CPP's Thomas Aubrey provides evidence at APPG on Land Value Capture

2 November 2018

By The Centre

CPP advisor Thomas Aubrey provided evidence at the APPG on Land Value Capture which works 'in partnership with national and local government departments, land developers and others to create a forum for Parliamentarians and interested stakeholders to discuss and develop innovative proposals to capture increases in land value, for the public benefit.'

The evidence provided was based on recent work on land value capture by Thomas Aubrey arguing that a greater share of the uplift in land value resulting from planning permission awards should help fund incremental infrastructure investment including affordable housing.

This included an emphasis on the fact that Britain's housing market is dysfunctional when compared with its European counterparts, "…because successive governments have not created the right institutional market infrastructure to permit the supply of houses in growing city regions to keep up with demand.”

Further, Thomas Aubrey argued that “In Britain…it is far more profitable to invest in existing housing assets and land than it is to build new houses” and "when a market, such as the market in land, does not serve the best interests of society then the market in question needs to be reformed so that it can serve the whole population effectively and efficiently."

The criticism of the UK's land market was followed by a recommendation:

“…should a British Chancellor of the Exchequer decide to promote a productive economy instead, then large-scale, public led
land assembly, by city region authorities, would be able to capture a greater share of the uplift in land values if there were changes to the 1961 Land Compensation Act. This would permit land assembly by city region authorities and enable them to acquire land at closer to use value; they could then make use of it - in conjunction with their own land - in dedicated housing zones. This would make the market more efficient, ensure that the rewards of innovation and hard work flow to all the firms and workers in a city region, rather than to those who own property assets. This would also bring about a greater level of capital investment which Britain so clearly needs.”

The evidence published by the APPG can be found here.