The Big Picture - sustainable masterplanning as a solution
This is the third in a series of long-read blogs and over the next few weeks we will be investigating what it means to undertake sustainable repurposing, through different uses, masterplanning, funding and policy.
For further detail, Savills’ recent research on Re:Imagining Retail is available here.
As discussed in our previous two blogs on re-imagining retail, the impacts from Covid-19 have caused us to change the way we think about how we live, work and play, with significant implications for our town centres.
Re-imagining our Towns requires ambitious and transformational change to resolve issues with our high streets, and capture future growth opportunities. We need to look strategically at the whole town rather than focus on individual or isolated sites. Sustainable masterplanning should therefore be at the heart of our strategy to reshape and reimagine our Towns.
In this blog, we look at the challenges facing our towns, the need for sustainable masterplanning, and delivery strategies to implement transformational change.
Challenges
The challenges facing our towns are multiple and complex. These can be defined as ‘Market Failures’ which occur when market conditions cannot maximise value and, thus, create inefficiencies. They occur everywhere to some degree or other. In severe cases there is a need for the public sector to step in and rectify these issues to ensure the market operates effectively. You can learn more about Market Failure by watching the recording of our Demonstrating Market Failures webinar.
There are a number of common market failures in our towns, but one of the most common is ‘Coordination Failure’. This is when multiple stakeholders are needed to effect change, but are unable to come together to deliver an optimal solution due to competing or conflicting agendas or resource constraints.
In town centres this occurs due to the complex nature of land ownership. For one site there can be freehold, and multiple leasehold ownerships, all with different lengths of term and each stakeholder with their own agenda. It is even more complicated for shopping malls with multiple layers of ownership and complex management arrangements. This means freeholders alone cannot effect change on their sites and need the support of other stakeholders. To effect transformational change across multiple areas of the town creates even more issues.
Bringing everyone together in the process is difficult. Compulsory Purchase Orders (CPO) can be used to gain control over large areas for the benefit of the whole town, but this is a costly, time consuming, and resource intensive exercise.
So how can we bring everyone together to effect transformational change needed, rather than focusing on one or two sites?
Solutions
Sustainable Masterplanning is about creating a long-term strategy and overarching vision for the whole of the town centre. This considers the long-term objectives for change, the key challenges to be overcome, and involves the development of a strategy that considers the optimal balance of uses, building on existing assets, supporting diversification, and understanding relationships between places. It does not treat town centre sites as islands, but considers how each site is linked and the role each area plays in achieving the overall aims.
This is a tried and tested approach to the regeneration of urban centres, and one of the early champions of this approach was Birmingham city centre, which in the early 1990s set out a clear plan to break its “concrete collar” of urban highways and develop a series of new distinctive city quarters, which included the Jewellery Quarter, Gun Quarter, Digbeth and City Centre Core. This initiative has reinvigorated the city centre brand, but is just as relevant in smaller towns where perhaps the identity and point of difference is no longer obvious.
To be successful, this strategy and vision must be developed with support from all stakeholders—the community, landowners, developers, and investors. People need to understand the role they can play in the overall picture and how their sites and activity can help to influence the wider strategy.
As part of the Town Deal programme, many places have already started this process. Engaging with the community to develop ambitious plans for the whole town rather than single sites. Town Deal Boards with local stakeholders can also help plan for and help to effect change. Engagement between TDBs and wider stakeholders into the delivery stage of the plan will be imperative to deliver successful outcomes for most towns.
Delivering the strategy and implementing change could consider the following:
Critical first moves – identifying a first phase of works, or initial project, which demonstrates deliverability and starts the transformation process is very important. This should aim to set the bar in terms of quality, resolve major issues for the town (eg. connectivity), and have the capacity to deliver a range of uses that act as a catalyst for the rest of the vision
Capitalising on council-owned assets – Using the redevelopment of public assets as a catalyst for change, setting the bar in terms of the quality and type of development
Create public-private partnerships – These can be effective ways of councils leveraging their own assets, planning capacity, community support, with private sector partners market, development and financing knowledge to support redevelopment
Other delivery strategies – Some areas, including Stockport, have established Development Corporations, which include planning powers, to bring together stakeholders and support the delivery of major transformational projects.
One of the most recently established Development Corporations, is the Stockport Mayoral DC, which was established in 2019 to help deliver over 3,500 homes across 52ha of brownfield land in Stockport Town Centre. As a town centre regeneration-focused DC, it will work with over 500 land owners to deliver its ambitious plans over the next 15-20 years. Planning functions remain with Stockport Council rather than being deferred to SMDC. The main challenge for SMDC has been identifying an investment strategy to deliver the scale of housing delivery envisaged. This has required a unique approach to the DC taking a variety of roles including promoter, facilitator, developer and JV partner.
Towns, now more than ever, have the ability to take a strategic, long-term view, on their future, and implement transformational change to create sustainable and balanced places. To do this requires ambition, a positive outlook, a plan for collaboration, and an open and active engagement process to bring everyone on the journey.
If you would like to discuss any specific topics further, please talk to your Town Coordinators who will be able to request tailored property advice from the Savills team, including discussions around delivery strategies for town centre interventions and helping you with structuring partnerships, or request an Expert Drop in hour.