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Four of Britain’s major housebuilders have signed a controversial regeneration deal in Liverpool.

David Wilson Homes, Gleesons, Keepmoat and Bellway will build up to 15,000 homes as part of the government’s Housing Market Renewal Initiative.

The four developers will take on different areas of the city under the 12 year deals. David Wison will be lead developer for the northern part of the city centre, Keepmoat will take on the Stanley area, Bellway the Wavertree area and Gleesons the southern part of the city centre.

Councillor Flo Clucas, Liverpool's executive member for housing, said: "We want to improve those areas that are suffering from years of under-investment and market collapse, but at the same time we want residents to have a major say in how their community is shaped for the future. We are preserving the best of the old while creating the best new buildings."

The government’s housing market renewal scheme became mired in controversy after protests at the demolition of terraced homes to make way for new properties. The demolished houses will include the birthplace of Beatle Ringo Starr.

Deputy prime minister John Prescott visited Liverpool on Friday and defended his housing market renewal pathfinder plans. He said: "We have consulted with local people and the majority of them have said they want new homes. Many of the people calling for them to be saved live down south and wouldn't live in houses like that, so why should these people?"