Restoration & Preservation of Architectural Heritages

The aim of this publication is to identify opportunities for the mobilisation of financial resources for conservation, restoration, rehabilitation and management of the architectural heritage, drawing on examples from Europe and North America.
There is a need to increase private investment, which is only likely to be achieved according to the principles of profitability, which govern the free operation of the market.
The sustainable approach should be for tax mechanisms and credit policies to favour conservation and use – rehabilitation – in housing policy or in the establishment of business and tertiary activities, rather than new construction. This, in turn, supports the idea of a “living” heritage rather than a “museum” heritage. Most historic buildings should be capable of allowing an economic or otherwise beneficial use.
However, it is well recognised that there are limits to the use of private investment in the rehabilitation process, particularly as credit institutions (such as banks) may be reluctant to lend money on old buildings to assist in conservation or rehabilitation work because there are inherent risks as compared to modern property.
The possibility of obtaining a subsidy in addition to private sources of funds or some other form of security can reduce the risk factor and may lead to a more enthusiastic attitude by private sector investors (including individual owners of protected property). Moreover, where housing loan policy in European countries has favoured new construction, there is a need to create a framework more conducive to the operation of the rehabilitation market, which can have other associated socio-economic and cultural benefits when applied to property with recognised heritage value. The aim should be to place both markets on an equal footing. Legal restrictions on the ownership of property and on investment can also have a negative impact on potential investors in the architectural heritage. In the free market all potential investors should be encouraged.
In some countries the institutions and legal procedures necessary for opening up markets to competition are still developing. Moreover, in the countries-in-transition in central and eastern Europe the question of land and property restitution is still in process – and there may even be a reluctance to return heritage assets to private ownership for fear that the private sector will not accept the responsibility for safeguarding heritage assets.
There may also be a reluctance to allow foreign investors into the market for cultural, philosophical or political reasons. However, the development of appropriate regulations and policies for heritage protection should ensure that all potential owners and users, whether nationals or not, are equally bound in law and equally able to benefit from financial incentives.