city people The Centre for Cities takes a hard look“ at city centre living – in our big city conurbations, and in the smaller max nathan and chris urwin centre places where things are beginning to happen. Who’s living in the heart of people our cities, what are they doing and why are they there? Some of these city centre living in the UK findings will surprise you. ” from the foreword by Tom Bloxham max nathan and chris urwin with tony champion experian business strategies for james morris cities www.ippr.org/centreforcities centreforcities Published by Centre for Cities 30-32 Southampton Street London WC2E 7RA www.ippr.org/centreforcities © Centre for Cities 2005 Contents Foreword by Tom Bloxham MBE v Executive summary 1 1 Introduction 3 2 What we did 6 3 What is driving city centre living in the UK? 9 4 Who is living in city centres? 18 5 Why do people live in city centres? 30 6 What are the economic impacts of city centre living? 38 7 What are the social impacts of city centre living? 47 8 Conclusions and key messages 53 Annex 1: Detailed methodology 60 Annex 2: Housing Market Renewal 63 References 65 city people acknowledgements We’d like to thank the many people who In Dundee: Peter Allan, Steve Carter, helped us get this project done. Gordon Croft, Mike Galloway, Clive Gillman, Greg Lloyd, Lorna McKenzie, In Liverpool: Alan Bevan, Craig Bramwell, Stewart Murdoch and Jill Shimi. David Clark, Donna Cooney, Jenny Douglas, Catherine Garnell, David Many thanks also to John Adams, Chris Allen, Henshaw, Tim Jago, Ian McCarthy, Alan Liam Bailey, Jim Bennett, Richard Donnell, Murch, Martin Robson, Mike Storey and Bobby Duffy, Alan Harding, Adrian Harvey, Jenny Thomas. Mark Kleinman, Anne Power, Peter Robinson, Nigel Sprigings and Anthony Vigor. In Manchester: Roger Barberis, Neil Fountain, Liz Goodger, Charles Jarvis, Special thanks to Dermot Finch, Emma Nick Johnson, Richard Leese, David Sherlock and Meghan Benton for all their Partridge, Marc Ramsbottom, hard work behind the scenes. Sheila Ritchie, Tom Russell and Eddie Smith. All errors and omissions are the authors’ own. v foreword Tom Bloxham MBE The city centre living phenomenon has been z growing vibrant, successful communities with us over 15 years now. in our city centres Outside the capital, Manchester was the z avoiding monoculture and keeping the mix pioneer. Other big cities like Liverpool have z ensuring that nightlife and residents followed closely behind. And smaller cities continue to get along “ As city like Dundee are now picking up the ball. z encouraging families into the centres have From the start, Urban Splash has been at neighbourhoods around our city centres – the heart of it. Now, as we develop new ideas in particular, planning for schools, parks, recovered, many around the UK – Birmingham, Bradford, healthcare and local shops areas nearby have Plymouth, Altrincham – it’s a good time for z turning these doughnuts of deprivation stayed the same. us to sit back and take stock. into the sustainable communities of the Regenerating And as the Government releases its huge next decade. State of the Cities research, it’s important for these inner ring policymakers to understand city centre living As city centres have recovered, many areas neighbourhoods too. nearby have stayed the same. Regenerating is the big priority What’s happened, what has been achieved these inner ring neighbourhoods is the big and what’s going to happen next? priority for the decade ahead. for the decade That’s why I welcome this report. Learning from our experiences in city ahead ” The Centre for Cities takes a hard look at centres will help us succeed. So this research city centre living – in our big conurbations, will help us all plan for the future. I hope it’s and in the smaller cities around the country read widely – especially by cities themselves. where things are also beginning to happen. Please let us have any comments. They dig deep into the data, providing a very rich picture of who’s living in city centres, what they do and why they’re there. Some of these findings will surprise you. Most of all, the authors highlight some of the big challenges – for Government and for our cities: city people 1 executive summary z Over the past 10 years, British cities have Liverpool and by nearly 300% in got better. And the growth of city centre Manchester between 1991 and 2001. By living is the most visible symbol of this 2001 there were 2,900 people living in the urban renaissance. But we know relatively centre of Dundee, 13,500 in Liverpool and little about it. Policymakers do not have 10,000 in Manchester. detailed understanding of the city centre z These new city centre residents are mostly living phenomenon, or a clear rationale young and single, without children. In all for it. three cities – especially Liverpool and z City People examines the size and nature Dundee, students have played a very of the city centre living phenomenon, important part in the growth of city centre focusing on Dundee, Liverpool and living. Young workers and those on low Manchester. It looks at changes in the incomes are the other key groups. epicentres of these cities. It asks why it z City centres have a diverse mix of incomes, has happened, who is living in city tenures and ethnicities. But there are very centres – and how long they plan to stay. few families and very few children in city It then assesses the economic and social centres. Most people in city centres are at an benefits of city centre living. early stage in their adult life. Yet to settle z Understanding this wave of city centre down, they make socialising the centre of living is important. It helps us know more their lives. about the nature of urban renaissance, the z Proximity and buzz are the main attractions large communities in the heart of our cities for city centre residents. Living in the city – and any wider impacts on cities’ social and centre allows them to walk to work, shops, economic performance. bars and cafés while giving them the z We find that city centre living is real, and opportunity to feel at the heart of things. It here to stay. It is the product of interlocking makes socialising easier and more appealing. demographic, economic, social and cultural Although local tensions need to be dealt factors, and has been enabled by changes to with, there is no conflict between resident public policy. City centre populations grew and the evening economy. Rather, the by nearly 100% in Dundee, around 40% in evening economy is one of the biggest city people 2 attractions the city centre has to offer performance more than it drives growth. potential residents. Policymakers must be realistic about what it z City centre living is a short term experience can achieve. for most people. It is more a way of living z Changes in city centre housing markets will (now) than a place to live (long term). Most shape these effects. The evidence suggests people intend to move out after a few years. that the national housing market is City centre populations are characterised by overvalued, but not to the degree some high churn levels. Every year a third of the suggest. Over the past 10 years, the property population moves out. City centre living is market has helped make city centres seen as inappropriate for families with happening places. Over the next five years, children. Lack of services, lack of space and this will not be the case. In the long term, the absence of houses mean those planning city centre housing markets will prosper a family plan to leave the city centre. again. But it will always be a volatile market. z So city centres may not meet the z City centres’ ability to provide a catalyst to Government’s definition of a ‘sustainable regeneration in deprived neighbourhoods is community’, but they are viable very limited. City centres can be built out communities that work well for their around their borders and it is here that there existing residents. And, looking to the is scope for family friendly housing. But future, Britain’s distinctive, young-adult Housing Market Renewal programmes driven model of city centre living has should focus on making better suburban enduring appeal. Family-friendly city communities, rather than extending city centres should not be a priority. The centres. Government must make it easier to opportunity cost of providing family put public services in place – especially infrastructure in city cores would be too schools, utilities and healthcare. high. z The impact of city centre living has limited z City centre living delivers positive economic potential in smaller cities. City centre living impacts. It helps make city centres nicer is less appealing in smaller places: there is places to be. In bigger cities this can less buzz, and proximity benefits are lower. generate catalyst effects through raising However, city centre living can help external perceptions of the city centre and improve the city core. By servicing a encouraging investment, and can start a commuter economy, it could provide wider virtuous cycle of improvement. But city catalyst effects as part of a city-region centre living reflects a city’s economic development strategy. www.ippr.org/centreforcities city people 3 1 introduction The English are hopeless at cities ... It’s as if we Dundee and Derby. People have always lived in don’t want fully to commit to the idea of living the heart of a few British cities: London, and together.