Urban Renewal

The Woodberry Down Project

Professional standpoint states that the social disposition of the succeeding generations can be
considerably predisposed, shaped or curbed through sheer creation of place. In itself, urban
planning does not confine to the simple, methodical crafting of space, but leans a concise
configuration to deliberately influence social equity and ecological conservation; preservation
of culture and a positive contribution to the economy. In this sense, the advancement of
community rests largely in the formulation of sustainable urban designs; its degree of relevance
and effective enforcement (Cooper et al 2000, Designing sustainable cities 2009, Rowley 1994).
For reason of, the revival of deprived localities is often directed through investments made in
buildings and infrastructure that in principle, regeneration is rudimentary in the new era of
urban policy (Blackman 1995). “Urban regeneration moves beyond the aims, aspirations and
achievements of urban renewal, which is seen as a process of essentially physical change, urban
redevelopment, with its general mission and less well-defined purpose, and urban revitalization
or rehabilitation which whilst suggests the need for action, fails to specify a precise method of
approach,” (Tsenkova 2002).

This critique seeks a good explanation and evaluation of Urban Regeneration as a relevant
instrument to the advancement of the community. Approached using the theory of change, the
work is an application of the realistic model
otherwise referred as the 1997 Pawson Tilley CMO
model. CMO is a diagnostic tool for evaluating how
particular approaches to a given circumstance
produce specific outcomes. It is to note that realistic
evaluation assumes that intervention shall occur. The
framework outlines the context to which planning
prescription determines a clear relationship between
a problem and outcome, and that a measurable
change can be identified. CMO is: context (+)
mechanism (=) outcome. Context shall situate the
Map of Woodberry Down. Finsbury Park lies east
problem from which an instrument was prescribed, while The Bridge in LB Haringey is immediately north.
London Borough of Hackney continues south and east
of the area (Sissons 2009)

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mechanism is a descriptive of the regeneration intervention and outcome is the measureable
change (Pawson and Tilley 1997).

SITE CHARACTERISTICS
Woodberry Down Estate is a post-war housing estate bordering the northwest of the London
Borough of Hackney, which was a landmark project of the 1940 London County Council. The
area covers about 24 hectares and mostly residential, built around two small shopping sites:
Woodberry Grove and Manor House. Its entirety sweeps through six lower level output areas
toward Brownswood and New River. Accessibility is a stronghold of the area with direct access
to central London by the Underground, and next to the transport hub at Manor House. Seven
Sisters Road A503 divides the estate in half, while Green Lanes A105 seams the DP area. Nearby
borders are the East and West Reservoirs, the estate is adjacent to Finsbury Park and Clissold
Park (Sissons 2009, Europan brief 2001).

Woodberry Down endures extensive disadvantage given limited investments in social housing
and physical infrastructure in the recent 25 years, with Hackney identified as the most deprived
local authority district across the country (IMD 20041). The District has its economic base in
manufacturing, aside an emerging prominence in the
arts and media. The vibrant community has a unique
character with its diverse ethnic mix, with more than
half of the residents in subsidised livings having
income levels well below the London average
(Sissons 2009, Europan brief 2001).

The local Government has full attention on the

regeneration of this built environment, and has put
out investment bids. Woodberry Down and Stamford
Hill Partnership received bid approval for £25m from Woodberry Down Regeneration Landscape Masterplan
(Sissons 2009)
the UK Government's Single Regeneration Budget or

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SRB of £22.5m. Two thirds of the budget is placed into Woodberry Down Estate housing and is
expected to kick off a ten-year regeneration and redevelopment programme. The housing
estate comprises 558 residential units, of which 398 units are due for demolition. Ashdale and
Burtonwood complete 160 units that are to be refurbished considering these are of historical
significance and under protection schemes of the English Heritage (Europan brief 2001). The
Woodberry Down 1,980 homes form the largest social housing estate in Hackney, having that
its principal landowner being the Council, some 67% of these homes are let from the social
housing sector.

