Just 41% of local leaders and decision-makers intend to plan, fund, develop or occupy new town centre regeneration schemes over the next five years, according to new research published by Lambert Smith Hampton (LSH) and Revo.
This figure is down from a high of 72% in 2024, prior to the election of the new Labour government. The annual ‘Shaping Tomorrow’s Places’ report also found nearly two-thirds (62%) of local leaders think town centres have got 20% to 40% excess retail space and the provision of mixed-tenure residential is seen as the best way to ensure successful and viable centres over the next five years.
Some 69% of leaders think the most effective local intervention to support town centres over the next five years is to redevelop or repurpose vacant retail space for a blended mix of uses, including new homes, schools, healthcare facilities, leisure, civic and community uses.
The report was informed by more than 250 responses from experts, advisers and leading decision-makers across the public and private sectors who are involved in the planning, management, funding and development of cities, towns, high streets and shopping centres.
Steven Norris, executive director at LSH and national head of LSH’s planning, regeneration and infrastructure (PR+I) business, said: “There is no one size fits all solution, but the delivery of new, mixed-tenure homes in, on top of and at the edges of our centres will be fundamental to their very existence. Our centres are not only the most accessible and sustainable locations for new homes – they also have the potential to make a significant contribution to the government’s target of 1.5 million new homes.
“But in the 12 months since it was elected, the government’s main focus has been on building new homes on the green/grey belt and developing new towns, with little mention made of or funding allocated to the much-needed recovery and regeneration of our centres. Homes England can play a greater role to play in helping to fund and deliver new homes and critical regeneration projects in some of our failing centres.”
He continued: “Although this year’s research shows stakeholders are still more optimistic than pessimistic about the future for our centres, the mood music is undoubtedly down on previous years. Wider economic and geopolitical uncertainty is weighing on ability to get projects out of the ground, and those involved in regenerating our centres are adopting a wait-and-see approach as they digest the full effects of the reforms that are being set in motion by the new government. In the meantime, the message is clear: we need to diversify beyond retail to build resilience, and the need for strong public-private partnerships has never been greater.”
