ODPM pressed to pay for market renewal work in five shadow pathfinders

Two “shadow” pathfinders in the West Midlands have received £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 (“Waiting in the wings”, fact file).

The ODPM indicated in July’s 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 £500m pot.

Black Country & Telford, which would consist of five local authorities, is planning to develop a strategy detailing how the authorities would “provide a vehicle for transformation in the region”.

Jason MacGilp, assistant director of community regeneration and housing at Walsall council, said: “We’re working on a prospectus for a potential housing market renewal area. It’s about how local authorities can coordinate their activities on regional housing issues, and provide a vehicle for transformation in the region.”

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

East Birmingham & North Solihull is also developing “strategic investment plans”, 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: “It’s part of what’s 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.”

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