Sometimes you just have to grin and bear it: not the outrageous misfortunes but the frustrating near misses

After facing its first Audit Commission inspection as an independent entity, ALMO Homes in Havering (HiH) was disappointed by the verdict.

The organisation had just earned itself a one star fair rating, with promising prospects for improvement, so there's little cause there for sour grapes. On the other hand, after all the hard work put into building the organisation, hopes and expectations were understandably high - a two star rating was eagerly anticipated. So, naturally, there was a touch of disappointment when the verdict was announced.

"Certainly, we were hoping to do better," said Stephanie Miller, chief executive of HiH. "We were disappointed that we didn't get the two stars, but there's much in the report that's very positive in terms of what the ALMO has achieved its first 18 months or so."

The organisation was launched in July 2006, when it took over the management of Havering Council's 10,500 rented homes and some 2,200 leasehold properties. It was scarcely 15 months old when the inspectors called in September last year, so it was a case of tenterhooks until the report was published at the beginning of this 2008.

"Homes in Havering has shown the capacity to improve services in its first 15 months since taking over the management of Havering Council's housing stock," said Adrian Brown, the Audit Commission's lead housing inspector for London. "The ALMO can demonstrate a good track record of improvement in a range of areas, including responsive repairs, gas servicing, income management, leasehold services and supported housing.

"However, there are weaknesses that still need addressing if HiH is to achieve its ambitions, particularly in relation to responsive repairs, asset management, and diversity.

The inspection highlighted a low resident satisfaction with the ALMO's methods of combating anti-social behaviour. There were also problems in managing complaints.

"We've completely reorganised and restructured the way that we deliver front line services on the estates, which was mentioned in the report as a positive practice," Miller added. "Instead of having tenancy services officers and estates officers sitting at a permanent desk, they are now mobile with the appropriate technology - laptops and PDAs - for working out and about on the estates visiting residents. That was a criticism of the council housing services at the last inspection in 2005, that residents never saw housing staff - we've now turned that around."

Since its own inspection, frontline workers are now augmented by a specialist anti-social behaviour team, which covers a gamut of issues from the anti-social upwards to domestic violence and hate crimes. Training has actively sought to inculcate its staff with both an awareness and the capability to deal with problems as well as tightened up recording procedures to maintain a better picture of problems.

There's nothing like a little incentive. Those two stars are waiting.