The funding will be distributed regionally over the next three years to boost 'key areas' and help to restore stable communities.
Up to £54 million each year will be made available to twelve 'Pathfinder' areas under the government's housing renewal programme.
Under the scheme, Merseyside, East Lancashire, Manchester Salford, South Yorkshire and North Staffordshire are all set to receive more than £100m.
Housing Minister Iain Wright said: "This substantial funding, together with increasing investment from the private sector and support from local authorities and others, will help the market renewal areas take forward their ambitious programmes to bring real change to places which only five years ago were facing decline and abandonment.
"This is a long-term programme, and there is still much work to do. The Pathfinder scheme has already made great progress in these areas, and this money will help bridge the gaps that still remain."
