Unit 3 changing places

Background information and introduction to tertiary sector growth.

The tertiary sector refers to the segment of the economy that provides services rather than goods.

• includes business involved in entertainment, retail and tourism

What are the main sectors of the service sector?

• retail

• i.t. services

• restaurants

• hotels

Part A: Gentrification

what is gentrification and what does it result in?

the displacement of working-class populations in an area as more affluent populations move in.

• results in increased house prices and changing local services to reflect the changing demographic

Theoretical stages of gentrification:

STAGE ONE- THE EARLY STAGE

• in run down working class inner city locations artistic and hipster groups move in to take advantage of the lower rent and housing. These people are known as ‘urban pioneers’

• LIMITED IMPACT on both property prices and existing working class residents who co-exist

STAGE TWO: The transitional stage

• reputation of the area is now a ‘trendy’ hipster location.

• new, more affluent liberal residents (journalists etc.) move in due to being attracted by social vibe.

• demand for residential and commercial property increases which increases rent prices

• investment and renovation of infrastructurew improves environmental quality

• working class residents outpriced out of market and leave the area. low order services replaced by high order ones that reflect the more affluent demographic

STAGE THREE: The Late Stage

• repuation firmly established as trendy and affluent

• new wealthier residents move in leading to higher property values and more high order services

• private sector investment results in exclusive housing and office developments.

• original urban pioneers and working class population completely priced out of market and are forced to relocate

Gentrification CASE STUDY: Shoreditch

what happened to Shoreditch in the 1980s?

• due to deindustrialisation of the furniture industries, area had contained many buildings and warehouses fall into disrepair

1990s- STAGE ONE OF GENTRIFICATION

• area around Hoxton square started to attract a new artistic community including people such as Damien Hurst and Alexander McQueen

• illegal warehouse raves took place in empty warehouse and ‘greasy spoon’ working class cafes still functioning.

2000s- STAGE TWO OF GENTRIFICATION

• the area had become one of the trendiest places in London, attracting an influx of hipster types and businesses leading to rising property prices.

• e.g. Shoreditch had an increase in house prices and was 27% more than east london.

2010-present: STAGE THREE OF GENTRIFICATION

• By 2010, the demographic of shoreditch where representative of a wealthy middle class population

• changing services which reflected the changing affluent demographic

• e.g. between 1991 and 2011, there was an 11% increase in professional occupations and in 1991-2011, elementary occupations decreased from 14% to 9%

• In 2015, exclusive designer brand Versace opens a London store in Shoreditch

• HOWEVER, in the same year anti-gentrification protests occured as local people felt disenfranchised by the growing affluence and corporate characteristics of the area.

EXAMPLES: Shoreditch Cereal Killer Cafe targeted by anti gentrification protests.

STAGE THREE: what is an example of new corporate driven developments in Shoreditch?

• Galliard Homes ‘The Stage’

housing developers make a lot of money when gentrification occurs as prices are increasing so more profit will be made.

for EXAMPLE: a two bedroom home= £1.7 million

three bedroom apartment= £2.5 million

What are the public perceptions about these new developments and what are the concerns that current residents have?

• prices are quite expensive

• people being kicked out of their homes due to being priced out of market

what are the issues of Shoreditch changing through gentrification?

• rent has gone up- more people have to move out

• pubs and local restaurants being taken over by corporations

• family and social groups being torn apart

• people cant afford to live there any longer

• damages communities

EVALUATION: Who are the winners and losers of STAGE ONE

Winners:

• artistic community e.g. Damien Hurst

• urban pioneers as they had low price housing and had space to do what they wanted

Losers:

• N/A

Who are the winners and losers of STAGE TWO?

Winners:

• urban pioneers still benefitting

• new businesses linked to the artistic community e.g. Cereal killer cafe

Losers:

• original residents faced a loss of affordable housing. e.g. housing in SHoreditch was 26% higher than east london average

• working class affected as they are priced out of market

Who are the winners and losers of STAGE THREE?

Winners:

• property developers e.g. Galliard Homes

• wealthier middle class residents

• high order services as their customer base is increasing e.g. Versace, high end retailers

• more professional occupations

Losers:

• working class and urban pioneers as they are being priced out of the market

• low order services, may have to close down due to lack of customers e.g. greasy spoon cafes

ESSAY PLAN: Examine the view that gentrification benefits both rich and poor residents (15 mark)

INTRODUCTION:

Gentrification: the displacement of working class people out of an area as more affluent populations move in.

