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How much undeveloped land is owned by builders?
Comments
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Simple solution, the tax is payable for say 10 years once PP is granted.
So either
1. The land is developed.
2. The land is sold to someone who is in a position to develop.
3. The treasury gets a nice little earner for doing nothing.
Cannot see the downside except a few land speculators may catch a cold.
Whatever happens it will only end up being paid by the buyer as the cost will be passed on."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Whatever happens it will only end up being paid by the buyer as the cost will be passed on.
Not if the land is sold to someone who is ready to develop straight away.
It may reduce the land value, which would bring a saving to buyers.0 -
Not if the land is sold to someone who is ready to develop straight away.
It may reduce the land value, which would bring a saving to buyers.
The word additional tax is the give away. I have not seen taxation reduce cost, may make you make alternative choices. It may also make you actively look for alternative sources/procurement process to avoid.
What is there to stop land with, PP, having new plans submitted, on the basis the previous plans were not viable, in the full knowledge that they would be turned down.
How would delays in the ongoing planning approval process be catered for?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
having a landbank is a bit of an oddity. most of the PLC builders will have land that they have options on which will be included in the land bank. notwithstanding this a lot of the land that they have in their control will not actually deliver any new houses for up to 20 years in some cases. so whilst the housebuilders are accused of just sitting on these plots, they are actually constrained by the planning system in being able to bring them forward for development.0
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grizzly1911 wrote: »The word additional tax is the give away. I have not seen taxation reduce cost, may make you make alternative choices. It may also make you actively look for alternative sources/procurement process to avoid.
What is there to stop land with, PP, having new plans submitted, on the basis the previous plans were not viable, in the full knowledge that they would be turned down.
How would delays in the ongoing planning approval process be catered for?
Again, once PP is granted a tax would be payable for a minimum term of say 10 years or until the land is developed.
If just sitting on the land becomes a major cost, it will get developed one way or another.0 -
Again, once PP is granted a tax would be payable for a minimum term of say 10 years or until the land is developed.
If just sitting on the land becomes a major cost, it will get developed one way or another.
So then no further planning permission will be applied for until the existing land bank is sold off, and future development will be on a plan then build right away basis. Leading to a supply crunch when things inevitably go wrong..
And as there is no funding to build on the existing land bank, current PP will be modified to much, much lower density, so massively fewer but more expensive houses will get built than would have otherwise.
And failing all of that, land will get transferred to separate ltd co's and then put into administration to dump the tax liability. Before being bought again eventually when they are ready to build on them.
No matter how hard you try, you will not be able to force builders to build when buyers have no access to mortgage funding to buy.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »No matter how hard you try, you will not be able to force builders to build when buyers have no access to mortgage funding to buy.
very true. housebuilders hate nothing more than completed houses that they cant sell.0 -
HAMISH_MCTAVISH wrote: »So then no further planning permission will be applied for until the existing land bank is sold off, and future development will be on a plan then build right away basis. Leading to a supply crunch when things inevitably go wrong..
And as there is no funding to build on the existing land bank, current PP will be modified to much, much lower density, so massively fewer but more expensive houses will get built than would have otherwise.
And failing all of that, land will get transferred to separate ltd co's and then put into administration to dump the tax liability. Before being bought again eventually when they are ready to build on them.
No matter how hard you try, you will not be able to force builders to build when buyers have no access to mortgage funding to buy.
True, but you can force (encourage) to sell the land. If the price is low enough someone will be able to make a profit building on it.0 -
HAMISH_MCTAVISH wrote: »No what you'd expect is for the land to revert to agricultural use.
Because there is no funding to build the houses.
And the owners will seek to avoid paying tax on something that cannot be used.
So then house building will reduce further.
the valuation of the land will not be determined by the owner, no more than your council tax band is determined by you.
the idea is that once the area is zoned for housing or industrial use or whatever then the land value tax will become payable; thus encouraging development as it will start costing a lot just to hold and do nothing with.0 -
the idea is that once the area is zoned for housing or industrial use or whatever then the land value tax will become payable; thus encouraging development as it will start costing a lot just to hold and do nothing with.
Effectively "compulsory purchase" by the back door?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
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