William Eichler 11 April 2017

UK missing out on £185bn due to mechanism for capturing land value

The current approach to capturing increases in land value could cost the UK a potential £185bn over the next 20 years, planners warn.

The Royal Town Planning Institute (RTPI) criticised the recent housing white paper for not including new measures for capturing the uplift in land value resulting from planning permission being granted or public investment being made on or near a piece of land.

The UK currently uses Land Value Capture (LVC) mechanisms - S106 and Community Infrastructure Levy (CIL) - to capture increased value. However, the planners argue sticking with this model will miss capturing a potential £185bn of total land value increase over the next 20 years.

‘The existing measures have their role but they essentially ‘claw back’ some land value uplift to mitigate the impact of development, rather than allowing local authorities to be proactive by using rising land values to fund land assembly and deliver housing,’ said RTPI president, Stephen Wilkinson.

‘S106 and CIL are often subject to lengthy negotiations and are not capable of producing the game-changing effect local authorities need to push forward projects.’

The RTPI is looking into a project which compares the UK model with those adopted in other countries. It will look at a simple tariff mechanism and two variants of the North American Impact Fee approach.

Each approach’s ability to raise money, its attractiveness and ease of implementation will be tested against a hypothetical site via interviews with planners, planning consultants, lawyers, valuers and developers.

‘Infrastructure is critical to housing delivery and economic growth. At a time when public finance is squeezed we have to look at new funding models to ensure infrastructure can be built at the speed and scale we need,’ said Mr Wilkinson

‘We are missing a trick by not accessing the vast potential of rising land values which currently go directly to landowners. Rising land values are a reasonable place to look for infrastructure funding and international evidence suggests there are fairer, more effective ways of sharing this gain.’

Online Safety – Time to Act image

Online Safety – Time to Act

Schools still have work to do despite onus being put on online platforms to conform to new safeguarding legislation, says safeguarding expert Mark Bentley.
For your free daily news bulletin
Highways jobs

Educational Psychologist

Essex County Council
£48727 - £52440 per annum
Educational PsychologistPermanent, Full TimeSoulbury Scale A 2-7 plus 3 SPAsLocation
Recuriter: Essex County Council

Domestic Assistant

Essex County Council
Up to £22361 per annum + FTE
Domestic AssistantPermanent, Part TimeUp to £22,361 per annum, pro rataLocation
Recuriter: Essex County Council

Private Fostering Social Worker

Essex County Council
£34712 - £46751 per annum + FTE
Private Fostering Social WorkerFixed Term, Part Time£34,712 to £46,751 per annum FTELocation
Recuriter: Essex County Council

Accountancy Tutor - Part Time

Essex County Council
Up to £28432 per annum + pro rata
Accountancy Tutor - Part TimePermanent, Part TimeUp to £28,432 per annumLocation
Recuriter: Essex County Council

Occupational Therapist Part Time

Essex County Council
£34712 - £46751 per annum + Flexible Working, CPD, Local Gov Pension
This is a part time opportunity for 18.5 hours per week with flexibility on working pattern. The advertised salary will be pro rata'd for part time England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.