A HOUSING department at a County Durham council has been heavily criticised by inspectors.

An Audit Commission report published yesterday said Chester-le-Street District Council's housing department was "unlikely to improve".

The 25-page report also criticised the department - responsible for 5,600 council houses - for wasting money and failing to spot investment opportunities.

Housing services came under fire for:

l Putting management concerns ahead of customer needs

l Having a disregard for the confidentiality of customers' personal circumstances

l Wasting an estimated £480,000 through "poor" management

l Having little or no tenant consultation

l Allowing the number of empty council houses to increase

l Failing to bring in public sector investment, losing the council a potential windfall of about £1m.

The conclusions come just months after The Northern Echo printed details of a leaked document outlining the concerns. That document emerged just days after the council trumpeted a survey showing most residents were satisfied with the services.

North Durham MP Kevan Jones led the call for an urgent overhaul last night.

He said: "This is an absolutely damning report that backs up what people have been telling me since June.

"They very clearly need radical action now."

However, council bosses last night hit back at the report.

Chief executive Mick Waterson said: "We have already addressed many of the issues it raised and believe we have the capacity to make the necessary improvements.

"The most important aspect is the service we give to tenants and our own survey, completed by around 25 per cent of tenants, shows relatively high levels of satisfaction. However, we are always looking for ways to improve."

Council leader Malcolm Pratt said the commission had been "selective' with its statistics.

"The inspectorate has said we are unlikely to improve our housing services without, what they call, a step change - that is a radical change," he said.

"We have already appointed a new housing services manager who will oversee the recently-merged housing and public works terms and deliver the seamless service our tenants deserve."