Three years ago, Lord Rogers' Urban Taskforce put housing at the heart of the regeneration agenda. Next week 1500 experts gather at the Urban Summit in Birmingham to take the pulse of Britain's towns and cities. We find out what's been achieved; meet the 40 most influential figures; and revisit Toxteth, the birthplace of the urban renaissance.
There will be some hard questions for delegates to debate at next week's Urban Summit. The visible successes of the regeneration drive so far might fool some observers into thinking the urban renaissance is going ahead smoothly, but nothing could be further from the truth. Although, undoubtedly, much has been achieved, regeneration is a tough mountain to climb and the reaching of this summit marks not the final peak but one of many that will have to be overcome.

The right stuff
Of course, there are many causes for celebration. The government has embraced the regeneration agenda in word, deed and funding. In its five years in office, it has endorsed the work of Lord Rogers' Urban Taskforce, and delivered the urban regeneration companies to champion visionary projects in major cities, the Neighbourhood Renewal Unit and the New Deal for Communities to affect change at micro-level, and the regional development agencies to bring consistency to economic development. To the government, regeneration is now alongside health and education as vital to improving the life chances of people in deprived communities.

Meanwhile, the urban renaissance can be seen in action in cities like Leeds, Gateshead and Manchester, and in the progress made in turning around towns like Barnsley in Yorkshire and Burnley in Lancashire.

Many of the positive effects of the regeneration work that has been done so far are easily overlooked, because they knit so well into the visible fabric of urban society.

As Lee Shostak, a director of regeneration consultant Shared Intelligence, says: "Ten years ago, no one was promoting policies to encourage housing development in town centres. There was still a presumption that everyone wanted to live in the suburbs, but now housing for rent and for sale in all price ranges is an important building block of a successful town centre."

Lingering uncertainty
But hold on to that champagne cork – we're not there yet. Despite the very visible successes and the enthusiasm of government at all levels, problems remain.

Not least among these is the lingering uncertainty about which agency is responsible for filling the gap between the high-level economic strategy of the regional development agencies and urban regeneration companies and the social focus of the Neighbourhood Renewal Unit.

The government announced in July that English Partnerships would have a lead role in coordinating regeneration, including social and private housing, on strategic sites it owns. But this still leaves many other projects struggling in a policy gap.

The underlying problem is the complexity of the task. Each regeneration project is different and needs a unique approach.

Regeneration is generally seen as having three interlocking components: first, physical improvements to homes, public spaces and facilities to make areas more attractive to live in; second, strengthening the social fabric through improved healthcare and educational opportunities, and third, targeted training and business support to boost the local economy so improvements made during regeneration can be self-sustaining. Tackling one side of the triangle does not automatically benefit the other two. It can even inadvertently undermine work being done in other areas. For instance, investing in new homes without making the area a more desirable place to live can lead to low-demand anomalies. On the other hand, boosting the employability of local people through training schemes can be fruitless if the beneficiaries move out of the area and take their skills and increased disposable incomes elsewhere.

"You're dealing with something so complicated, it's very difficult for participants to understand the implications of the decisions they're taking," says Chris Brown, development manager of regeneration specialist Igloo Urban Regeneration Fund. Controversially, he advocates a massive change of focus for regeneration spending: "The system is upside down," he says. "The Housing Corporation is putting money into deprived communities, but it needs to do the opposite – to allow deprived members of society to live in prosperous areas."

Brown, who will be speaking at the summit, is also concerned that spending priorities are misplaced: "A lot of money gets spent on the inside of the house and not on the area around, which is a very important aspect. When neighbourhoods start to decline, it doesn't really matter what your house looks like inside if the surroundings are so bad that people don't want to move in and those already there want to move out."

He puts much of the overlap and lack of coordination in regeneration down to poor communication. "In the Office of the Deputy Prime Minister, the housing people don't talk to the regeneration people. Communication is even worse at regional level. I would prefer urban priority areas to be designated, where all agencies could target their resources."

Community involvement
The government's response to the three-sided regeneration challenge has, in recent years, been to promote "area-based initiatives". To reverse social exclusion, the argument goes, the socially excluded must be at the heart of any regeneration project. Community involvement is often vital to a project's success, and is a major step forward from the old "top-down" approach.

It is right for local people to be consulted. But you can’t design regeneration projects around a policy of appeasment 

keith Carey, HTA

The early involvement of local stakeholders is often the key to a well-focused project. Dave Lewis, regional manager of Places for People, points to the success story of the redevelopment of Gravesham in Kent, to which Places for People contributed 51 social homes (see "History saves Gravesham", above). "We built consensus and trust through talking with a range of stakeholders.

It operated at an accessible level for local people – it wasn't hijacked by consultants."

