An independent commission into the state of housing in Birmingham has called for radical changes to city council policy.

But the report, published yesterday by London School of Economics Professor Anne Power, was criticised by the city council.

The report identifies financial, organisational and community gaps in the council's current policy and made five recommendations.

These included devolved management, local environment and neighbourhood renewal, alternatives to demolition, new ways to achieve decent homes, and the introduction of mixed-income communities.

Prof Power said: "In 2002 we said that one size couldn't fit all in a city as large and complex as Birmingham.

"Our review shows that bringing services closer to tenants would create tailored solutions for the needs of different areas."

Lord Richard Best, of the Joseph Rowntree Foundation, said: "Returning to these issues, the commission has now underlined its view that residents should be empowered to take decisions on a place-by-place basis so that solutions can be pursued to suit local requirements."

But John Lines, cabinet member for housing at Birmingham City Council, disputed the report's claims.

"I do not recognise the report as a balanced or accurate one," he said.

"I suggest that Anne Power should ask the tenants of Birmingham city about what they want and then respond to their wishes."