REGENERATION PLAN
The Urban Regeneration project was conceived towards the close of the 1990 economic boom.
Apart from the major remodelling on the entire complex, Hackney Council decided for a cost
saving knock down of the gigantic estate over the expenditure to refurbish units at the Decent
Homes standard. These large social housing blocks are home to near on 2,000 family residents
(East London Lines 2012). Insofar, the creation of a mixed cultural economic centre is the
kingpin strategy of the Woodberry Down urban regeneration plan. In a cultural dimension, the
community is comprised of 32% of its full population of fifty eight thousand, White British
lineage 17%, Black African 10%, Black Caribbean and
Black British 10%. A substantial count of resident
minorities is Turkish and Kurdish, and the largest
Orthodox Jewish community living nearby. The
community is relatively young with about 23% of the
population aged 14, and a handful of transient
arrivals from Eastern European Accession States. The
elderly group comprises 15% of the estate
population, mostly longstanding tenants and
leaseholders (Sissons 2009).

View in 2012 (Genesis Housing Association 2011)

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Regeneration is buckled in the diversification of housing types and tenure, the infusion of
commercial and community amenities, and a more efficient overall built density. It is to note
that energy efficiency and sustainability issues such as noise reduction are primary concerns,
while there are no height or orientation restrictions, or materials prohibition for the new
development. Particularly to result in the integration of the East Reservoir, provisions are
catered to the enhancement of public space, vehicle parking and traffic flow. Relocation of the
southern access road Newnton Close is under review, the same goes for the community centre
marking the northwest corner of the site and the maintenance depot at the Woodberry Grove
junction (Kouvee 2012, Europan brief 2011, Sissons 2009).
Process of Urban Regeneration

ECONOMIC PROFILE
Structure of the local economy,
unemployment, economic links.

SOCIAL PROFILE
Human resources, socio
economic status, social
deprivation, ethnic inclusion
Urban development
ENVIRONMENTAL PROFILE Corporations 1981-1988
TRENDS Enterprise zones 1981-1996
Economic Quality of urban fabric and
infrastructure, environmental Estate action 1985-1994
Social City Grant 1988-1994
Spatial pollution, waste management
City challenge 1993-1999
English Partnerships 1993-1999
CHANGES IN Single regeneration budget
Governance 1994
Technology Estates renewal
politics Challenge fund 1996
New deal for communities 1998

OUTPUTS
Strategies for
change
Megatrends

SOCIAL PHYSICAL
Employment to training, Rebuilding city centre,
improvement in improvement of
education and housing, new social
healthcare services facilities, transportation

ECONOMIC
New economic ENVIRONMENTAL
opportunities, economic Environmental action:
diversification, support green policies
for new and existing
firms OUTCOMES

Cities or places
Competitive
Improved quality of
life
Fiscal soundness
Social Inclusion

(Source: Urban Regeneration: Learning from the British Experience 2011)

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PROBLEMS, ISSUES AND SENTIMENTS
 The Hackney Council structural evaluation report in 2002 concluded that 31 out of 57 blocks
on the estate are beyond repair, and urged these blocks were demolished. Several faults on the
built environment were identified: damaged drainage systems, disabled access and lifts were
found to be insufficient, weakening of the support structure; water seepage, material use of
asbestos; security flaws on access and inadequate heating and cooling systems.

 The Hackney Council shifted from its “Decent Homes Strategy”, and pursued the self-funded
regeneration programme, decided as the better option to meet the Decent Homes Standard.

 The existing tenure which comprised chiefly of social housing dampens the economic
potential for income generating activity. While the market demand on affordable housing is
high, a fairly homogeneous tenure of 67% into social rented spaces, has resulted to economic
stagnancy.

 The placement of Seven Sisters Road, which is a six lane main thoroughfare, creates a visible
divide. It is too cumbersome to get across the highway to use facilities at the other side. Studies
find that this scenario has weakened community
cohesion, and can induce racially motivated crime.

 Woodberry Down has a reputation of being a

“dangerous place”. Situated nearby a transport node,
the Manor House interchange turns out as a hotspot
for drug related activity and prostitution. Robbery
has been experienced at high rates; and recent
occurrences of gang related violence.

