Bruce Moore, aged 41, announced today that he will be leaving for a similar, but higher paid job with the Hanover Group, a housing association which specialises in supporting older people. The hunt is already on for his successor.

His shock resignation comes as the £33 million operation is preparing for a crucial April re-inspection by the Audit Commission and only two months after failing to win a two-star rating from the public spending watchdogs.

It has left council housing bosses facing a desperate search for a successor in the months running up to the return of commission inspectors to the city.

But the chairman of the company’s 15-strong board Councillor Mrs Pat Byrne said today that the recruitment process had already started, and it was anticipated that a new chief executive would be appointed early in the New Year.

Mr Moore, a qualified solicitor, said: “Before joining Wolverhampton Homes, I worked for more than 10 years seeking to improve the provision of housing, care and support for older people.

“It is an area of service I remain passionate about, and the chance to become chief executive of one of the leading housing associations was simply too good an opportunity to miss.”

Mr Moore, who will be clearing his desk towards the end of the year, said he was confident that the operation, which was launched in October and manages just over 21,000 properties, was on course to capture at least a two-star rating next April.

That rating is needed to unlock a £42m slice of £288m up for grabs to tackle meeting the Government’s “decent homes” standard by 2010.

By Barry Hammond