As a way to revitalise UK cities and promote investment, urban regeneration is one of the most effective methods of transforming an area.
But what is urban regeneration, why is it important, and how does it work?
Let’s find out in this guide.
Here, you will learn:
- Urban Regeneration Definition
- Types of Urban Regeneration
- Urban Regeneration Examples
- Why Is Urban Regeneration Needed?
Keep reading to learn all about urban regeneration in the UK.
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Urban Regeneration Definition
Urban regeneration, otherwise known as urban renewal, is the investment of public or private money to improve the appearance, infrastructure, and economy of an area.
Urban regeneration is becoming a vital part of city planning and town planning. Most local councils have a regeneration master plan or regeneration programme to enhance public space, social housing, commercial development, neighbourhood renewal, and more.
The Types of Urban Regeneration
Urban regeneration projects in the UK can be broken down into three distinct types.
- Economic Urban Regeneration – Aims to increase the number of businesses and employment in an area. This will include commercial development, enhanced transport links, and high-quality housing to attract people to live and work in a region.
- Social Urban Regeneration – Aims to improve community life by enhancing access to healthcare and education. It can also involve the improvement of arts and cultural spots in a region such as museums.
- Environmental Urban Regeneration – Aims to improve the local environment in an area. This can be through protecting green belts, renewing derelict land, improving walking or cycling routes, and providing new green spaces in urban environments.
Urban Regeneration Examples
In the UK, many cities have been completely transformed through the process of urban regeneration.
This was particularly emphasised in the North of England, where cities like Liverpool and Manchester were incredibly run-down due to economic decline in the 1980s.
Currently, both Liverpool and Manchester are some of the most significant economic powerhouses in the UK.
The following urban regeneration projects are some of the most prominent examples of the UK’s regional development, commercial development, neighbourhood renewal, and economic regeneration.
Examples of urban regeneration projects UK in Liverpool include:
- Liverpool ONE – a major £960m outdoor shopping centre that helped attract massive private investment in Liverpool city centre.
- Knowledge Quarter – a £2bn regeneration knowledge hub that introduced and improved educational facilities in Liverpool city centre. The area is now home to the Royal College of Physicians, Liverpool Science Park, University of Liverpool, and more.
- Liverpool Waters – An upcoming £5.5bn inner-city regeneration project set to add two million sq.m. of residential, leisure, and business space by creating five neighbourhoods on Liverpool’s waterfront.
Examples of urban regeneration projects UK in Manchester include:
- Spinningfields – A £1.5bn redevelopment that created an entirely new neighbourhood in Manchester city centre. Introduced world-class office space, which has attracted over 150 financial and commercial organisations.
- MediaCityUK – A £2bn project that renewed derelict industrial dockland in Salford Quays. The area is now home to major media companies like the BBC and ITV.
- NOMA – A £800m mixed-use development in Manchester city centre that has created four million sq. ft of retail, residential, office, and leisure space.
These are just six examples of urban regeneration projects and inner-city regeneration projects in the UK.
With urban regeneration in London and cities like Leeds also expansive, many UK cities have been completely transformed thanks to regeneration projects.
You can learn more about the UK’s latest and most famous urban regeneration projects by checking out our guide to the top 7 urban regeneration areas in the UK in 2021.
Why Is Urban Regeneration Needed?
As a way of improving urban land, providing environmental improvement, and economic regeneration, urban regeneration is essential to the success of the UK.
Through urban regeneration projects in the UK, urban regeneration companies can massively improve the quality of life for residents.
By unlocking the potential of deprived areas and promoting investment into infrastructure for employment and education, deprived communities can start to thrive with new opportunities offered to them.
Urban regeneration is also crucial for private investors looking to profit, as inward investment can lead to opportunities to invest in assets like property.
As mentioned, most local councils putting forward city planning or town planning will likely have their own regeneration initiatives or regeneration schemes as part of a regeneration master plan.
Be sure to check local council websites for more information on the type of regional development happening in the area, such as commercial development or social housing regeneration schemes.
What Does Urban Regeneration Mean for Private Real Estate Investors?
If you’re a private real estate investor, urban renewal is vital for a successful investment.
Through urban regeneration projects in the UK, businesses and residents flock to regenerated areas, which dramatically impacts the housing market.
Naturally, with more people moving to a city, demand for rental properties and other households increase.
This increases house prices and rent, allowing investors to earn some seriously high returns.
Let’s use Manchester as an example.
The city currently boasts one of the best property markets in the UK and has seen house prices increase by over 315% since 2001 – the highest growth rate out of any major UK city.
In fact, Manchester is in vital need of private housing investment, with the population growing so fast that it can’t keep up with demand.
A report from Zoopla in 2020 found that the current demand vs supply imbalance sits at 5:1, with five parties interested in every single property.
For this reason, it’s a smart idea to invest in cities that have a strong track record of urban renewal success for the highest returns.
If you’re interested in investing in top UK regeneration areas, then be sure to click the links below to read one of our guides to UK property investment.