The government says it is a "once-in-a-generation" opportunity

Parts of Manchester and Salford will benefit from the "Pathfinder" cash, which was announced on Monday.

It was made by Yvette Cooper, minister in the deputy prime minister's office (DPMO), and is the first of nine similar projects across the country, under the government's �500m housing market renewal fund.

It comes after an announcement last month the cities are set to share in �57m of separate government cash, earmarked under its Neighbourhood Renewal Fund (NRF).

The "Pathfinder" cash is targeted in areas experiencing falling property values, which is leaving homeowners experiencing negative equity and declining living standards.

'Proud communities'

John Prescott, deputy prime minister, said: "Everyone has the right to a decent home, a home in a real community.

"The quality of life - whether it's jobs, schools, hospitals, public transport, shops, safe streets, parks - makes for real thriving communities.

"I'm delighted at the significant investment and action for Manchester-Salford - action that will break the cycle of deprivation."

Ms Cooper said people are "fed up" with rundown areas.

"Pathfinder is a chance to rebuild communities and neighbourhoods for local people to be proud of," she said.

A DPMO spokeswoman said the grants are aimed at reviving general living standards for people, differing from the NRF cash, which is designed to boost community projects and encourage more people to get involved.