Elizabeth Pascoe, a Liverpool resident set to lose her home under the government-led 'housing renewal' initiative, has been granted legal aid to take her battle to save her home to the High Court.
The resident has angrily branded the Pathfinder project 'social cleansing', in an effort to highlight the programme's destruction of many low-income communities in the North of England.
The news comes in the wake of Prescott's move to grant a compulsory purchase order for a swathe of Liverpool houses earmarked for demolition, including Pascoe's.
Government quango English Partnerships would take control of the land on which Pascoe's house sits - in the Edge Lane area of Liverpool - before demolishing hundreds of homes, as part of the national regeneration effort.
If Pascoe's challenge is successful, it will set a precedent likely to rock the ODPM to its core. Nearly 700,000 homes and 2.5 million people are set to be affected by Pathfinder proposals.
Pascoe said: 'My community will be destroyed, only to be replaced by another, more affluent community.
'This issue concerns my house and my life and goes against the interests of the community.'