Glasgow Housing Association took control of 80,000 homes

The GHA board said it had agreed with Michael Lennon that it was "a logical point in the lifespan of the project" for him to stand down.

It comes after doubts were cast over plans for second stage transfer from GHA to smaller organisations.

One city housing association chief critised Mr Lennon's tenure but the GHA and Scottish Executive backed his role.

Joe Williamson, director of Wellhouse Housing Association, said: "I welcome Michael Lennon leaving.

"He has not taken any decisions, nothing has happened. We need a fresh start."

He added: "The GHA are dysfunctional. Hopefully someone will now take the process forward."

The Scottish Executive said the GHA had delivered well on its commitments under Mr Lennon's leadership, while the organisation said it hugely valued his efforts.

Sandra Forsyth, GHA tenant chair, said: "Michael has been an outstanding chief executive and we are well aware of the massive contribution has made to the Glasgow Housing Association and to social housing in Glasgow."

Mr Lennon is expected to return to Australia with his family after he steps down on 31 January.