Can £2B in Housing Funds Regenerate the Liverpool Region?

Can £2B in Housing Funds Regenerate the Liverpool Region?

We’re joined today by Luca Calaraili, a renowned expert in urban development and public policy, to discuss the ambitious £2bn housing pipeline set to transform the Liverpool City Region. With a plan to deliver over 63,000 new homes, this initiative represents one of the most significant regeneration efforts in the area’s recent history. We’ll explore the intricate coordination required to develop hundreds of sites, the financial strategies designed to unlock challenging urban land, and the new models of governance being pioneered to accelerate growth. Our conversation will also cover how the public sector plans to engage private developers and the critical infrastructure needed to ensure this housing boom creates sustainable, thriving communities.

The initiative to deliver 63,000 new homes involves coordinating over 300 sites. What specific steps are being taken to align land preparation with infrastructure investment, and how will this coordinated approach speed up development compared to previous efforts in the region?

This is really the heart of the matter. In the past, you’d often see a disconnect where land was zoned for housing but the necessary transport links or utilities lagged years behind, creating a massive drag on delivery. What’s different here is the explicit strategy to synchronize these efforts from day one. The pipeline isn’t just a list of sites; it’s a framework for sequencing investment. This means the work to prepare one of the 300-plus sites is happening in tandem with planning for the transport and economic infrastructure that will serve it. This integrated approach, backed by the combined authority, avoids the costly delays and uncertainties that deter developers. Instead of facing a series of separate bureaucratic hurdles, a developer can now see a clear, unified path from a prepared site to a fully serviced, connected community.

With a potential £2bn investment needed to bridge viability gaps, what specific mechanisms will the new Housing Investment Fund use to unlock challenging brownfield sites, and what metrics will determine its success in tackling these significant financial hurdles for developers?

The viability gap is the critical barrier, especially with rising construction costs and interest rates making urban brownfield sites financially toxic for many developers. The Housing Investment Fund is designed to act as a powerful de-risking tool. Its mechanisms will likely include providing direct gap funding for abnormal costs like land remediation, or offering low-cost loans for the initial, high-risk phases of a project. This public support essentially absorbs some of the upfront financial shock, making the project’s overall balance sheet attractive to private investment. Success won’t just be measured by the number of homes built, but by the number of truly difficult, stalled sites that are brought back into productive use. A key metric will be leverage: for every pound of public fund invested, how many pounds of private capital did it unlock? That will be the true test of its effectiveness.

A new Developer Forum is being launched to build market confidence. Beyond this, how will the combined authority and partners like Homes England actively engage private developers to commit to building on these sites, especially those requiring the most upfront public support?

The Developer Forum is an excellent start—it creates a platform for open dialogue and signals that the region is serious about partnership. But to secure real commitment, especially for the tougher sites, the engagement must be tangible. The combined authority, working with Homes England, is already putting its money where its mouth is by investing £1.3m to bring forward 309 priority sites. This isn’t just talk; it’s a direct investment in site readiness. When developers see public bodies taking on the initial risk and cost to prepare land, it sends a powerful message of confidence. The next step is to use the forum to create a transparent pipeline, clearly outlining which sites will receive public support and when, allowing developers to plan their capital investments with much greater certainty.

A mayoral development corporation is being explored, starting with the North Docks. What specific powers would this entity have to accelerate regeneration in that priority zone, and what key criteria will be used to decide if this model should be extended elsewhere?

A mayoral development corporation, or MDC, is a powerful tool for accelerating regeneration in a focused area. Its key advantage is streamlined authority. An MDC would likely have powers over planning, land assembly, and infrastructure delivery, all consolidated within one entity. This cuts through the red tape that can bog down complex, multi-landowner sites like the North Docks. It can acquire land, grant planning permission, and lead on delivering enabling infrastructure, making it a one-stop shop for development. The success of the North Docks pilot will be the deciding factor for extending the model. Key criteria will include the speed of delivery compared to conventional methods, the quality of the regeneration achieved, and its ability to attract and secure private investment in a high-priority zone.

Nearly half of the new homes are slated for the city of Liverpool itself. What are the most critical infrastructure and community service upgrades needed to support this concentrated growth, and how is that long-term planning being integrated with the housing delivery timeline?

Delivering around 31,000 homes in a concentrated urban area like Liverpool is a massive undertaking that goes far beyond just bricks and mortar. The most critical upgrades will be in transport capacity—ensuring roads, public transit, and active travel routes can handle thousands of new residents without grinding to a halt. Equally important are the social infrastructure upgrades: building new schools, expanding healthcare facilities, and creating quality public green spaces. The pipeline’s strength is that it’s designed to be integrated with these wider place-based regeneration strategies. This means the timeline for housing delivery is being mapped directly against the planned investments in transport and community services, ensuring that as new neighborhoods emerge, the essential services that make them livable are already in place or under construction.

What is your forecast for the Liverpool City Region’s housing market if this ambitious pipeline is delivered in full?

If delivered in full, this pipeline will be nothing short of transformative for the region’s housing market and its broader economy. We would see a fundamental rebalancing of the market, with a significant increase in the supply of diverse housing types, including a major boost in social and affordable homes thanks to the £700m commitment. This will help stabilize prices and improve accessibility for a wider range of residents. Furthermore, successfully regenerating complex brownfield sites at this scale will send a powerful signal to national and international investors that the Liverpool City Region is a prime location for development. In the long term, I forecast a more resilient, dynamic, and equitable housing market that not only meets the needs of its current population but also attracts new talent and investment, fueling sustainable economic growth for decades to come.

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