Report finds a quarter of regeneration schemes hit by downturn
Developers abandon ‘risky’ pathfinders
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Organisations set up to tackle low demand for housing in the north of England and the midlands are being abandoned by developers during the recession, a new report warns.
The market renewal pathfinders were set up to revitalise housing markets by demolishing or refurbishing homes in unpopular areas. Between 2002 – when the first pathfinders were set up – and 2008 the government has pumped £1.2 billion into the 12 renewal areas, with a further £1 billion pledged for 2008/11.
The pathfinders were also charged with building thousands of new homes to attract people back to previously deprived communities.
But a new government-commissioned report by Professor Michael Parkinson, of Liverpool John Moores University, suggests that the pathfinders’ aims are being undermined by developers’ attitudes towards them during the recession.
‘Partners report there has been a flight from risk and a flight to quality – projects, partners and locations,’ the report states. ‘This means that economically and financially marginal places, projects and people are most at risk.
‘In some cases where developers were onsite in areas considered to be lower risk, work on existing phases is continuing. In others, work is slowing down or stopping,’ it says.
The report says that 57 per cent of regeneration organisations reported a 50 per cent reduction in residential renewal activity in the last year.
Mike Gahagan, director of the Transform South Yorkshire pathfinder, said the report summed up ‘the world as I know it’. ‘We have seen the drop in demand, the slowdown in sites – not in our case a complete stop, but a severe slowdown,’ he said.
Jim Johnsone, director of Tees Valley Living, said the pathfinder could now get cheaper land and property, but that it was ‘undoubtedly true’ that building had declined. ‘It isn’t just on regeneration sites, it is on all sites at the moment,’ he said. ‘I suspect 2009 might be worse than 2008.’
A new path
How the government is tackling regeneration and the issues raised in the Parkinson report.
- £400 million: the amount the government will bring forward from existing housing budgets to fund new social housing.
- £5,500: number of social homes it says this will build.
- £775 million: money the government will spend to help businesses in the housing and regeneration sectors survive the recession.
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Readers' comments (2)
Jim | 02/02/2009 10:45 am
Another for the 'toilet habits of bears' file, methinks.
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Redundant housebuilder | 03/02/2009 9:31 am
My that man is a Genius!!!
Is he really saying that sites are being left undeveloped by private developers? How much did his report cost? if it was £1 it was to much.
Are you really astounded by the fact that developers will not spend further money building homes that they can't sell.
Unless the goverment gives the banks a ROCKET not a bailout the market will continue to fall. Also if the press in general keep spurting out all the negatives about the economy we will not regain public confidence.
Come on lets all wake up!!!!!!!!!
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