HOUSING services in Newham are rated good with promising prospects for improvement, according to an independent report published on Tuesday.
The Audit Commission did a two-week inspection of housing management services in June 2004.
It looked specifically at the borough's community housing services including tenancy and estate management, tenant involvement, rent collection and arrears.
The good inspection results will help towards the setting up of an Arms Length Management Organisation (ALMO) to run housing services in future.
It is hoped the separate company will better run the service and get better value for public money.
However, there was some criticism of the service, including the need for higher rent collection rates, improvements in response times to emailed tenant inquiries and the need for better environmental standards on housing estates.
The commission praised the council's pro-active work with tenants, monitoring standards of services to all tenants, access arrangements and ensuring that services reflect the diversity of tenants.
It also congratulated council housing services for their sustained focus on addressing areas of tenant concern including anti-social behaviour.
Mayor Sir Robin Wales said: "This is encouraging news for the council and for many people involved in managing and improving housing services in Newham.
"Newham is committed to engaging tenants in change and to enabling people to drive up standards. This rating is a positive step towards ensuring quality remains a focus when Newham applies for ALMO status."
The community housing team is working with other council departments and organisations to improve areas suggested in the report, including a review of systems and acceptance rates for lettings under the Choice Based Lettings scheme.
Cllr Andrew Baikie, cabinet member for housing, added: "This is a substantial and important area of work that is not always easy.
"I am pleased that in judging that we have promising prospects for improvement the inspectors recognise we are already progressing concrete measures on the areas identified for further improvement."