Herbert Smith has cemented its commanding position in the busy regeneration sector with the firm maintaining roles on a string of high-profile projects while Berwin Leighton Paisner (BLP) and Wragge & Co have both bagged premium local authority instructions.

The top 10 City firm stands alongside Ashurst, Linklaters, Eversheds, Nabarro Nathanson and Lovells as advisers with major London projects currently on their books.

Key roles for Herbert Smith include its ongoing role for London Borough of Southwark on the £1.5bn regeneration of Elephant & Castle.

The second round of the developer selection process took place during November with St Modwen, Oceancrest and a Lend Lease consortium the remaining hopefuls. Linklaters is acting for regular client Lend Lease while Dechert is acting for the Ocean-crest consortium.

Herbert Smith, together with Eversheds, Linklaters, Ashurst and Nabarro Nathanson, is also acting on the ongoing regeneration of Stratford town centre, and the creation of the £4bn Olympic village for the London 2012 Olympics.

In November, it advised on the compromise agreement between the London Development Agency (LDA) and the landowners, London & Continental Railways, on a compulsory purchase order to be used for the development.

Stephen Sorrell, Eversheds real estate partner, said: "Large amounts of our time is taken up with Olympics work and we have also been acting for the LDA in relation to all the planning matters in the Lower Leigh Valley."

Aside from ongoing flagship projects in the Capital, the closing months of 2005 generated a steady stream of major development projects backed by local authorities.

Wragges scooped a role advising Solihull Metropolitan Borough Council on the £1.8bn regeneration of a residential district in November, while BLP acted for Quintain opposite Pinsent Masons in December on a joint venture with Countryside Properties for the second phase of Birmingham's Masshouse regeneration.

Herbert Smith real estate partner James Barnes told Legal Week: "Local authorities are becoming more proactive in promoting regeneration schemes."

Anne Byrne, a real estate partner at Linklaters, commented: "The trend towards large regeneration projects – particularly mixed use – will continue. There is a real move towards trying to regenerate town centres rather than greenfield sites."

While property advisers predict the boom in regeneration will continue, concerns have been raised by falling demand from retailers for new space. The property industry has also given a cool reception to proposals in November's pre-Budget report for a new tax on the increase in land value following planning approval.

SJ Berwin head of property Bryan Pickup warned: "The property land tax will make these things much more difficult. It will not come in before, at least, 2008 so there will probably be a rush of planning applications before that."

Regeneration and development – recent key instructions

Berwin Leighton Paisner partner Franc Pena advised Quintain Estates & Development on the joint venture agreements with Countryside Properties for the £100m second phase of Birmingham's Masshouse regeneration. Andrew Yates of Pinsent Masons acted for Birmingham City Council. Mark Dakeyne of Wragge & Co and Martin Wright of Campbell Hooper advised Countryside Properties. (December).

Wragge & Co director of regeneration Stephen Sellers and associate Jacqueline Knox are advising Solihull Metropolitan Borough Council on the £1.8bn regeneration of a Birmingham residential district. Freeth Cartwright partner Ian Payne is advising house builder Bellway Homes, Trowers & Hamlins partner James Hawkins is acting for social housing provider Whitefriars. (November).

Addleshaw Goddard won a new instruction from Doncaster Borough Council for the £150m regeneration of the town's cultural and civic quarter. (November).

Herbert Smith partner Chris Harrison advised London & Continental Railways on the compulsory purchase order agreement for the £3.5bn redevelopment of the site around Stratford International station. Stephen Sorrell at Eversheds acted for the London Development Agency. Martin Wright at Ashurst advised Stratford City Developments. (November).

Pinsent Masons partner Andrew Yates and associate Claire Hamlin advised Wolverhampton City Council on a £256m project to revamp its city centre. Norton Rose partner Robin Mitchell advised developers AM Development UK. (October).

Boodle Hatfield property partner Caroline King led a team, including senior partner Tim Manning, on the £500m redevelopment of Crawley town centre. Berwin Leighton Paisner advised landowners Crawley Borough Council and English Partnerships. (August).