To reverse this trend, which has damaging social consequences, the government has just made the first grant of £125 million ($210 million) out of its £500 million ($835 million) housing market renewal fund. The money will go to revitalise communities in the Salford area of Manchester blighted by collapsing housing demand.

The area is characterised by falling property values, leaving many owners in negative equity and a poor living environment. This has resulted in an exodus of economically active households while those unable to move are trapped in spiralling decline.

Announcing the grant Deputy Prime Minister John Prescott said: "Everyone has the right to a decent home, a home in a real community. The significant investment and action for Manchester Salford will break the cycle of deprivation and breathe life into the local communities that for too long have suffered from the blight of low demand."