Torbay’s £20 Million Levelling Up Regeneration: What Landlords Need to Know Now

The Levelling Up Programme: An Overview

In early 2024, the UK government unveiled a targeted £20 million regeneration scheme for Torbay, encompassing the towns of Torquay, Paignton, and Brixham. This Levelling Up Partnership initiative focuses on three key areas:

• Converting disused holiday accommodation into permanent residential homes
• Refurbishing the Grade II-listed Oldway Mansion to enhance tourism appeal
• Upgrading local infrastructure, including amenities and sea defences

These coordinated efforts aim to revitalise the local economy and housing stock, with timelines expected to unfold over the next 3 to 5 years, though specific milestones remain to be detailed by Torbay Council and the Department for Levelling Up, Housing and Communities (DLUHC).

Why This Matters to Landlords

Increased Housing Supply and Rental Demand

The conversion of holiday accommodation into permanent homes is likely to add to Torbay’s housing supply. For single-unit landlords and accidental landlords with properties in or near conversion sites, this could mean a rise in competition—potentially moderating rental yields unless demand grows proportionately. For portfolio landlords and HMO operators, expanded supply offers both risk and opportunity: better tenant choice but also a chance to acquire or reposition assets to meet shifting demand.

Shift Toward Local and Long-Term Tenancies

As holiday lets convert, the balance between short-term holiday lets and long-term rental properties will shift. Landlords currently relying on seasonal income may need to reassess letting strategies and tenant profiles, especially if local policies begin favouring permanent residency to support community stability.

Boosted Tourism and Lettings Market Dynamics

The investment in Oldway Mansion’s refurbishment is expected to stimulate visitor numbers. This might increase demand for holiday lets and short-term rentals in the area surrounding this landmark and other tourist hotspots. Landlords and agents should consider whether to target or maintain holiday lettings alongside or instead of permanent lets, adapting marketing and compliance approaches accordingly.

Infrastructure Improvements Could Raise Property Values

Upgrades to amenities and sea defences typically enhance neighbourhood desirability and resilience, potentially driving up property values and rental rates over time. This makes it critical for landlords to monitor local developments closely to adjust pricing strategies and plan maintenance or refurbishment accordingly.

Compliance and Regulatory Considerations

The regeneration programme may introduce new compliance requirements or access to grants for property owners involved in conversions or refurbishments. While detailed conditions have yet to be published, prudent landlords should:

• Regularly review announcements from Torbay Council and DLUHC
• Seek clarity on potential building regulation updates, conservation area stipulations (especially near Oldway Mansion), and tenant safety standards
• Investigate whether incentives are available for improving energy efficiency or enhancing building resilience

Tailoring the Response by Landlord Profile

• Single-Unit Landlords: Monitor local planning applications and council updates for nearby conversion projects; anticipate potential shifts in tenant demand and possible rental price adjustments.
• HMO Operators: Evaluate how increased housing supply affects long-term tenant availability; consider diversifying property types or locations within Torbay.
• Portfolio Landlords: Use this opportunity to review the portfolio in light of regeneration zones, identify properties that could benefit from refurbishment, and reposition assets to capitalise on infrastructure upgrades and tourism growth.
• Accidental Landlords: Seek advice on regulatory changes and assess whether holding or selling properties in regeneration areas best fits your goals.

Concrete Next Steps

1. Engage with Local Authorities: Register for Torbay Council’s planning and housing newsletters to receive real-time updates.
2. Map Regeneration Impact: Identify properties in your portfolio or interest areas likely to be affected by conversions or infrastructure projects.
3. Review Letting Strategies: Consider adjusting the balance between holiday lets and long-term rentals based on evolving local demand.
4. Schedule Compliance Audits: Prepare for any new or updated requirements by auditing property conditions, especially if located near conservation areas or undergoing refurbishment.
5. Plan Financial Scenarios: Model potential rental income changes and capital value appreciation to inform investment decisions.

How Rentals & Sales Can Support You

Our expert team offers bespoke portfolio reviews tailored to regeneration risks and opportunities, ensuring your assets are strategically positioned. We provide compliance audits to help navigate emerging regulations and optimise letting approaches with evidence-backed pricing strategies. Whether adapting to shifting local markets or planning acquisitions, we deliver pragmatic advice rooted in deep regional insight.

Compliance Disclaimer: This article summarises current publicly available information as of June 2024 and does not constitute legal advice. Landlords and agents should consult relevant local authority publications and qualified professionals to ensure full compliance.