Mixed-use schemes are seen by many policymakers as a panacea for a variety of problems. To some, mixed use is the solution to the problem of current inadequate housing supply; to others it is a means of delivering sustainable development and sustainable communities. For others still, it is the opportunity to produce creative urban forms to correct design mistakes of the past.

Policymakers also see mixed income communities as a way of tackling deprivation by avoiding problems that are believed to be linked to the concentration of poverty. Affordable housing units are likely to be placed among open market units to create greater integration, but can cause management difficulties.

For developers trying to deliver such schemes, the reality is that they are both costly and complex. Market demand for different types of uses vary with location, different local authorities have different priorities and no single form of legal structure is suitable for all schemes.

The schemes delivered are expected to be built to high standards of design, complying with a variety of industry standards, from EcoHomes to Secured by Design, with minimal discernible difference between private and affordable units. Local authorities are also increasingly keen to ensure there is a long-term stewardship solution for the management of developments once the developers have moved on.

The management of mixed-use schemes and other regeneration projects has been complicated by the change in the role of local authorities from provider to enabler. Whereas local authorities would have traditionally taken responsibility for social housing and the adoption of common services, it is now rare that authorities take a hands-on role in the management of housing and neighbourhoods.

At the same time, the demand from local authorities for more public facilities to be included in schemes is increasing. Developers are asked to provide more open space, walkways and cycleways, play areas, landscaping and other services, such as closed-circuit television. However, local authorities are increasingly reluctant to adopt such infrastructure and when they do the commuted maintenance sums demanded are often prohibitive.

Developers are left with the challenge of coming up with suitable solutions for the long-term management of these common facilities and infrastructure. Often the options are to pay massive commuted sums or to establish a complex web of service charges from the outset.

Traditional legal solutions, such as estate rent charges and service charges in leases, do not always create the ideal result and add a significant level of complexity. In some cases, such solutions do not work at all and other solutions — such as commonhold — which offer the potential for greater standardisation, should be considered.

With long-term stewardship being an increasingly important consideration, more could be done at government level to encourage standardised forms of management structures.

In practice, the complexity of management has resulted in more registered social landlords (RSLs) stepping in to provide management services for mixeduse schemes, as their experience is often better suited than commercial managing agents. As part of their efforts, RSLs are also promoting greater community involvement in decision-making through a number of innovative schemes.

The challenges for developers in creating sustainable and well-run mixeduse schemes are significant. The level of investment required to make such schemes a reality has meant that the bulk of such schemes have been carried out by major housebuilders and commercial developers, often in partnership.

From: Property: Moving boundaries on the home front , Chris Baker, Legal Week, 20 10 06

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