Understanding the geography of affordable housing provided through land value capture: Evidence from England

Alexander Lord, Chi-Wan Cheang and Richard Dunning
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Alexander Lord: University of Liverpool, UK
Chi-Wan Cheang: University of Liverpool, UK
Richard Dunning: University of Liverpool, UK

Urban Studies, 2022, vol. 59, issue 6, 1219-1237

Abstract: Governments the world over routinely undertake Land Value Capture (LVC) to recover some (or all) of the uplift in land values arising from the right to develop in order to fund infrastructure and public goods. Instruments to exact LVC are diverse but are usually implemented independently. However, since 2011 England has been experimenting with a dual approach to LVC, applying both a tariff-style levy to fund local infrastructure (the Community Infrastructure Levy) and negotiated obligations, used primarily to fund affordable housing (Section 106 agreements). In this article we employ a difference-in-differences (DID) method to identify the interaction of these two instruments available to local planning authorities. We explore the question of whether the Community Infrastructure Levy ‘crowds out’ affordable housing secured through Section 106 planning agreements. In so doing we show that the interaction of these two approaches is heterogeneous across local authorities of different types. This raises questions for understanding the economic geography of development activity and the theory and practice of Land Value Capture.

Keywords: built environment; development; economic processes; housing; land use; 建筑环境; å ‘å±•; ç» æµŽè¿‡ç¨‹; ä½ æˆ¿; 土地使用 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:59:y:2022:i:6:p:1219-1237

DOI: 10.1177/0042098021998893

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