Pictured above: Stephen Hollowood, head of the Midlands Planning, Development and Regeneration team

Leading property consultant GVA Grimley this week unveiled research highlighting the importance of urgent and fundamental solutions to unlock and resuscitate existing policy on regeneration in the UK.

Entitled 'Resuscitating Urban Regeneration' and produced in partnership with leading UK public affairs communications agency PPS Group, the bulletin illustrates the issues and solutions for physical, social and economic regeneration.

Stephen Hollowood, executive director of GVA Grimley and head of the Midlands Planning, Development and Regeneration team commented: "It is already well documented that 'physical' regeneration has stalled. Equally worrying is the fact that the less income generating 'social and economic regeneration', has largely failed to address deprivation and equality issues.* 

"We are focusing heavily on holistic and innovative strategies to enable public sector, lenders, investors and developers alike, to accelerate sustainable development and regeneration. The future will present major funding constraints so regeneration must become long term and multi-faceted by its very definition. Concurrently it must address unemployment, crime and education, combined with physical regeneration through infrastructure provision and high quality refurbishment and redevelopment."

Liz Peace, Chief Executive of the British Property Federation comments: "This report comes at just the right time to stimulate debate as to what those new fund raising methods might be. The one thing all political parties seem to agree on is that post May money will be tight and there will have to be a severe pruning of public sector budgets. That is going to leave many regeneration projects high and dry unless new innovative ways of introducing finance can be found."

Clive Betts MP and Chairman of the All Party Urban Development Group comments: "The long-term sustainable regeneration of our towns and cities is critical for the future economic growth of the UK. This report sets out a clear and innovative agenda to deliver much needed investment through a framework of financial and tax incentive structures. Using such structures, Government and business can maximise opportunities to work together to bring about positive development."

The research highlights the importance of the public sector's role as 'enablers' and the private sector as 'deliverers' is now more prevalent than ever. In addition is the impact that politicians and policy makers have as the cement between the enablers and the deliverers.

GVA Grimley / PPS research highlights that regeneration in the UK has seen upwards of £180 billion funding from central government over the past 20 years. Alongside local authority and private sector investment, regeneration may have seen in excess of £720 billion. Going forward, regeneration programmes may be lucky to secure three-quarters of what it has enjoyed over past decades. Not least in light of the political change set to be visited on the country on 6th May. 

The bulletin examines the potential solutions, including a number of practical measures for public sector, investors and developers to secure funding, to more fundamental changes to the regeneration agenda to address longer terms issues. When coupled with clear political insight and guidance, there are, without question, ways in which development can be de-risked through knowledge.

Stephen Hollowood adds: "Access to funds will be key to maintaining momentum in the short term. Focused funding and clever use of asset based vehicles from within the public sector will present opportunities. This will require a focus on smarter delivery and resource management while protecting front line services. It is estimated assets in excess of £230 billion could be released via an effective rationalisation programme.

"An alternative approach is the co-ordinated delivery of place-making regeneration. This ranges from a 'packaged portfolio' focus at one level, to a 'capacity enhancement' focus at the other. This requires suitable 'de-risking' from the public sector, which involves having an appropriate strategy in place to support regeneration. Critically this includes addressing major socio-economic needs."

Rebekah Paczek of PPS Group added: "The implications for development of politics, elections, manifestos and policy papers is often hard to determine. Needless to say it will have serious financial and timetabling issues for schemes across the UK. Our research highlights that local government changes are just as likely, if not more likely, to influence delivery and determination as much as 'noise' around the General Election."

The bulletin demonstrates the funding models already being mobilised and sets out initial recommendations to the public sector, investors and developers.

It also highlights that if the industry does not take the opportunity to respond effectively now, there is strong evidence to suggest that urban regeneration will largely continue to fail in many of Britain's cities. This will have significant impacts upon social cohesion, economic success and achieving sustainability improvements.