Grants for revamping run-down estates are to be withheld from London's housing associations unless they build at least as many homes as they replace - or preferably more.
In a government endorsement of Lord Rogers' urban task force report, funding for regeneration in the capital will only be handed out on the proviso that associations maintain housing density.
The decision effectively ends the practice of demolishing unpopular tower blocks and replacing them with small semi-detatched properties, such as the flagship redevelopment of Holly Street in Hackney.
It underlines housing minister Nick Raynsford's calls to increase density in the style of Victorian or Georgian terraces and to be less "profligate" with land (Housing Today, 3 February). But associations and developers are divided over the move.
Housing Corporation bidding guidance due later this week will offer around 20 per cent of the capital's ADP to regeneration.
"Although some regeneration schemes require reduced densities to provide satisfactory quality of neighbourhood and environment, this is by no means always so," the guidance will say. "We will prioritise bids for high density, high quality developments."
In order to increase the housing supply in London, the corporation "will be very cautious" about funding projects which do not at least maintain existing density.
A corporation spokeswoman explained: "Our priority is to have an increase in supply and we will be sceptical about bids in regeneration areas which will lead to a lesser number of homes."
Research by the "G15" lobby group of associations estimates that 7,000 homes a year are being lost through regeneration schemes.
Peabody Trust's director of development Dickon Robinson said: "It makes sense not to reduce density in situations where there is substantial housing demand. The issues which high density raises are around how homes are allocated and how they're managed and the quality of the homes."
London Housing Federation head Sue Ellenby supported the move to increase housing supply at high density. But she warned: "There is an unrealistic expectation on regeneration schemes to always deliver additional housing as this has to depend on individual estate regeneration schemes."
Circle 33 chief executive Donald Hoodless added: "You couldn't rebuild Holly Street today if that was the bidding guidance. I'm not sure that this sort of arrangement is a starting point. It depends on the quality of life that you produce."
The National Housebuilders Federation said the policy would have "very serious consequences" for urban regeneration. "In some cases it will simply be impossible to replace tower blocks with new developments of equally high density which will be a great pity," said a spokesman. "What we really need is more flexibility and less bureaucracy."
Source
Housing Today
No comments yet