This document summarizes a study on how the adaptive reuse of traditional rural buildings can generate local economic benefits. The researcher conducted interviews with 30 building projects in England to calculate their local economic multipliers using the LM3 model. Key findings include animal housing and listed buildings having higher multipliers for conversion works, while businesses under 5 years old and over £75k in turnover performed better for building use. The study aims to provide guidance to organizations like the National Trust on maximizing local economic impacts through adaptive reuse projects.

1. Traditional Rural Buildings as
Instruments of Rural Development
Chris Bell
Countryside and Community Research Institute
ESRC CASE Studentship in collaboration with the National Trust

2. Outline
• Research context
• Methodology
• Findings (including use)

3. Research Context
Heritage values:
• Intrinsic value e.g. historical significance
• Instrumental value – how heritage assets can be used
to achieve a goal e.g. aid rural development
“The historic environment is an important asset in the
economic development and regeneration of rural areas
and has the potential to make an even greater
contribution in the future.” HELM

4. Traditional Rural Buildings
Traditional farm/working buildings
• Ubiquitous in British countryside
• Functionally redundant
• Sense of place and local distinctiveness
• Planning policy

5. Research Context
Sustainable rural economic development
• What is this?
- maintaining income generation and job creation
• How to foster this?
- Exogenous processes (external)? Endogenous
processes (internal)? Both?
- Local economic growth i.e. theories of export
base, net income, growth poles, and immobile
resources.

6. Research Context
- ‘The Leaky Bucket’ – fill it faster or plug the
holes
“Pouring money into an area has minimum
long-term impact if the wealth flows
straight out again because there is nothing
to hold it in the area” NEF (New
Economics Foundation)
Source: NEF

7. Research Context
Key research question
- How well does the initial investment from the
adaptive re-use of traditional rural buildings
generate benefits for the local economy, in other
words how well is it linked to local businesses and
local people?
Initial
•Conversion works investment into Re-spent locally?
•New use local economy
Need local economic linkages

8. Methodology
6 stage process:
1. Literature review and conceptualisation
2. Methodological design
3. Primary data collection
4. Data analysis, LM3 model development and
computation of multipliers
5. Stakeholder consultation (National Trust)
6. Toolkit development (use of findings)

9. Methodology
Measuring local economic linkages:
• Adapted LM3 model incorporating elements
of a simple Keynesian Multiplier analysis
- focuses on first 3 rounds of expenditure
- LM3 score (the multiplier) falls between 1
and 3

10. LM3 Example
1.£1 enters local economy
2. 80% spent in local businesses = 80p left in
local economy.
3. 60% of that 80p then spent in local businesses
= 48p left in local economy
(£1 + £0.80 + £0.48) / £1 = 2.28

11. LM3
Round Activity Effect
1 Grant income plus contribution Direct
from National Trust or tenant
2 Expenditure on contractors and Indirect
materials
3 Expenditure made by contractors Indirect
and suppliers
3 Household expenditure Induced
Conversion works
Round Activity Effect
1 Attributable turnover from Direct
building use
2 Expenditure on goods, services and Indirect
labour
3 Expenditure by suppliers Indirect
3 Household expenditure Induced
Building use

12. Methodology
Primary data collection
• 30 buildings in England
• Model local economic impact of 1) conversion works,
2) building use, or both
• Defining the boundary of ‘local’ - drivetime
• Structured field interviews and telephone interviews

13. Methodology
Building locations

14. Methodology
Primary data collection
• 30 buildings in England
• Model local economic impact of conversion works,
building use or both
• Defining the boundary of ‘local’ - drivetime
• Structured field interviews and telephone interviews

15. Methodology
30minute Drivetime Map for Sheringham in Norfolk

16. Methodology
Primary data collection
• 30 buildings in England
• Model local economic impact of conversion
works, building use or both
• Defining the boundary of ‘local’ - drivetime
• Structured field interviews and telephone interviews

17. Data
Conversion works:
• 22 buildings
• 14 Listed, 8 unlisted
• 14 in-hand, 8 let
Building use
• 25 buildings
• 15 Listed, 10 unlisted
• 12 in-hand, 13 let

18. Data
Contractors:
• 11 firms (24% response)
Suppliers:
• 11 firms (25% response)
Householders:
• 75 (13% response)

19. Methodology
Improving LM3
• Estimating local expenditure beyond third
round
• Additionality
• Displacement
• Attribution
• Sensitivity analysis

20. Conversion Works Income
Model (30min drivetime)

21. Conversion Works Employment Model

22. LM3 – Conversion Works
Model category Number of models Models within category
Building type 3 Animal housing, crop
storage & processing,
other
Building size 2 < 464m2, > 464m2
Designation 2 Listed, Unlisted
SIC class 3 Accommodation and
food services,
manufacturing, other
Tenure 2 In-hand, let
Total 12

