Community

The recent IPD study (see below) highlights the potential for regeneration projects to deliver real business benefits across commercial property and residential sectors. Not only this, it shows that regeneration areas have also seen diminishing levels of risk since 1996 and saw lower levels of volatility than other UK property over the last five years. They are now attractive investment opportunities.

But of course, the investments channeled into run down areas through regeneration projects are also intended to bring wide scale social and economic benefits to the communities involved. However, we know from bitter experience that outcomes sometimes do not match aspirations.

A big challenge in delivering a successful regeneration project is finding effective mechanisms for involvement and engagement – priorities need to be identified through the full and active participation of
all the local community. Without this, poorly executed projects can lead to increased segregation and social exclusion.

It is impossible to underestimate the challenges of tackling the root causes of social exclusion – poverty, bad housing, inequality, poor health, poor education and unemployment. Regeneration projects that fail to adequately address these issues are bound to fail – perhaps not financially but certainly in terms of the impact on the community.

Good regeneration projects need to find a balance between commercial considerations and the social and economic interests of people on the ground in the community. The importance of business listening to stakeholders is paramount if the benefits of regeneration projects are to be enjoyed across all parts of society.

Related news

Regeneration is a good investment

Investment Property Databank, the global provider of data to the property industry, has released a survey that shows investing in regeneration schemes can reap financial rewards. Published on August 10, the IPD Regeneration Index 2007 shows that average total returns on regeneration projects were greater, at 16.7% a year over the last five years, than the UK property market as a whole, which only enjoyed returns of 15.1%.

The survey also shows that since 1996 there has been a decrease in the risks associated with regeneration schemes. IPD worked with English Partnerships, the national regeneration agency, Morley Fund Management and Savills, the British estate agency, to carry out the survey.

Steve Carr, head of policy and economics at English Partnerships, said that “this research could literally be worth its weight in gold”, pointing out that this removes any doubt that regeneration schemes should be rejected as an investment on the basis of poor performance in the past. He also notes that the report shows “that regeneration is working – returning bright, vibrant, sustainable mixed communities to the people who live there, and returning value to investors”.

Contact Investment Property Databank 020 7336 9200 www.ipdindex.co.uk; English Partnerships 020 7881 1600 www.englishpartnerships.co.uk

Business matters

Not all deprived areas need business investment to thrive according to a report from the All Party Urban Development Group.

The report – Business Matters: Understanding the role of business in regeneration – states that central government and regional development agencies should develop more targeted policies according to the needs of specific areas. It considers the barriers to business investment in deprived communities and makes a number of conclusions and recommendations such as the provision of public transport to jobs (instead of job creation itself) and the creation of a stable environment for businesses.

Contact APUDG 2007 www.allparty-urbandevelopment.org.uk

Co-op Bank sponsors sustainable homes

On August 7 The Co-operative Bank announced a partnership with housing developer Living Space 21 to build energy efficient homes that are affordable for first time buyers. The initiative will help contribute to government targets such as providing an additional 3m homes by 2020 and reducing property carbon emissions by 25% by 2010. These homes will not only be environmentally friendly but will also enable those previously unable to afford a first home to do so. The environmental benefits of these homes include the use of rain water capture and recycle systems, timber frames that are sourced from sustainable forests as well as an option to include solar panels.

Contact Co-operative Financial Services 08457 212 212 www.cfs.co.uk; Living Space www.livingspace21.co.uk

The role of the third sector in regeneration

Third sector organisations – such as social enterprises, community groups, co-operatives and charities – can play a fundamental role in social and economic regeneration according to a report from HM Treasury.

The future role of the third sector in social and economic regeneration found that the third sector represents the voice of diverse groups and that it campaigns to bring about change for individuals and communities. It further states that it acknowledges the role that the sector plays in designing and delivering essential community services and bringing people together. The government also pledges that it will encourage social enterprise and improve the environment that all third sector organisations work in. The report is the outcome of the largest third sector consultation the government has ever carried out and hails the inception of a government-driven programme to build on the relationship it has with the third sector. This programme will run from 2008 to 2011 and will involve supporting a wide range of third sector activities, investing in the long-term future of the sector and improving local partnerships.

Contact HMT www.hm-treasury.gov.uk

Business should get involved

Businesses must get more involved in local authority decisions regarding regeneration according to a report from the British Chambers of Commerce. A Tale of the Cities: the best of times?, published on September 10, outlines how partnerships between city councils and businesses have enabled cities to be “reborn”. It argues that partnerships should be formalised and that this would enable local authorities and the private sector to address issues such as employee training and the development of transport links.

The report looks at the economic regeneration of nine large UK cities and finds that the most successful cases had strong partnerships with the private sector. It also suggests that local chambers of commerce should be given a more substantial and official role in city regeneration schemes.

Contact British Chambers of Commerce 020 7654 5800 www.chamberonline.co.uk

BT to regenerate R&D centre

BT, the British telecommunications company, announced on September 10 that it plans to regenerate and re-invest in its research and development centre, Adastral Park, in Suffolk.

BT stated that the project will use the “latest thinking on sustainable and environmentally efficient technologies” and that it will also involve the development of new homes in the community, educational and leisure facilities and shops, which will be designed to “provide a truly mixed-use and sustainable” environment.

Contact BT www.btplc.com