The troubled Hull & East Riding market renewal pathfinder, The Gateway, received a boost on Tuesday with the announcement that the ODPM could make up to £51m available for its programme

The news came despite a damning Audit Commission report, published on Tuesday, which said it was “unclear how the pathfinder’s ambitious long-term targets are to be achieved”.

“Its [The Gateway’s] programme for the first three years could have little impact on the current oversupply of housing because of plans to build first and clear later,” the report added.

In comparison with the other eight pathfinders, The Gateway has made been slow to get its programme up and running. This has been partly due to problems at Hull council, which was placed under supervision in 2003.

But The Gateway will now be able to start regenerating five priority neighbourhoods in the city after the ODPM said it would initially allocate £16m, plus a further £35m depending on its assessment of Gateway’s second pathfinder prospectus in 2006.

The five priority areas of Hull are: Newington and St Andrew’s; North Bransholme; Ings; Orchard Park (The Thorpes); and Preston Road. Works will include the demolition of about 150 empty and abandoned properties, as well as the building of 50 homes.

Stuart Whyte, chair of Gateway, said: “This announcement is great news for Hull and the East Riding. The funding marks the start of a massive investment in housing, which will have a major impact on development in the region.”