Subscribe to our Construction Newsfeed
Scotland Construction Directory
Search our 13,917 companies....

Construction News

23/05/2018

Use Land Value Increases To Deliver New Housing - Report

A new report has highlighted effective methods of using publicly created increases in land value to help deliver new housing and development in Scotland.

The study, written for the Scottish Land Commission by a team from Heriot-Watt University, states past attempts at introducing land value capture have failed largely due to the absence of political consensus.

In addition, the report says schemes need to be well resourced and seen to be fair, to command public consent.

The report states; "Past attempts at land value capture have failed largely due to the absence of political consensus to support them. The lesson is that political consensus, based on an understanding of the principles underpinning land value capture, should be established before any major initiative is taken. Connected to this, schemes should be seen to be fair in order to command public consent.

"Under-resourced schemes have failed or have failed to be as effective as they might have been. It is important for there to be adequate numbers of staff with the right skills to make any system of land value capture to work. This might imply national level support for planning authorities or service sharing, particularly between smaller authorities."

-- Advertisement --
NorthernAsbestosServicesLtd

In addition, the value of land capture "varies greatly between different areas, according to land values".

"This risks leaving authorities with low value land less able to meet infrastructure needs," the report states.

"There is therefore a case for benefits to be distributed between authorities, perhaps through the adjustment of central government grant."

Overall, the value of land is heavily dependent on the use to which it can be put and the amenities and infrastructure in the surrounding area. Well-connected land with planning permission and located close to public amenities is typically valued much higher than land without such advantages and typically arises because of the public sector granting planning permission or investing in infrastructure.

Speaking about the report, Land Commission Chief Executive Hamish Trench said ever since development rights were nationalised in 1947, a debate about how to capture for public benefit, the uplift in land value associated with planning permission and public investment in infrastructure has 'waxed and waned'.

"The shortage of affordable housing currently afflicting many parts of the UK means that this debate is well and truly back in the ascendant – but in looking for solutions, it is important that we learn from the past," he said.

"Our purpose in looking at land value capture is to help deliver well-planned sustainable communities in places people want to live and at prices they can afford to pay – something everyone can get behind. Really this is about reinvesting some of the land value in unlocking development."

Continuing, Mr Trench said one solution could be in changes to the rules of compulsory purchase and compensation, yet work so far "suggests that effective solutions will need to look beyond this".

"Changes will need to be designed to support the delivery of wider place-making objectives and be combined with a more proactive role for public authorities," he said.

The Commission's next steps will be to work with partners in the sector to explore different models of using publicly created uplifts in land value to finance investment in enabling infrastructure and to investigate further the questions of market and existing use value.

To view the report, visit here.

(LM/MH)

Latest Construction News

04/09/2026
Morgan Sindall Construction has been appointed by the Scottish Fire and Rescue Service (SFRS) to demolish and rebuild the Liberton station in the capital. Procured via the SCAPE Scotland Construction Framework, the £10m scheme marks a significant investment in SFRS infrastructure and will create a
Read More
03/09/2026
Network Rail says it has hit a key milestone in efforts to strengthen Scotland's railway against severe weather, with £130m invested in resilience over the last two years. The move comes amid tougher operating conditions, including higher temperatures, increasingly unpredictable rainfall and more f
Read More
04/09/2026
ESB has reached Final Investment Decision (FID) and executed the principal construction agreements for the 96MW Chleansaid Wind Farm, near Lairg in the Scottish Highlands. The move signals the start of delivery for one of the utility's most strategic renewable projects and its first ESB-developed on
Read More
04/09/2026
Glasgow City Region has welcomed confirmation of £22.7 million in first-year funding from the UK Government's Local Growth Fund, aimed at accelerating business growth, improving skills and employability, and creating new commercial space across the area. The award represents the opening phase of a
Read More
04/09/2026
A major planned maintenance scheme has begun across East Renfrewshire, with 190 council homes set to receive new kitchens in the first year of works. The initiative is part of East Renfrewshire Council's longer-term investment in its housing stock. Approximately 300 kitchens are due to be replaced
Read More
04/09/2026
A £9.8m Local Growth Fund programme for the Forth Valley has moved into delivery after the UK Government approved the region's Investment Plan, paving the way for projects to boost businesses, skills, housing and infrastructure across Falkirk, Stirling and Clackmannanshire. Following approval of th
Read More
04/09/2026
Approval of a new Local Growth Fund Investment Plan will deliver £11.8 million to Ayrshire between 2026 and 2029, targeting higher household incomes and stronger local economies through infrastructure, business support and skills. The funding reflects the collective ambition of the Ayrshire Regiona
Read More
04/09/2026
SNIPEF's State of Trade Survey for the first quarter of 2026 points to steady activity tempered by growing caution. Work volumes have held up, payment performance is broadly consistent and product availability remains manageable. However, order books are more finely balanced, margins are under press
Read More
04/09/2026
Farrans has been appointed by ESB to deliver the Civil Balance of Plant (CBoP) for the 96MW Chleansaid Wind Farm near Lairg in the Scottish Highlands. The contract signals the start of delivery on one of ESB's most strategically important renewable schemes and marks its first onshore wind project i
Read More
03/09/2026
Sky has secured planning permission for its new Livingston Campus, unlocking a major investment and underscoring the company's long-term commitment to Scotland. The decision marks a key step towards delivering a significant new workplace development in West Lothian. The approved plans will bring Sk
Read More
SEEIT3DIredia ResourcesGalaxy Window BlindsAlternative Tying Systems LtdSips Eco Panel Systems LtdApollo Scaffolding Ties LtdHBB GeoSales LtdFP McCann LtdContainexSEEIT3D