Top 5 Urban Regeneration Hotspots in the UK 2024

Property buyers looking for a strong future return on their investment should always look out for and consider areas undergoing regeneration. More often than not, urban regeneration is a signpost of future growth and demand, resulting in amenities that improve the local area, attract new residents and boost property prices.

We’re spotlighting a handful of the top locations currently undergoing substantial regeneration, being transformed into attractive places to live and work. From the regional cores that are leading the way with long-term masterplans to emerging towns that are spending millions on vital infrastructure, all of these locations are top of the class for homebuyers and property investment in the UK.

Here, we roundup our top five urban regeneration hotspots in the UK for 2023.

What is Regeneration?

When we talk about regeneration, we’re thinking about the investment that towns and cities pour into vital sectors . Whether that’s transport, retail, housing, commercial space or even leisure areas, all of these sectors are important considerations for property buyers and property investors alike. In fact, location is still very much a deciding factor for many homebuyers – and for good reason.

Developments such as new train stations, shopping centres, leisure facilities and mixed-use commercial spaces directly provide a better lifestyle, which in turn attracts new residents. This effect can then ripple outwards, attracting new businesses which support a higher-paid workforce and thus, increase demand for residential living nearby.

A great example of regeneration is the Birmingham Big City Plan. What started with the development of the Bullring in 2003 has evolved into a full regeneration masterplan and supported house price growth of 200% over the last 20 years. This redevelopment has completely changed the landscape of the city and turned Birmingham into a great location for homebuyers and property investors.

It’s fair to say that Bracknell has seen a vast array of urban regeneration over the last 10 years or so, and the appeal of property for sale in Bracknell has increased as a result.

Headlined by the completion of The Lexicon shopping centre, the £770 million ‘Bracknell Vision 2032’ regeneration project is one of the UK’s most ambitious multiphase schemes designed to rejuvenate the town and cater to increasing demand for property within London’s commuter belt.

The Lexicon brought 160 new retail shops, bars and restaurants to the town centre, much to the delight of locals, and was even awarded Development of the Year at the 2018 Thames Valley Property Awards. The next phase, due for completion in 2023 is The Deck which serves as an entrance to the Lexicon and aims to become the “leisure quarter”, designed around a newly landscaped public space and becoming the new home of Bracknell’s existing Hollywood Bowl.

Like many areas of the UK, Liverpool has undergone extensive regeneration over the past 20 years, transforming it into one of the UK’s leading business destinations and placing as the top city for computer science research with the one of the fastest growing tech sectors in the UK – coming second only to the West Midlands.

According to Regenerating Liverpool, the city’s most iconic regeneration schemes have collectively been valued at an impressive £14 billion, including £960 million dedicated to LiverpoolONE outdoor shopping centre which attracted big name retailers such as Harvey Nichols. The scheme has been credited as the catalyst for numerous further redevelopment projects and economic growth since it launched in 2008.

As the UK’s second city, Birmingham has seen unprecedented regeneration across its skyline over the last 20 years. What started with the Bullring has only continued with the redevelopment of New Street Station, Grand Central and the new West Midlands Metro Line that runs all the way to Wolverhampton.

As the host of the 2022 Commonwealth Games, Birmingham not only showcased its transformation to the world, but also benefitted from an additional £700 million of investment spread across numerous suburbs as a direct result of the Games.

At the heart of the city, Paradise continues to get closer to completion, following in the footsteps of Snowhill – the largest speculative office scheme outside of London. This regeneration scheme brings 120,000 sq. ft of retail & leisure space, 1.74million sq. ft of office space as well as 3 new public spaces into the city centre.

Once one of the lesser-known locations on this list, Slough has transformed itself into a property hotspot after a substantial regeneration scheme worth nearly £3 billion. The Heart of Slough project is already well underway, transforming large parts of Slough and breathing new life into the area.

Following on from the development of The Curve – a now iconic multipurpose facility and cultural hub in the town centre, comprehensive plans to continue regenerating the area have been submitted, including a complete replacement of the Queensmere Observatory shopping centre to breathe new life into the high street.

With a site spanning nearly 1 million sq.ft of office space and 500,000 sq.ft of retail units, the proposed plan is mammoth and would elevate the town further up the list of best commuter towns.

As one of the most exciting property hotspots in the UK, it’s no surprise that Leeds is driving this success through the use of regeneration.

In terms of local economy, Leeds is one of the fastest growing cities in the country and this is having an incredible impact on the population – enticing nearly 10% of those leaving London annually since 2018.

As you’d expect, the regeneration occurring in Leeds is largely centred around new amenities and infrastructure, prioritising the facilities to meet this demand.

One of the major projects the recently completed £161 million revamp of Leeds City Station, which was completed in January 2022. As a major transport hub for the city and Northern England’s busiest station, this regeneration project saw platforms lengthened, a new concourse and platform as well as improved trackwork to increase the reliability of trains. Additional works, due to start construction in 2023, include the creation of a station district, and upgrades to the surrounding public spaces.

Why is Urban Regeneration Important?

Consider this: If you invest in an established investment location, you’ll probably find good returns. On the flip side, you’re likely to pay a little (or a lot, if we consider London) more. Similarly, you may miss out on potential capital growth.

Buying or investing in an emerging location that has plenty of planned urban regeneration or nearby amenities, you’ll typically spend less initially and still benefit from the capital growth that occurs naturally over time. Many of our top places to invest for 2023 have undergone significant regeneration schemes which have revolutionised the areas and transformed them into highly sought-after property hotspots. This can also result in higher yields, especially if you consider cities such as Birmingham which are relatively affordable but can deliver yields upwards of 5% because of the rapid regeneration it’s experiencing.