Councils have been urged to use future tax revenues to fund infrastructure developments to pump millions into flagging schemes.
Key figures in the property and regeneration sectors this week threw their weight behind proposals to encourage councils to adopt “tax increment financing”.
The move would mean councils and developers issuing bonds, paid for by the future tax revenues a development would provide.
The British Property Federation yesterday launched a manifesto including the recommendation.
A number of regeneration projects in the UK are reported to be considering raising bonds along the TIF lines, including Grosvenor’s development of Crawley town centre and the Nine Elms development in Battersea.
Partner at planning consultancy DPP John Francis said: “[Local] authorities need to gain an understanding of the cost of regeneration, how the private sector works, and how it can and might be prepared to finance it – these are key considerations, but ones that are often overlooked.”
The BPF’s manifesto has attracted the support of the Homes and Communities Agency among others.
The BPF also wants government to consult developers when it is planning new BSF schools or new hospitals, saying that there needs to be more joined-up thinking.
The plan also includes a recommendation that the government clarify the implications of the Roanne case, which has scuppered several regeneration programmes; develop more innovative forms of financing; and encourage a professional rented housing sector.