Heritage campaigners have called on the government to give homeowners whose dwellings have been demolished as part of a housing market renewal pathfinder scheme a bigger cut of the resulting profit.

The report, which was published by the campaign group SAVE Britain's Heritage, said homeowners should enjoy a larger share of the increase in land values.

It said: "Such value should belong to the homeowners and tenants, and not the pathfinder agencies, nor the registered social landlords."

It added that the designation of areas as housing market renewal pathfinders has undermined confidence in such neighbourhoods and "created uncertainty among inhabitants, owners and potential investors".

The pathfinders are intended to recreate housing markets in areas where prices have collapsed.