It is now commonplace that new developments in the Thames Gateway should include a mix of uses, tenures and incomes. 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. There are no universal rules. 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 demand for mixed-use developments has created a need for fresh legal solutions.

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 mixed use 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: Moving boundaries on the home front , Chris Baker, Legal Week, 20 10 06

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