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Land Value and the Undersupply of Affordable Housing Duncan Bowie, University of Westminster Housing Studies Association York 1 5-17 April 2014. Components of presentation. Historical overview – theories of land Land and planning in 1909 and since - a century of reform - PowerPoint PPT Presentation
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Land Value and the Undersupply of Affordable Housing
Duncan Bowie, University of Westminster
Housing Studies AssociationYork 15-17 April 2014
Components of presentation
– Historical overview – theories of land
– Land and planning in 1909 and since - a century of reform
– Land costs and affordable housing : London case study
– Options for reform
Concepts of land
– Natural rights theory:
– Gerard Winstanley: Digger manifesto (1649)– Thomas Spence: Real Rights of Man (1775)– William Ogilvie:
Essay on Property in Land (1782)– Thomas Paine: Agrarian Justice (1796)– Patrick Dove: Elements of Political Science
(1850)
The Chartists and land
– Feargus O’Connor : The Chartist Land Plan and peasant proprietorship
– Bronterre O’Brien and land nationalisation
– The Land and Labour League, the First International . Marx and Martin James Boon
Mid/late Victorian radicals and land
– James Stuart Mill and the Land Tenure Reform Association
– Abolishing primogeniture ; Limiting inheritance; Free transfer of land
– Alfred Russell Wallace and the Land Nationalisation Society
– Henry George and the Single Tax
Pre WW1 Legislation and land
– 1909 Housing and Planning Act. Tax on undeveloped land ; tax on development value – 50% on increase arising from town planning
– 1910 Budget (Lloyd George) 20% tax on capital gains on disposal of land
– 1920 Land taxes repealed. Repayment to landowners.
The collectivisation of land value
– The radical attack on the ‘unearned increment’
– Royal Commission on Housing of the Working Classes (1885) supported taxation of development land
– Betterment and civic enterprise
– The role of the London County Council
– The Association of Municipal Corporations
– The National Housing Reform Council
– The Workman’s National Housing Committee
– Ebenezer Howard, the Garden City movement and the trustification of land value appreciation
Post WW2
– 1944 Uthwatt report on betterment
– 1947 Town and Country Planning ActNationalisation of development rights.
– 100% development charge on development land payable to Central Land BoardCompensation payable to landlords who were refused right to develop land
– 1952 Repealed by Conservative government
The 1960’s
– 1967 Land Commission Act Establishment of land commission with power to acquire, manage and sell land
– 40% levy on land disposalsBetterment levy -40% on land sold, leased or realised by development. Collected by commission and paid to central government.
– 1970 Repealed by Conservative Government
The 1970’s
– 1975 Community Land Act. LA had power to acquire development land at current use value.
– 1976 Development Land Tax Act. 80% tax on development gains (66.6% tax on first £150,000).(50% to LA; 30% to central govt; 20% to LA pool)
– 1980 Repealed by Local Government, Planning and Land Act
1990 and Beyond
– 1990 Town and Country Planning Act s106 Provisions for Local Planning authorities to seek contributions to community benefit related to a planning consent – planning gain/planning obligations Not a tax
2011 Localism Act. Power for Local Planning Authorities and Mayor of London to introduce Community Infrastructure Levy – a tax on new development
Land costs per hectare- 1983-2010 England (excluding London)
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Land costs per hectare 1983-2010 London
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London house prices since 1996
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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20102011
Mean Quarterly London House prices since 1996
Mean Quarterly Houseprices 1996 Q1 to 2013 Q3 – City of Westminster
Westminster
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200,000
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1,000,000
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1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65
Westminster
Land costs before the recession £m per hectare in 2007/8
0.0
50.0
100.0
150.0
200.0
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£m p
er h
ecta
re
Barking & Dagenham
Barnet
Bexley
Brent
Bromley
Camden
City
Croydon
Ealing
Enfield
Greenwich
Hackney
Ham& Fulham
Haringey
Harrow
Havering
Hillingdon
Hounslow
Islington
Ken& Chelsea
Kingston
Lambeth
Lewisham
Merton
Newham
Redbridge
Richmond
Southwark
Sutton
Tower Hamlets
Waltham Forest
Wandsworth
Westminster
Land costs in London before the recession: £m per hectare in 2007/8
Land and Industrial Site Values: Outer London and South East (VOA Jan 2011)
0
1
2
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6Residential £m per hectare
Industrial land £m per hectare
Suppressing land costs
– Getting public land into development programme at discounted value
– LA power to CPO sites at existing use value (EUV)– unallocated sites
– Limiting uplift in relation to EUV for consented sites ( maximum uplift of 20% ?)