Page 3: Urban regeneration
Regeneration programmes are needed because of the decline of various industries such as coal and steel in parts of the UK. As factories and businesses have closed down this has led to fewer jobs and lower incomes. Declining prosperity has affected the quality of services available and has deterred other businesses from locating there - leading to a downward spiral. Eager to help these areas recover, the government has encouraged and financed urban regeneration programmes. These involve a comprehensive and co-ordinated approach to solving problems caused by the decline of manufacturing and primary industries in these areas. Urban regeneration includes economic, physical, social and environmental initiatives and policies designed to bring jobs, businesses and households back to specific regions in the UK.
The regeneration of an area can lead to:
- improved quality of life and a better environment in which to live and work
- greater prosperity for the area as consumers spend more money in the area (rather than spending somewhere else)
- more employment in the service sector e.g. in hotels, bars and cafés.
- Effective regeneration programmes bring prosperity back to an area making it much more attractive in which to live and work and providing much more employment.
The regeneration of an area where Land Securities owns land can benefit the company by increasing:
- the value of the land that it owns in its area. This property will be listed as an asset on its balance sheet
- its revenue from the rental on these properties because of higher demand to locate in this area. The rental income will show up on the profit and loss account.