6.23 The value of land is determined by factors such as use, location, nearby infrastructure and the cost of development for an alternative use. The potential net benefits of new land used can be assessed using values arising from a change. The change in value is defined as the value of the land in its new use (e.g. commercial or residential) minus the value of the land in its existing use.
6.24 Any increase in land value as a result of a change in its use reflects the economic benefits of conversion to a more productive use. The value to society of a development can therefore be derived from the land value. This estimate should be adjusted for any change likely without the development, displacement from the original land use and wider effects of the resulting development, e.g. any change in amenity value, environmental or health outcomes. Any double counting should be adjusted for. See Annex 2 for more detail.