17 August 2007
Private investors are being urged to back up public spending programmes and look towards regeneration areas for potential gains.
The level of risk associated with such areas has fallen markedly since the mid-1990s, with property prices less volatile than across the UK as a whole, says a survey commissioned by English Partnerships, the government's regeneration agency.
The study of 21 regeneration areas, published on August 10, shows that investors gained year-on-year returns of 16.7% during the past five years in areas targeted for renewal, compared with 15.1% in other areas.
Steve Carr, EP's head of policy and economics, said the trend covered retail, commercial and residential properties. 'Investors are missing a trick in avoiding regeneration areas because of poor historical performance,' he said.
The IPD regeneration index, created by EP and private companies, concludes that there are advantages in investing in regeneration areas in the short to medium-term and no marked long-term disadvantages.
The retail sector is seen as a major driving force behind the regeneration success.
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