Land Value Capture Mechanisms - Policy Checklist

Worked with ARUP Engineering Consultants, London, to design a policy checklist to facilitate the adoption of Land Value Capture (LVC) mechanisms in second- and third-tier UK cities.

This capstone project, completed with four other team members from my MPA at LSE, focused on funding Transit-Oriented Development (TOD) through LVC.

We examined why these mechanisms, successfully applied in London, had not been adopted in smaller cities such as Leeds or Birmingham, and proposed practical policy solutions to overcome the barriers.

The findings and recommendations were presented to ARUP’s City Economics team, providing actionable insights for policy and planning.

Land Value Capture in the UK’s second and third tier cities potential funding source for transit oriented development (TOD)?

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Transport infrastructure forms the backbone of urban development, improving access to jobs, supporting housing needs, and alleviating congestion, while also offering opportunities to reduce regional imbalances.

Integrated Transit-Oriented Development (TOD) strategies, which maximise residential, commercial, and office space within walking distance of public transport, can amplify these benefits.

This research examines the use of Land Value Capture (LVC) mechanisms to finance TOD projects in second- and third-tier UK cities, including Manchester, Liverpool, Cambridge, Leeds, and Birmingham.

LVC monetises the increase in land values generated by public investment or planning gains, providing a potential alternative to traditional funding sources such as government grants.

The study tests six hypotheses relating to barriers to LVC implementation, including low land values, institutional, political, and legislative constraints, fear of displacement, and administrative costs.

Findings indicate that these cities have limited or no experience with LVC due to the constraints identified. The report emphasises the importance of evaluating LVC tools within their specific context and offers recommendations for reforming existing mechanisms and exploring new instruments, drawing on international case studies and best practices.