Housing Market Renewal

This section explains the Housing Market Renewal Programme, its objectives and how it is being funded.

Housing Market Renewal (HMR) is a programme to rebuild housing markets and communities in parts of the North and the Midlands where demand for housing is relatively weak and where there has been a significant decline in population, dereliction, poor services and poor social conditions as a result.

Its objective is to renew failing or weak housing markets and reconnect them to regional markets. £1.2 billion has been invested between 2002 and 2008 and the Government has committed approximately £1 billion to the programme over the period 2008-2011. Nine pathfinders are being used to turn neighbourhoods around so that people want to live and work in these areas again, and to ensure that communities can remain together.

People living in areas affected by low demand often have limited housing choices. Their homes are typically valued at prices significantly below local averages, making it difficult to move, even if the home is no longer suitable for their needs. The stock available to them is often unpopular, with high levels of vacancies, and in poor condition. People have found themselves trapped in homes they cannot afford to maintain or improve.

In 2002, nine such areas were identified by the Government as needing specific housing market renewal support through the pathfinder programme:

Birmingham/Sandwell,
East Lancashire,
Hull and East Riding,
Manchester/Salford,
Merseyside,
Newcastle/Gateshead,
North Staffordshire,
Oldham/Rochdale, and
South Yorkshire.

In 2005, three areas of low demand were also indentified; West Yorkshire, West Cumbria, and Tees Valley.

The pathfinder programme is not just about housing. It is part of a much wider concerted effort to revitalise communities and economies across the North and West Midlands. It is at the heart of efforts to make cities more competitive because decline cannot be reversed unless cities can offer the quality and choice of housing that people are looking for.

The pathfinder approach

Pathfinders are partnerships between local authorities and other key regional and local stakeholders. Together they combine local knowledge and expertise and work to ensure that intervention in the housing market contributes to broader economic development and leads to sustainable communities where people are proud to live.

Pathfinders are working to ensure that people have a real choice about staying in their areas and are not forced out because of the poor quality of housing. They do this by providing a choice of better quality homes, through a mix of refurbishment, clearance and replacement, as well as some environmental works. This complements the wide range of regeneration activity that is happening in many of these areas.

Funding market renewal

Between 2002 and 2008, the Government invested around £1.2 billion in the Housing Market Renewal programme, with approximately £1 billion available for 2008-2011. This funding is used to finance capital investment in the housing market and supporting infrastructure that other regeneration programmes have not been able to make on the necessary strategic scale.

HMR partnerships were given a three year budget for the CSR period 2008-11, announced by a Ministerial statement to Parliament on 28 February 2008; this included a final allocation for 2008/9 and indicative allocations for the remainder of the CSR period with a confirmed amount of 90 per cent.

Final allocations for 2009/10 were announced on 10 March 2009; pathfinders were awarded the confirmed 90 per cent funding with a further 10 per cent available based on strong performance. Progress towards meeting criteria set for the additional 10 per cent funding was assessed by the HCA early in July 2009 and John Healey announced the additional ten per cent for all pathfinders on 17 July 2009.

A full allocation of £311m for 2010/11 was announced by John Healey on 23 December 2009.

In addition to market renewal funding, the pathfinders draw on a wide range of other funding streams from local authorities and other public bodies, as well as significant investment from private sector sources.

Working with communities

Working with communities is critical to developing effective programmes and all pathfinders work closely with their residents to develop proposals which help their community. Pathfinders consult with the community to ensure that proposals gain support from the majority of residents. They also provide a full package of support to manage the transition, including assistance with relocation.

Design and the built environment

Quality in the design of new housing will play an important part in turning around these areas and pathfinders are working closely with the Commission for Architecture and the Built Environment (CABE) (external link) to carry out this work. There is a strong focus on cross-pathfinder design quality and urban functioning with excellent work being done on pathfinder projects by CABE representatives.

Homes and Communities Agency

From 1 December 2008, implementation of the HMR programme has been the responsibility of the Homes and Communities Agency (external link) within a policy framework set by Communities and Local Government.