The scheme submits its plans to the government on Friday

If they are approved numerous streets in the area would be bulldozed making way for thousands of new homes.

It is expected the programme would take 20 years to complete and would mean the creation of 12,000 new homes and renovation of 30,000 more.

The plans include houses in Stoke-on-Trent, Newcastle, Biddulph and the Staffordshire Moorlands.

The government will be asked to provide �869m over the 20 year period, with money from the private sector taking the total to �2.3bn.

'Houses unfit'

The Renew North Staffordshire scheme is a partnership of three local authorities - Stoke on Trent City Council, Newcastle under Lyme Borough Council and Staffordshire Moorlands District Council.

It is one of nine Housing Market Renewal Pathfinder initiatives in England which aims to build better homes in communities hit by low demand for property and poor quality housing.

Statistics from the scheme show house prices in the north Staffordshire area are the fourth lowest in England - a fifth of homes in the pathfinder area sold for less than �20,000 during 2002.

Thousands of privately-owned homes have also been classified as unfit and the number of empty homes is rising.

It is hoped the pathfinder scheme - working under the name Renew North Staffordshire - could bring in millions of pounds of government investment in the area.