View of Woodberry Down from Rowley Gardens

 The local population is exposed to a high level of (Sissons 2009)

multiple disadvantaged with six zones ranking within

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the 3%-5% most deprived areas across the country. Health is poor, with 21% of residents
registered with limiting long-term illness.

 Many residents have qualifications at primary level and amongst the working age population
35% had no qualifications.

 40% of dependent children belonged to lone parent families.

 Access to public services and shops remain a problem. These include the lack of access to
services, such as mental health care and other social infrastructures that circumvent poorer life
chances.

DEVELOPMENT CAPACITY
The policy on affordable housing and unit size forms a critical element in the regeneration plan,
which sets out with 1,458 social rented homes composing 34.0% of the full allocation.
Intermediate housing makes up 7% and 59% as private units for sale. Intermediate housing
could increase to a maximum of 17% should funds be available, that would be taken out of the
private housing scheme. 35% of these newly
developed homes are for 3-beds category or more,
aside the raised density of 200 units per hectare.
10% of the development area is for public open
space, built around garden squares are the
‘traditional London urban form’ block between 2 and
20 storeys. 456 units are for completion within a 3-4
year period.

The Woodberry Down urban redevelopment project

is ideal in the sense of its high potential of adaptive

Woodberry Down Library

(http://www.hackney.gov.uk/woodberry_down_library.htm

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reuse after build, historical classification, and proximity to major transport routes and
terminals.

COMMUNITY DEVELOPMENT
Blackman (1995) states that community development is in fact a strategy for putting urban
policy into practice: “Community development is about strengthening representation and
participation where there are barriers to this; an equal opportunities framework is therefore
essential and this requires the investment of resources. Giving voice to people who are
disempowered by disability, caring responsibilities or lack of English means resourcing their
participation: using staff who can communicate effectively with target groups, providing access
and facilities for disabled people, and providing child care, travel expenses and translation.”

“Bringing Britain Together: a national strategy for neighbourhood renewal,” was the slogan
coming off the report of the Social Exclusion Unit and underlying principles used in the
formulation of the urban regeneration objectives of the particular project. The objectives set

A practical framework for building communities

(The Berkeley Group, 2012)

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out by the Woodberry Down Community Organisation are: (1) Development of people and not
simply the place (2) Encourage neighbourhood participation in the determination of solutions,
(3) Work with local community leaders to determine integrated approaches, (4) Policy must
ensure the inclusion of the poorest neighbourhoods and (5)Political commitment toward long
term sustainability (Europan brief 2011).

In the implementation phase, the Woodberry Down Community Organisation or WDCO was
formed. The WDCO is the resident elected body established to represent all residents and
workers within Woodberry Down. The recognised organisation for the negotiating arm for the
urban regeneration programmes, and meets on the third Thursday of every month at the
Redmond Community Centre with the various subcommittees and partners for discussion on
the issues, sentiments and concerns of the urban regeneration project. A housing management
and regeneration office has been set up to respond to resident inquiries such as the interim
repairs on blocks in Phases 3-5. For advisement on specific concerns about the regeneration of
the Woodberry Down estate, the services of the Independent Tenants and Leaseholders
Advisor or ITLA is commissioned on call schedule basis every Tuesday and Thursday 3pm-7pm
at 93 Woodberry Grove (hackney.gov.uk/woodberry-down).

Community housing organisations can prove beneficial to project completion because

partnering community is a demonstrated long-term commitment to public service. In which
case the attitude typical of depressed areas are shaped to be more cooperative. The idea put
forward is to improve the overall capacity of the urban regeneration initiative by strengthening
the capability of the partner. In due course the capacity of the partner organisation shall
augment the pool of economic activity. Community housing organisations further create a
systematic process for involving the neighbourhood in making decisions about affordable
housing investments.

