Land Value Capture Calculator
The uplift in land value that a rezoning or a new station creates, and how much of it a value-capture mechanism returns to the public — the arithmetic behind infrastructure contributions and betterment levies.
Rezoning land from one use to a more valuable one creates uplift: the difference between the land's value under the new rules and the old.
How the land value capture calculator works
Rezoning land from one use to a more valuable one creates uplift: the difference between the land's value under the new rules and the old. That uplift accrues to the owner unless a mechanism captures some of it.
Capture rates in practice run from 20 to 50%. The remainder is the owner's incentive to actually develop, which is why capturing all of it stops development dead.
Formula: uplift = (new value − old value) × area; captured = uplift × capture rate
Worked examples
| Inputs | Total uplift | Note |
|---|---|---|
| 8 ha rezoned | 34,400,000 | 34.4 million uplift, 13.8 captured |
| A lower capture | 34,400,000 | does not cover the infrastructure |
| A station effect | 16,000,000 | a smaller relative uplift |
FAQFrequently asked questions
What is land value capture?
Returning to the public some of the land value that a public decision — a rezoning, a station, a road — created. The owner did nothing to earn the uplift.
What capture rate is used?
Twenty to fifty per cent in the schemes that exist. Higher rates stall development because the owner keeps too little to bother.
How is the uplift measured?
By valuing the land before and after the change. In practice it is contested, which is why some schemes use a flat levy per dwelling instead.
Who pays in the end?
Partly the owner, partly the buyers of the new homes, depending on the market. The economics say mostly the owner, because land supply is fixed.
Why not capture all of it?
Because the uncaptured share is the incentive to develop. Capture it all and the land stays as it was, which helps nobody.
Where these figures come from
- UN-Habitat — Urban Indicators Guidelines — density, green space and public space benchmarks
- World Health Organization — Urban green spaces — the 9 m² per person minimum
- ITE — Parking Generation Manual — parking demand rates by land use
- Office for National Statistics — Population estimates — the UK's national statistics agency
Last checked: September 2026. Default per-capita rates are mid-range figures from national statistical agencies and utility reports; every one is an input you should replace with the local figure.