Mega-Retail-Led Regeneration and Housing Price

Abstract

With the ongoing shift in the dynamics of retail development toward inner-city sites, mega-retail-led regeneration schemes have emerged as an important strategy for place marketing in the entrepreneurial city of London. While a number of studies have attempted to examine the effects of these schemes, the focus of previous studies has been limited to their wider economic and environmental effects. However, few studies have empirically investigated their impact on surrounding neighborhoods, particularly deprived neighborhoods. This paper investigates the effects of the Westfield London Shopping Centre on changes in housing price levels in the surrounding neighborhood of White City/Shepherd's Bush, in order to determine whether mega-retail-led regeneration schemes are a key determinant in the process of gentrification. A difference-in-differences analysis was used to assess differentials in the change rates of housing prices between control and treatment groups following the development of Westfield London. It was found that Westfield London development caused an increase in the change rate of housing prices of the treatment group relative to that of the control group. These findings indicate that mega-retail-led regeneration schemes may be a main cause of the pricing out of neighborhood residents who cannot afford the resulting increased rents and for altering the characteristics of neighborhoods and their social networks.