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 CONTEXT-MECHANISM-OUTCOME (CMO) EVALUATION ON WOODBERRY DOWN URBAN RENEWAL
CONTEXT: ISSUES, OPINIONS AND SENTIMENTS
1Undesirable standard of living: Defects on the built
environment include faulty drainage systems, insufficient
provisions for disabled access and lifts, ground and
foundation movement; water penetration, presence of
asbestos in the majority of blocks; poor security and
inadequate heating and cooling systems, poorly
maintained roads and pavements
2 Lack of income sources: Existing social housing
residualisation result in a weak mixture of economic
activity and income.
3 relatively homogeneous in terms of tenure and type.
67% of these homes are in fact social rented.
4Location of facilities and amenities: on the estate comes
in the placement of the Seven Sisters Road, which is a six
lane main thoroughfare. Unfortunately, the facilities and
activities at one side
5A dangerous place: Hotspot for drug related crime,
street robbery and prostitution. Recent escalating
occurrences of gang related violence traced to poor
facility configuration in terms of the location of stairwell
and voids
6 Poor health: A high level of multiple disadvantaged with
six zones ranking 3-5% most deprived communities across
the country. 21% of residents registered with limiting
long-term illness.
7Need for skills training: Many residents have
qualifications at primary level and amongst the working
age population 35% had no qualifications.
8Family structure and capability: 40% of dependent
children belonged to lone parent families
MECHANISM OUTCOMES: THE MEASURABLE CHANGE
1In the implementation phase, the Woodberry Down 1Improved supply of good quality homes, and higher
Community Organisation or WDCO was formed. The density developments
WDCO is the resident elected body established to
represent all residents and workers within Woodberry 2Advancement of built environment, in respect to
Down. The recognised organisation for the negotiating community ownership, global sustainability, adopting the
arm for the urban regeneration programmes, and meets Egan principles and high quality innovative design
on the third Thursday of every month at the Redmond
Community Centre with the various subcommittees and 3Broadened housing choices through integrated tenure
partners for discussion on the issues, sentiments and strategy and revised lettings policies
concerns of the urban regeneration project
4Better life chances through key areas of support in
2A housing management and regeneration office has education, consulting, training, and employment.
been set up to respond to resident inquiries such as the
interim repairs on blocks in Phases 3-5. For advisement 5Improved access to services for health, security and
on specific concerns about the regeneration of the education, and information drives
Woodberry Down estate, the services of the Independent
Tenants and Leaseholders Advisor or ITLA is 6Social inclusion through the creation of a diverse
commissioned on call schedule basis every Tuesday and population with high level of community participation
Thursday 3pm-7pm at 93 Woodberry Grove
7Raised degree of transparently in solutions generation
3The expertise services support of East End Citizens’ and urban planning
Advice Bureau has been engaged to help residents
requiring welfare benefits or credit advice and slated
8Developed next generation leadership and commitment
every Wednesday
and the competence to use integrated approaches
4Health services are available at the John Scott Health 9Revival of neighbourhoods, ensuring mainstream
Centre for general hospital and community services, and policies for the poorest
specialist care. Rowlands Pharmacy supports the health
accessibility initiative and is open every day except
10Established long term political commitment
Fridays. Dental care can be sought after at the
Woodberry Down Dental Practice; and smoker’s
11A child friendly community, temporary playground
rehabilitation is held Fridays afternoons at the NHS stop locations during the regeneration phase, creation of
cycling routes and youth centre
smoking service
5Woodberry Down Children’s Centre with a broad range
of family services, is the leading facility in the North West
of the borough, offering a wide range of family including:
nursery, midwives, links to childminders, speech therapy,
dieticians, counselling and help to get back to work
9Lack of social services: Health services, mental health 6Employment training, information, advice and a number
care and other social infrastructures that circumvent of employment opportunities are provided by MHDT or
poorer life chances the Manor House Development Trust

10Lack of child friendly areas, signage, playgrounds and 7Alongside these the Genesis Housing Association helps
protected paths Woodberry Down residents who want to start up
business

