Planning Gain: Providing Infrastructure and Affordable Housing

329 Pages·2016·2.04 MB·English

by  Tony Crook

Planning Gain
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Planning Gain
Providing Infrastructure and Affordable
Housing
Edited by
Tony Crook
EmeritusProfessorofTownandRegionalPlanning
TheUniversityofSheffield
John Henneberry
ProfessorofPropertyDevelopmentStudies
TheUniversityofSheffield
Christine Whitehead
EmeritusProfessorofHousingEconomics
TheLondonSchoolofEconomics
Thiseditionfirstpublished2016
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Planninggain:providinginfrastructure&affordablehousing/TonyCrook,JohnHenneberry,
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ISBN978-1-118-21981-2(cloth)
1.Realestatedevelopment–GreatBritain.2.Housingdevelopment–GreatBritain.3.Land
use–GreatBritain–Planning.4.Cityplanning–GreatBritain.I.Henneberry,John,editor.II.
Whitehead,Christine,editor.III.Title.
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Table of Contents
Acknowledgements xiii
ForewordbyDameKateBarker xv
Preface xvii
NotesonContributors xxi
1 Introduction 1
TonyCrook,JohnHenneberryandChristineWhitehead
Purposeofthebook 1
Thedevelopmentprocessandthecreationofdevelopment
value 2
Thetaxationofdevelopmentvalue 4
Factorsaffectingeffectivedevelopmentvaluecapture 6
Propertyrightsandownership 7
Theneedforfinance 8
Theownershipofdevelopmentrights 9
Taxingvalueorraisingcharges 9
Rulesversusdiscretion? 9
Fixedtaxes,tariffsandnegotiatedcontributions 10
Hypothecationandcontract 11
Keyfactorsbehindthedevelopmentofplanninggainpolicy
inEngland 11
Politicaleconomy 12
Theplanningsystem 12
Central–localrelations:Localdiscretion,innovationand
adoption 14
Definitions 15
Thestructureofthebook 16
2 TheEconomicsofDevelopmentValueandPlanningGain 20
ChristineWhitehead
Introduction 20
Whyislandanditsvaluespecial? 21
Thepotentialtotaxincreasinglandvalueswithoutgenerating
inefficiency 22
Theimpactofplanningondevelopmentvalues – thecreationof
planninggain 25
Howarethesevaluesachieved? 25
Planningaffectslandsupply 26
Planningaffectsdemand 27
viii TableofContents
Planningaffectsdensityofconstructionanduse 28
Planningaffectspricesandquantities 29
Bringingtogetherthepossibilities 29
Instrumentsavailabletocaptureplanninggain 32
Overview 34
3 CapturingDevelopmentValueThroughdejureNational
Taxation:TheEnglishExperience 37
TonyCrook
Introduction 37
Bettermentanddevelopmentvaluedefined 39
Compensationandbetterment:theUthwattprinciples 43
Taxingdevelopmentvalue:post-warnationalschemes 46
1947:Thedevelopmentchargeandthecentrallandtribunal 48
1967:Bettermentlevyandlandcommission 51
1974,1975and1976:DevelopmentGainsTax,the
CommunityLandSchemeandDevelopmentLandTax 54
Lessonslearned 59
4 PlanningObligationsPolicyinEngland:defactoTaxationof
DevelopmentValue 63
TonyCrook
Introduction 63
Planningobligations:thekeyprinciples 65
Usingplanningobligationstosecurelandandfundingfor
affordablehousing 74
Theoverallframework 74
Detailedrequirements 79
Recentpolicyinitiatives 83
Tariffs 85
Optionalplanningcharge 86
Planninggainsupplement 88
Communityinfrastructurelevy 93
ChangestoCILandnewLPAincentives 97
ViabilityandS106 99
CILpolicy:concludingcomments 100
Conclusions 101
5 DevelopmentViability 115
JohnHenneberry
Introduction 115
Developmentviability 117
Thresholdlandvalue 120