The Government has commenced its inquiry into the adequacy of current methods of capturing land value increase generated by infrastructure and planning uplift. One of the motivators behind this inquiry has been the uplift in values created by major infrastructure projects like Crossrail. There is also speculation about whether it could enable public infrastructure projects to clawback value added by enabling future private development schemes.
The Communities and Local Government Committee (CLG) Committee is to examine the effectiveness of current land value capture methods and the need for new ways of capturing any uplift in the value of land associated with the granting of planning permission or nearby infrastructure improvements and other factors. The Committee is inviting written submissions on the following points: Are current methods, such as the Community Infrastructure Levy, planning obligations, land assembly and compulsory purchase adequate to capture increases in the value of land? What new methods may be employed to achieve land value capture and what examples exist of effective practice in this area, including internationally? What are the possible advantages and disadvantages in adopting alternative and more comprehensive systems of land value capture? What lessons may be learned from past attempts to capture the uplift in value?