Gentrified areas

• What is gentrification? 


  The buying and renovating of properties by wealthy individuals to sell for profit
• Why does gentrification occur?

  1. The rent gap ~ property prices ↓ > attractive to developers looking to make profit
  2. Commuting costs ~ commuting takes time and and costs money so move closer to city centre > ↓ commuting (urbanisation)
  3. 'Pioneering' ~ creative people move into 'edgy' neighbourhoods near city centre drawn by diverse cultural opportunities on doorstep e.g. Shoreditch
  4. Government/ local decision makers support ~ improve economy and city env so support gentrification
  5. Household composition changes ~ ↓ in households with children > prefer city centre
• Benefits of gentrification:

  • ↑ prosperity and services
  • ↑ tax income for gov
  • Improves physical environment
  • Employment opportunities e.g. construction
  • Multiplier effect > property prices ↑ > attract other people into the area > ↑ tax > improve services and are
• Negatives of gentrification:

  • ↑ property prices > displace locals and lower income groups > can lead to economic and social segregation
  • ↑ car ownership > ↑ congestion, pollution, noise etc
  • Local businesses lose out to larger cheaper chains
  • ↑ tension and friction in community
• EXAMPLE: Liverpool's 'Homes for a pound' scheme:

  • Bottom up strategy
  • Transform 150 empty terraced homes

  Requirements:

  • Live in property min 5 years
  • Refurbish property
  • Live/work in Liverpool City Council
  • Be in paid employment
  • be a first time buyer > helps them get onto property ladder