Hounslow's largest housing association, which is at the centre of a police fraud investigation , could be closed under proposals announced today.

Hounslow Council is considering taking back control of its housing stock from Hounslow Homes, which is responsible for maintaining the borough's 16,500 council homes. The council plans to consult tenants and leaseholders about the move this summer.

The arms-length management organisation (ALMO) was set up by the council in 2002 and remains under the council's overall control.

Although it signed a new five-year contract with the council in 2012 , some of the services it previously offered were taken back in-house last year as part of council savings measures.

A council spokeswoman said Hounslow Homes was doing many things well, but a report due to go before the cabinet next Tuesday (July 1) raises a number of concerns.

Council leader Steve Curran's report claims Hounslow Homes accounts for about a quarter of all complaints to the council, with many tenants unhappy about the wait for repairs and the time properties are left sitting empty.

It also points to a lack of public confidence in the way the organisation is run, particularly in the wake of serious fraud allegations currently being investigated by police.

A council spokeswoman said: "Housing is a top priority for the council and we are determined to improve the quality of service we are providing.

"An important part of that is to listen and respond to feedback and we are therefore proposing to engage with our tenants and leaseholders.

"In all parts of the council we are looking for continuous improvement and work has already begun on a programme to address some of the issues of concern identified in the last six months. We wish to reassure tenants and leaseholders that this work will continue."

If cabinet members vote next week to go ahead with the consultation, a final decision on the future of Hounslow Homes is due to be made in October.