The role of regeneration in this decade of renewal

As I’ve spent an entire career in ‘regeneration’, you might think I could define exactly what the word means. This is far from easy, as it’s used generically, serves many agendas and has had no common or consistent set of success measures. The recent Budget report, for example, uses the word ‘regeneration’ seven times in various contexts, without clearly defining expected outcomes.

Some of the ingredients for successful regeneration include: involving residents in decision-making at critical points, locking in guaranteed and flexible gap funding, being realistic at the outset about investment requirements and returns, and aiming to create sustainable mixed-tenure communities of choice.

It needs a long-term vision for a place, and requires the ability to be patient and resilient, and to pivot when circumstances change.

“The launch of the SAHP is a game changer as far as investment programmes go, breaking the political cycle, enabling long-term planning and bringing regeneration firmly back to the table”

The current environment has undoubtedly made estate regeneration a hard choice for providers when reviewing already stretched business plans. The demands of investment in existing homes, policy changes on the horizon adding more cost to the model, and the covenant impact of raising new debt for development have all affected our appetite to redevelop existing stock.

There is a particular challenge around losing income from existing homes when redeveloping estates, as the net increase in revenues can be very marginal. In short, there is only so much regeneration of existing stock that business plans can withstand, meaning there are hard choices to be made.

Which brings me on to the latest show in town: the Social and Affordable Homes Programme (SAHP) 2026-36. The launch of the SAHP is a game-changer as far as investment programmes go, breaking the political cycle, enabling long-term planning and bringing regeneration firmly back to the table.

Homes England has always worked collaboratively with the sector on regeneration, even when its hands were tied by government policy, preventing grant from being used to replace existing homes. The agency now has a prime opportunity to kick into high gear with a programme that gives it licence to regenerate.

To echo the recent ask of PlaceShapers, and before we start spending the new programme funding with intent, we must have a conversation about the role of regeneration in this decade of renewal. Put another way, the 200 or so words given to estate regeneration in the SAHP prospectus are a start, but nowhere near enough. The precious resources made available to us can’t be burnt through without a clear plan, or a decade later we will inevitably have buyer’s regret.

Putting isolated pockets of affordable housing back into neighbourhoods already saturated with affordable housing does indeed provide quality new supply – but it is not going to be transformational. This is increasingly what we have had to do in recent years, when regeneration funding was absent and the private sector couldn’t close the viability gap in low-value areas.

“Changing the trajectory of ‘left behind’ places means diversifying tenure mix, providing local services and infrastructure, and rebuilding a sense of community”

The profile of the SAHP, with its preference for social rent, strongly implies that private sector developers and wider public sector partnerships will be needed to achieve meaningful regeneration outcomes, as smaller providers don’t have the scale or resources to do it alone or the risk appetite to take on market sale.

Truly changing the trajectory of ‘left behind’ places means diversifying tenure mix, providing local services and infrastructure, and rebuilding a sense of community. This came together in the early 2000s through programmes such as the Single Regeneration Budget, Housing Market Renewal, Neighbourhood Management Pathfinders, Sure Start and New Deal for Communities, which often coincided in the same neighbourhoods. This matrix partnership approach to whole-community regeneration needs to be revived.

Many locally rooted providers such as Aspire are prepared to invest patiently and consistently over decades, aiming to leave a lasting legacy of positive change in the communities they serve. Homes England can play a pivotal role in bringing these willing partners together, using its £39bn war chest initially to shape the conversation and then to support delivery.

The regeneration of one neighbourhood in North Staffordshire has been part of my career and Aspire’s journey for over 20 years. With the opportunities now presented by the SAHP and the decade of renewal, I could certainly get very excited about doing one more before calling it a day.

Dan Gray, executive director of place, Aspire