“Landowners to be forced to sacrifice profits for more affordable houses, under plans expected to be unveiled in budget”

Owl says: Oh, the poor, poor darlings! We must set up a charity or a crowdfunding page for them. We could make the aim of the charity “To unite Tory developer donors to pressurise government to create other ways of making obscene profits”.

“Councils would be able to strip landowners of large portions of profits from the sale of their land, under proposals expected to be unveiled in the Budget, The Sunday Telegraph can disclose.

An official review commissioned by Philip Hammond, the Chancellor, is to endorse controversial calls for the state to “capture” more of the increase in value of sites when they are granted planning permission.

Sir Oliver Letwin, the former minister carrying out the review, is expected to recommend that local authorities should be able to seize greater amounts of landowners’ profits in order to fund the construction of local infrastructure such as roads and affordable homes. …”

https://www.telegraph.co.uk/news/2018/10/20/landowners-forced-sacrifice-profits-affordable-houses-plans/

One thought on ““Landowners to be forced to sacrifice profits for more affordable houses, under plans expected to be unveiled in budget”

  1. More Tory propaganda – the people making the obscene profits are the Developers, not the landowners. Is is the executives of the big Developers that we read about getting £75m annual bonuses.

    But landowners are not Tory Donors whilst Developers are donors – hence the focus on taxing the landowners rather than the Developers.

    And as usual, they are using the wrong weapon for this.

    House and land prices are high because the big developers have the vast majority of developable land locked away in their land banks, creating a scarcity which keeps prices high. What is needed is to unlock those land banks by making it economically better to build on them than to land-bank them i.e. an annual tax rather than bigger one-off taxes.

    If you look back at history, you can see that in a polyopoly, where a few big companies have cornered the market, additional one-off taxes on e.g. gaining planning permission will be treated as costs that simply push house prices up further and make things worse rather than improving the situation.

    Like

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