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Labour Considers Moves To Boost Housebuilding

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http://www.bbc.co.uk/news/uk-politics-22990554

Labour is considering giving councils more powers to make landowners go through with building projects, in an effort to tackle the housing shortage.

Leader Ed Miliband will say too many developers with planning permission for projects are "sitting on land" while it gains value instead of building on it.

The party is looking at giving local authorities in England "use-it-or-lose-it" powers over developers.

The government said confiscating land "will not help build a single house".

Mr Miliband will use his speech to Labour's National Policy Forum to say planning permission has been granted for 400,000 homes in England that have not been built.

Too many developers are holding on to land while it gains value, rather than pushing ahead with projects for which they have permission, he will argue.

And how many developers have the money to build these 400,000 homes? If there are no buyers why are you going to build houses, because if you can't sell and you've used up all your cash your going to end up out of business.

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http://www.bbc.co.uk/news/uk-politics-22990554

And how many developers have the money to build these 400,000 homes? If there are no buyers why are you going to build houses, because if you can't sell and you've used up all your cash your going to end up out of business.

Business risk, innit. Builders have expected better treatment than other businesses that have to manage stock, production and cashflows on the face of demand.And boy do they get it.

Hell, their stock doesn't perish like a food producer's does. Imagine a builder running a food company. No discounts on those rotting tomatoes, perhaps you'd like a Govt. guarantee instead, Sir?

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http://www.bbc.co.uk...litics-22990554

And how many developers have the money to build these 400,000 homes? If there are no buyers why are you going to build houses, because if you can't sell and you've used up all your cash your going to end up out of business.

If they don't have the money to build on the land, they should sell the land to someone who does. Not having cash is reason to sell, not a reason to sit and wait. If there was unlimited land then fine, but holding a finite, potentially productive, asset without using it is clearly damaging to the wider economy even if the developer's balance sheet looks like it has a healthy amount of fixed asset.

Y

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At last!

An absolutely bomb-proof Labour policy that no-one with half a brain can argue against.

So you speculateld on land price, drove up the housing bubble and expect to sit on the asset until things bubble again or else hell freezes over? Think again Sonny Jim. I hope it also extends to supermarkets and other commercial land horders.

They won't implement it of course, but I love it just the same.

Edited by Stainless Sam

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At last!

An absolutely bomb-proof Labour policy that no-one with half a brain can argue against.

So you speculateld on land price, drove up the housing bubble and expect to sit on the asset until things bubble again or else hell freezes over? Think again Sonny Jim. I hope it also extends to supermarkets and other commercial land horders.

They won't implement it of course, but I love it just the same.

Will be interesting to see what happens if Miliband is pressed on this, as I hope he is. Could it become a manifesto committment from Labour?

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forget help to buy.

Welcome in the new scheme "we'll buy it for you....simply choose your location your design and colours, and call the builder from our list of crony approved housebuilders...you could be moving in in weeks...or better still, simply lease it back to us for cash and we can rent it out for you for infinite returns"

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At last!

An absolutely bomb-proof Labour policy that no-one with half a brain can argue against.

So you speculateld on land price, drove up the housing bubble and expect to sit on the asset until things bubble again or else hell freezes over? Think again Sonny Jim. I hope it also extends to supermarkets and other commercial land horders.

They won't implement it of course, but I love it just the same.

Agreed, what seems to be a sensible policy. Bizarre. It will never happen of course.

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"If it regains power in 2015, Labour is considering giving local authorities in England "use-it-or-lose-it" powers over developers, including introducing fees or buying back undeveloped land."

Who'd be buying back land? Councils? I thnk they're quite good at landbanking already.

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If they don't have the money to build on the land, they should sell the land to someone who does. Not having cash is reason to sell, not a reason to sit and wait. If there was unlimited land then fine, but holding a finite, potentially productive, asset without using it is clearly damaging to the wider economy even if the developer's balance sheet looks like it has a healthy amount of fixed asset.

Y

They bought it in 2008 with a loan from the bank. If they build on it they have to sell it. If they cannot sell the houses and the land for more than they payed in 2008 they will have to make a loss and the banks will have to write off the loan as a bad debt - this loss is what Osborne wishes to shove in the 'bad bank' so that we the tax payers take the loss, not the builders or the banks.

