Audit Commission

Pathfinders working within the government's Housing Market Renewal programme to tackle a declining demand for housing in the North and Midlands now have a clearer understanding of what drives the markets according to an Audit Commission report published today (Thursday, 14 December).

But the report, Housing Market Renewal Annual Review 2005/06, says pathfinders still need to refine their thinking to understand the relationship between affordable housing for rent and other tenures in the face of low house values. And they also need to work to sustain marginal owner occupation and develop solutions, including appropriate alternatives for low income homeowners, that are sustainable in the long term.

Value for money awareness among pathfinders is underdeveloped and has improved little, although there is a better understanding of complementary funding and the holistic approach towards market renewal. Work is needed to develop a rigorous approach to value for money, which includes option appraisal and programme management to maximise the added value delivered by the programme.

Roy Irwin, Chief Inspector for Housing at the Audit Commission, said:
'Although debate about the pathfinder concept continues, the Commission's ongoing work has identified good progress since last year's report. The current pathfinder approach of dealing with areas of substantial deprivation across local authority boundaries and seeking strategic integration of policies at a regional and sub-regional level to achieve holistic regeneration remains sound.'

Local consultation and masterplanning is ongoing and overall a balanced approach is being taken to market interventions, which sees clearance as one option among many.

Pathfinders for Housing Market Renewal were announced by the then Office of the Deputy Prime Minister in April 2002 to tackle some of the most serious and long-standing housing problems in England.

Housing markets in these areas have typically suffered from low demand and in the worst areas some properties were simply abandoned where demand had collapsed altogether. People who could, moved out of these areas resulting in neighbourhoods characterised by boarded-up houses, few shops, high crime and poor environments.

Notes to editors

1. A copy of the report is attached. Interviews with report author Mike Maunder can be arranged through the media office.
2. Housing Market Renewal is a government policy initiative designed to address some of the most serious and long-standing housing problems in England. It is aimed at restructuring the housing market in a particular area and is based on an assumption that sustainable communities have healthy housing markets.
3. Pathfinder areas have been drawn up to reflect the operation of housing markets within a sub-region. They are not restricted by local authority boundaries. The nine pathfinders are: Newcastle and Gateshead; Hull and East Riding of Yorkshire; South Yorkshire (Sheffield, Barnsley, Rotherham and Doncaster); Birmingham and Sandwell; North Staffordshire (Stoke on Trent, Staffordshire Moorlands, Newcastle under Lyme); Manchester and Salford; Merseyside (Liverpool, Sefton and Wirral); Oldham and Rochdale; and East Lancashire (Blackburn with Darwen, Hyndburn, Burnley, Pendle, Rossendale).
4. The Housing Market Renewal programme is supported by the Audit Commission, which was appointed in December 2002 by the then Office of the Deputy Prime Minister to act as a "critical friend", scrutineer and performance monitor.
5. The Audit Commission published a Best Practice Handbook in February 2005 to make practical recommendations to pathfinders as they seek to improve their performance in strategy development and programme delivery. It can be found at www.audit-commission.gov.uk/housing
6. The Audit Commission is an independent body responsible for ensuring that public money is spent economically, efficiently and effectively, to achieve high-quality local services for the public. Our remit covers around 11,000 bodies in England, which between them spend more than £180 billion of public money each year. Our work covers local government, health, housing, community safety and fire and rescue services.
7. As an independent watchdog, we provide important information on the quality of public services. As a driving force for improvement in those services, we provide practical recommendations and spread best practice. As an independent auditor, we ensure that public services are good value for money and that public money is properly spent.
8. Further details about the role of the Audit Commission can be obtained from - http://www.audit-commission.gov.uk