8Enhanced community amenities add up with the

Woodberry Down Library, Skinners’ Academy, Woodberry
Down Community Primary School, Adult learning, the
Redmond Community Centre, the London Wildlife Trust
East Reservoir Community Garden, the Castle Climbing
Centre and the West Reservoir Centre water sports and
environmental education centre

9Development capacity by way of policy on affordable

housing and unit size forms a critical element in the
regeneration plan, which sets out with 1,458 social
rented homes composing 34.0% of the full allocation.
Intermediate housing makes up 7% and 59% as private
units for sale. Intermediate housing could increase to a
maximum of 17% should funds be available, that would
be taken out of the private housing scheme. 35% of these
newly developed homes are for 3-beds category or more,
aside the raised density of 200 units per hectare. 10% of
the development area is for public open space, built
around garden squares are the ‘traditional London urban
form’ block between 2 and 20 storeys. 456 units are for
completion within a 3-4 year period.

10The Woodberry Down urban redevelopment project is

ideal in the sense of its high potential of adaptive reuse
after build, historical classification, and proximity to
major transport routes and terminals.

(Table 1 Synthesis of sources: Sissons 2009. Couvee 2012. Genesis Housing Association 2011. East London Lines 2012. Europan brief 2011. http:/www.hackney.gov.uk/woodberry_down_library.htm.
Koen and Mulkens 2010)

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FOUR KEY DIMENSIONS
The CMO evaluation finds all four key dimensions within the core objectives and existing
initiatives of the Woodberry Down urban regeneration project. Despite the fact that
discontentment in the neighbourhood continues on with the uncertainty in the process, having
several delays in effect of the economic downturn that a part of the neighbourhood has already
moved away; the undertaking attempts to benchmark the regeneration activities. Several

The four key dimensions of urban renewal

(The Berkeley Group, 2012)

consulting firms and expertise organisations have been engaged to strengthen the overall
concept and vision, through the detail of crafting correct child friendly spaces, open locations,
and support infrastructure for family and work life. A technique to build a sustainable urban
project is determined through the broadened selection of tenure which in itself would establish
the social mixture.
FINANCIAL VIABILITY
Woodberry Down urban regeneration is a high-profile project that persists to break new
ground. For the initial phase of huge development executed over two decades, this is to
complete the construction of over 4500 homes at the Hackney, for private ownership, shared
ownership or other schemes on social rent. A Principal Development Agreement between
Hackney Council, Berkeley Homes, and Genesis Housing Group PCHA was forged in March 2010
for £1billion worth over the next 20 years. The development on Woodberry Grove North and
Green Lanes, involves the construction of 187 units for social rent and 60 homes under shared
ownership. Neighbourhood revival introduces community facilities to enhance business,
improve education, safeguard health and stir social interaction. This urban regeneration
initiative is benchmarked for affordable quality homes and a broadened selection of tenure
(Land 2010).

Project delays earlier in 2009, root in the argument on the business formation and stock
transfer to the Genesis Housing Association from Hackney Council, following the disapproval of
a £40m grant from Government. In January 2011, the injection of funds from the Homes and
Communities Agency and the Hackney Council, revived the project. These funds were depleted
on the housing construction at Green Lanes, Woodberry Grove North, Horston and Sherwood.
Today, a total of 117 social rented flats are already occupied (Couvee 2012).

Negotiations later on for a Single Regeneration Budget proposal for some £25m have been
successful. At present the project negotiation is towered by the Private Finance Initiative to find
the best investment return of £160m over 10 years. The worrisome aspect of such initiatives is
that it is overwhelmed by bargaining for different kinds of financial vehicles, aside the
inconclusive debates on the “best value for money.”

For this exercise, a medium yield of 8% has been applied on the two acres of land in the
deprived area in the London Borough of Hackney. CIL is pegged at £35.

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 The total development cost is £11.481m with 97% comprising the construction cost of
£8.490m. Office spaces construction cost is estimated at £250 per sq metre while the
construction cost for residential spaces are estimated at £220 per sq metre. One bed
residential units are estimated to cost £130,000 per sq metre, while two bed units are pegged
at £220,000 per sq metre.

