Homes and Communities Agency chief executive Sir Bob Kerslake will be replaced by an existing director when he leaves the quango on 1 November.

Kerslake told PublicPropertyUK.com that succession plans were already being made and an internal appointment would announced “within weeks”.

On Monday, cabinet secretary Gus O’Donnell announced Kerslake’s appointment as permanent secretary for the Department for Communities and Local Government.

The HCA’s new interim chief executive could be a director of one of its regional offices or a corporate director.

Kerslake denied that his decision to leave was linked to the anticipated downsizing of the quango or any plans to axe it.

He said that next year its budget would be reduced by “at least a third” and it would play a more “facilitating role” in bringing forward scheme.

In his new job, the former Sheffield City Council chief executive will have the power to steer planning and regeneration policy at the highest level of government.

His main aim is to promote so-called place-based budgeting. The idea is to give individual public bodies more flexibility with how they spend a single pot of money in their area.

He said that a key task would be one of “change management” as CLG endures the policy changes brought by the new government.

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