Housing-led regeneration can unlock at least 500,000 good quality homes across the North of England and this is an opportunity that cannot be missed by Government.
As part of our Renew inquiry into housing-led regeneration for northern growth, supported by Homes for the North and Muse, we issued a Call for Evidence. The response was fantastic: we received submissions from organisations responsible for around 1 million of the North’s 1.4 million social homes, including insights from more than 160 regeneration schemes.
The message was clear – housing-led regeneration is essential to increase the supply of new homes, attract private investment, and boost economic growth in the North. It helps create great places to live; improves housing quality and residents’ health and wellbeing; generates jobs and skills opportunities; and promotes sustainability by providing greener, more energy-efficient homes that lower household bills.
Housing-led regeneration in the North is not one single activity. It encompasses a wide range of interventions, from refurbishing individual homes to transforming neighbourhoods, reclaiming derelict land, and redeveloping urban centres. While these interventions differ in scale and approach, they share a common logic: that investment in homes and places can act as a catalyst for wider social and economic renewal. The scale of the opportunity is striking. Already, there are 100,000 homes planned in major city centre regeneration schemes, and our policy proposals aim to accelerate their delivery. Most of these homes are set to be built in our larger cities, so more support is needed to extend this to smaller towns and declining high streets to make sure no-one and nowhere is left behind.
A further 320,000 homes could be built on brownfield land; sites that are often derelict or underused but rich with potential to attract more investment and drive local growth.
Added to that, there are around 100,000 social homes which will be in need of regeneration over the next ten years. These homes tend to be concentrated in areas of deprivation and include older, colder terraced housing and tower blocks no longer fit for purpose. They do not meet the needs of residents, and weigh heavily on social housing providers’ balance sheets, preventing investment in new homes. For providers to play the fullest role in the delivery of new homes, and to prevent loss of social housing, ageing homes that require continual repair and investment must be renewed.
Despite its huge potential, a stubborn set of structural barriers continue to hold back housing-led regeneration in the North. Lower land values in many northern areas mean that developments are often less financially viable than in the South. At the same time, the high cost of remediating brownfield land, often contaminated or complex to develop, creates a funding gap that many projects cannot bridge without Government support.
The challenge is compounded for social housing providers. In the North, rental incomes tend to be lower, yet the costs of construction and refurbishment remain comparable to other regions. This creates a stark trade-off: invest in upgrading existing homes or inbuilding new ones.
The Renew inquiry’s recommendations set out how the Government can act to address these challenges and kickstart growth and opportunities in the North. Building on the very welcome £39bn, decade-long Social and Affordable Homes Programme for new build social homes, a £500 million per year, decade-long Place Based Regeneration Fund would provide the certainty and continuity needed to address ageing homes in need of replacement or refurbishment. Extending the National Housing Delivery Fund to a similar timeframe would unlock the most complex sites and help address the high upfront costs that currently deter development. Meanwhile, appointing a dedicated Minister for Regeneration could ensure cross-government coordination.
Equally important is building local capacity and trust. Establishing a National Centre for Regeneration in the North would help rebuild expertise, share best practice, and drive innovation. And placing residents at the heart of regeneration, through clear standards and rights, can ensure that development is done with communities, not to them.
The timing is critical. With increased devolution giving northern leaders greater control over housing, transport, and skills, there is a real opportunity to align policy and delivery in ways that were not possible before. Combined with significant government focus and investment in housing, the conditions are right to make a real difference.
Now is the time to put the final pieces of the jigsaw in place to tackle the housing crisis, build thriving places and healthier homes, and deliver northern growth. At the launch event for the Renew inquiry report in Parliament on Wednesday there was a real buzz in the room – I feel confident we can work together to deliver for the North, so that no-one and nowhere is left behind.
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