Birmingham council believes that bringing all its homes up to the decent homes standard by 2010 would be a waste of money.
The council said last week that it needed an extra £165m to meet the decent homes standard, but added that even if it were to get extra funds some of its homes would remain difficult to let. Birmingham's housing revenue account business plan, sent to the council cabinet on Monday, estimated it would need at least £1.016bn over the next six years.

However, it is understood that this takes into consideration only the minimum cost of achieving decent homes and does not include any wider regeneration work.

Lisa Trickett, Birmingham's assistant head of housing strategy, said: "In some areas we have a shortage of affordable homes, in others we have lots of inappropriate stock. Simply meeting the decent homes standard will not make properties easier to let."

Trickett said the council would look to invest in stock in "the most sustainable areas of the city".

The plan also concluded that Birmingham needs almost 16,000 more affordable homes over the next five years.

Birmingham has a clearance programme of about 1300 homes a year and its policy of directing future investment away from low-demand areas could lead to a further drop in its stock of 80,000 homes.