A Lincolnshire council that received the lowest possible score for housing will show improvements next year, say the authors of the damming report. The Audit Commission found homeless and vulnerable people - and others on low incomes - are not being offered the housing they needed in South Kesteven.
The commission will continue to monitor the council with a new report in 2006.
Commision spokesman Martin Palmer said it would work closely with the council to deliver improvements.
No stars
He added: "There will be another public report in 12 to 18 months' time which we hope, and expect, will show considerable improvement from the current levels."
Figures released on Friday gave the council no stars out of a possible three.
The authority is now re-drafting its housing strategy.
Inspectors said the Grantham-based council fell well short of even its "own limited targets".
The council accepted the report that the service its staff offered was not up to scratch, but stressed there was nothing wrong with the quality of the homes.