Mon 14 Apr 2008
English Partnerships dismisses threat to regeneration projects
The likely delays to the start of tens of billions of pounds worth of renewal projects across the UK, as a consequence of the credit crisis, should be put into perspective, says English Partnerships. This is despite the threat posed to housing supply targets.The government's ambition of achieving 240,000 new homes every year, appears to be endangered by the housing market slowdown and general economic uncertainty. Many lenders are now anxious about debt financing, particularly with regards to regeneration projects that require considerable backing.
"The banks are looking very closely at their risk profile and at the schemes' exposure, prices and returns on capital," Kevan Carrick of the Royal Institution of Chartered Surveyors said.
However, John Walker (pictured), Chief Executive of English Partnerships, told Show House online that the glitch was simply part of the economic cycle. “Large regeneration schemes have long-term delivery timetables which can extend to over 20 years and inevitably there will be ups and downs in the economy throughout this time. It is therefore unlikely that the current market climate will, on its own, cause any significant delay to these projects.
A number of housebuilders are now taking a more cautious approach to housing developments, as a consequence of the slump in the economy. However, English Partnerships state that they will be flexible in their approach and in an attempt to “help to maintain and restore confidence.”
Walker adds: “One initiative we are pursuing is to split up some of our larger sites so they also attract regional and smaller developers and we can expand the number of partners we deal with. We are confident that, despite this market slowdown, we will meet our targets and deliver our projects on time.”
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