To build those houses the builders need to borrow money. The bank won't lend them money because it exposes the bank to a loss on their original loan to buy overpriced land.

All the planning pressure is to force the release of cheap land so that the builders can build without taking the hit on the overpriced land they already have. Forcing them to build on the overpriced land is not going to work.

There are two ways out, rob the tax payer and saver or file for bankruptcy. Guess whose in bed with whom and who is going to get screwed.

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They bought it in 2008 with a loan from the bank. If they build on it they have to sell it. If they cannot sell the houses and the land for more than they payed in 2008 they will have to make a loss and the banks will have to write off the loan as a bad debt - this loss is what Osborne wishes to shove in the 'bad bank' so that we the tax payers take the loss, not the builders or the banks.

To build those houses the builders need to borrow money. The bank won't lend them money because it exposes the bank to a loss on their original loan to buy overpriced land.

All the planning pressure is to force the release of cheap land so that the builders can build without taking the hit on the overpriced land they already have. Forcing them to build on the overpriced land is not going to work.

There are two ways out, rob the tax payer and saver or file for bankruptcy. Guess whose in bed with whom and who is going to get screwed.

....bout sums it up......in reality our economy is not reliant on innovation productivity and growth it is reliant on assets bought with debt to increase in value over and above the debt purchased to buy it....you couldn't make it up. ;)

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Miliband can say anything he likes, he ain't in government.

New Labour's record on housing is woeful.

He needs to forget all this nonsense and just build 1,000,000 council houses funded for free by borrowing across the curve at negative real rates.

If he wants to be a Tory he should join the effing Bullingdon Boys instead.

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Its not landowners that are the problem. Landowners around here have actually happily approached housing associations with land at under £100,000 per acre. (ie under £10k a plot) Council were all for it...then NIMBYs got wind...you know the rest.

They need to literally covertly build these things, fill them with families and then reveal them to the NIMBYS to illustrate to the selfish old gits how much hurt they are causing.

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Its not landowners that are the problem. Landowners around here have actually happily approached housing associations with land at under £100,000 per acre. (ie under £10k a plot) Council were all for it...then NIMBYs got wind...you know the rest.

They need to literally covertly build these things, fill them with families and then reveal them to the NIMBYS to illustrate to the selfish old gits how much hurt they are causing.

Many of the plots have all the necessary planing permission to build....they are just not building because they want too much for the finished product, because they paid too much for the land with borrowed money..... land only goes up, costs to build go down with imported labour and prices go up with government subsidies. ;)

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What are the chances of Labour actually implementing such a policy if they win the next election?

Wrong question.

You just know it'll be a nightmare of red tape to catch out the innocent and leave big loopholes for anyone seriously into hoarding.

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Many of the plots have all the necessary planing permission to build....they are just not building because they want too much for the finished product, because they paid too much for the land with borrowed money..... land only goes up, costs to build go down with imported labour and prices go up with government subsidies. ;)

That too...the best thing that could happen to the housing market is for the dinosaurs like barratts go under, their assets liquidated, their land portfolio sold off at true values, and bought by smaller developers who were prudent and have cash reserves, who can then go on to build at prices people can afford...

You know, like what used to happen, before government and large corporations became the same thing, giving us shitty companies and banks that never die, who are allowed to exist purely because they give nice donations and Liebour and the CONservatives.

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They need to literally covertly build these things, fill them with families and then reveal them to the NIMBYS to illustrate to the selfish old gits how much hurt they are causing.

Part of the planning process could be the government automatically putting the land up for a second auction as soon as planning permission is granted. If the local NIMBYs are really that fussed they can create a business together and buy the land out of their own pockets. If they win the land will be taxed each year at a percentage of its current market price with planning permission in place.

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A government confiscating assets from private companiesm I expect Tony Blair will be out soon confirming that Ed has gone mad.

err whats private about a company collecting the economic rent a govt imposes? how exactly does one impose private ownership of a naturally occurring resource without govt confiscating it from everyone else

Answers in 1 syllable are acceptable given your grasp of nature

Edited by georgia o'keeffe

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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