 The 3% remaining of the total project expenditure goes to professional fees.

 The financial spread states that on a construction loan using the average interest rate of 11%,
the payback is 2½ years on the full amount of £8,490,000.

 Net present value on the full development value of £19.012m has an internal rate of return of
11% and a payback of 2½ years. Development value is determined at 90% sales on both office
and residential spaces for 12½ years of purchase at 8% yield.

 The revised development surplus is £0.880m

Construction Expenditure Amount

Offices/ GFA 5000 at per sq metre cost of £250 £1,250,000

Retail/ GFA 2000 at per sq metre cost of £220 £440,000
Residential one bed/ GFA 10 at per sq metre cost of £130,000 £1,300,000
Residential two beds/ GFA 25 at per sq metre cost of £220,000 £5,500,000

Total Construction Costs £8,490,000.00

Professional Fees Amount

Legal £45,000
Architects 5.5% £466,950
Profit margin 15% £1,273,500
Structural engineer 3% £254,700
Quantity Surveyor 2.5% £212,250
Planning Consultant £12,000
Planning application £18,000
Building regulations £30,000
Sale fees 2% £169,800
Contingencies 6% £509,400

Total Cost on Professional Fees £2,991,600

Total Development Costs £11,481,600

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OFFICE ANNUAL RENT
Rent per sq metre £250.0
Net of 90% of GFA or 4500 sq metres 4,500.0
£1,125,000.0
Typically, the approach to Financial
RETAIL ANNUAL RENT
Rent per sq metre £220.0
Net of 90% of GFA or 1800 sq metres 1,800.0
Viability Development is an application
£396,000.0
of the Appraisal models that is
OFFICE DEVELOPMENT VALUE
Yield 8% summarised as:
Years of purchase 12.5
£14,062,500.0 Completed Development Value (-) Total
construction costs (-) Developer profit
RETAIL DEVELOPMENT VALUE
Yield 8%
Years of purchase 12.5
(=) Residual land value
£4,950,000.0
In which case the mathematical
DEVELOPMENT SURPLUS representation in here is stated as:
Total Development Value £19,012,500.0
Total Development Cost £11,481,600.0 £19,012,500.0
£7,530,900.0
(-)£11,020,851.2
COST OF CONSTRUCTION LOAN (-)£1,273,500
Loan £8,490,000.0 (=)£6,718,148
Rate of interest 11%
Period in years 2.5
£11,020,851.2
The residual land value is determined at
NET PRESENT VALUE SCHEME £6,718,148
Development value £19,012,500.0
Rate of interest 11%
Period in years 2.5 Residual Land Value is defined as the
£14,646,430.0
amount that the developer is to pay to
LAND COST
Acres 5.0 the landowner to secure the site for
Value per sq metre £500,000.0
£2,500,000.0 development. This value is recognised as
CIL AMOUNT the key variable. If the proposed land
Gross internal floor space 7,000.0
Value per sq metre £35.0 use generates sufficient positive land
£245,000.0
value, it is most likely to be
REVISED DEVELOPMENT SURPLUS
(includes loan and NPV) implemented.
Net present value scheme 14,646,430.0
(-) Cost of construction loan 11,020,851.2
(-) Land cost 2,500,000.0
(-) CIL amount £245,000.0
£880,578.8

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 In the mathematical explanation above, the construction cost carries the interest expense on
full repayment. The loan actual amount of construction cost is £8,490,000.0, which is repaid in
full at £11,020,851.2 over a period of 2½ years. The rate of discount utilised to determine
present value is 11% to derive the NPV development value of 14,646,430. Therefore, the
Residual Land Value derived using the equation is indicative of positive rudiments of project
viability.

Notwithstanding, over recent years, yields for property have incurred move outs, suggesting
lower confidence in the capability of tenants to pay rent and in future demand for space. As
the economy rebounds, yield improvement is expected.

The figure outlines a front loaded expenditure profile which would mean the built environment
costs are cash flow negative throughout the initial project phase 2½ years and at ideal scenario,
thus requires a good financial vehicle. Financing arrangements in place allow for these
substantial amounts to yield at 8%.

