Explains what the importance placed by government on public places in its urban policy since 2000 means for the property industry. Outlines the emerging key issues, based on evidence from a survey of English local authorities and in-depth interviews. Public space needs to be further defined as a concept. Although local authorities are convinced of the value of public space and have accepted government guidance, the majority do not yet have a strategy in place to convert the guidance into workable local policies. Resource strapped local authorities are seeking private sector funding to help them provide public spaces including public-private partnerships with developers who are prepared to incorporate expensive public spaces into their urban regeneration designs. Concludes that the property industry should embrace public space as a high priority. Charts and references.