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Analysis: Giving estates a new lease of life

Lord Michael HeseltineEstate regeneration is at the top of the government’s development priorities. But the phrase too often prompts ideological rows, local disputes and accusations of “social cleansing”.

Never one to shy away from controversy, Lord Michael Heseltine is the politician leading the government’s plan to regenerate Britain’s 100 worst sink estates as co-chair of the estate regeneration advisory panel.

Prime minister David Cameron announced in January that £140m of government funding would be given to the new panel, which is estimated to have the potential to unlock 360,000 additional homes.

Heseltine speaks to Estates Gazette about how the steering group will help open up estates for regeneration by developers.

What is the problem with the estates we have in the UK?

“I think it’s difficult to generalise because there are some that are badly designed, inadequately maintained and have monolithic characteristics.

“On the other hand, you find some well-maintained properties where there’s nothing wrong in physical terms, but they don’t provide communities. The jobs are not available, the social facilities are not there. So there’s no human character.”

How are you choosing the 100 estates?

“We already have a list of 30 estates, but I get a list every week.” [The panel is calling for local authorities, developers and individuals to offer suggestions for other estates that could have regeneration potential.]

Do you think the funding will be released easily, or will there be red tape around it?

“There will be enthusiasm on behalf of government to get on with this project. As you know, it was launched by the prime minister. He attaches significance to the social opportunities for communities that are part of a regenerative scheme. And so all the pressure from central government will be to get ahead as quickly as possible. We are in the hands of the local owners, the local planning authorities and the local tenants.”

How will you make sure estate regeneration isn’t just about short-term profits?

“I think the private sector has a role to play here. But a lot of the private sector is not interested in short-term profits. Pension funds, institutions and housing associations are all in the long-term investment business.

“On the other hand, I am keen to see the private housebuilders play their role. They are profit-seeking but also innovative and have ideas that have transformed many of these estates.”

How will you manage a run on the most valuable schemes?

“I think in any project of this sort there must always be the likelihood that the easier schemes will be the first to get off the ground. I don’t personally find that unacceptable because they become exemplars, encouraging others, and teach you new ways of doing things.”

What is the proposed timeline for the project?

“If I knew what the viability of the first 30 would look like I could answer your question, but we’ve only had a month or so in which to begin this exercise and so it would be misleading for me to give specific answers.

“But we must produce an interim progress report in June that will give people a feel for what progress we are making.”

Compulsory purchase orders can cause long delays. What do you think of speeding up the process while maintaining one that is fair and acceptable?

“They can cause delays. But let’s not look on the pessimistic side because a compulsory purchase order is the last resort.

“There’s a lot around, particularly in the public sector, that won’t need to be compulsorily acquired and a CPO may be able to facilitate the release of that land when it is owned by government.

“But again it could be owned by the local authority or by private developers, so my guess is that there will be a lot of land available without [resorting to] compulsory purchase.

“In circumstances where some land does need to be compulsorily acquired, there may be ways of getting ahead with half of the estate while compulsory action is taking place.”

• To send feedback, email louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette

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