Successful large-scale residential developments also need a mix of local amenities, shops, workplaces, schools, public spaces and different housing types. This mix builds a stronger, more resilient community with economic vitality of its own.

The social arguments for creating sustainable communities for existing and future residents are strong and have been well documented elsewhere. In this report, we build a financial case for investing in place, addressing some of the challenges developers face and suggesting how these barriers can be overcome.

Our analysis shows placemaking can pay off financially as well as socially. By building a simplified land value model for a theoretical urban extension site of 3,000 homes, we have demonstrated a scenario where additional early investment raises land values by 25%.

While the potential needs an assessment on a case by case basis, this uplift benefits the various parties involved in placemaking which in turn, enables the delivery of new neighbourhoods that communities really want. Harnessing these gains to meet Government’s and Local Planning Authorities’ aspiration for higher quality places, requires a long term vision and a partnership approach.

Investing more, early on increases development risk and can act as a barrier to successful placemaking. The solution comes in the form of patient capital and/or JVs with landowners willing to draw land receipts later in the development process. Landowners, public bodies, pension funds, equity investors, house builders and master developers all have a part to play.

Another important component is public sector finance. This can take the form of forward funding by the local authority to ensure the early delivery of a school, for example, or Government loans such as the £3bn Home Building Fund by the Homes and Communities Agency (HCA). Support by streamlining the planning process and flexibility on the timings of delivery of section 106 obligations also help to reach a common goal of creating great places.

With so much market variation, site types and developer models, there can be no single formula for placemaking. However, our case studies provide lessons on the effect of investing early and the range of uses normally expected in successful places, such as schools, public realm, shops, services and employment uses.

^{▲ As part of a community engagement programme at Alconbury Weald, Urban & Civic held a big event in 2011. The Design and Discovery Day hosted 2,500 people who came along to see nearly 100m of display boards and give their views. A Ferris Wheel allowed them to enjoy the 575 hectare brownfield site from a different angle.}