On 21st February, IPTI, in partnership with the RICS, held a round-table event in London on the issue of land value capture (LVC).
The title of the discussion session was “Land Value Capture – What’s the Problem?” and sought to identify the issues that currently prevent an effective system of LVC being introduced in the UK, drawing upon experience from around the world.
The meeting brought together a group of experts from both the public and private sectors, along with practitioners and academics, to highlight both policy and practical considerations.
Chaired by IPTI’s President, Paul Sanderson, a series of presenters and panellists looked at the main issues, which included political, legal, economic and valuation challenges, and discussed with the invited audience of experts how these might be addressed.
The meeting considered how LVC operates through the existing UK tax and planning systems. It looked at LVC both as a means of “recouping” part of the increase in property values resulting from the granting of planning/development permission and as a source of funding for major infrastructure projects.
It was recognised that LVC ties into the wider debate about compulsory purchase and compensation; in particular, the treatment of “winners and losers” from major infrastructure projects. Another related issue discussed was the interaction between LVC and “sustainable development”.
LVC is a “public interest” issue and the RICS wants to develop a position on LVC for the benefit if its members and other stakeholders. IPTI is keen to share its global experience of LVC; in particular, what works and what does not work – and why.
It proved to be a very successful event which covered a wide range of topics, including some case studies (e.g. CrossRail in London), drawing out the matters which need to be considered both in relation to policy and implementation.
The follow up actions will include distributing a note of the main points discussed to all participants, creating an “action group” to focus on LVC issues, channelling the ideas and suggestions from the meeting into the wider policy debate on LVC, and holding another event later in the year involving a larger audience drawn from all interested parties.