Identify case studies: Shoreditch, London

MAIN BODY:

STAGE ONE:

who benefits:

• urban pioneers and artistic hipsters such as Damien Hurst benefit from low price housing and low order services. They have the space to do what they want. Rich residents havent moved in yet

STAGE TWO:

benefits:

• urban pioneers and artistic groups still benefitting

• businesses that move into the area who are linked to the artistic community e.g. cereal Killer cafe

• some wealthy new residents

costs:

• working class people priced out of market, e.g. house prices were 27% more than East London

STAGE THREE

benefits:

• wealthier residents

• high order services whose products and services reflect the changing affluent demographic

• property developers e.g. Galliard Homes who can sell to wealthy residents

• High end retailers e.g. Versace

losers:

• working class residents and urban pioneers are completely priced out of market and have to move out of the area

• elementary occupations decreased to 9% from 1991 to 2011.

• low order services such as greasy spoon cafes having to shut down as they no longer represent the demographic

CONCLUSION:

On balance, gentrifications beenfits depend on the stage. Within stages one and two, they mostly benefit the working class and original residents such as artistic communities and urban pioneers, whereas in stage three, benefits increasingly favor wealthier residents and property developers. In these stages, artistic communities and urban pioneers are priced out of the market and have to move out of the area. therefore, it can be said that gentrification benefits both rich and poor residents but benefits rich residents to a more significant extent.

Does gentrification always follow all three stages?

no, other sreas have started at stage 2 or even stage 3

START AT STAGE 2 CASE STUDY: Harborne, Birmingham

• residential area

• is a gentrified area of Birmingham which has seen an influx of middle class groups in recent years

• it never experienced the ‘artistic’ community

What is good about Harborne’s location?

• good access to professional employment opportunities in the CBD, The QE Hospital and Birmingham University

START AT STAGE THREE CASE STUDY: BRINDLEY PLACE Dvelopment, Birrmingham

Urban redevlopment and regenration in Birmingham: what have many British cities done in order to reduce the impact of deindustrialisation?

• they have re-developed areas with a mix of commercial, retail and leisure land uses often incorporating flagship developments.

What was the aim of urban regeneration in Birmingham?

• to change the perceptions of Birmingham

• to bring new businesses and people back to deindustrialised central areas of the city (re-urbanisation)

What was the Brindley Place project?

in the 1990s: a £200+ million development was the first large scale project

What was the Big City Plan?

• launched in 2010

• cost £10 billion

• 20 year vision for Birmingham to transform 800 hectares of the city

AIMS:

• to deliver sustainable growth, improved connectivity (transport), new residential communities, and a diversified economic base.

What were the 2022 Commonwealth games?

• over £700 million public sector investment focusing on Perry Bar and Sandwell areas of the city

redevelopment and regeneration have resulted in reurbanisation.

what is reurbanisation?

• the movement of people back into urban areas that have previously experienced out migration.

process attracts more affluent, younger members of society employed in the growing service sector of the economy.

BRINDLEY PLACE: CASE STUDY OF INNER CITY REDEVLOPMENT, REBRANDING, REUBRBANISATION AND GENTRIFICATION.

• Summary of the Brindley Place redevelopment

• By 1970s this site had become extremely run down due to the process of deindustrialisation

• in 1987, a £200+ million redevelopment funded as a public/private initiative involving an Enterprise Zone, Birmingham City Council and development company (Argent Group) was started on the 15 hectare site to transform it into a premium leisure =, commericial and residential area

• the first stage of development was the construction of the NIA which opened in 1991. By 2004 all of the offices buildings and leisure developments were complete (created 10,000 jobs)

• the scheme also contained 143 new houses in the Symphony Court development. Completed in 1995 and designed to encourage more poeple to live in the city rather than outside (REURBANISATION).

• later residential developments included King Edward’s Wharf, 243 new apartments

• the central location, adjacent to Broad Street and within walking distance of New Street. This was designed to attract new groups of people such as professionals to live here. (GENTRIFICATION)

Economic changes of the Brindley Place development:

What were the changes in employment in Birindley Place?

examples of employment organisations:

• Deloitte (Accountancy)

• Deutsche Bank (Finance)

• Natwest (Finance)

The types of jobs in Brindley Place are tertiary jobs with high skills and high wages

Economic changes of the Brindley Place development:

Property Prices

• redeveloped area of Brindley Place has caused property prices to rise

• inflated prices in redevloped areas so local working class people can’t afford to live in the redeveloped gentrified areas

e.g. 2 bedroom apartment £325,000

Economic changes of the Brindley Place development:

Flows of money, local multiplier effect

• multiplier effect can be seen in the entertainment district which can be seen in Broad Street

• as a consequence of the Brindley Place redevelopment and International Convention Centre, Broad Street became a a focal point for financial businesses and business conventions.

