The recession has brought an end to the long property investment boom that has helped revitalise many city centres and run down urban areas in the UK over the past decade.
The boom was fuelled by cheap credit, a bubble in the property market and large increases in public spending. Property development and regeneration over the next ten years is expected to be very different, and cities will need to step up and play a bigger role in regeneration. In order to do this, greater devolution of decision making and financial powers will be needed so that cities have the flexibility to raise, pool, and decide how to spend resources locally.
This APUDG report highlights the need for cities to have additional financial tools and revenue raising options, and argues that accelerated development zones (ADZs) – a UK variant on tax increment financing (TIF), which funds infrastructure from future increases in tax revenue caused by new development – should be introduced as a key step towards achieving
Based on the oral and written evidence submitted to the group’s inquiry, this report recommends that: