THE Company which manages council housing is undergoing an inspection which will determine whether it receives more money to improve living conditions.

The Audit Commission review of Ascham Homes could decide the future of the borough’s decent homes program, which is struggling for cash and behind schedule.

The arms length management company is currently locked in an expensive legal wrangle over how much it can charge leaseholders for repairs to blocks of flats.

Ascham Homes has so far lost two appeals against a ruling which found it had not followed proper consultation guidelines.

The company is now seeking a personal hearing with the president of the Lands Tribunal and has suggested it may take the case to the High Court.

It is not known whether Ascham Homes' treatment of leaseholders will be considered by the Audit Commission.