The work Liverpool City Council is doing to improve housing in the city has been praised in a new report by the government's independent watchdog, the Audit Commission.

The strategic housing service has been ranked as 'fair' with 'promising' prospects for improvement.

The report concludes that housing is a priority for the city council, and progress is being made improving the choice available to local people.

It singles out the progress made in clearing obsolete and poor quality housing stock and improving the choice of new homes, as well as a reduction in the level of empty properties.

Council Leader Joe Anderson said: "I am pleased that this report recognises our work to improve the quality of housing in the city. We are determined to tackle the many decades of underinvestment in housing in Liverpool and provide a greater choice of types and size of properties.

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"The Audit Commission report vindicates our approach of refurbishing homes whenever possible, and demolition where it is uneconomic to renovate them.

"Despite the government's decision to axe £27 million from Liverpool's housing renewal programme, which has put 1,000 families in limbo, we are in discussions with developers and pursuing all opportunities for investment so we can continue the work we have already started."

Inspectors also found that housing related support is extending independence to more vulnerable people and the focus on prevention is reducing the level of homelessness.

The Audit Commission also identified other areas of good practice, including the ground-breaking work with Liverpool Primary Care Trust (PCT) on the Healthy Homes Initiative in tackling poor quality housing in the private rented sector, as well as positive working with Engage, the leaseholders federation in the city centre. The private rented sector was identified as an area for improvement.

Riza Yassin, Audit Commission Lead Housing Inspector in the north, said: "Economic decline has left Liverpool with major housing challenges.

"With the assistance of the housing market renewal pathfinder, New Heartlands, the Council is addressing these, particularly in designated regeneration areas. However, more needs to be done to improve existing housing in the private sector, especially the private rented sector."

(CD/GK)