1. INTRODUCTION
De-Industrialisation, particularly in urban areas, has created a legacy of brownfield sites
across the UK. The regeneration process has naturally evolved particularly since the early
1950s when large regeneration projects took place throughout the UK after the
devastation of World War 2.
However regeneration in the UK has traditionally been piecemeal and although many
individual brownfield sites have been successfully developed in isolation by the private
development community, the wider regeneration of communities and neighbourhoods has
not often been as successful due to a lack of clarity in policy and practice.
In 2005 there were an estimated 63,500 hectares of previously developed land (PDL)
in England of which an estimated 36,600 hectares (58% of the total) were vacant or
derelict (1DCLG, 2006). UK government policy is that 60% of new housing should be
provided on Previously Developed Land. The 2005 pre-budget report set out an ambition
to increase housing supply by 200,000 net additional homes per year by 2016.
There are currently tax benefits available to support the objective of more housing utilising
previously developed sites thereby securing urban regeneration. There are two broad
paradigms within which tax based measures may be deployed. First, either to supplement
the regulatory role of planning regimes in the control of development or second, to
provide fiscal incentives that work in parallel with market mechanisms (2ESRC, 2001).
Figure 1 shows the development of legislation and policy in the UK since 1945 that affects
redevelopment and regeneration.
Evaluate the Financial Incentives available for the Sustainable Redevelopment
of Brownfield Sites and the Legislation that Controls such Development
Glynnis L K POOLE (glynnis.poole@midashomes.com)1,2 & Paul NATHANAIL (paul@lqm.co.uk)2
1Midas Homes Ltd, 2University of Nottingham
FUTURE WORK
Government policies can both hinder and encourage brownfield redevelopment. In order
to evaluate whether the overall effect of government policy in the UK is to encourage or
hinder sustainable brownfield redevelopment in Cornwall a survey of UK residential
developers coupled with personal experience within Midas Homes will be utilised. It will
be a national survey to identify the attitude of housing developers towards brownfield
redevelopment in the UK and specifically Cornwall.
PRELIMINARY CONCLUSIONS
There are a series of financial benefits to incentivise development on
brownfield sites, the objective of which has been to promote the
development of ‘hard to remediate’ sites and return them to beneficial
use.
A number of research programmes have already identified problems
with the fiscal incentives system currently available in the UK. There is a
need to raise awareness of what is currently available and reform the system
to make it more applicable and easier to apply. The tax incentives system
needs to support the wider political ambitions for increasing the supply of
brownfield land for re-development and it has a role to play in reducing the
costs of remediation although doesn’t deal with long-term dereliction.
The geographical location of Cornwall associated with poor development
markets, low incomes and physical constraints such as contamination have
resulted in a large quantity of derelict and vacant land. A number of the sites
are now requiring public intervention to increase their viability and ensure
appropriate and effective redevelopment and regeneration.
FIGURE 2: Dixon, T., Pocock, Y., Waters, M. (2006) An analysis
of the UK development industry’s role in brownfield regeneration. Journal of
Investment and Finance, Vol.24, No.6, pp.521-541
FIGURE 3: Dixon, T., Pocock, Y., Waters, M. (2006) An analysis of the
UK development industry’s role in brownfield regeneration. Journal of Investment
and Finance, Vol.24, No.6, pp.521-541
Is private investment alone able to resolve the inhibiting issues of:
Unemployment, low incomes, low sales prices
Increasing requirement for affordable housing
Environmental/land contamination
Industrial decline & market failures
Are there sufficient financial
benefits to achieve wholesale
regeneration and develop the
utopia that we are striving
towards?
This was a former industrial manufacturing site
that needed public intervention by English
Partnerships (the governments national
brownfield advisor) who have effectively provided
gap funding. The masterplan is for a mixed
development with the aim of ‘kick starting’ the
regeneration of Camborne, Cornwall.
Figure 2 indicates the overall
trends in the development of
housing on greenfield and
brownfield sites. Development
on greenfield sites has declined
since the late-1990s whereas
development on brownfield has
shown a significant increase.
This corresponds with the
introduction of the 60% target
in government policy.
Figure 3 indicates the
findings of research
conducted in 2006
that suggests the
predominant reason
for increasing
brownfield
development is the
availability of land
and government
policy.
Former Comp Air
Holman Factory,
Camborne, Cornwall
It will attempt to identify and clarify the on-going tensions between regulation of brownfield
redevelopment and the financial benefits of developing such sites. Personal experience from both the public sector
as a regulator and now from the private sector as a developer has identified conflicts between the two sectors.
Brownfield regeneration cannot take place without private investment however they are a business and need to
make money. The abnormal costs often associated with developing brownfield sites reduce the profit margins
available especially in marginal areas and although an element of this will be considered within the land value
there is also a need to negotiate section106 agreements and affordable housing provision. Remediation works
need to be appropriate and ensure a site is suitable for use, unfortunately when a developer is involved some
regulators tend to view it as an opportunity for achievement of whole site clean-up which is often not required or
economic.
(3Pictures and diagrams taken
from DOLCOATH masterplan)
REFERENCES
1 Department for Communities and Local Government (DCLG), Previously developed land
that may be available for redevelopment: England 2005, 2006
2 Lloyd, McCarthy, Berry and McGreal, Fiscal Incentives for Urban Regeneration, ESRC
Report 2001
3 CPR Regeneration & English Partnerships, Dolcoath Masterplan and Urban Design Code,
2005
Figure 1: Legislation, Policy and Guidance affecting Brownfield Redevelopment
2007-
2006-
Town & Country Planning Act, 1947
1945-
1950s-
1978-
1980-
1990-
1991-
Environmental Protection Act
Town and Country Planning Act
New Towns Act, 1946
Local Government, Planning and Land Act
Finance Act
Groundwater Regulations
Pollution Prevention Control Act Towards Urban Renaissance
Urban Development Corporations
established
Environment Act
Production of National Land-use Database
Towards National Brownfield Strategy
Sustainable Communities Plan
Urban White Paper, Our Towns and CitiesPart 2A, EPA 1990
Building Regulations
PPC Regulations
“The English New Town programme
represented one of the most successful
urban policies of post-war Britain”
(English Partnership)
2005-
2004-
2003-
2002-
2001-
1999-
Water Resources Act
Change in political power, 1997
1997-
Review of Housing supply, Barker Review
Delivering Stability: Securing our future
Housing Needs
Planning Policy Statement 3: Housing
Contaminated Land (England) Regulations
Towards a Strong urban Renaissance
Finance Act
Planning Policy Statement 23:
Development on Land affected by
Contamination
Special Waste Regulations
1998-
2000-
1995-
1996-
The Brownfield Guide (EP) 2006
Land Stabilisation Programme (EP) 2006
Control of Pollution (Amended) Act, 1989
Waste Management Licensing Regulations,
1994
Hazardous Waste Regulations
Landfill Regulations
Water Act 2003
Planning Policy Statement 1: Delivering
Sustainable Development
Tax incentives for development on
brownfield land: a consultation