Land: Value to Capture?

Investigators:

Lead investigator: Richard Dunning (University of Liverpool)

Co-investigators: Sarah Payne; Phil O’Brien; Craig Watkins

Project:

Land value

Current English mechanisms to extract value from the development process for infrastructure delivery are proving contentious. Whilst there are international examples of best practice, political, economic and market heterogeneity means policy transfer caution is needed. Recent work on land value capture (LVC) has focused directly on the outcome of existing mechanisms (e.g. s106 vs CIL), but little is known about how potential changes to these mechanisms might affect the day to day business practices and strategies of residential developers.

This project seeks to identify the potential impact that alternative land value capture mechanisms might have on the incidence and value of developer contributions in England. The future of these developer contributions to public finances through CIL and planning obligations in England is unncertain (e.g. CIL review 2017, London Mayor Draft Housing Strategy 2017, Housing White Paper 2017). The purpose of this project is to provide attittudinal evidence and behavioural modelling of a range of LVC mechanisms and make policy recomendations accordingly.

Understanding the development industry’s perspectives on LVC contributes to the theory of development and supports the creation of evidence based policy in the area of planning obligations and developer contributions. The research seeks to have an impact on policy making in England and act as a reference internationally, for countries considering their approach to planning, housing and infrastructure delivery both now (e.g. Belgium) and in the future.

Funded by:

Royal Institution of Chartered Surveyors Research Trust