-east and Leeds West ALMOs got the two-star ratings that allow them to access the additional funding (HT 7 November, page 12). But the latest ratings have given rise to fears that the city's two remaining ALMOs will also fall foul of the inspectors.

Gwyneth Taylor, policy officer at the National Federation of ALMOs, said: "Inspection reports have got tougher since round one. When talking about decisions that involve money, there needs to be a level playing field."