Construction of large high-rise residential buildings
Urban centres across the United Kingdom and the European Union are at a crossroads, grappling with the dual challenges of growth and decline. As urbanisation continues to reshape our societies – with 55% of the world’s population living in urban areas today, projected to increase to 68% by 2050 – the need becomes increasingly apparent. This growth, coupled with overall population increases, could add another 2.5 billion people to urban areas by mid-century, according to the United Nations. In the UK and EU, population surges strain housing affordability and infrastructure, while economic transitions leave some areas underutilised and neglected. Mixed-use developments, which integrate residential, commercial, cultural, and green spaces into cohesive urban environments, offer a transformative opportunity to revitalise cities, encourage inclusivity, and drive sustainable growth.
The Growing Housing Dilemma
The challenges of rapid urbanisation are multifaceted. While some cities face overcrowding and soaring housing costs, others grapple with underutilised spaces due to economic transitions or population decline. In Europe, 74% of the population already lives in urban areas, placing considerable strain on housing and services. Housing has become a pressing issue. Between 2015 and 2023, house prices in the EU rose on average by 48%, and between 2010 and 2022, rents increased by 18% on average, outpacing inflation. High construction costs, a decline in building activities, and rising mortgage rates, have strained housing supply. Meanwhile, the surge in short-term rentals and investment-driven property purchases has inflated prices, particularly in urban areas. This burden disproportionately affects low-income households, city dwellers, and young people. Tens of millions of Europeans now face excessive housing costs, spending a significant and unsustainable portion of their income on accommodation.
Housing has become a key issue in recent political discussions across the UK and several European countries, playing a prominent role in recent elections. However, despite this political focus, the housing crisis continues to worsen, and government interventions in both the UK and Europe have thus far failed to reverse the trend.
With the appointment of Dan Jørgensen as the first Commissioner for Housing, the European Union has a significant opportunity to address the housing crisis more comprehensively. While current initiatives rightly focus on energy poverty and the just transition, it’s important to adopt a broader approach that considers demographic changes and ensures access to affordable, quality housing for all citizens. Long-term social investment is crucial to encourage both public and private sectors to invest in people’s well-being and enhance the EU’s competitiveness. Coordinated efforts among EU institutions, are essential to align economic goals with necessary investments in the housing sector.
In the UK, the labour government is planning on addressing the housing crisis with an ambitious goal to build 1.5 million new homes over the next five years – a bold initiative that recognises the urgent need to increase housing supply, stimulate economic growth, and provide affordable options. However, realising this vision will require confronting legitimate concerns from local councils across the political spectrum. These councils highlight practical constraints such as infrastructure capacity, land availability, and resource limitations within planning departments, which could hinder the feasibility of achieving these targets. To navigate these challenges effectively, the UK must align housing objectives with local capabilities and promote genuine cooperation between national and local authorities. This collaborative approach is crucial for developing sustainable, inclusive communities through strategic urban development, ensuring that ambitious national targets translate into tangible benefits for all citizens.
The Resurgence of Mixed-Use Developments
Mixed-use developments, while not a new concept, have re-emerged as a viable solution to contemporary urban challenges, particularly the housing crisis and the quest for sustainable urban planning. By integrating residential, commercial, cultural, and green spaces into cohesive environments, mixed-use developments offer a pragmatic approach to revitalising cities and optimising land use.
Traditionally, mixed-use developments were often large-scale structures housing offices, flats, and retail spaces all under one roof. However, architects and urban planners are now pioneering innovative designs that emphasise creativity and seamless integration with the surrounding community. This new generation of mixed-use projects breaks away from the conventional model, creating spaces that cater to the diverse needs of residents and businesses alike.
Mixed-use developments are typically classified into two types: horizontal and vertical. Horizontal mixed-use involves separate buildings within a complex, each serving a distinct purpose, making it ideal for areas with ample land. In contrast, vertical mixed-use integrates multiple functions within a single building, such as retail on the ground floor, offices above, and residential units on upper floors. This approach is well-suited to densely populated cities where land is limited.
The Sustainable Benefits of Mixed-Use Developments
Mixed-use development projects, whether involving a single building or part of a larger urban strategy, offer numerous advantages that enhance urban functionality and liveability. By integrating residential, commercial, and communal spaces, these developments create vibrant communities that cater to diverse needs while addressing critical urban challenges.
Mixed-use developments promote sustainability by reducing the need for travel. With essential amenities such as shops, restaurants, and workplaces situated close by, residents and workers can minimise car use and instead rely on walking, cycling, or public transport, significantly lowering carbon emissions. These developments also incorporate green and communal spaces, promoting physical activity and relaxation while improving mental and physical health. Proximity to healthcare facilities and opportunities for social interaction further enhance wellbeing, creating more cohesive and healthier communities.
