Reform of the House of Lords could be based around greater representation of the UK's regions to prevent it becoming "London-centric", the Labour Party chairman has said.

In an interview with ePolitix.com, Hazel Blears said she was "torn" on whether a reformed upper house should be elected by a system of proportional representation.

But she said that the process, begun in 1999 when most hereditary peers lost the right to sit in the chamber, was seen by Labour as "unfinished business".

"I think, personally, that there could have been some agreement around a greater regional input into your second chamber," Blears said.

"That is something I would like to see worked on.

"Whether that is indirect elections, having a sense of different parts of the country contributing to that second chamber I think is important.

"Otherwise again it is London-centric, it is a very small political grouping. I think institutions are better for having a wider variety of voices in them."

Asked whether the reformed House of Lords should be chosen by a form of proportional representation, the cabinet minister said: "I'm always torn on this. When I was a candidate in Tatton people always used to say to me: 'We're really good Labour people, we'll never win and our vote doesn't count'.

"But equally the bit that I really dislike about PR is if you lose your constituency link.

"I know people have got some models where you can still have a constituency link. But if you look at a lot of PR systems, particularly in Europe, you end up again with a political elite who all live in London or Madrid or Paris because you are dependent for your place on the party list.

"You are dependent on patronage rather than what your constituents tell you.

"The last thing I want – and I feel really passionately about this – is a group of politicians who are dependent on a political party rather than the people 'out there' in their constituency who come and support them."

Blears added that without wider consensus on the way ahead for Lords reform, the process would be "difficult".

But she insisted: "I think we should do something about the House of Lords. There are lots and lots of people in the party who do regard it as unfinished business."