According to the Transport Times blog, an Edinburgh-based company has been developing a means of capitalising on the increase in land value near infrastructure projects and using it as a funding source. They are working with Northumberland County Council to obtain between 25 and 30% of the capital funding for the reopened Blyth & Tyne line from land value capture. While initial funding for the line will come from the public sector, the contribution from landowners - which will be a share of the uplift in land values along the route created by the line reopening – will come back to the council, reducing the long-term burden on the taxpayer.
If you live in a large city, local transport improvements are likely to boost the value of your home. London is the most extreme example but the trend is evident in other large cities. Glasgow has the largest network of suburban rail lines outside of London, and properties 500m from a station attract a 6 per cent premium compared to those further away. In Manchester, this drops to 4.6 per cent, from research by Nationwide Building Society. I wonder what impact the railway will have on land values in Ashington and Blyth.
This idea has been around for some years. Dave Wetzel at the erstwhile GLC was keen on it as part of his campaign for a Land Value Tax. I've dug out some correspondence which I had with transport consultant Reg Harman back in 2006. I think the original context was the Jubilee Line extension to Docklands in 1999. I'm surprised it's taken so long for this to emerge as a potential funding stream for transport.
Any comments from those who know more about this?
If you live in a large city, local transport improvements are likely to boost the value of your home. London is the most extreme example but the trend is evident in other large cities. Glasgow has the largest network of suburban rail lines outside of London, and properties 500m from a station attract a 6 per cent premium compared to those further away. In Manchester, this drops to 4.6 per cent, from research by Nationwide Building Society. I wonder what impact the railway will have on land values in Ashington and Blyth.
This idea has been around for some years. Dave Wetzel at the erstwhile GLC was keen on it as part of his campaign for a Land Value Tax. I've dug out some correspondence which I had with transport consultant Reg Harman back in 2006. I think the original context was the Jubilee Line extension to Docklands in 1999. I'm surprised it's taken so long for this to emerge as a potential funding stream for transport.
Any comments from those who know more about this?