Social scientists, Professors Richard Dunning and Alexander Lord, at the University of Liverpool have developed a pioneering approach to planning and real estate economics, resulting in reforms to legislation of developer contributions and stimulating regeneration in some of Liverpool’s most deprived communities. Using behavioural economics and game theory, they explored the relationships in the real estate development process and how developer contributions in public goods (e.g. affordable house, transport and schools) can be supported.
Their research showed that national planning policy related to developer contributions can result in spatially unequal outcomes, with growing markets stimulating demand for new real estate and infrastructure and further stimulating the market, whilst in areas with lower demand the opposite is true, resulting in geographic variation between areas in terms of developer contributions.
As a result, the findings from the research went on to influence reforms to legislation, policy and practice on developer contributions, with further work showing that developer contributions were more evenly distributed across England following the change in policy.
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