GOVERNMENT auditors have moved in to Medway Council to look at its housing department, after costs suddenly escalated.

It follows the appointment just over a year ago of Erinaceous Property Management on a five-year contract.

Its task was to bring the council's 3,000 homes and flats in Gillingham and Rainham up to decent living standards within three years.

Council houses in the rest of Medway were sold to a housing association early in the 1990s. It was allocated £4million to carry out this year's maintenance, based on a nationally-agreed range of repair prices.

The council estimated it needed to spend £50million by 2010 to achieve the Government target. Erinaceous was appointed by the council's cabinet to bring down those costs.

A Medway Council press release in June said every council home would have some improvements within a year.

The council had worked out that the cost would be about £2,500 a home, but the costs have escalated and some home updates are treble the allocated amount.

The November Housing Revenue Account showed the average cost is currently £4,930. The council confirmed that the £4 million it had been allocated, had been spent as costs rose.

See Friday's Medway Messenger for the full story.