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The offer, contained in submission to the Treasury鈥檚 Comprehensive Spending Review, is being put forward as part of a wider package to safeguard the initiative鈥檚 long-term funding.

The proposal was put together by consultant Ecotec on behalf of the chairs of the nine pathfinder areas.

It says: 鈥淭he pathfinders should be prepared to work with government to assess whether the original boundaries of the market renewal areas are still robust enough given changing market conditions, or whether they need to be reassessed ...

鈥淎ny change of boundaries will need to honour existing financial commitments, but given the nature of the programme a major mid-term review of the intervention areas would appear to be appropriate.鈥�

The report says the review should be concluded by 2010 when the entire programme to revive England鈥檚 housing blackspots has reached its midway point.

It says house prices have risen in the pathfinder areas since the initiative鈥檚 launch in 2003, but at a slower rate than across the nation as a whole.

The report says it remains an 鈥渙pen question鈥� whether these recent houses price rises are sustainable, that long-term 鈥渧oids鈥� (vacant homes) are 鈥渟till significantly higher鈥� than the national average and that older people and couples are continuing to move out of the pathfinder areas.

The report calls on the government to extend the pathfinders鈥� two-year funding programmes and says the nine projects will work with English Partnerships and the Housing Corporation to provide affordable housing for low-income residents whose homes have been demolished.

Brendan Nevin, the report鈥檚 author and the director of Ecotec, said: 鈥淭he chairs want flexibility over the use of resources and a long-term commitment. In return they are willing to be flexible over boundaries, which are very widely drawn.鈥�

Duncan Sutherland, the chief executive of regeneration developer Inpartnerships, said: 鈥淚n some areas they will have to rejig boundaries because house prices are going up and there鈥檚 a market being created.鈥