REPAYMENT CONSTRUCTION COST

Notwithstanding, the economic disruptions can cause
Paid up Loan amount Interest Year
9,423,900.0 8,490,000 11% 1
financial overburdens sleigh on the project and suggest
11,020,851.2 8,490,000 11% 2.5 institution overconfidence. It is to note that the lengthy
11,611,187.2 8,490,000 11% 3
12,888,417.8 8,490,000 11% 4 period of underinvestment by Government, can be
14,306,143.7 8,490,000 11% 5
correlated as the effectual cost of money and extensive
capitalisation put out today. That is, consistent
NPV DEVELOPMENT VALUE
reinvestments and economic revival is an essential
Present value Future value Discount Year
17,128,378.4 19,012,500 11% 1 feature of built environments.
14,646,430.0 19,012,500 11% 2.5
13,901,776.1 19,012,500 11% 3
12,524,122.6 19,012,500 11% 4 If we are to assume that a low property yield occurs
11,282,993.4 19,012,500 11% 5
during the point of sale where rent per sq metre slides
by £50 per sq metre, the annual rent collected on office space shall amount to £900,000 and
£306,000 on annual retail rent. In this scenario, the development surplus plunges to £3,593,400

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at the same yield of 8%. Net present value is then determined at £11,613,145 with a payback at
a 5 year period. In the same way, the residual land value is reduced to £2,780,648 from a
handsome £6,718,148 or about 41% of the residual viability value at the outset of the project.

All the same, the residual viability value with economic potential that deflates in a less than
ideal scenario can be argued to be feasible when the potential residual value exceeds the worth
in its current use. Secondly, viability can be established on the basis of the project contribution
to country goals on affordable housing. For the case in hand, the land value on a deprived area
is raised as a result of the urban regeneration plan. It is to note that 8% Residual Land Value is
the accepted margin; and requires a more thorough analysis to be performed.

For the case in hand where the property is owned by the Council, for valuation purposes it is
assumed that the land is for sale, but that there is no claim for a premium over the actual value
by its user, rather the user insists that affordable dwelling tenure be provided.

It is to note that the mathematical equation of Residual Land Value as the basis of project
viability is most sensitive to the typical three greatest costs and revenues which are identified
as the sales values, construction costs and the cost of acquiring the land. In spite project delays
given the economic backdrop, the Woodberry Down urban regeneration project presents with
a benchmarked viability. The constraints set in by the unprecedented market conditions over
the last few years does not impede directly on the project because the majority of the space
has an original value calculated under socialised housing schemes. Thus the sales values seen in
the lowest points of the market do not make a large proportion of financial scenarios in the
model unviable.

What are of greater impact on urban regeneration projects is in fact policy and the accessibility
to the Social Housing Grant has a significant consequence on scheme viability. Phasing the
project over lengthy periods can further improve viability considerably on the expenditures
expected on cash flow. Consequentially, changing the variables on the housing schemes would

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likely to have a material effect on the overall project viability, which is an important option for
its completion.

CONCLUSION

The Woodberry Down urban regeneration undertaking is a tremendously transformative task in

spite the political and financial backdrop. The planning and crafting of space becomes a
substantive, with a collaborative hierarchy of decision making, reshaping the attitude of a
deprived neighbourhood and contending public opinion. In terms of objectives and delivery
performance to build a community, the four key elements are embedded at the core of the
undertaking. While disturbances are unlikely to change in the near future, community
leadership and commitment urge Government to take immediate actions.

The Woodberry Down urban regeneration undertaking is a tangible expression of the energy of
a community, its culture and pride of heritage; in oppose profit maximisation and uncertainty.
And to say differently the thoughts of Roeback (1999): “In transformative undertakings,
everyone needs everyone else to deliver change. It is compelling all communicate, build
partnerships and trust, focus, deliver, and celebrate.”

Urban Renewal Wood berry Down Ytt Quaesitum Research | 18

 References

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