4 Areas outside the Pathfinders
72. The Pathfinder programme covers about 50 per
cent of the areas with serious concentrations of housing demand
problems. The challenge of tackling low demand where the problem
is more diffuse has yet to be effectively addressed. Some of the
evidence suggested that these areas are indeed losing funds as
a result of the Pathfinders being established. The Audit Commission
pointed out that local authorities are required to consider the
state of the housing markets in their housing strategies but they
cannot effectively address them without additional funds.
Mainstream resources have in the past been insufficient
to tackle weak housing market problems. This has now been acknowledged
by Government and led to the establishment of Market Renewal Pathfinders.
Nevertheless, this only addresses the problems in the intervention
areas in the 25 local authorities included in the Pathfinders.
Pathfinders have identified a need for significant
public sector resources to research the problems; finance a major
portion of their early programmes; engage partners effectively;
and gain the trust of residents. If interventions elsewhere are
necessary to transform localities rather than ameliorate the current
difficulties, they too will need proportional additional resources.[46]
73. Our evidence suggests that in fact the areas
with low demand outside the Pathfinders are losing funds, with
the Housing Corporation, for example, concentrating on the Pathfinder
areas in the North and Midlands. The Housing Company, Bolton at
Home, told us:
Leaving aside our concerns that Bolton was not
considered to merit Housing Market Renewal Funds despite our low
demand issues closely mirroring those of Rochdale and Oldham,
we have been reasonably optimistic in believing that the benefits
of Housing Market Renewal Funds to the sub-region would spread
wider than the Pathfinders, percolating across local authority
boundaries. At the very least we expected that the six local non-Pathfinder
authorities would not actually lose regional allocation in real
terms but that the Housing Market Renewal Funds would result in
a rise in regional resources, with no top-slicing to our detriment.
When the Centre for Urban and Regional Studies identified 50%
of regional low demand outside the Pathfinders our natural presumption
was that Bolton, as one of these areas of low demand, would still
be given priority for allocation as recognised in the Regional
Housing Strategy. Unfortunately, in reality, there has been an
overall diminution of resources directed towards non-Pathfinder
authorities. The Housing Corporation for instance have reduced
ADP within Bolton (for the period 2004/06) by over 90%, a swingeing
cut that ignores the fact that our housing problems continue irrespective
of the need to increase funding into HMRF Pathfinders.[47]
Knowsley Council warned that the loss of funds could
destabilise regeneration initiatives in areas outside the Pathfinders:
In itself the Merseyside Housing Market Renewal
Pathfinder is unlikely to have any adverse affect on Knowsley's
housing, social and economic regeneration. However, Knowsley's
renaissance relies upon a mixture of public and private funding
and there is evidence that the Pathfinders may be being resourced
at the expense of other schemes...However, it is vital that the
interrelated strategies and mix of public and private funding
mechanisms, which are the ingredients of Knowsley's success, are
not destabilised by the Housing Market Renewal initiative. Housing
markets are both complex and unpredictable with even the most
robust plans exposed to risk of collapse by the slightest, unexpected
change.[48]
74. The Audit Commission pointed out that the Pathfinder
initiatives can recycle the capital receipts secured from the
sale of sites. It suggests that, "If those authorities outside
the pathfinders, with a clearly evidenced problem, were allowed
to recycle capital receipts in the way Pathfinders are, this scope
could be greatly enhanced." [49]
75. Some of the submissions proposed a more strategic
approach to tackling low housing demand. The Chartered Institute
of Housing said that
Whilst the work of the Pathfinders should help
to develop techniques and strategies for addressing the problems
in these remaining areas, action to prevent further decline in
non-Pathfinder areas is needed now. Regional Housing Boards have
begun to tackle this as identified in Regional Housing Strategies
but need a funding mechanism. To achieve this aim, a National
Strategy for Housing Market Restructuring should be developed.[50]
The ODPM has a PSA target "to achieve a better
balance between housing availability and the demand for housing
in all English regions while protecting valuable countryside around
our towns, cities and in the greenbelt - and the sustainability
of existing towns and cities - through specific measures to be
set out in the Service Delivery Agreement."
76. The additional funds targeted at Pathfinder areas
are needed to tackle their low demand problems. The Pathfinders'
success will not be emulated on the same scale in other areas
unless additional funds are identified for them. The Government
should consider allowing local authorities outside the Pathfinders
with areas of low housing demand to recycle their capital receipts
where they are selling housing sites for redevelopment. It is
vital that regional allocations do not take funds away from other
areas, by concentrating funds solely on Pathfinder areas. The
Housing Corporation should review its allocations so that they
address the housing needs equally and achieve a better balance
of support across low demand areas.
77. Measures to tackle low demand should not be
confined to setting up the Pathfinder initiatives but should be
part of a systematic sub-regional appraisal. The Government should
also develop a coherent strategy 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. There should be a review of the extent to which
infrastructure necessary to support growth in South East takes
so many resources that it prevents necessary and similar expenditure
in low demand and Pathfinder areas.
46 EV 65, HC 295-II, Session 2004-05 Back
47
EV 28, HC 295-II, Session 2004-05 Back
48
EV 39, HC 295-I, Session 2004-05 Back
49
EV 65, HC 295-II, Session 2004-05 Back
50
EV 33, HC 295-II, Session 2004-05 Back
|
