IN 2003 Elevate was born and given millions to transform East Lancashire’s rundown housing market.

Five years on and things have changed massively.

House prices have rocketed but now the global economic crisis is taking hold.

Elevate chief Max Steinberg said this week he needs £1billion to get the area back on its feet.

He spoke in depth to us about how he will bring about the transformations promised in 2003.

WITH property developers shedding jobs and new building projects being shelved across the country, it’s hardly surprising the credit crunch has bitten hard on the regeneration of East Lancashire housing.

Developments earmarked under the latest funding allocation may be delayed, said Elevate chief executive Mr Steinberg.

He admitted regeneration plans were being “reassessed” as the number of private developers willing to take part dries up.

But he insisted the Elevate team was not “sitting on their hands” and said the 15-year project would continue.

The effects of the economic crisis on the Housing Market Renewal scheme were brought into sharp focus last month when Gleeson Regeneration pulled out of plans to build hundreds of new homes in Burnley, blaming the credit crunch.

And while Mr Steinberg said he expected the “vast majority” of new projects to go ahead, he admitted said there could be a wider impact.

He said: “We are not immune from the credit crunch issues which are happening nationally.

“We are readjusting our plans. The fact is the credit crunch is having an effect on Pennine Lancashire, but having said that buildings are coming out of the ground, for example at the Infirmary in Blackburn.

"Three or four years ago we could not have known the conditions that apply to the housing market would have come about, so we have to reassess that.

“We will probably see some of the new-build that we anticipated seeing sooner coming out further down the track.”

But despite problems facing developers, Mr Steinberg said East Lancashire could not be allowed to fall further behind other areas.

He added: “People think these things will never end. But they will and we need to be ready.

“We can’t be behind the game. We can get the sites ready and start talking to developers and we’re not going to walk away from these areas.

“We have to face facts that circumstances have changed.

“There will be delays and that’s regrettable. But we are looking to provide a housing offer whatever the circumstances and we are working with councils where developers are showing signs of wanting to delay starting on site.

“We are not in the business of sitting on our hands. We are trying to produce something that will last 50 to 100 years.

“If we allow a two-year period to dictate the outcome that would be a mistake.”

* A defeat for the Labour government, which set up the nine housing market renewal pathfinders, should not mean the end of housing market renewal, Mr Steinberg said.

Earlier this year Tory leader David Cameron would not confirm whether he would persist with the policy, which has been criticised by the right-wing press, when asked by the Lancashire Telegraph.

But Mr Steinberg said he had already held meetings with key Conservative figures in an attempt to preserve the scale of investment.

He said: “We have met the Conservative housing spokesman. I can’t predict what will happen but I do know that they need to invest.

“We have been quietly trying to get across to the Conservatives that talk of demolishing the north and concreting the south is just hyperbole.

“We need to take out these misrepresentations.

“My argument would be I hope they can see the success of what’s happening, and that there’s more to be done.

“Turning around this type of thing takes longer than five years.”

And there could be more cash heading for East Lancashire in the short-term.

Mr Steinberg confirmed he has bid for a 10 per cent increase in government cash over the next two years.

* Difficulties facing would-be mortgage holders have not been far from the headlines, and this is having an effect on East Lancashire’s regeneration.

Buyers are struggling to get credit for even the affordable houses provided by Elevate, leading to an increase in rental accommodation.

This has been reflected in a change of emphasis towards refurbishing existing houses, rather than demolition.

Mr Steinberg said: “We need increasing levels of affordable housing in the area, but people are saying they can’t always bridge the gap between mortgages.

“They are telling us they want to access owner occupation, but that’s become more difficult.

“Because of the difficulty accessing mortgages, we are looking at how we can still make something available.”

One of the aims of Elevate when it set out was to reduce the amount of rental properties, and enable more people to take ownership of their homes.

But Mr Steinberg said: “But we are still behind the national figures on owner occupation.

“We don’t want to rid our areas of rental properties but we do want to create better offers.”

* While it has made headlines for its housing work, a crucial part of the regeneration project has been the emergence of the “Pennine Lancashire” brand.

Adverts have been placed in national newspapers and in key locations like Manchester Piccadilly station in an attempt to raise the area’s profile and attract investment.

New works of art for town squares across the area will also be part of the project.

It is seen by council leaders as essential for the future of the area, but has been branded “patronising” by some.

Mr Steinberg, who said 93 per cent of Elevate’s grant money still went on housing projects, said it was an essential piece of the jigsaw.

“It’s a process of osmosis. If we can associate Pennine Lancashire with positive change, people will want to be involved.

“If house prices start rising again – credit crunch allowing – and businesses want to buy into positive image, all of that will happen.

“There’s no point me going to someone on the street saying this is Pennine Lancashire.

"What we need to do is show it’s a meaningful and successful brand.

“Part of what we are doing is to make sure people who form opinions in the government know something is happening and see us as a priority.”

Burnley council bosses are dragging their feet over whether they will fully take part in the new multi-authority Pennine Lancashire project that will eventually consume Elevate.

Mr Steinberg added: “Burnley have raised some important issues and we are holding regular meetings and remain hopeful it can be solved.”