23. LM3 – Building Use
Model category Number of models Models within category
Building type 3 Animal housing, crop
storage & processing,
other
Business age 2 < 5 years, > 5 years
Business size (by 2 < £75,000, > £75,000
turnover)
Indigenous 2 Indigenous, non-
indigenous
SIC class 3 Accommodation and
food services,
manufacturing, other
Tenure 2 In-hand, let
Total 14

24. Findings - Summary
Conversion Works
Variable Highest Income Highest
Multipliers Employment
Multipliers
Building type Animal housing Other
Building size < 464m2 < 464m2
Designation Listed Listed
SIC class Manufacturing Other
Tenure Let In-hand

25. Findings - Summary
Building Use
Variable Highest income Highest employment
multipliers multipliers
Building type Animal housing Crop storage and
processing
Business age < 5 years < 5 years
Business size > £75k > £75k
(turnover)
Indigeneity Non-indigenous Indigenous
SIC class Accommodation and Manufacturing
food services
Tenure Let (30min), In-hand Let
(county)

26. Findings – Conversion Works
Building type
30 minute drivetime
n Income Employment Total income Total jobs
multiplier multiplier generated created
(£m) (FTEs)
Animal 7 1.75 - 2.34 1.74 - 1.90 12.4 - 18.4 6.9 - 8.3
housing
Crop storage 5 1.49 - 1.67 1.56 - 1.61 1.5 - 1.8 3.3 - 4.2
and
processing
Other 10 1.22 - 1.34 1.75 - 2.06 16.3 - 19.9 4.2 - 5.4
County
Income Employment Total income Total jobs
multiplier multiplier generated created
(£m) (FTEs)
Animal 7 1.82 - 2.63 1.91 - 2.15 12.8 - 20.6 7.5 - 9.5
housing
Crop storage 5 1.60 - 2.26 1.56 - 1.61 1.6 - 2.5 3.3 - 4.2
and
processing
Other 10 1.37 - 1.60 2.03 - 2.46 18.3 - 23.8 4.8 - 6.5

27. Findings – Conversion Works
Designation
30 minute drivetime
n Income Employment Total income Total jobs
multiplier multiplier generated created
(£m) (FTEs)
Listed 14 1.38 – 1.55 1.98 – 2.39 26.2 – 32.7 10.9 – 14.6
Unlisted 8 1.29 – 1.36 1.26 – 1.29 3.3 – 3.8 5.0 – 5.6
County
Income Employment Total income Total jobs
multiplier multiplier generated created
(£m) (FTEs)
Listed 14 1.47 – 1.76 2.21 – 2.73 27.9 – 37.0 12.2 – 16.8
Unlisted 8 1.43 – 1.68 1.26 – 1.29 3.6 – 4.7 5.0 – 5.6

28. Findings – Building Use
Indigeneity
30 minute drivetime
n Income Employment Total income Total jobs
multiplier multiplier generated created
(£m) (FTEs)
Indigenous 11 1.33 – 1.56 1.11 – 1.12 1.1 – 1.5 60.5 – 67.4
Non- 12 1.47 – 1.67 1.10 – 1.11 0.9 – 1.1 138.7 –
indigenous 154.2
County
Income Employment Total income Total jobs
multiplier multiplier generated created
(£m) (FTEs)
Indigenous 11 1.37 – 1.62 1.12 – 1.12 1.2 – 1.5 60.6 – 67.5
Non- 12 1.52 – 1.78 1.11 – 1.11 0.9 – 1.2 138.7 –
indigenous 154.3

29. Findings – Building Use
SIC Class
30 minute drivetime
n Income Employment Total income Total jobs
multiplier multiplier generated (£m) created (FTEs)
Accommodation 7 1.49 – 2.09 1.11 – 1.11 0.9 – 1.4 88.2 – 98.2
and food services
Manufacturing 9 1.49 – 1.69 1.17 – 1.18 1.0 – 1.3 27.8 – 31.2
Other 9 1.38 – 1.53 1.10 – 1.10 0.8 – 0.9 99.0 – 110.0
County
Income Employment Total income Total jobs
multiplier multiplier generated (£m) created (FTEs)
Accommodation 7 1.75 – 2.82 1.11 – 1.11 1.1 – 1.9 88.6 – 98.6
and food services
Manufacturing 9 1.49 – 1.71 1.17 – 1.18 1.0 – 1.3 27.8 – 31.2
Other 9 1.41 – 1.63 1.10 – 1.10 0.8 – 1.0 99.0 – 110.0

30. Using the Findings
• Workshop with senior National Trust policy
staff
• Produce a set of principles/guidelines
summarising the importance of considering
local economic impact in strategic planning
and when planning individual adaptive reuse
projects.

31. Thank You
christopherbell@connect.glos.ac.uk