Capturing Value – Briefing

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 £1.3tn. This means almost twice the current expenditure 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.

It’s no secret that London’s land and property values are climbing, and this is particularly true alongside the arrival of infrastructure. For example, GVA estimated that Crossrail could help create up to £5.5bn in additional residential and commercial value between 2012-21. These uplifts are felt directly by property owners, but not necessarily by infrastructure delivery agencies or other parts of the public sector.

The London Infrastructure Plan 2050’s web of mechanisms to close the funding gap. Source.


We have now published our third briefing paper on the London Infrastructure Plan 2050: Capturing Value. This paper is about harnessing property value uplift to fund London’s infrastructure needs. It places the public sector at the centre of this discussion, considering how actors are already using existing powers and strategies – and what other mechanisms might offer.

To focus the topic, this briefing paper and related roundtable have been framed by these big questions:

  • Should the public sector be bolder in employing value capture mechanisms – and are more city-level powers critical to this?
  • How should public-sector organisations use their own property assets to realise value uplift?
  • What can the Capital learn from other global cities on how value uplift is realised to infrastructure’s benefit?

The briefing summarises and builds on Future of London’s senior roundtable on capturing value, which was attended by senior practitioners from across London. In addition to this anonymised summary of key points from the roundtable discussion, it also includes submitted contributions from practitioners engaged with the topic: Neil Keogh (Arup), Adrian Lee (London & Continental Railways), Toby Lloyd (Shelter) and Joanna Rowelle (Arup).

Future of London’s work in the London 2050 series also includes the following:

All of the above events are sponsored by Arup. Production and printing of all briefing papers in the London 2050 series is sponsored by Regeneris, and AECOM hosted the September roundtable.