Report

Enhancing the UK’s productivity through innovative urban development strategies

10.6.24 2024

Image of Enhancing uks productivity

As the UK seeks to enhance its productivity and competitiveness on the global stage, innovative urban development strategies have emerged as a critical component of this endeavour.

Central to this effort is the creation of mixed-tenure communities, which serve as vibrant hubs of social and economic activity. Beyond merely providing diverse housing options, these communities are instrumental in fostering social cohesion, reducing inequalities, and supporting a wide range of economic activities. This essay explores how prioritising the development of mixed-tenure communities can significantly contribute to enhancing the UK’s productivity as well as building a more inclusive society.

Download a copy of The Productivity Engine:

Enter details

Download a copy of The Productivity Engine Close icon

Thank you for downloading a copy of The Productivity Engine report. Please click below to download a copy.

Sign up to...

BNG Units for Sale

Energy & Renewables

Operational Living

Planning

Science & Tech

Privacy notice

Communities need to be designed to provide choice and convenience. When we are planning new developments, urban regeneration, new settlements or thinking about where to locate new development, it is just sensible that we should be planning for convenience, and planning to create neighbourhoods – areas where people can live and grow. Creating places people love is more than just creating quality, sustainable buildings. It’s about supporting and engaging with communities at every stage, from understanding the needs of the communities and responding in the way we design our developments, to working closely with partners and clients to engage and empower communities throughout the whole development process.

With community-based participation at its centre, an effective placemaking process can capitalise on a local community’s assets, inspiration, and potential. This results in the creation of quality public spaces that contribute to people’s health, happiness, and well-being. When people of all ages, abilities, and socio-economic backgrounds can not only access and enjoy a place, but also play a key role in its identity, creation, and maintenance, that is when we see genuine placemaking in action. At the heart of mixed-tenure communities lies the concept of social cohesion — a sense of belonging, connection, and mutual support among residents. By bringing together individuals from diverse socio-economic backgrounds, these communities promote interactions, understanding, and collaboration, thereby fostering a strong sense of community. Shared spaces, communal facilities, and neighbourhood initiatives play a crucial role in nurturing social bonds and creating environments where residents feel valued and engaged.

Research has consistently shown that socially cohesive communities are more resilient, healthier, and safer, factors that are vital for fostering productivity. By facilitating positive social interactions and relationships, mixed-tenure communities contribute to improved mental well-being, reduced crime rates, and increased social capital — all of which are conducive to productivity and economic growth. This is the approach Vistry has taken at our Rochester Riverside development – working with the local community to set up a Community Chest, making small donations to local groups to increase capacity and community cohesion.

Affordable housing provides a vital lifeline for low-income households, offering them access to safe, stable housing in desirable locations with proximity to essential amenities and opportunities. Mixed-tenure communities help counteract the phenomenon of gentrification, which often displaces long-standing residents as neighbourhoods undergo rapid transformation. By preserving a mix of housing options and ensuring affordability, these communities maintain socio-economic balance and prevent the displacement of vulnerable populations. In doing so, they contribute to greater social equity, inclusivity, and justice within urban landscapes, thereby creating environments where all residents can thrive and prosper irrespective of their income levels.

In addition to promoting social cohesion, mixed-tenure communities play a pivotal role in reducing inequalities within society. By incorporating affordable housing alongside build-to-rent and for-sale options, these communities provide opportunities for individuals from diverse income groups to access quality housing in desirable locations. Affordable housing initiatives, combined with supportive policies and incentives, ensure that no one is left behind or excluded from the benefits of urban development. The presence of diverse housing options within mixed-tenure communities contributes to housing market stability and resilience. Unlike mono-tenure developments, which are susceptible to fluctuations in market conditions, mixed-tenure communities offer a more balanced housing market that is less susceptible to volatility. This stability not only benefits homeowners and renters but also strengthens the overall economic resilience of the community, ensuring its long-term sustainability and viability.

Beyond fostering social cohesion and reducing inequalities, mixed-tenure communities serve as engines of economic activity and innovation. By creating environments that accommodate a diverse range of housing options, these communities attract a broad spectrum of residents. This diversity of talent and expertise fuels creativity, entrepreneurship, and knowledge exchange, driving economic growth and competitiveness. Mixed-tenure communities, such as Vistry’s Dracan Village new community, provide a conducive environment for small businesses, startups, and local enterprises to thrive. Access to a diverse consumer base, combined with supportive infrastructure and amenities, creates opportunities for entrepreneurship and job creation within the community. From neighbourhood shops and cafes to co-working spaces and innovation hubs, mixed-tenure communities offer fertile ground for economic development and innovation, ultimately contributing to enhanced productivity and prosperity at the national level.

Communities grow and evolve over time. I was particularly struck by a comment from the Guildford Society: “The pandemic has made people realise what their local neighbourhoods have to offer; but also, what’s not there. The concept of a complete community has been a hallmark of planning for years”. The creation of mixed-tenure communities represents a transformative approach to urban development that holds significant potential for enhancing the UK’s productivity and building a more inclusive society. By prioritising social cohesion, reducing inequalities, and supporting a wide range of economic activities, these communities create environments where residents can thrive and prosper. As the UK navigates the challenges of the 21st century, embracing innovative urban development strategies that prioritise the creation of mixed-tenure communities will be essential for driving sustainable growth, fostering social cohesion, and ensuring shared prosperity for all.

Guest Contributor

Get in touch with our team

Image of Iain Murray

Iain Murray

Head of Operational Living

Iain spearheads our Operational Living department across PBSA, Co-living, Build to Rent, Later Living and Retirement.

Read more
Image of Mark Teasdale CV

Mark Teasdale

Partner, Head of Economics and Social Value

Mark leads our client offering on socioeconomics, regeneration, social value, health impact assessment, and equalities.

Read more

Report

The Productivity Engine

The Productivity Engine is our latest groundbreaking report that addresses the UK's stagnating productivity. What powers economic productivity? An easier question to answer may be what doesn’t. 

Download the report
Image of The Productivity Engine – Master

Search Bidwells