Places for People has been released from its nine-month Housing Corporation supervision but will not be made a preferred development partner this year.

The Preston-based landlord, one of England鈥檚 largest developing associations, will have to wait 16-17 months before it is considered to be one of the elite 71 associations that have long-term partnering deals for corporation development funds.

It was put under supervision in October after a boardroom row (HT 17 October 2003, page 7).

The sector reacted with surprise to the news that, although Places for People is to be given three green lights in the corporation鈥檚 鈥渢raffic light鈥 performance assessment, it will not join the elite group immediately.

One development source said: 鈥淚 wouldn鈥檛 have thought [the corporation] would want to exclude Places for People any longer than necessary because it鈥檚 such a big player in development.

鈥淚 suspect the corporation wants to make an example of it but, if it鈥檚 got all its green traffic lights, why not let them back in?鈥

If preferred partners drop out, I'd be surprised if we weren't asked to step in

Zenna Atkins, Places for People

Zenna Atkins, chair of Places for People, said: 鈥淲e鈥檙e absolutely over the moon. I am very confident that we will not slip back to where we have been.

鈥淲e are keen to get partner status but this will be 16-17 months away, when the next allocations are made. But if people drop out or can鈥檛 meet their commitments, I鈥檇 be surprised if we weren鈥檛 asked to step in.鈥

A corporation spokesman said: 鈥淧laces for People is able to start talking to us about development ideas. However, I can鈥檛 say when they could be admitted to the 71.鈥

That will be tied to the next bidding round, which is potentially two years away.鈥