The introduction of urban land readjustment legislation as an institutional innovation in Dutch land policy

Cities in the Netherlands have long relied on active land policy for urban development. More recently, municipalities have started to explore new types of land policies, as they became aware of the financial risks of this policy. As an alternative to their active involvement in land development, new legislation for urban land readjustment (ULR) has been proposed. This policy supports a land assembly strategy, in which the owners swap land positions, and share (infrastructure) development costs and gains. This paper explores the motivations in the Netherlands for introducing this new land policy tool. Additionally, based on two case studies, we discuss how public and private stakeholders might respond to the introduction of ULR. We conclude that it is unlikely that the introduction of ULR legislation itself will bring forward a paradigm shift in Dutch land policy. Nevertheless, the ULR legislation may add to a redistribution of land development-related risks between the public and the private sector.