On the other hand, community involvement isn't a universal solution and, arguably, can increase problems in some projects rather than diminish them. Some experts fear that too great a stress on community involvement has created projects that peer short-sightedly at local problems rather than tackling the big picture. According to Professor Brian Robson of Manchester University's Centre for Urban Policy: "A lot of area-based initiatives X X have not delivered the improvements the government might have hoped. They're a bit small and patchy, and can't drag areas of poverty into the mainstream."

Architect HTA has been involved in several major regeneration programmes. Regeneration director Keith Carey also feels the pendulum has, in some cases, swung too far. "The New Deal for Communities seems to be having problems in meeting output targets. It is right and proper for local people to be involved and consulted. But you can't design regeneration projects around a policy of appeasement." As an example, he points to the stalled New Deal for Communities in yuppified Shoreditch, east London (see "Trouble in Shoreditch", below): "The government is looking for a mixed-tenure response in line with wider policy objectives, while the locals want mono-tenure."

Professor Robson believes a balance needs to be struck between "area-based" projects and "strategic mainstreaming". This buzzword refers to the practice of allowing local authorities to divert "mainstream" education, housing or social services budgets, so that different aspects of one regeneration project no longer have to compete for funding. Robson cites East Manchester as an example of what can be done when a project is "mainstreamed" (see Manchester's Millennium Community). East Manchester is backed by an urban regeneration company, a New Deal for Communities, two single regeneration budget programmes and an education action zone. "Together, they can achieve a critical mass," says Robson. "We need to think big, think bold, and not get too bogged down in narrow areas."

Money worries and skill shortages
Of course, given the inherent complexity of regeneration programmes, there are other areas where projects can be derailed. The financial basis of a project can often be its undoing, says Carey: "You need more rigorous appraisals before projects are released into the public domain. That was the problem on the Aylesbury Estate, where a hole in the business plan meant it couldn't be delivered as it had been expressed to tenants."

Brendan Nevin, strategy director for social investment agency Prime Focus, also questions the quality of the economic advice on which many regeneration plans are based. "We're collectively spending tens of millions on consultancy, but what emerges is so general you could often just change the name of the area on the cover."

Meanwhile, in some major projects, participating organisations can develop their own internal agendas and programme delivery becomes an end rather than a means. Dave Lewis of Places for People says: "Projects need to be focused on outcomes rather than programmes of work. It's not about getting the next slice of single regeneration budget money – it's about improving a community where people want to live and invest."

Often a project is only as strong as the partnership behind it. But Merron Simpson, policy officer at the Chartered Institute of Housing, says some partnerships do little more than lend their logos to the project newsletter: "How partnerships are designed and managed needs more thought. Formal partnership charters are a feature of the nine housing market renewal pathfinders – one that could lead us down a better route."

These problems all stem in part from the fact that modern regeneration as a concept is still in its early stages, and those involved are often learning on their feet.

In the report that started it all, Towards an Urban Renaissance, Lord Rogers recognised this when he identified the problem of a regeneration skills gap: a lack of multi-skilled professionals who can develop a rigorous economic masterplan, engage local communities and get the best out of talented architects. As a new-born industry, the regeneration sector has had little chance to develop the training programmes or postgraduate degrees to transform planners, economists or housing professionals into regeneration visionaries for the 21st century.

"How many people have the skills to manage urban change? So far, we've looked at static environments, or small interventions. But we're now looking at huge areas," says Brendan Nevin of Prime Focus.

Onwards and upwards
There is little prospect that all the answers to these dilemmas will be found on the conference floor next week. But at least the Urban Summit will allow these issues to be aired and discussed and will, hopefully, ensure that complacency doesn't set in.

Success: manchester’s millennium community

The Millennium Community of East Manchester, will contain 1400 new homes, offices and leisure facilities, plus parkland, a new primary school and health clinic. It replaces the low-rise 1970s Cardroom estate, which was blighted by empty homes and high levels of unemployment and crime. Residents are understood to have been worried about high-density living. Many were very attached to their homes. The project is being delivered by developer Urban Splash, regeneration agency English Partnerships, urban regeneration company New East Manchester, Manchester City Council, Manchester Methodist Housing Group and Alsop Architects. A waterway is planned to link the existing Rochdale and Ashton canals – both currently being regenerated.

Success: history saves gravesham

In 2001, Gravesham council in Kent was awarded Beacon status for town-centre regeneration. Once threatened by the proximity of the Bluewater and Lakeside shopping centres, the town became a more attractive place to live, shop and socialise after its historic buildings and pier were incorporated into its regeneration strategy. Places for People and the South East of England Development Agency partnered the council in a £4.7m scheme to create 51 homes for key workers and 10 commercial premises as the first stage of the regeneration of the historic high street. This, and the construction of a £1m medical centre, stimulated commercial investment in the second stage. The scheme was highly commended in the London Evening Standard newspaper’s new homes awards.

