£1bn housing market renewal programme unveiled

The government is to spend over £1 billion across the UK to revitalise the housing market.

Up to £54 million a year will be made available to 12 'Pathfinder' areas over the next three years and Merseyside, East Lancashire, Salford, South Yorkshire and Northern Staffordshire will all receive £100 million.

Housing Market Renewal programme focuses on areas where house prices have collapsed and abandonment is widespread.

Housing minister Iain Wright said: "The Housing Market Renewal Programme has been vital for restoring confidence in some of the most disadvantaged areas of the country.

"This substantial funding, together with increasing investment from the private sector and support from local authorities and others, will help the market renewal areas take forward their ambitious programmes to bring real change to places which only five years ago were facing decline and abandonment.

"This is a long-term programme, and there is still much work to do."

So far £1.2 billion has been invested in the scheme with 40,000 home refurbished, 10,000 properties demolished, and 1,100 homes built.

A national Audit Office study of the scheme so far reveals a closing of regional house price gaps within Pathfinder areas, and rises in house prices.

Areas to receive funding are: Birmingham Sandwell, East Lancashire, Hull and East Riding, Manchester Salford, Merseyside, Newcastle Gateshead, North Staffordshire, Oldham Rochdale, South Yorkshire, Tees Valley, and West Cumbria.