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10 February 2009
I have been reading with interest in the last few days the Parkinson Report on the impact of the credit crunch on regeneration, the housing market and commercial property. It is so disappointing that regeneration and sustainable development, which have really progressed in the last few years, are being slowed down and in some cases halted due to the recession.
Regeneration has made a real difference across the country in the past decade since the Urban Task Force Report and its recommendations were published. Many of our towns and cities have benefited considerably from regeneration projects, but there is still much to be done. Sustainability will also continue to feature as an important issue, but progress is likely to be affected.
The problem is that the significant downturn in the housing and property markets has resulted in lower prices because of fewer buyers and an overall lack of confidence. Many developments which have been programmed to start are unable to proceed often due to a lack of funding. As a result of the credit crunch, lenders are generally short of funds and are also lacking in confidence. If they are lending at all they will only lend on much stricter criteria which can often be to the detriment of urban regeneration schemes in particular.
Some people will be pushing to continue with the development of affordable housing where it is largely being paid for by Government funding. However, my concern is that affordable housing should be part of mixed-tenure projects as this is very important in creating sustainable communities. If affordable housing is built separately from private housing it could lead to mono-tenure estates with adverse social consequences.
We are currently seeking ways and means of enabling regeneration projects to take proceed where we are able to secure financial support from the Government through its Homes and Communities Agency (HCA). I believe the HCA can play a very important role during these difficult times. It is also essential that Local Authorities and RSLs work in partnership with private sector developers to find ways to enable projects to start rather than being held over until the recession ends.
I will post part two of this blog shortly.
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Information correct as at 16/02/2009