The government has bowed to rising pressure and extended its £1.28bn housing market renewal programme to include three new areas
Tees Valley, West Yorkshire and West Cumbria will share £65m from the housing market renewal fund from April 2006. They will not receive the funding directly but through their regional housing boards, and it is only guaranteed from 2006 to 2008. In contrast, the original nine pathfinders were asked to produce 10- to 15-year action plans.
It is thought £15m will be available in 2006/7 with the remaining £50m allocated in 2007/8.
The allocation was widely welcomed in the areas, which were disappointed to miss out when the nine pathfinders were announced in 2003 and have since campaigned for recognition of their own extensive low-demand problems. But they say more money, and funding certainty, will be needed beyond 2008 if any long-term impact is to be achieved.
Lindsay Greenfield, director of West Yorkshire Housing Partnership pathfinder, said: “It’s unclear how much follow-through there’ll be. Estimates suggest over the next 15-plus years £800m to £900m is needed. The funding gap is £400m to £500m.â€
Five new growth areas in the South-east and adjoining regions will share a £40m pot. Until consultation on the areas is completed, they will not be officially confirmed, but significant amounts are likely to be spent in South Hampshire, including Portsmouth and Southampton. The money will be made available between 2006 and 2008.
The new growth areas, covering Portsmouth and Southampton, joins the original four growth areas in Milton Keynes, the M11 corridor, Ashford and the Thames Gateway.
Why these new areas need help
Tees Valley
Population: 650,000
Homes at risk from low demand: 57,000
Average house price: £108,000 ( £30,000 in four postcodes)
West Yorkshire
Population: 2.1 million
Homes at risk from low demand: 174,00
Average house price: £125,000 (up 25% in two years)
West Cumbria
Population: 145,000
Homes at risk from low demand: 1500 in Barrow
Average house price: £40,000 in Barrow
Source
Housing Today
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