How the NHS is becoming an engine for local housing and economic development

As the NHS estate ages and requires reinvestment in both its form and function, something interesting is happening across the country -- hospitals which are no longer fit for purpose are becoming the drivers of community regeneration.

A combination of advances in diagnostics and treatments, population and demographic shifts, and new approaches to delivering healthcare is underpinning some consequential changes in how land, buildings and other NHS assets are used for the benefit of patients and entire communities.

In some cases, these changes are manifesting in commercial and economic regeneration, as investment flows into the life sciences sector, a growth industry and one the government sees as key to the UK’s economic future. Links with the expertise, infrastructure and data embedded in the NHS are invaluable for life science organisations, and make NHS facilities a sought-after anchor for clustering lab and office facilities.

In other cases it’s all about developing new housing and communities, embodied in a paradigm shift within the NHS from hospital-led care to community-led care, and acute services to preventive ones. This is a cornerstone of the current NHS ten-year plan.

While these changes are happening across the country, it’s London where the impact of NHS-led regeneration is really being felt.

The NHS is one of the largest owners of land and buildings in London, third after TfL and the Crown Estate. It sits on 758 hectares of land, roughly 90% of the size of Richmond Park, and over five times the size of Hyde Park.

This estate is highly fragmented across the capital, and sites vary considerably in size and function. Amidst this collection are a number of innovative projects which are underpinning economic and housing growth in local communities across London.t

Several life sciences-led regeneration initiatives are currently taking place around London’s major teaching hospitals.

At St Mary’s Hospital in Paddington, Imperial College Healthcare NHS Trust is delivering the Paddington Life Sciences Campus as what it describes as a “once-in-a-generation opportunity to secure not only a new, purpose-built teaching hospital and major trauma centre, but also to regenerate the whole site as part of a welcoming and vibrant life sciences campus, bringing more jobs and investment into the local community”.

Complementing its main purpose of reinvesting in the hospital and its clinical services, the regeneration creates a new life sciences campus and new public realm spaces and walkways. It aims to preserve key heritage assets which have been part of St Mary’s Hospital throughout its 181-year history. You can see the full masterplan here.

In Whitechapel, the Barts Life Sciences Cluster is bringing together life sciences organisations to draw on the expertise, research and clinical specialisms of the Royal London Hospital and Barts Hospital, both part of Barts Health NHS Trust. With assets of 22 acres of land and over £800m of private investment, the initiative aims to accelerate economic growth and improve healthcare in its local community:

“At Barts Health we see first-hand the challenges and opportunities in delivering healthcare at scale. The Barts Life Sciences Cluster allows us to bring together our clinicians, patients, industry, and academic partners in new ways — accelerating innovation, creating jobs for East London, and above all improving outcomes for the communities we serve. This is a landmark moment for Barts and for UK life sciences.”

In Sutton, south London, the London Cancer Hub and Cancer District has been developed as a partnership between the Institute of Cancer Research (ICR), Royal Marsden, and Epsom and St Helier University Hospitals..

Designed for collaboration, the District connects a world-renowned cancer research institution and a specialist cancer hospital with global biotech and pioneering innovators. The result is a powerful ecosystem where ideas, discoveries and partnerships accelerate progress for people with cancer.

But the real opportunity – that most Londoners will feel- is in housing development.

According to the London Assembly, surplus NHS land in London is capable of delivering around 12,500 new homes.

Last year I went to visit Springfield Village, a development of parkland, housing and healthcare facilities on 82-acres in south London. Until a few years ago, it was the site of many outdated  facilities owned by Southwest London and St George’s Mental Health NHS, along with a commercially operated  golf course run by an external operator who leased the land from the Trust. Along came STEP, a 50/50 JV between Kajima Partnerships and Sir Robert McAlpine Capital Ventures who have led the transformation of this site over the last decade, creating over 1,300 new homes, 32 acres of parkland and a new-build fit-for-purpose mental health facility.

Sir Robert McAlpine and Kajima are embarking on another NHS-led regeneration, and I spoke with Project Director Richard Coe about what he’s learned from Springfield Village, and what it takes to make these projects a success.

Richard began our conversation by emphatically stating that it is “a privilege” to do these projects. Springfield Village benefited from an anchor institution in the form of the mental health facility, which underpinned an emphasis throughout the project on embedding health and wellbeing across all elements of the development. “Specialist hospitals provide an extra dimension to these projects”, Richard pointed out, and at Springfield Village this has been made manifest in the spaces created to deliver mental health services and to both support and involve residents in this.

Given the multiple stakeholders involved in the regeneration of NHS land and facilities, partnerships are necessary to acquire, develop and manage these sites. I asked Richard how STEP has managed to do this. He emphasised how important a “shared story” is in attracting partners to a project and sustaining the partnerships throughout the entire process of design, development and delivery.  Maintaining trust between partners is essential, and in the Springfield case Richard described how the shared story was imagined, re-imagined, designed and developed collaboratively. Also critical to the project’s success was STEP’s long-term skin in the game and its ongoing stewardship of the development, which continues today. “Improved health has been the ultimate driver – and it’s been a powerful shared goal” he commented.

We discussed the major challenges and opportunities that STEP faced throughout the development. Dealing with objectors at various stages, and particularly those aimed at very specific elements of the development was one challenge. Richard cited a lack of dedicated sport provision objection to the design and ultimate use of some of the parkland, which was eventually overcome but consumed significant resources and time to manage. Springfield Village also involved the redevelopment of several historic and listed buildings which required securing a specialist developer to undertake. Overall, he said, the sheer scale and complexity of these projects can be overwhelming for many participants.

The opportunities, however, make up for these challenges.

“Health is an enabler and healthcare transformation a necessity” Richard pointed out, and this has supported a consensus amongst partners on how to approach local healthcare need along with wider determinants of health in the local area. These projects have shone a light on how neighbourhoods underpin good health– Richard points to Health on the High Street and Healthy eating initiatives that can really have a local impact on health outcomes.

I asked Richard how the government’s framework for Neighbourhood Health supported NHS-led regeneration projects like Springfield Village. Kajima is seen as a catalyst for neighbourhood health provision having developed several community hospitals, he said, citing the number of NHS trusts that have approached Kajima about future projects.

Finally, I wanted to know the top three lessons he and his team have learned from the Springfield Village regeneration that can be applied to future redevelopment of the NHS estate. And here they are:

·      Build trust cumulatively, in phases, and manage partnerships accordingly

·      Assemble a multidisciplinary team that can adapt

·      Keep health centre stage as the catalyst for regeneration

It’s encouraging to see these developments come to life and to set examples for future health-led regeneration initiatives., and valuable to gain insight into the organisations, structures and practices that are delivering them. Thanks to Richard and his team for sharing his experiences.

Clare Delmar

Listen to Locals

November 5, 2026