Designed partly to supplement the Mayor’s draft Infrastructure Investment Plan, Future of London’s multi-part London 2050 programme looks at the spatial and practical aspects of accommodating growth. It started with an internal FoL Steering Group presentation, and expanded to a June 2014 session at City Hall: London 2050 – Grow up or grow out?.
This senior roundtable is the fourth in a series of follow-up events and briefings that will look in depth at delivery and governance issues.
Everything in the London Infrastructure Plan 2050 comes back to investment. Upgrading and building the systems required to accommodate London’s growth to 2050 could cost up to £1.3 trillion [Arup PDF]. This means almost twice the current expenditure level by 2025, a gap which cannot be covered by the public sector. New mechanisms are needed – and the property market offers some avenues for exploration.
Conventional property taxes are part of the funding solution, but there’s also a role for more innovative value-capture methods. The most obvious example is the uplift in property values tied to the arrival of transport infrastructure; for example, GVA estimated that Crossrail could help create up to £5.5bn in additional residential and commercial value along its route between 2012-2021.
These uplifts are felt directly by property owners, but not necessarily by infrastructure delivery agencies. Value capture mechanisms could help share this benefit, where:
“…the agency responsible for the development of [the] infrastructure captures part of the financial benefits gained by land developers or the community at large. This benefit is reflected in an increase in the real property values, which can be regarded as a comprehensive index of all the benefits generated by the development, including improved accessibility and an increase in business opportunities.” (Source.)
What would it take to initiate such a system – and soon? What other options could be explored, in London and beyond?
Kindly hosted by Arup, this senior roundtable – and a follow-up briefing available on our website – is about harnessing property value uplift to fund London’s infrastructure needs. With an emphasis on public-sector interventions, it focuses on how actors are using existing powers and strategies – and what other mechanisms might offer.
Date: Wednesday, 10th December 2014
Venue: Arup, 8 Fitzroy St, London W1T 4BQ (map)
This event is by invitation only. For more information about this roundtable or other work in this series, please get in touch with Jennifer Johnson.
Work on the London 2050 programme also includes:
- Working Beyond Boundaries – senior roundtable and follow-up briefing, 26th September 2014. Kindly hosted by AECOM.
- Delivering Infill Development – senior roundtable and follow-up briefing, 30th October 2014. Kindly hosted by Arup.
- Surface Tension: Underground London’s impact on the world above – Afternoon event at the Bishopsgate Institute, 26th November 2014.