Northern regeneration could unlock 500,000 homes if supported by devolved funding, report finds

But Northern social housing providers told the inquiry that the biggest barrier to delivery of housing-led regeneration and the development of new homes is financial viability, resulting from lower land and property values.

The NHC said sites can only be unlocked if grant funding plugs the gap, and argued that a lack of intervention from central government will result in reduced supply, declining neighbourhoods and growing costs to the public purse.

Its report set out a policy framework for accelerating housing-led regeneration, with a strong focus on using devolved powers.

The NHC called for a £500m-per-year, 10-year ‘place-based regeneration fund’ to be operated by mayoral strategic authorities, as well as an extension of the term of the National Housing Delivery Fund to 10 years in order to unlock more sites with higher upfront costs.

Other recommendations include the appointment of a minister for regeneration who works across the Ministry of Housing, Communities and Local Government (MHCLG) and the Cabinet Office.

The NHC also called for the establishment of a National Centre for Regeneration, based in the North and operating out of Homes England, to rebuild capacity across the sector.

To build trust with residents, the report recommended an agreed set of expectations, standards and rights for regeneration schemes between the sector and tenants.

The report found that as well as unlocking new homes, regeneration drives economic growth, builds thriving communities where people want to live and creates employment. 

It said: “In deprived areas where health outcomes are worst, regeneration has the potential to meaningfully narrow longstanding health inequalities, generating long-term fiscal savings.

“The removal of derelict buildings, refurbished green spaces and improved communal facilities lifts the public realm and signals that a community is on a positive trajectory, supporting resident satisfaction and pride in place.”

“To unleash these benefits and overcome substantial Northern viability challenges, the government should act now,” the report added.

It was launched at an event in parliament today (9 June), where housing minister Matthew Pennycook made a speech.

Mr Pennycook told attendees: “What I think most of all, from the glance I’ve had at it – and officials are already working their way through the interim report in detail – is that [the report provides an] invaluable evidence base, setting out the experience of organisations working to deliver regeneration.”

This report is part of the NHC’s wider inquiry, named Renew, into housing-led regeneration in the North. It was launched in July last year and is chaired by Lord Best.

Inside Housing has partnered with the NHC on the inquiry as part of its Spotlight on Regeneration series.

MHCLG has been contacted for comment.