The nine housing market renewal pathfinders in the north of England and the Midlands will be scrutinised by an independent body that will make regular progress reports to the government.
The Office of the Deputy Prime Minister is preparing a specification study into the precise brief for the watchdog. The brief is expected to be complete within months and describes the sort of role that seems likely to be undertaken by the Audit Commission, although the ODPM has stressed that the work could be done by another organisation.

It is understood that the progress reports will allow the deputy prime minister John Prescott to keep a close eye on whether or not the pathfinders are hitting the targets outlined in their action plans.

At this stage it is unclear what steps could be taken against those that fail to deliver on their promises.

Of the nine pathfinders announced by the government in April for areas where cross-tenure demand for housing has hit rock-bottom, three are at an advanced stage of preparation.

The Birmingham and Sandwell pathfinder has already submitted its bid for start-up funding of £2.7m.

According to the government, part of this will be used to show residents that the projects are under way, but most will be spent on developing a robust action plan.