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DEVELOPING A METHODOLOGY TO CAPTURE LAND VALUE UPLIFT AROUND TRANSPORT FACILITIES
1. INTRODUCTION
Terms of Reference
1.1.1 In August 2003 the Development Department of the Scottish Executive appointed a consortium led by GVA Grimley to develop a methodology to capture land value uplift around transportation facilities. The consultancy team consisted of GVA Grimley, David Simmonds Consultancy, Hargest and Wallace and The Bartlett School of Planning at UCL.
1.1.2 The study was undertaken against a back-cloth of renewed debate over the issue of value capture and examining alternative mechanisms by which transport schemes could be supported financially. This includes projects carried out by the project team for a range of clients, the findings from which have been incorporated into this current study. These include:
1.1.3 Land Value and Public Transport - Research study undertaken by Professor David Banister concerned with developing a method for measuring land value changes associated with transport schemes. This was carried out for the ODPM, RICS and DfT.
1.1.4 Funding London's Transport Infrastructure - Study carried out for the RICS by GVA Grimley looking at funding issues for transport projects. Whilst the focus was London, the findings have national relevance. In particular, a detailed review of value capture methods was carried out.
1.1.5 Innovative forms of financing transport infrastructure - Project carried out for the English Regional Development Agencies, which looked at the potential of a variety of alternative funding methods to support transport schemes.
1.1.6 A key objective of the research was to provide objective advice that could assist policy-makers in developing ideas and plans in relation to transport funding.
1.2 Study objectives
1.2.1 The overall purpose of the study was to:
"investigate the potential for funding significant public transport projects through land value gain" (pg 1 of the Brief)
1.2.2 More specific project objectives were outlined in the Brief. These were translated into the following key areas of investigation, linked to the relevant project objective.
- Review Existing Research Findings. This related to the objective of assessing the evidence that investing in transport infrastructure increases land values. (Objective 1)
- Measuring Land Value Changes. This related to the objective of devising a means of measuring land value gains. (Objective 2)
- Examining Funding Methods. This relates to the objective of examining various funding mechanisms for capturing land value gain, linked to a methodology in line with public sector requirements. (Objectives 3 and 4). In addition, the examination of funding methods was also to include a review of the potential to standardise developer contributions, as well as examining planning agreements. (Objectives 5 and 7).
- Relating to Policy Implications. This related to the objective of considering how the findings contribute to integrated transport and land use policy development and implementation.
1.2.3 The above structure informed the development of the research method, which is discussed in more detail in Section 2.
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