Government programme expected to boost property values as communities take control
A government-backed initiative to revitalise high streets is expected to push up house prices in areas targeted for regeneration.
The “Pride in Place” programme, which will grant local communities new powers to acquire neglected properties and influence the types of businesses on their high streets, is forecast to have a significant impact on local housing markets.
The scheme will initially focus on more than 330 communities, providing residents with “Community Right to Buy” powers to purchase and restore vacant pubs, shops and libraries. Compulsory purchase powers will also enable communities to acquire derelict commercial properties, with the potential for conversion into housing or health centres.
We will restore pride and put communities back in control of their futures.
— Ministry of Housing, Communities & Local Gov (@mhclg) September 25, 2025
Local people know what they want to see in their neighbourhoods – they don't need government to tell them what they need. pic.twitter.com/rx6hl9cJUS
“When people step out of their front doors, they know their communities are struggling,” said Steve Reed (pictured top), secretary of state for housing, communities and local government. “They see shuttered pubs, fading high streets and their local areas in decline.
“Yes, communities have been stretched – but they haven’t given up. They’re working hard to make things better, and we’re backing them.
“The government is putting power into their hands so local people decide how best to restore pride in their neighbourhoods, not us in Westminster. That’s what real patriotism looks like: building up our communities and choosing renewal over division.”
As derelict sites are converted into housing and demand rises in revitalised areas, mortgage professionals may see greater activity and competition in these markets, particularly in regions targeted for investment and redevelopment.
Research by CBRE has shown that house prices within 750 metres of regeneration zones rise 3.6% per year faster than the wider market. The government hopes that converting unused commercial sites into homes will support its target of delivering 1.5 million new properties.
The programme will also allow councils to block the opening of new betting shops, vape stores and similar businesses, responding to concerns about the proliferation of such outlets. Approval for spending will be contingent on the involvement of community groups and local organisations in the decision-making process.
While the changes are designed to benefit residents and support local economies, commercial landlords and agents may encounter new challenges, as the powers could make it harder to lease properties to certain business types. The “Community Right to Buy” provisions may also require the sale of long-term vacant commercial properties.
Local Pride in Place boards will be established in the coming months to oversee the rollout of the programme, which is backed by £5 billion in government funding.
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