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Debate House Prices
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It’s official: House building activity in strong recovery
Comments
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HAMISH_MCTAVISH wrote: »Given the dire availability of mortgages since, hardly surprising that few houses have been built.
If these plots had been taxable, they would either had built or sold to someone that would.0 -
There are smaller plots near me (London/Kent borders) which have been sat on now for about six years by speculators waiting for the prices to rise. Outline planning granted in 2007.
Maybe they don't have the finance to fund development.
Commercial property lending is the root cause of the Co-Op's current problems.0 -
There are smaller plots near me (London/Kent borders) which have been sat on now for about six years by speculators waiting for the prices to rise. Outline planning granted in 2007.
You call them speculators but aren't people who buy assets hoping they'll increase in value more normally called investors? Isn't this an attempt to over moralise?
If the average is 3.5 years then there will be a range of holdings - some shorter; some longer.0 -
I'm not an accountant but if you tax land in the way you describe then you have 2 things: an asset (the land) and a liability (the cost of holding the land).
I would imagine that in the short term, holders of land with planning permission would look to build on it quicker in order to reduce the liability. But then what?
Land banking has become expensive so builders look to buy land to build on quickly. That is hard to do given the UK's planning laws. Builders would either have to charge more in order to continue the current business model of having a few years of land in stock or go bust if they can't charge more.
Reduced supply as a result would likely push up prices.
Happy to see a different interpretation though.
There have been peverse incentives in the tax system for years to sit on land / buildings / empty properties and let inflation / house booms let you enjoy windfall profits.
Land & Property should be taxed more and employment taxed less - you know it makes sense.
The fact that empty homes (and holiday homes) now get full council tax charged is surely an economic good.
You could however only tax land banks if planning was made significantly easier.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
Thrugelmir wrote: »Maybe they don't have the finance to fund development.
Commercial property lending is the root cause of the Co-Op's current problems.
and this in a nutshell is whats wrong.
Zombie developers, zombie banks, waiting and hoping for time and inflation to get them out of a hole. It would be better for the wider economy for liquidation and allow someone else to build on the plots.US housing: it's not a bubble - Moneyweek Dec 12, 20050 -
And once we've built this million? All will happen is even more immigrants will be attracted to the resource. Then what, build another million, why not 10m, why not plaster roads everywhere and revel in congestion and noise, hoorah!
Stick 'em in sodding Aberdeen. Plenty of room up there!0 -
There are property developments all over the place round my way. People say they never remember as many properties being built in such numbers all at the same time. From what I hear its nation wide.
Will there really be enough people coming to our shores to move into all these new homes? More importantly will they be able to afford them?0 -
If these plots had been taxable, they would either had built or sold to someone that would.
Nobody will build if there are no buyers.
Cheaper to revert the land to agricultural use.“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: »Nobody will build if there are no buyers.
Cheaper to revert the land to agricultural use.
Why wouldn't anyone buy them as long as they were priced appropriately.
And don't use the mortgage rationing argument Hamish as it's wearing thin.0 -
HAMISH_MCTAVISH wrote: »Nobody will build if there are no buyers.
Cheaper to revert the land to agricultural use.
Building houses to sell to people who are going to buy them is so last decade.
The modern way is to take millions of pounds of taxpayers money to build homes to house people who don't have any money.
REJOICE0
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