The Welsh Assembly has ordered its first ever inquiry into a social landlord, Powys-based Newtown Housing Association.
Although the statutory power has existed for 28 years, this is the first time an inquiry of this type has been enacted.

The assembly said it was investigating governance matters at the 240-home association, the smallest in Wales, and has appointed consultant Rodney Dykes to lead the inquiry.

Newtown took over two estates from the Development Board for Rural Wales seven years ago.

It established a management agreement with Gwalia Housing Association that ended in March.

Cadarn Housing Group, based near Cardiff, is now providing financial and other advisory help, but management and maintenance is run by Newtown itself. The association is reducing in size through right-to-buy sales.

The assembly has made three statutory appointments to the board, which otherwise consists mostly of residents. The appointments are an assembly civil servant plus two appointees from Wales & West Housing Association, including chief executive David Taylor.

Taylor said: "I have been appointed to help the board through a period of difficulty. There are no operational or financial issues involved."

Newtown housing manager Robert Wilkinson said: "The extra board members bring a breadth of knowledge that is not always available to small, resident-led associations. The association has a lot going for it and we hope positive suggestions for the future will come from the inquiry."

John Bader, director of the assembly's housing directorate, said the supervision was purely covering governance issues as Newtown was a "very small, non-developing association".

An interim report on the association's troubles should be ready in November, he said.