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The Committee's 2002 report on Empty Homes pressed for urgent, radical action to tackle the needs of areas where the housing market had collapsed, with large numbers of homes standing empty. The Government has allocated £1.2bn between 2004 and 2008 to the Housing Market Renewal Initiative which is seeking to make a significant impact in nine Pathfinder areas in the North and the Midlands. The Committee is concerned that the Government does not have clear objectives for the programme and is not collecting comparable data to determine whether its aim to eradicate the problems caused by low demand housing by 2020 will be achieved. The Government recognises that tackling low demand could take up to 15 years, but as yet has made no long term commitment to the Pathfinder initiatives so that they can enter into long-term agreements and start the Compulsory Purchase Order process which might take up to six years.
Some Pathfinders have begun to implement large-scale projects for refurbishment. Demolition, and redevelopment is also part of the programme and up to 200,000 homes could be demolished. Concerns have been expressed about the scale of demolitions envisaged and the impact on vulnerable communities. The Pathfinders need to consult better with local communities and consider different options for improvements, including more refurbishment of the existing housing so that the heritage of the areas is preserved and forms the basis for their regeneration.
There is broad recognition that the communities need support during this period of transition but the availability of revenue funding is extremely limited. The Pathfinder initiatives should be allowed to spend a significant proportion of their funds on helping communities through the transition. In some areas the property market is improving. The Pathfinders need to gather good market information and should be allowed to modify their programmes if the upturn appears sustained. Mainstream service providers need to make commitments to maintain and improve services as areas are redeveloped.
The Pathfinders only include about 50 per cent of the areas with serious problems of low demand and the other areas are not receiving any additional support. Action to address low demand should not be confined to the Pathfinder areas, and the Government needs to identify additional funds for the other areas. A more coherent strategy is required for intervening in housing markets so that housing demand is better balanced between the parts of the greater South East with a severe supply shortage and the areas suffering from low demand and housing surpluses in the Midlands and the North.
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