Savills has been advising Transport for London, as well as city councils, near the HS2 route, on land value capture and uplift as a possible way of funding major new infrastructure.
Please watch the Chief Economist at Savills, Rory Brooke, above, presenting on our first panel discussion about new models for infrastructure-led regeneration at "The Making of the Modern City" alongside L&G Capital,Tibbalds Planning, Transport for London and the Mayor of Middlesbrough.
Rory concluded that "there is the potential for land value capture to make a contribution towards funding infrastructure. Different capture mechanisms have advantages and drawbacks, with a key issue being the trade-off between seeking up-front contributions when risks and uncertainties are higher versus looking for contributions later in the project when revenue returns are more certain."
"Overall my personal view is that central government needs to continue to cover a large part of infrastructure funding up-front. Land value capture mechanisms can then help bridge the remaining gap. Without a major change in the legislative context, the most promising way forward may be to explore further ways of creatively using Community Infrastructure Levy and S106 combined with forward funding via Prudential Borrowing."