National Lottery-funded projects are acting as catalysts for residential development in previously run-down urban areas of Britain. The regenerative effects of these lottery schemes are attracting people back to these inner cities, developers say. Millions of pounds raised by the National Lottery are being invested in prestigious public facilities, such as museums, art galleries, sports stadiums, libraries, science centres and communications links in cities and towns throughout Britain. In response, a growing number of residential property developers are targeting those areas where the lottery money is being spent, to match rising demand for homes there. Stephen Brazier, managing director of developer Taywood Homes, said: 'Our research indicated a strong correlation between cities which have received lottery funding for urban regeneration and a high demand for city-centre living in these locations. 'We therefore decided to modify our development strategy so that we could undertake development projects in the key cities which have benefited from lottery funding.' More than GBP2.5 billion (about HK$29.24 billion) of lottery money has been used to create 36 large-scale building and regeneration projects, each valued at more than GBP10 million, nation-wide. London has been the largest recipient with 10 of these projects, with a combined value of GBP1.17 billion, including The Millennium Bridge, The Tate Modern Art Gallery and Somerset House. Outside London, major projects include the Millennium Stadium in Cardiff and the Lowry Gallery in Salford. Schemes in Leeds, Bristol, Swindon, Bath, Portsmouth, Birmingham, Doncaster, Manchester, Newcastle, Glasgow and Edinburgh have also benefited. Mr Brazier said Taywood, part of the Taylor Woodrow group, was creating two showcase residential and mixed-use schemes in two cities where lottery spending had helped attract people back to inner city living. In Leeds, it is redeveloping the six-hectare Chapel Allerton site into 177 homes as the residential part of the Leeds Millennium Square regeneration initiative, one of several Lottery-funded refurbishment projects in this city. In Cardiff, Taywood is converting a former office building into a 15-storey 'Manhattan-style condominium'. Other developers joining the bandwagon in other parts of the country include Alfred McAlpine Homes, Berkeley Homes and Bryant. A spokesman for Alfred McAlpine said: 'People in this country complain that not enough EU [European Union] money is spent on regeneration in our cities, but they forget the huge amount of lottery money is spent on them.' The effects of such investment led to property prices skyrocketing in previously depressed areas, he added. Richard Donnell, research analyst at FPDSavills, congratulated Taywood on their decision to focus on lottery towns and districts. 'If they are looking at it in such an innovative way as to help them decide where they should build, then I applaud them, because so many other developers don't do that,' he said. However, he said the impact of Lottery-funded projects on an area's property market depended on their scale. As with all regeneration schemes, they needed to be big. For example, London's huge Canary Wharf project has had a significant impact on the neighbouring Dockland's property market. Whereas, the opening of the Tate Modern was not drawing residents or developers in great numbers to Southwark. Rather, he saw such lottery investment as part of a virtuous circle of regeneration, the accumulative effect of which was to improve an area's image and desirability as a place to live. Other non-Lottery-funded regeneration schemes, though sometimes less glamorous, such as transport improvements and office building, were also part of this virtuous circle, as are projects being built by residential developers. Other public and privately run schemes that complemented Lottery-funded projects included the Bull Ring redevelopment in Birmingham and canal-side regeneration in Leeds, Mr Donnell said.