TRANSFORMATIONAL REGENERATION PARTNERSHIP (& NEW TOWN)
Wide area set of schemes unable to progress due to inflexibility of funding regime and slow pace of Government
Leeds
Project
The South Bank area of Leeds has the potential to deliver more than 20,000 new homes over the next decade alongside significant new economic and commercial activity creating growth and jobs. The area has been designated as a New Town area reflecting the scale of the regeneration opportunity.
Barriers to delivery
Progress has been constrained by a lack of clarity around funding availability for the New Town programme, delays caused by multiple extended Government processes, and the need for grant funding to support infrastructure and viability.
Leadership & Oversight
The Mayoral Strategic Authority and Council have developed the principle of a Mayoral Development Zone model to coordinate activity across the area, with a joint delivery team now created and co-locating to drive the programme forward. This provides strong coordinating leadership and oversight across the regeneration area.
Funding & Finance
The programme has the potential to attract considerable private investment but requires flexible grant funding to unlock delivery, particularly if the ambition for 40% affordable housing is to be achieved. This affordable housing target adds further pressure to existing viability constraints, and where Local Plan requirements are currently set at 7% delivery.
Despite the national political priority given to New Towns, long-term funding arrangements remain unclear. For any New Town to be delivered it must remain a priority across political cycles and needs committing to on such a basis.
Engagement & Accountability
The governance model allows for shared accountability between key partners, while schemes are routinely engaged with as proposals are developed.
Capacity & Knowledge
The Council has a strong track record of achievement and of working with private sector partners and with the Mayoral Strategic Authority. However, there has been a recognition that to achieve a step-change in delivery a new model would be required. A joint-team has now been formed between the Council, Mayoral Strategic Authority and Homes England to accelerate delivery.
Planning, Land & Assembly
The Council has a strong track record of planning-led growth and there are willing development partners already engaged in the programme.
There will likely to be a need for some strategic land acquisition and possible use of Compulsory Purchase Orders to support comprehensive regeneration and infrastructure delivery in the long term.
Issues to resolve
The programme could make a significant contribution to housing supply through the delivery of over 20,000 homes. However, New Town funding over the long term remains uncertain despite national policy announcements.
Viability gaps remain a major challenge, particularly where regeneration sites face high abnormal costs that existing Government funds do not support. This is particularly the case when there is a site such as Temple Works which effectively blights wider development occurring yet no single fund is necessarily applicable to solve the problem. The desire for increased affordable housing also creates additional costs above existing market viability gaps which risk being unfunded.
There are also concerns that Government preference for “one size fits all” processes is creating delays when delivery could otherwise be progressing.
