New forms of funding needed, says Bloxham

THE chairman and chief executive of property group Urban Splash has called for new forms of finance, with the public sector taking a larger equity stake, to help the continued regeneration of towns and cities.

In a report by independent think thank The Smith Institute, Tom Bloxham has warned that the renaissance of northern cities is in danger and said local authorities can no longer rely on private developers to “subsidise regeneration through housing”.

He pointed to the Homes & Communities Agency as having the potential to lead on developing stronger partnerships between the public and private sectors and added that regeneration schemes will require a longer term view on investment and new forms of funding, with the public sector taking more equity stakes, “sharing more of the rewards as well as the risk”.

Mr Bloxham added that without new forms of public sector support he finds it difficult to see how schemes in smaller towns around the city centre will be regenerated.

“There is a real danger this renaissance will come to a shuddering halt and the huge strives that have been made will go into reverse,” he said in the report, called ‘Regeneration in a Downturn’.

“The effective use of public-private partnerships has never been more necessary and the demand for quality housing is as great as it has ever been. Individuals are now renting rather than buying, because they either are unable to get  mortgages or anticipate that values have further to fall. I believe that what is needed now is new forms of finance.”

Manchester-based Urban Splash, which pioneered the renovation of derelict city centre buildings throughout the North, made 60 of its 250 staff redundant last year as the recession began to bite.