CHESTER-LE-SREET District Council has appointed a temporary director to run its troubled housing service.

Over the next six months Bernadette Marjoram will work on improvements to the service, which in the last 18 months received two damning reports from Audit Commission inspectors.

The inspectors uncovered a catalogue of problems including a 1,300 per cent increase in rent arrears over six years, income from housing paying for the town's CCTV system, delays in housing repairs and missing out on £2m of funding because there was no effective housing strategy.

An advisory board was set up at the request of Housing Minister Tony McNulty to give advice and support to councillors and officers on improvements to the service.

Ms Marjoram has 25 years experience in local government and until September last year she was at East Herts Council. She has also worked in a number of London boroughs and is chairman of the British Urban Regeneration Association.

At East Herts she oversaw the transfer of the council's housing stock to a housing association following a vote in favour of transfer by tenants.

The Government requires all councils to look at various options for the future control of their housing. But Ms Marjoram said stock transfers were much longer-term projects and her immediate task was to improve the service to tenants.

She is awaiting the Government's response to an action plan drawn up following the Audit Commission reports.

She said: "I'm confident there will be changes and improvement but it will take time. There are problems, nobody is running away from that, and there are some difficult decisions.

"But I'm confident that members are clear that they want to improve services for tenants."

Council leader Linda Ebbatson said: "I am confident Bernadette will bring about the improvements of services both the council and the community are expecting."

Chief executive Mike Waterson said: " I look forward to working with Bernadette to improve the way we deliver our housing services to our tenants.

"Bernadette brings with her considerable experience which was gained in local government, housing and regeneration."

The inspectors rated the council's service as poor and said that the council was continuing to provide a poor range of housing services, some of which were deteriorating even further.