Deprived urban areas suffer from what economists call “negative value”. Because of the environment, property values have plunged in the face of insufficient demand. Landlords find it uneconomic to maintain their properties, owners abandon what they cannot sell and empty houses get vandalized, thus adding to the downward spiral. The market, unaided, cannot provide a solution because the cost of renovating a single property cannot be recouped through the sale of that property in an area of urban deprivation because the area’s negative value will keep the selling price artificially low.
In close cooperation with Public bodies and local residents, our model is predicated on assembling properties in a sufficiently large area to impact on that area’s negative value. The local authority and Housing Corporation / English Partnerships will undertake this task in cooperation with any Housing Association(s) / Registered Social Landlord(s) that own stock in the designated area. Once identified and agreed, these properties are to be transferred into AHDC’s ownership at zero or nominal value, thus making it economically feasible for AHDC to refurbish them commercially, at our own risk, as well as providing an asset base against which AHDC is able to raise the additional development finance required to regenerate the housing.
Local professionals and labour are employed to ensure a high standard of workmanship and timely 
completion. At the same time the local authority will use its resources to improve the surrounding environment, streetscape etc.
The regenerated properties will then be sold to owner occupiers by a respected and well known local estate agent at market values which, since the negative value in the area has now been eradicated, could well exceed the cost of refurbishment. AHDC takes the commercial risk that this might not be achieved but, in the case where there is a surplus of sales receipts over redevelopment costs, this overage will be shared with the public body involved.
Finally, on successful completion of the project, the local authority will have a vibrant area generating positive tax revenues and increasing pride within the community, whereas previously they had had a depressed area consuming their scarce resources and inviting criticism. Ours is a model where everyone benefits.
