I am about to attend an 'Annual Property Seminar' hosted by a local Surveyor, and representatives from firms of local lawyers and accountants.
Every year we get the usual 'planning is the problem' (the 'only' problem), rents are too low, business rates are too high, we are not building ennough houses etc. etc. arguments.
This year I have decided - if the opportunity arises - that I am going to start an argument...
Now, as we know, although planning is an issue, there are other factors that are driving up house / land prices, so here follows the arguments that I think apply. Your analysis, disputations, useful links and comments would be appreciated. As my maiden aunt used to say - 'Fortune favours the well prepared'.
1. We don't have a house supply crisis. We have a tax, rent and subsidy crisis.
i) House completions have been running at about 167,000 per annum for ten years which has roughy kept pace with population growth. (Evidence?)
ii) Immigrants are taking all the social housing. No they aren't (Data?)
iii) Foreign buyers are pushing up prices. Yes, but only in London (Answer - Land value tax would sort that).
iv) There are plenty of houses for sale, but subsidies to Buy to Let landlords price out FTB's by:-
a) Handing them an effective approximately 20% discount by their ability to claim all sorts of costs against tax which private buyers (quite rightly) cannot do.
b) Lenders using less onerous criteria on lending to BtL than they do for private buyers.
c) The application of Council Tax rather than Business Rates to BTL property.
d) £18Bn housing benefit subsidy.
e) Anything else?
v) Tax policy destroys take home pay. (Tax reform. LVT?)
vi) The 'distance from place fo work' / Travel cost / Travel Time price issue. That is that all the 'profit' or 'savings' end up in land prices. (LVT fixes that).
vii) Help to Buy for FTB's just forces up land prices. (The article I linked to the other day proves that)
viii) Mis-regulation of the mortgage market on an industrial scale. (I know a lot about that!!).
ix) NIMBYism. Speaks for itself, and enabled by the....
x)...the 19xx Town and Country Planning Act.
xi) Massive Land Banking by house builders. (Quick references to evidence please)
xii) Anything else I need to remember?
2) Business rates are not an issue. They are levied on the wrong people! (All the usual LVT arguments...)
Thanks.
Debate Magazine
