Pathfinders 'yet to be proven' a success

The government's Housing Market Renewal: Pathfinders scheme has yet to prove itself a success, according to the Committee of Public Accounts (CPA).

Presenting its final report into the scheme – initially launched in 2002 to tackle acute low housing demand in nine areas in the north of England and Midlands – the CPA said it was "too early to judge the overall success of the programme".

However, the report was less than glowing in several areas.

While the Programme managed to refurbish over 40,000 homes, it also acquired and demolished 10,000 - and yet built only 1,000 new homes.

In the view of the committee this created a risk that demolition sites, rather than newly built houses, will be the programme’s legacy.

Commenting on the report CPA chairman, Edward Leigh, said: "The scheme has been more successful at demolishing old homes than at building new ones.

"The Department for Communities and Local Government (CLG) must work to foster confidence among local residents, especially where the programme has led to community stress.

"It does not help where demolition plans threaten the distinctive historical character of neighbourhoods."

While acknowledging the gap in demand for housing around the Pathfinder sites had "started to close", the increase in demand was less than that seen in other non-pathfinder areas.

It has proved impossible to determine if pathfinder-led interventions were responsible for this, or wider market factors.

"Even though the programme is now five years old and some £2.2 billion investment has been committed, it is difficult to tell whether pathfinder interventions are having any more effect on local housing demand than the normal operation of the market," argued Mr Leigh.

In response he argues: "The department should draw on a wider range of socio-economic indicators to determine the extent to which pathfinders are having a beneficial effect on deprived neighbourhoods."

Areas included in the scheme include parts of Newcastle, Gateshead, Hull, Sheffield, Barnsley, Rotherham and Doncaster.

The CPA also pointed out deficiencies in compensation offered to those who lost their homes to compulsory purchase orders.

The report finds average shortfall between the compensation received by existing resident and the cost of a suitable alternative property was £35,000 – creating the risk that existing residents are priced out of the housing market altogether.

"The desire of those who wish to continue living in their areas should not be disregarded," concluded Mr Leigh.

"Ways need to be found of helping existing residents bridge the gap between the compensation they receive under a compulsory purchase order and the cost of another local property."

Chris O'Toole