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� C'�,il�prchcn�i��c Aei<<hh�nu�i�u��J ti,u�l�� Char,.c(rriiin�� O�;�..�I�nc �. For all tenures a strong relationship between dwelling age and poor condition is reported, but regardless of age, dwellings in the private rented sector are in poorest condition. Similarly 90 per cent of vacant dwellings in poor condition are also in private ownership. Poor condition dwellings were more likely to be in association with other dwellings in poor condition in areas of older property, in areas of flats rather than houses and in areas where the majority of the property was owned by the local authority (ibid.). The study also contends that 10.6 per cent of the total English dwellings were considered to be located in poor environments. As well as conventional measures of physical decline, the incidence of vandalism, graffiti and the dumping of rubbish in the common areas of blocks of flats were recorded (ibid.). Declining neighbourhoods often have very little landscaping, an absence of leisure and recreational facilities, poor educational facilities, and few shopping opportunities except for marginal retail activities that reflect their low socio-economic status, such as pawn shops, cheque cashing centres, and small convenience stores (Driedger 1991). 3.3. Disinvestment and Economic Decline Disinvestment is one of the major characteristics of declining neighbourhoods. The disinvestment process is triggered when a community offers lower returns to the investor. As incomes fall and families leave a community, prices and rents in that community decline in comparison to other areas and owners become less interested in maintenance. Thus disinvestment is initially manifested in delayed home improvements and discretionary repairs (CMHC 2001). At the core of the disinvestment process in many urban areas is the "market gap" problem, which arises when the cost of renovation and property acquisition exceeds the market value of the renovated home. When circumstances in a neighbourhood begin to generate declines in property values and these values drop below the cost of new construction and/or renovation, conventional �nancing by private capital becomes impossible. In these circumstances, work that would prevent further deterioration and eventual abandonment of residential units and business premises is not done. This has often been a signal to lenders and insurance companies, particularly in the US to either "redline" the area and cease operations completely, or at least to raise interest rates, premiums, and equity requirements to cover the increased risks (ibid.). Figures form Winnipeg's inner city clearly highlight the problem of the market gap. Information drawn from the North End Housing Project in Winnipeg is illustrated in Table 3. The figures show the purchase price and renovation costs necessary to rehabilitate housing in an inner-city neighbourhood. Table 3. The Purchase Price and Renovation Costs Necessary for Housing Rehabilitation Acquisition Costs $14,000 Renovation Costs $51,000 Overhead $10,300 22