Up until recent years, towns and cities were powered by a private sector delivery model which focused on retail-led regeneration. Leading up to, and in the wake of the pandemic, the support for these schemes began to reduce, and multi-modal retail channels became the norm.
Aside from the age-old question around brick-and-mortar retail and our high streets in the UK, one of the main challenges that arises from the transfer of planning and delivery to the public sector is that of viability, and in this piece, I’ll be outlining the challenges around this, as well as exploring potential solutions to secure and enhance the future of our vibrant town and city centres.
Commitment to delivery is crucial
From an industry perspective, the local and central government intervention was necessary, and would give rise to public private partnerships and indeed local authorities looking to control their own destiny and take on the risk of development. The move towards public sector driving forward schemes would allow sectors to come together to support town and city centre renaissance, with education anchoring schemes and residential, life sciences and health all contributing to true mixed-use offerings with gaps included within masterplans for communities to fill as they saw fit.
Undoubtedly the risk appetite of local authorities, resource available and capability of that resource in addition to commercial and market awareness has been and will continue to be influential in determining which schemes are bought forward and actually delivered, rather than sitting as blue sky thinking and not inspiring tangible action. Commissioning agents need to be realistic in the selection of their teams recognising that there is no place for the philosophisers or academics, but rather those who have delivered previously but are flexible to the new world to bring land and capital, and thrive within ever-changing market dynamics.
However, the reality is that viability is a fundamental concern for urban renaissance - set against a backdrop of increased construction costs and values which have failed to match the same pace of increase. Whilst we are now seeing more stability in materials cost increases, material prices have escalated 37% since the start of the pandemic. Labour shortages continue and we cannot predict the next disruptor. As such, schemes need to work harder and be subject to more testing of concepts including massing, composition and phasing. In short, as an industry we need to scrutinise each decision and prioritise a realistic approach at early stages, as we ask the question “how big is the viability gap and what can we do to reduce it?”.
In the past, many local authorities were able to bring their visions to reality by bridging the viability gap utilising central government funds such as Future High Street Funds, Town Funds and the various rounds of Levelling Up allocations. The fact that these funding sources no longer exist could be terminal to unlocking urban regeneration particularly in the more challenging areas which need most support. It would be fantastic to see the UK Government commit to greater, and more specific funding for the sector, to spur on economic growth.
Residential schemes furthering regeneration
We are left with the need to focus our minds on residential-led regeneration in our towns and cities in alignment with gaining funding from Homes England, the Government’s housing and regeneration agency to bring both land and capital as the main funding source still in existence. Of course, this cannot be a bad thing as the provision of affordable, quality homes in well-designed places are key to improving people’s lives particularly against the backdrop of the current housing crisis and the new government’s ambitious housebuilding target. However, Homes England’s funding will not be available to all, and housing is not always the answer as we strive for a vibrant mix of uses to create sustainable places for our communities and try to guard against the gentrification of areas which can result from an oversupply of expensive rental properties.
Restoring a vibrant feel to our city centres
We recognise that our towns and city centres are the most visible barometer of the vitality and vibrancy and diversity of the UK. Currently however even the largest towns and cities vary considering in economic performance and the secondary and tertiary locations lag well behind and any attempt to secure investment falls at the first hurdle. The public sector lives in hope that the private sector will come to the party, but the private sector needs to make a clear return on investment and certainly will not entertain underwriting significant losses. Meanwhile vacancy rates on the high streets increase, stagnation and deprivation become the dominant sense in too many areas and another pop-up event or market papers over the cracks for now but doesn’t offer a long-term solution.
The Government’s focus on economic growth and planning over the last couple of months is welcomed and current references to moving further and faster with specific references to bringing back the vibrancy of our high streets is fantastic. What’s needed next is the outline of how this dream might become a deliverable reality.
With the proposed reorganisation of local government structure through the Devolution Priority Programme, it could be a fantastic opportunity to re-prioritise town and city regeneration, which plays a vital part in the wellbeing of people across the UK through meeting their needs in the place where they live.
People-centred regeneration
We must not underestimate the role of our local authorities in the regeneration in our towns and cities and the creation of place. The Local Government Association has emphasised the importance of local councils in leading projects in partnership with residents, local businesses and other anchor institutions. They are best qualified to identify what their communities need. But, of course, councils need to have access to one pot of long-term funding, alongside the resources and flexibility from central Government to work with local partners. That will allow councils to invest in local infrastructure and support local growth in a way that recognises the unique challenges and opportunities facing each place. Regeneration should then serve local people, not force them out. Residents, businesses and community leaders should inform everything from the vision of their town centre to its implementation and review.
To summarise, the approach to town and city centre regeneration across the UK in recent years leaves something to be desired. It’s not a simple catch-all solution that will save our high streets, but a carefully planned and considered approach, with the right project and programme partners on board, will help cultivate town and city centres which residents will engage with and be proud of. Putting residents and local councils at the heart of these decisions will undoubtedly also contribute to future regeneration success.
The main challenges – viability and a willingness to deliver, can be solved with the right teams in place and a positive, costed plan from the Government to help the sector fulfil our ambitions, on behalf of the communities we serve.
