Regeneration projects around the UK could be shunned by developers because prices are falling more rapidly than in other parts of the property market.
The regeneration sector is being hit hardest in the broader housing and commercial property slowdown, according to a report from IPD, the property industry benchmark index.
The government has made redevelopment of brownfield sites a priority as part of its ambitious housing supply targets. However, the report finds that property in regeneration areas is more vulnerable to the market downturn than other types of investment property.
The worry is that developers will turn to prime property investment and development in a flight to quality.