MERSEYSIDE’S housing market renewal initiative (HMRI) may be speeded up by the credit crunch, council leaders said last night.

It came as Liverpool City Council and regeneration agency Newheartlands gave their five-year on assessment of HMRI, which aims to tackle housing market failure within the region and place housing at the heart of regeneration to create sustainable communities for the future.

With the price of property falling, officials hope to assemble land for development quicker and cheaper than previously.

Cath Green, Liverpool’s assistant executive director for housing, said developers remained deeply committed to the programme.

Work on a new scheme in Rock Ferry, in Wirral, to build 283 homes, will start on Friday, September 19.

Liverpool’s Edge Lane scheme has faced delays because of a public inquiry into a Compulsory Purchase Order – the result of that is now expected next month.

In the first five years, around 1,100 new homes have been built, 1,300 have been demolished, and 13,000 have been renovated across Merseyside.

The next three-year plan, which has been given £152m of funding (the biggest allocation of any of the nine “Pathfinder” areas) should see 2,300 new homes built, 2,100 demolished and 7,600 refurbished. Newheartlands will concentrate development in Bootle, Birkenhead, Princes Park, Anfield and Kensington.

In Liverpool, £87m will be spent over the next three years, and nine sites are currently in the process of development to build 835 new homes.

Liverpool council leader Warren Bradley said: “At the heart of this is our determination to rebuild whole communities, not just houses.

“We are looking at public safety, green spaces, and prosperity.

“In other words, helping people achieve their aspirations for the way they want to live their lives.”