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The Housing Corporation has awarded the association a 拢300,000 grant to build 12 homes to rent in Ord Avenue on North Tyneside under its 'new tools initiative'. Home has bought 72 of the 92 homes in the area and begun clearance.

It has also negotiated a deal with a building society to write off some owner occupiers' negative equity, allowing them to move out.

Ord Avenue is a pilot for the new tools initiative, which aims to seek innovative funding mechanisms and approaches to deal with areas falling into dereliction.

The association chose it because it is close to two estates, one owned by Home and the other private, whose future could have been threatened.

Instead of the council declaring a renewal area, Home negotiated with individual owners to help them move out and find new accommodation.

Regional operations director Jim Rafferty said the scheme had proved useful in dealing with small, self-contained areas but was unlikely to work on a large scale.

"It is very slow, and very labour intensive," he explained. "We have also found that in negotiating voluntary agreements with owners, you need a vigorous declaration that the local authority, as strategic partner, will back the scheme with compulsory purchase orders if necessary."

The corporation is putting 拢2.7m into new tools in the north west this year, and 拢1.4m in Merseyside.

Three schemes are currently running in the north east and more are expected to bid for funds in the coming months.

Assistant investment director for the north east, Jane Stuart said: "It has taken a little time to get the tools refined, and there have been someteething issues. But it has certainly proved useful as part of our strategy."