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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.
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
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