The taskforce report: Three years on

Three years ago, the Urban Taskforce’s seminal report Towards an Urban Renaissance included recommendations to recycle brownfield land, improve design and transport planning and give councils more freedom to target long-term funding at areas in need of renewal. So, how is regeneration measuring up so far?

Up

  • Regeneration has soared up the political agenda. A decade ago it would have been unthinkable for local authorities to encourage housing in town and city centres
  • Joined-up financial thinking has replaced individual area-based initiatives focusing on small communities with the synchronisation of council housing, education and social services budgets to target a deprived area. The government is launching a year-long review of spending on area-based initiatives to simplify the system
  • Compulsory purchase orders have been made less complicated so it is easier for councils to buy land and buildings
  • Urban design has become a bigger priority Down

  • The North-South divide still exists; funding is not effectively spread across the country
  • Too great a gap remains between the high-level economic strategies of the regional development agencies and urban regeneration companies and the frontline, social focus of the Neighbourhood Renewal Unit
  • The government’s £180bn, 10-year, road and rail investment plan threatens to scupper regeneration by encouraging long-distance commuting and urban sprawl, according to a report earlier this month by Sir Peter Hall, Urban Taskforce member and professor of planning at University College London
  • Wait and see: trouble in shoreditch

    One of 10 pathfinder New Deal for the Community programmes, Shoreditch Our Way was awarded £37.4m in December 1999 for improvements to 4000 council homes, a new City Academy and community facilities. Its problems are common to many projects. The partnership was opposed to stock transfer, but its original housing strategy was rejected by the DTLR in 2001 as unsustainable. Earlier this year, the partnership completed a revised plan for housing, and this month it submitted a bid for funds to run the UK’s first sub-borough arm’s-length management organisation. In March, it suffered under Hackney’s forced sale of land and property to balance its books. It was forced to pay an unbudgeted £1.3m for land parcels needed to build replacement homes.

    The money maze

    The maze of schemes to access government funding for regeneration is tortuous, to say the least. “I haven’t even heard of half of them, never mind know how they work,” says Ken Dytor, chief executive of regeneration specialist Urban Catalyst. There is controversy in the sector, too, over how the latest government shift from allocating funds for specific housing regeneration to investing instead in general economic renewal will work. Its flagship £2bn New Deal for Communities programme and £1.8bn Neighbourhood Renewal Fund will spearhead the new approach as the regional development agencies take on much of the responsibility for regeneration. But Dytor says: “My major concern is about how RDAs will deliver on the ground. Getting the right structures and the skills in place is going to be a big challenge.” Widespread confusion and the lack of coordination have, in the past, scared the private sector away from urban renewal. Christopher Morley, planning director with the British Property Federation, says: “If the government is going to deliver on its aspirations there needs to be a serious examination of how we can overcome constraints such as planning gain.” But Chris Brown, development manager at the Igloo Urban Regeneration Partnership, says the private sector’s disenchantment with urban renewal can be traced back to the day in 1999 when “gap” funding for regeneration – which attracted vast sums – was ruled to be illegal by the EC. “What’s needed is one simple grant mechanism,” says Brown. Fortunately, simplification is on the cards. English Partnerships and the ODPM are finalising details of a new “gap” funding system, which could pump billions from the private sector into regeneration; and last week the government announced a raft of recommendations for streamlining regeneration schemes. The New Deal for Communities and neighbourhood management programmes will eventually be funded from the same Neighbourhood Renewal Unit budget, and funds for Health Action Zones and Sure Start, which target health and education, will be brought back within mainstream budgets. The following are some of the funding schemes available: Single regeneration budget
    Launched in 1994, this has distributed £5.5bn to more than 900 schemes. The scale of the single regeneration budget’s impact remains questionable; the consensus appears to be that it was never thought out fully enough and is too narrowly focused. It is now being wound down. Neighbourhood renewal fund
    The £1.8bn fund, launched in 2001, aims to enable 88 of the most deprived authorities to improve housing, employment, safety, economic performance, education and health. But there are concerns that it risks distributing money too thinly, is suburb-biased and doesn’t focus enough on physical housing. New Deal for Communities
    This flagship government programme was launched in 1998 and will invest £2bn of public money in 39 severely deprived neighbourhoods over 10 years. The large sums involved, the tight geographical focus, and the flexibility to adapt programmes to what is proven to work have proved useful so far. But little of it goes towards bricks and mortar and there is limited scope to draw on private sector capital. Housing Market Renewal Pathfinders
    Announced this April, the nine pathfinders – aimed at tackling low demand – must develop action plans before they can access £2.66m in start-up funding. The pathfinders have been described as “the chance of a lifetime for all those involved” but the Chartered Institute of Housing claims more than £1bn is needed for the renewal areas. PFI pathfinders
    Public funds totalling £760m have been allocated to various projects. However, no PFI contracts have as yet been signed, and private companies say they face bills of £1m just getting through the bidding process.