The ninth, the London Development Agency, came into being in 2000. These agencies function on the principal tenets of sustainability to ensure a long and continuous prosperity to everyone living in the area. Before launching into an examination of the principles that guide these agencies and their functioning toward the uplift of the regional economy, it would be interesting to study and understand what urban regeneration is all about and how it evolved.Urban areas are essentially dynamic in nature. Socio-economic factors, environmental and physical factors all interplay and interact together to generate changes in their structures. Moreover, an urban area experiences thrusts from outside which necessitates adaptation to changes while internal dynamics and pressure try to withstand such changes or accept those resulting in either prosperity or decline. Though each problem may not be unique to a specific rural area, yet each challenge requires a distinctive approach towards the generation and implementation of its solution.Since the beginning, urban areas have always performed a variety of functions, offering shelter, providing infrastructure and opportunities for trade and commerce and opportunities for social interaction, being a few of those. As time passed, the importance of each need changed necessitating the requirement for new infrastructure, more space, more facilities for business etc. These changes in the physical structure and functioning of a town and its social life are inevitable since the town has to reorganise itself to meet the changing demands. These changes are also beneficial in a somewhat indirect way since these changes also make fresh demands for improvement of infrastructure and facilities so that the community within an urban area is forced to adjust itself to the new demands and work towards providing better opportunities for growth and progress.
The relation between social deprivation and meagre physical infrastructure and facilities had long been an accepted fact and legislations and policies were implemented for improved infrastructure for health and better living conditions. It was gradually realised that merely improving health and living conditions will not contribute significantly towards the progress of an urban area. It is necessary to improve the economic conditions of an area if there is to be a sustainable progress in general health and social and living status. The 1970s and 1980s saw several initiatives and implementation of policies in this direction. It was in the 1980s that it was decided that funding of resources for the growth and development of an urban area should not come solely from the central state. There should be a kind of partnership between the central government and the local urban bodies for the generation of resources for development.
Given that urban regeneration is fundamentally a comprehensive action, directed by a strong vision, aimed towards sustainable improvement of an urban area's physical, social, environmental and economic growth, it is based upon clear principles of objective progress. It takes into careful consideration all physical and social aspects of the area and is aimed towards synchronized growth of its economy, environment, social structure and fabric through the implementation of a comprehensive strategy based on clear goals. Urban regeneration involves the maximum possible utilisation of the natural and human resources of the area, which includes land and built infrastructure and the existing trade and commerce in the region. It is in essence "an interventionist activity" (Roberts and Sykes 2000: 22) which involve