The government has made two of the areas that missed out on market renewal pathfinder status into low-demand pilots.
The two – understood to be Hartlepool and Leeds – join three other areas, Bolton, Stoke and Burnley, in exploring alternative approaches to tackling low demand on individual estates. Stoke and Burnley are also already in pathfinder areas.

The five pilots were trailed in the Communities Plan but their identities were not due to be formally announced by the Office of the Deputy Prime Minister until June.

Each authority is understood to be in line to receive £2m over the next two years.

They will be expected to use a range of existing measures, rather than those that are due to be announced in upcoming legislation, and report their findings to the government in 2005.

The most useful tool, announced in last month's draft Housing Bill, will be the ability of councils to licence private sector landlords, but it is understood that the government wants to explore other powers such as small-scale demolitions.