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Two 鈥渟hadow鈥� pathfinders in the West Midlands have received 拢2m from the regional housing board to work up proposals to tackle falling demand for homes.

Black Country & Telford and East Birmingham & North Solihull join three other areas that have asked the ODPM for funds or plan to do so in the near future (鈥淲aiting in the wings鈥�, fact file).

The ODPM indicated in July鈥檚 comprehensive spending review that it would give cash to low-demand areas outside the pathfinders. However, the earliest these funds will be available is April 2007 (HT 16 July, page 9).

The nine pathfinders in the North and Midlands are sharing a 拢500m pot.

Black Country & Telford, which would consist of five local authorities, is planning to develop a strategy detailing how the authorities would 鈥減rovide a vehicle for transformation in the region鈥�.

Jason MacGilp, assistant director of community regeneration and housing at Walsall council, said: 鈥淲e鈥檙e working on a prospectus for a potential housing market renewal area. It鈥檚 about how local authorities can coordinate their activities on regional housing issues, and provide a vehicle for transformation in the region.鈥�

Potential intervention areas in the area include central and north Walsall, Tipton, central Wolverhampton, Bilston and Oldbury.

East Birmingham & North Solihull is also developing 鈥渟trategic investment plans鈥�, according to a council source. This would be in addition to the pathfinder in Sandwell.

A spokeswoman for Birmingham council said East Birmingham & North Solihull was not bidding for pathfinder status.

But Christopher Downes, regional officer at the National Housing Federation, said Black Country & Telford and East Birmingham & North Solihull could use the prospectuses as the basis of bids to become pathfinders.

He added: 鈥淚t鈥檚 part of what鈥檚 happening. There has been some money from the regional housing board to work up a prospectus that would provide evidence to build up a case.

The government may say we need more of these pathfinders, centrally driven.鈥�

An ODPM spokeswoman said the department had no plans to create new pathfinders.