• this growth, coupled with the reurbanisation of affluent young population (gentrification as well) has led to a rise in affluence resulting in increased spending = leads to multiplier effect

Economic changes of the Brindley Place development:

• Retail Growth

• local multiplier effect has also changed the retail provision around Broad Street

• E.g. The Mailbox an upmarket retail development appeals to the new demographic of the Brindley Place area. Examples of retail store: Hugo Boss, Harvey Nichols

Demographic change and social gentrification in Brindley Place area:

• In ladywood 136A and 137C there is a 15% difference in deprivation such as economically active but unemployed

this is because majority of the people living inside this area of redevelopment are employed due to having high skills so they can find a job which matches their skills.

• 18% of people within Ladywood 136A are economically active but unemployed compared to 3% in Ladywood 137C

Evaluation: Who has benefitted from this redevelopment (demographically)?

• more affluent people have benefitted as they can find jobs which match their skills meaning little to no unemployment in the area.

• compared to England’s avergae, there are more people from 137C who are educated to degree level (71% vs 27%)

• 32% of people in 136A have no qualifications compapred to 4% of 137C

Demographic change and social gentrification in Brindley Place area:

• Area around Brindley Place becoming more gentrified, what is the effect?

• increased property values

• change of charactertistics of local steerts and properties

PART B:

Why are some central urban areas continually declining?

• out of town shopping centres

• retail competition from the internet

• large CBD retail redevelopment schemes in nearby settlements

• new entertainment complexes

What has led to decline of traditional high streets?

• changes in shopping behaviour

• shopping online due to pandemic

• in 2019, sharpest drop in retail sales in over 22 years

• competition from ‘out of town’ shopping centres

Retail Competition- Internet Shopping

what are the advantages of retail shopping?

• online is often cheaper

• more convenient

• wider variety of products

• online shopping is 24/7

• no need to leave your home

Out of town shopping centres and large CBD retail redevelopment e.g. Bullring

what are the advantages of this over a traditional high street?

• good connectivity

• free car parking

• privately owned spaces

• safer with more security

Case Study: Dudley, West Midlands

background information

• Ranked 500 (last) on The Vitality Index. (measurement takes into account proportion of retail outlets, proportion of low value retail and proportion of vacant premises)

• in 2014, 32.4% of retail units were vacant

• Nowadays, much of Dudely’s high street is dominated by vacant premises or low value discount type stores (compared to 1970s, where there were many department stores e.g. Debenhams and Marks & Spencers)

Why has Dudley’s town centre declined?

reason one: Merry Hill & waterfront- out of town development

Merry Hill retail centre covers 125 acres. Also:

• has 220 stores including debenhams

• 98 catering outlets

• 7,000 free parking spaces

• employs >4000 staff

The Waterfront office park located just 600m from Merry Hill

• over 45,000m² of office space

• employs over 3000 people in tertiary sectors

• 4 Star Copthorne Hotel

Why has Dudley’s town centre declined?

Reason 2: Retail and Transport development in Birmingham

The Bullring:

• cost £530 million

• covers 26 acres

• contains 160 shops- like Selfridges

• attracts 40 million shoppers each year

The Metro opened in 1999

• light rail system connects Wolverhampton to Birmingham

• has made travel to B'ham easier thus reducing the number of people who may otherwise travel to Dudley for their shopping needs.

The Mailbox

Why has Dudley’s town centre declined?

Reason 3: The Decline of High Street Retailers

Due to the rise of online shopping, there has been increased competition within retail. Consequently many of the High Street shops there have closed like:

• Woolworths

• Dewhurst

• BHS

EVALUATION: Does Dudley town centre have a bright future?

Heritage spending:

• restoring and rennovating old buildings

• expanded Dudley college= educational investment

• rennovating Dudely fire station

HOWEVER, these changes are not likely to give Dudley a bright future as it doesnt really bring anything to the town centre.