Professor Parkinson's regeneration report
03 February 2009
Regeneration sector will be affected by the economic dowturn but it's not all doom and gloom.
Professor Michael Parkinson CBE, head of the European Institute for Urban Affairs at LJMU, made the headlines with his report about the impact of the credit crunch on 
regeneration.
Local Government Minister John Healey asked Professor Parkinson to assess how the current economic crisis would affect the commercial property sector, the housing market and the regeneration sector.
Professor Parkinson found that the impact is serious but with the right sort of long term leadership and resources the country can come through the downturn.
The independent report "The Credit Crunch and Regeneration: Impact and Implications" makes clear that regeneration is a long run game. It has made a real difference across the country in the past decade because of a strong national economy and extensive public investment. The economic crisis is therefore increasing pressure on the sector and this is likely to get more intense.
However, many projects already underway are continuing, especially where the public sector is involved but projects yet to begin are at risk. Economically marginal projects are increasingly less attractive and the north and midlands have been affected more than the south east.
Professor Parkinson is clear the system will not recover quickly and everyone - from the private sector, councils, regional agencies and central Government - has a part to play in getting through the downturn and preparing for the upturn.
He commented: "Regeneration has had a very good ten years but the credit crunch has shaken the sector. If the regeneration pipeline dries up the investment, confidence, momentum, skills and capacity which have been built up in the last decade may face even greater pressure.
"Simply put, development and property industries - including the regeneration sector - need end users to buy their products.
"However difficult the market is now, it is not dead. Many schemes are continuing, especially those that are financially sound or have government backing.
"The successful principles of regeneration are even more important now. The challenge is doable. Now is the time to take stock, make the right long term decisions and re-gear ready for the upturn. Everybody must stick to their guns, not panic and keep their eye on the longer term horizon."
To read the full report, click here.
