MIPIM UK DEBATE: The tremors of the EU referendum may have left the UK property industry reeling, but opportunity is still rife.
That was the mood at the UK Cities: Where is regeneration happening and what are the government’s objectives? debate, where the Northern Powerhouse and the Midlands Engine were both earmarked for further growth.
“With my Northern Gateway hat on, by 2020, there will be 100,000 new homes delivered around Stoke and Cheshire,” said Jackie Sadek, chief operating officer at UK Regeneration.
Her advice for local authorities delivering homes was to “go as far as you legally can”.
“If you don’t get central government approval, I will be amazed,” she said.
According to EGi data, among the cities well placed for growth, Edinburgh and Peterborough have led the way with the most planning applications for new office development, while Liverpool and Sheffield had the most residential applications.
Birmingham had the fastest application approval rate, with 70% of permissions granted in six months.
Devolution is critical for regeneration, according to Sherin Aminossehe, executive director at the Government Property Unit, as cities needed to have that extra element of control. “Cities need to make sure they have a bespoke deal that is right for them rather than one-size-fits-all,” she said.
But it is not just devolution driving growth, there is a renewed sense of empowerment among the local authorities, said Sadek.
“There is a new-pro growth feeling among local authority leaders which is a joy to see. It is not just devolution, it is empowerment. But it is not universal and national. There are some places in the country that will not accept any more growth.”
Panellists also acknowledged that a prelet commitment from the GPU would help to leverage further regeneration schemes and funding.
Martin McKay, executive director of regeneration at Clyde Gateway, said: “It would make an enormous difference to Clyde Gateway. We have all of the attributes and these big public sector requirements could really establish an area and allow us and others to build from them.”
Aminossehe said the GPU had a checklist for choosing schemes, with value for money, proximity to universities and easy links to transport at the top of the list.
But panellists agreed it was not the “be all and end all” for cities wishing to grow. Sadek said local authorities needed to have a “place-based industrial strategy”.
She said: “Cities need to be ready to accept the GPU intervention as nice to have – but not a be all and end all. We are not a country that gets the government to bail us out by putting GPUs everywhere. We need to look towards the Northern Gateway and transport links with HS2.”
Tim Johnson, strategic director of place at Wolverhampton Council, said the focus needed to be on people and skills and stressed the importance of placemaking when delivering a large-scale regeneration scheme.
McKay emphasised that initiatives like the £130m Glasgow City Deal would also give leverage to secure more private sector funding.
“It is not just about economic assets but cultural assets. We are focusing on our creative sectors,” he said.
But among all the optimism, there was a note of caution that regeneration had to be carefully considered in phases that would work for the whole city. Aminossehe warned against landbanking and concentrating solely on city centres.
“For me, it is about making assets count and how local authorities work better with the private sector,” she said. “Some have taken it very far but others don’t have the skills, so how can we bring that about and deliver the right kinds of schemes?”
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