A Devon council's homeless service is relying too much on bed-and-breakfast accommodation, according to a report. Torbay Council's Homeless and Housing Advice Service was also described in the Audit Commission study as lacking consistent consumer focus.
The report comes after inspectors visited the council in September, their third visit in two years.
However, the Commission rated the service as "fine" and said there were promising signs of improvement.
Although the service only retained a one-star rating out of a possible three, it is an improvement on two years ago when the service's prospects were dubbed "uncertain".
The biggest criticisms included the continuing use of bed-and-breakfast accommodation for households without children, the quality of some temporary accommodation, slow decision-making and a lack of consistent consumer focus.
However, there was praise for the Torbay Housing Partnership and also for a 30% drop in homelessness in the last year, the report said.