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Thirteen Liverpool housing associations have struck a deal to map out the future of housing in the city – and tackle its 123,000 homes at risk of low demand.

Under the deal, agreed last week, some larger associations will take over the stock of smaller ones to boost efficiency.

The associations have agreed that the present situation – where numerous registered s0cial landlords operate in often small areas – is counter-productive.

Deborah Shackleton, chief executive of Riverside Housing Association, one of the members, said: "It gives all associations the chance to fulfil a role in neighbourhoods according to their interest and experience."

The 13 associations are Riverside Housing, Arena, Maritime, CDS, Liverpool Housing Trust, Rodney Housing Association, Venture Housing, Steve Biko Housing Association, Pierhead, Pinecourt Housing Association, Servite Homes, Cosmopolitan Housing and South Liverpool Housing.

They will work in Merseyside's market renewal pathfinder, each taking the lead in one of 13 renewal zones. The other associations will take a secondary or tertiary role in that zone, or bow out altogether.

The agreement is known as LIFE, because each association has to decide whether its strategy is to lead, influence, follow or exit the housing market in any particular zone.

The deal will be formally presented to the council in the next few weeks. Details of which housing association is taking which role in each area will remain confidential until the plan has passed through council.

The extent of the associations' role has not yet been fully defined, and will differ between areas. In some cases, associations may take over neighbourhood management work now done by Liverpool council.

Derek Long, lead policy officer for the Merseyside pathfinder at the Office of the Deputy Prime Minister, said: "We support and welcome this initiative as one way of developing associations' engagement within the pathfinder's areas."

Liverpool has led the way on stock swaps, with Riverside and Liverpool Housing Trust exchanging 360 homes last autumn (HT 31 October 2002, page 13).

Matthew Gardiner, chief executive of South Liverpool Housing, said: "The partnership between the associations is quite mature. There have already been stock swaps and this is a different way of consolidating the role of associations."

The Merseyside pathfinder has relaunched. It will now be known as the "New Heartlands" pathfinder and chaired by John Glester. Glester said the new chief executive would be named when she finished her current job.