That sinking feeling - funding estate regeneration

That sinking feeling - funding estate regeneration

Council Estate SinkingThe prime minister’s announcement concerning the future of so-called ‘sink estates’ leaves no doubt about this government’s aspiration to tackle the regeneration of many of the country’s housing estates.

Tonia Secker, partner in the housing and regeneration department at Trowers and Hamlins LLP, considers the government’s ambitious statement and the range of funding options available to bring the vision to fruition.

How is this large-scale regeneration set to be funded?

Beyond a commitment to create a £140m fund to ‘jump start’ regeneration projects via pump-priming planning, decanting and early construction costs, detailed proposals for funding the regeneration plans are scarce. It is anticipated that the newly announced Estates Regeneration Advisory Panel will work with authorities and residents to create bespoke regeneration plans. Funding packages will need to be equally bespoke.

Set against the background of local authority cuts, how can local authorities fund such ambitious projects?

Regeneration is a costly exercise. The ability of local authorities unilaterally to fund projects of this nature is in doubt—particularly given real term reductions on rental returns and limitations on available headroom within their Housing Revenue Accounts. Regeneration of the type contemplated by government is only likely to be viable if external investment, private finance and any available capital subsidies are combined with a local authority’s own resources and land.

Local authorities will no doubt contemplate the creation of both wholly owned subsidiaries and/or joint ventures with the private sector as well as development agreement arrangements to take such initiatives forward. In terms of the option selected, much will depend on the authority’s aspirations for the regenerated estate, planning and site limitations, promises made to residents at the outset in

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login