London Councils calls for co-ordinated funding programme to boost regeneration

A national or regional programme that co-ordinates or “top-slices” money from across different government funding streams could boost regeneration in the capital, according to London Councils.

The umbrella group, in a new report titled A decade of renewal: the contribution of London estate regeneration, outlines several projects that it said could deliver 10,000 homes. But it says there “are a lot of barriers to unlocking the sites”, including financial pressures on Housing Revenue Accounts, “skyrocketing” construction costs, and pressures around building safety and decarbonisation.

London Councils has previously published analysis suggesting London boroughs will need to cut spending by £269m over the next four years due to a “black hole” in their finances.

The report says regeneration at scale requires a “flexible long-term funding approach that reflects the complexity and phased nature of these programmes.”

It said: “Our experience shows that drawing on multiple funding sources is essential. However, without coordination, momentum can be lost and schemes risk stalling.

”A nationally or regionally coordinated programme that strategically top-slices across government funding streams could unlock more effective delivery, aligning investment with the Government’s growth, health, and net zero missions.”

The report also calls for a co-ordinated national programme to “ensure that the full spectrum of benefits [from regeneration] is realised - maximising impact across government priorities including economic growth, health equity, public safety and net zero”.

>>See also: Regeneration of overlooked communities alongside new towns will be vital if UK is to hit homebuilding target

>>See also: Why the government must make it easier to use grant funding for regeneration

London Councils is calling for a 10-year rent convergence plan at £3 per week and the introduction of a London Rent Formula which rebases the 1999 property element.

It said specific guidance on the use of compulsory purchase orders in the estate regeneration process “would assist to provide confidence on the key challenge and risk of obtaining vacant possession”

The report also calls for revenue funding to “empower boroughs to commit to long-term regeneration pipelines” and for the creation of good practice models that “phase in public, philanthropic, social impact, pension fund, and private investment”. It said government should take a lead in convening the social impact investment market to match funders with regeneration schemes.