Th use of bonded financial mechanisms such as Tax Increment Financing (TIF) can lever renewal within a wider policy framework. In an era of low economic growth, straitened finance, and an increasing emphasis on the ‘local’, bonded finance over the long term could effectively smooth property market volatility that occurs over shorter economic cycles. Despite this, TIF bonds should in the first instance be reserved for projects where the market is failing – not just providing benefit for those places that would have experienced a land value rise without an intervention. As such, if land value capture bonds such as TIF are used, they can be a powerful mechanism as long as a prudential approach is taken to mitigate any added risk placed on stakeholders.

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