The report, released last week, praised The Adolescence and Children’s Trust (TACT) East London in High Road, South Woodford.
It pointed out how it helped children build good relationships with their carers and made sure their needs were met.
TACT East London is an independent fostering agency that recruits, trains and supports 60 foster households in the area and has 67 children in placement.
The report said: “Children and young people flourish from living in a healthy environment where their physical, emotional and psychological health needs are comprehensively promoted and met.
“Good matching of children and young people and their carers helps to ensure that their individual needs are promptly met, with particular emphasis on their cultural and diversity needs.
“Young people build good, trusting relationships with their foster carers; some say, ‘It’s their family and I call my carer 'Mum'.’ Children and young people express clearly that they like their carers and want to live with them.”