A DORCHESTER-BASED social housing group has been heavily criticised in a report on the way it is run.

A team of inspectors from the Audit Commission said the services offered by Magna Housing Association "have scope for considerable improvement" after an assessment carried out in June.

They have made 10 recommendations for improvements and demanded an action plan be formulated in three months to address their concerns.

An Audit Commission spokesman said: "There is much work to be done, specifically within the areas of equal opportunities, customer care and complaints, lettings and repairs and maintenance in order to satisfy all aspects of the Housing Corporation's regulatory code, and ensure the needs of Magna tenants are met."

Another problem area is the time it takes the social landlord to get repairs done, which has been below target for the last two years.

Audit Commission recommendations included work on the race equality plan, a review of the operation of the repairs appointment system to help improve performance and reliability, and the ways in which information is communicated to tenants.

Magna was also urged to look at its lettings and allocations policy and procedure.

However, the housing association was praised for working hard to raise standards and its "genuine response to turning around poor performance."

Areas of commendation include improvements in gas servicing, customer liaison, the procedure for removing abandoned vehicles and the new neighbourhood complaints incident log-book.

Magna's director John Wright described some of the judgements as "harsh" and added: "We are pleased that the inspectors recognised our commitment to continuous improvement and that the report highlighted examples of positive practice.

"But we can't deny we are disappointed with the overall result of the inspection. A lot of change has taken place over the last two years and staff are committed to providing a first class service.

"We are now looking forward to achieving the recommendations made by the Audit Commission."

A Magna spokesman said four of the recommendations were already identified as areas for improvement.

Magna owns or manages 5,995 properties which includes shared ownership units, sheltered and supported housing after receiving the transfer of West Dorset District Council stock in 1993.

The Audit Commission is an independent body responsible for ensuring that public money is spent effectively to achieve high quality services.