Major land reform urged to fix UK housing crisis apply for housing benefit

Prince charles, the heir to the british monarch and a large landowner in his own right, was able to start his development at poundbury by investing heavily upfront in infrastructure such as transport links and community buildings.

The early spending meant the poundbury land was worth £1m per hectare more than that in comparable areas, according to a report by the prince’s foundation, while estate agency savills found that house prices in the village were 29 per cent higher than elsewhere. This in turn meant sales of land parcels and homes in the dorset village could help pay for higher levels of affordable housing in the later phases of construction at the 160 hectare site.

Councils do harness a small amount of land value capture via so-called section 106 deals, in which developers fund affordable homes in exchange for planning permission, but these tend to fall far short of local needs.How can i apply for housing benefit

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The broader proposals by shelter and others for councils to take full advantage of land value capture have caught the attention of politicians, in an indication of how policymakers are searching for far-reaching solutions to the crisis.

The conservative party said in the run-up to the june general election that it wanted to look to land value capture as a way to finance large-scale housebuilding while limiting the burden on the public purse. Labour said it would explore the related idea of a land value tax.

Thomas aubrey, director at the centre for progressive capitalism, says the changes to the land compensation act would bring the UK land market more into line with european countries such as germany and the netherlands. “there is no benefit to holding on to land there,” he adds.

Sam bowman, executive director of the adam smith institute, argues that such fundamental change is badly needed.How can i apply for housing benefit “I’d like to think it would bring about sweeping changes to land pricing,” he says. “the whole objective would be to reduce the price of developable land.”

Ms grayston says a less ambitious reform could involve exceptions being made to the land compensation act for specific sites, so new towns could be built using land value capture, as letchworth and welwyn garden city were before the legislation was passed.

There are other sweeping changes that would create the potential for more housing development, but each comes with a significant downside. Opening up greenbelt land for housing would entail a loss of countryside and is viewed as politically difficult. Increased direct investment by the government in housebuilding is current labour policy, but would involve a big rise in public borrowing.

However, momentum is building around the idea that a long-term fix to the housing crisis should involve far-reaching changes to the UK’s land market. “right now we are seeing a failed market . . . An inefficient land market filled with perverse incentives,” says mr aubrey.How can i apply for housing benefit

Prince charles, the heir to the british monarch and a large landowner in his own right, was able to start his development at poundbury by investing heavily upfront in infrastructure such as transport links and community buildings.

The early spending meant the poundbury land was worth £1m per hectare more than that in comparable areas, according to a report by the prince’s foundation, while estate agency savills found that house prices in the village were 29 per cent higher than elsewhere. This in turn meant sales of land parcels and homes in the dorset village could help pay for higher levels of affordable housing in the later phases of construction at the 160 hectare site.

Councils do harness a small amount of land value capture via so-called section 106 deals, in which developers fund affordable homes in exchange for planning permission, but these tend to fall far short of local needs.How can i apply for housing benefit recommended

The broader proposals by shelter and others for councils to take full advantage of land value capture have caught the attention of politicians, in an indication of how policymakers are searching for far-reaching solutions to the crisis.

The conservative party said in the run-up to the june general election that it wanted to look to land value capture as a way to finance large-scale housebuilding while limiting the burden on the public purse. Labour said it would explore the related idea of a land value tax.

Thomas aubrey, director at the centre for progressive capitalism, says the changes to the land compensation act would bring the UK land market more into line with european countries such as germany and the netherlands. “there is no benefit to holding on to land there,” he adds.

Sam bowman, executive director of the adam smith institute, argues that such fundamental change is badly needed.How can i apply for housing benefit “I’d like to think it would bring about sweeping changes to land pricing,” he says. “the whole objective would be to reduce the price of developable land.”

Ms grayston says a less ambitious reform could involve exceptions being made to the land compensation act for specific sites, so new towns could be built using land value capture, as letchworth and welwyn garden city were before the legislation was passed.

There are other sweeping changes that would create the potential for more housing development, but each comes with a significant downside. Opening up greenbelt land for housing would entail a loss of countryside and is viewed as politically difficult. Increased direct investment by the government in housebuilding is current labour policy, but would involve a big rise in public borrowing.

However, momentum is building around the idea that a long-term fix to the housing crisis should involve far-reaching changes to the UK’s land market. “right now we are seeing a failed market . . . An inefficient land market filled with perverse incentives,” says mr aubrey.How can i apply for housing benefit