Three of the next-generation pathfinders that missed out on the government's £500m housing market renewal funding are to work together to lobby ministers for money from the spending review next year.
The three – Tees Valley, West Cumbria and West Yorkshire – have heard encouraging noises from the Office of the Deputy Prime Minister over the past month. Each has received visits from Whitehall officials to discuss their situations.

Eric Bowen, director of housing at Leeds council, said: "We've been working in West Yorkshire since the original nine pathfinders were announced 12 months ago. We have identified what we feel are hotspots and emerging areas of low demand.

"There are 27 areas across Leeds, Bradford, Calderdale, Kirklees and Wakefield. This includes a total of 163,000 properties, of which 71,000 are at risk."

Bowen said West Yorkshire would tell the ODPM that the problem was not irredeemable but that money was needed now, rather than in five years' time when the area's troubles would cost much more to put right. He was unable to put a figure on how much investment was needed.

Bowen said the next step was to get in touch with the other two areas to decide how best to get their arguments across. This will be followed by attempts to access funding through the new regional housing board and generating support from local politicians.

A regeneration source working with the next generation of pathfinders said: "We are looking at a fully integrated strategy to help tackle low demand.

"Each pathfinder will 'only' be able to access about £50m over the next three years. This is better than a slap in the face, but is definitely something that is attainable for others through other sources of funding such as the regional development agencies and private investment. So we have an opportunity to 'leapfrog' the pathfinders, if you like."

A spokeswoman for the ODPM said: "There are currently no plans for further pathfinders.

"We will continue to work with all areas suffering from low demand in order to share lessons from existing pathfinders and to work towards innovative ways of tackling low demand."