Regeneration entrepreneur Ken Dytor is starting a company to rework developments held up by the recession

Dytor, who is also managing director of Regeneration Investments, launched the firm a few weeks ago with an anonymous partner who he described as “someone who’s been involved in major regeneration schemes”.

He said the firm, called Land Regeneration Partnerships, was in talks with landowners and public sector bodies over schemes that need to be changed to reflect the change in land values.

Alterations could include reducing density or redesigning schemes. “With land values coming down you can have larger units,” he says. “Why not bring on board public sector facilities into these developments and get cross-subsidy?”

He added that the firm might wait after getting planning consent to begin developing. “We won’t be delivering these products now, because funding is difficult, but we plan to have consent in place for when the market recovers.”

Dytor predicted that a large part of the property market, particularly retail, would face trouble in the coming months, but said developers that were unburdened by debt would become active again.

He added that his infrastructure regeneration fund, Ithaca Capital Partners, will return to the market to raise funds “at the appropriate time”.