The adaptability of mixed-use developments became particularly evident during the COVID-19 pandemic. Unlike single-use buildings, which often struggled with underutilisation, mixed-use projects could repurpose spaces to meet changing demands, ensuring continued viability. This flexibility benefits property owners, as the high demand for mixed-use environments drives rental premiums – office spaces within such developments can command rates 22-33% higher than standalone counterparts. Additionally, these projects support local economies by encouraging spending within the community, providing jobs for residents, and creating opportunities for small businesses to thrive.
Mixed-use developments can contribute to housing affordability by integrating diverse housing types within a single project. However, their popularity can sometimes lead to higher property prices, necessitating careful planning to balance accessibility with demand. By combining residential, commercial, and social infrastructure, these projects not only address housing needs but also build vibrant, interconnected communities that support economic and social growth.
Barriers to Successful Mixed-Use Developments
Despite their benefits, mixed-use developments can face challenges that require strategic management. High development costs, complex regulatory environments, and the risk of gentrification are significant hurdles. Rising construction costs and increased mortgage rates have made financing these projects more difficult. Securing adequate funding from both public and private sectors is essential to support the large-scale investments required for mixed-use developments.
Regulatory and planning hurdles also pose substantial barriers. Local councils have expressed concerns about the feasibility of ambitious housing targets, highlighting issues such as infrastructure capacity, land availability, and limited resources within planning departments. These practical constraints can delay project approvals and increase costs, making it challenging to meet housing goals. The complexity of navigating diverse regulations across different jurisdictions further complicates the development process.
Another significant challenge is balancing the diverse functions within a single development. For residential, commercial, and communal spaces to coexist harmoniously, careful planning and design are essential. Without thoughtful integration, mixed-use developments can give rise to conflicts between different groups, undermining the intended benefits of inclusivity and community cohesion. Additionally, there is the risk of gentrification, where the influx of investment and higher-end amenities may displace existing, often lower-income, residents, exacerbating social inequalities. To address housing affordability and social equity, policies mandating affordable housing quotas – such as Paris’ plan to reach 40% affordable housing by 2035 – are key. Such policies help ensure that mixed-use developments contribute to social inclusion rather than exacerbating inequality.
Infrastructure capacity is another issue. Mixed-use developments require advanced transportation and utility networks to support increased density. In many urban areas, existing infrastructure may be insufficient to handle the additional demand, requiring substantial upgrades and investments. Moreover, ensuring that these developments are accessible and well-connected to public transport is fundamental for minimising reliance on cars and promoting sustainable living.
Furthermore, the availability of suitable brownfield sites for redevelopment is limited. High-quality, underutilised land is often scarce and highly competitive, driving up land prices and making it difficult for developers to secure affordable sites for mixed-use projects. This scarcity can hinder the ability to repurpose neglected areas effectively, limiting the scope and impact of mixed-use initiatives.
Lastly, promoting genuine cooperation between national and local authorities is crucial, though often challenging. Aligning housing goals with local capabilities requires ongoing dialogue and collaboration, which can be hindered by differing priorities and bureaucratic barriers. To overcome these obstacles, strong partnerships must be built to ensure local insights are incorporated into national strategies, helping to ensure the success of mixed-use developments.
Mixed-Use Developments Leading the Way for Housing
Successful examples such as London’s King’s Cross demonstrate the economic and social value of mixed-use developments. Once a derelict industrial area, the £3 billion regeneration project now hosts global tech giants like Google and Meta alongside residential units, parks, and cultural amenities. Similarly, the Battersea Power Station redevelopment, a £9 billion transformation of a 42-acre industrial brownfield site, integrates shops, offices, housing, and public spaces, creating a thriving neighbourhood and business quarter.
In Italy, Milan’s MIND (Milano Innovation District) illustrates how mixed-use planning can support innovation and economic growth, covering one million square metres and combining laboratories, offices, residential units, and cultural spaces.
Looking ahead, mixed-use developments present a practical solution to the pressing challenges facing urban areas across the UK and beyond. By reimagining the design and utilisation of urban spaces, these developments can address the housing crisis, support local communities, and enhance residents’ well-being. Additionally, they offer a strategic response to the growing need for sustainability, aligning with the UN’s 2050 net zero target. To fully realise the potential of mixed-use environments, it is essential for national and local authorities to collaborate more effectively, aligning housing objectives with local capabilities. This requires dismantling bureaucratic barriers, prioritising long-term infrastructure investments, and implementing policies that promote affordability, sustainability, and inclusivity. Embracing mixed-use developments will be key to shaping cities that are liveable, sustainable, inclusive, and adaptable, ensuring the creation of more vibrant and resilient urban communities.
