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Captain Tightwad

Unusually Sane Column In City Am Today

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Not that sane. He is trying to partly blame the "socialist" Town and Country Planning Act of 1947 of course ignoring the Tory introduced Green Belt (London and Home Counties) Act 1938, and conveniently ignores the massive extension of the "green belt" by the Tories in 1955.

However there is still plenty of land that CAN be built on without encroaching on the green belt.

There is hope however. Nick Boles seems to have the confidence to confront the NIMBY's and tell them to their faces, their tatty sprawling suburbs are not that special.

The author might want to ponder quite how that despite "socialist" planning we managed to get Milton Keynes, and the massive expansion of towns like Northampton.

Step forward the the Town and Country Planning Act which required the planning authorities to produce a development plan (and still does today)!

What also needs to be tackled is the rampant rentierism masquerading as eco-loon madness. Thank heavens for the humble newt, bat, or nightingale!

The answer is probably a Land Value Tax.

Edited by Secure Tenant

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Raise interest rates on all land south of Watford.

Simples.

The reason there isn't a free market in land is because the Queen, the Duke of Westminster and their cronies in the Lords et al own most of it.

Heath's a risible bankster/rentier shill.

Edited by R K

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Allister Heath is normally a predictable spokesman for the banking lobby, but this was a pleasant surprise:

We must urgently fix Britain’s horribly broken housing market

It was a good piece. Heath is obviously on the right of the economic spectrum so will tend to want to avoid government interference in markets, which should apply to the removal of burdensome planning restrictions.

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In The Price Responsiveness of Housing Supply in OECD Countries, published two years ago, Aida Caldera Sanchez and Asa Johansson reveal that new housing supply is relatively more flexible in North America and some Nordic countries, but extremely poor in some continental European countries (such as Germany) and in the UK, which is ranked 14th most responsive out of 21.

(that is Germany's housing supply is extremely poor in responsiveness to price)

It would have been interesting if he' d given some detail about that report as it's just a few days ago that the tory Mr Boles was reported to say (at a meeting with Campaign to Protect Rural England) that Germany's house prices had stayed low because over the years Germany had released land for houses. Elsewhere they're also reported to have said they need higher house prices in the UK to encourage builders to build.

So if over the years more land has been released for houses in Germany then Heath's article implies that they haven't needed higher house prices to encourage it.

Edited by billybong

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However there is still plenty of land that CAN be built on without encroaching on the green belt.

This is one of the great modern sacred cows. There is nothing wrong with encroaching on green belt land. It can be replaced with a green patchwork or green fingers. Suburbs can be green too. Most outer London suburbs have plenty of parks, trees, verges etc.

There is hope however. Nick Boles seems to have the confidence to confront the NIMBY's and tell them to their faces, their tatty sprawling suburbs are not that special.

Nick Boles is a man whose time may come. The question is, can he stick to his guns until then? Most politicians like to think of themselves as conviction politicians, until it's squeaky bum time (cf George Osborne).

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It was a good piece. Heath is obviously on the right of the economic spectrum so will tend to want to avoid government interference in markets, which should apply to the removal of burdensome planning restrictions.

Land ownership is government interference, it's a fantasy to suggest we can have a market for government permits but not have government interference.

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He left out the part where the financial sector supplied the cheap debt that allowed those prices to escalate- supply and demand and ability to pay is required.

So just as HSBC did not create the drugs business in Mexico- they did facilitate it by laundering the profits*- so the bankers did not create the shortage of houses, but did play a large part in the insane price hikes by supplying the irresponsible loans that made them possible.

But kudos for at least sticking to his free market principles- it's more than our Government have managed to do.

* Interesting factoid on the HSBC thing- so cosy was the relationship between the Bank and the Drug dealers that they had their cash transported to the branches in box's designed to fit exactly into the hatches the bank tellers used to take in the money. :lol:

The drug worlds local bank.

Separately, in a deferred prosecution agreement with the US department of justice, HSBC admitted to breaches of anti-money-laundering norms as it moved "hundreds of millions" through the US on behalf of Mexican and Colombian drug cartels.

Too big to fail- too big to jail;

HSBC's record-breaking, money-laundering settlement has highlighted a new aspect of the "too big to fail" issue that has so bedevilled financial regulators since the 2008 crisis, namely the "too big to prosecute" problem.

As news of the deal filtered through, a report in the US suggested the reason authorities decided against indicting the giant bank was because of the risk that criminal indictment against such a critical cog in international banking could have destabilised the broader financial system.

According to the New York Times, given the evidence against the bank, officials spent months debating how to act against HSBC. Options included a potential money-laundering indictment, which would have been disastrous for the firm.

http://www.independent.co.uk/news/business/analysis-and-features/hsbc-the-drug-worlds-local-bank-8406737.html

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But kudos for at least sticking to his free market principles- it's more than our Government have managed to do.

Maybe he's worth tweeting to see where he stands on Help To Buy (sell). :lol:

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You can build the 3 million properties we need on just 10% of the sacred greenbelt around London - it's almost a century ago since it was set out for goodness sake!

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I don't think you can explain the house price bubble by planning alone: it's a peculiar explanation from somebody of his presumed insight.

Then again, if you are a bank apologist and right wing liberal , explaining asset bubbles is a rather tricky affair...

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Land ownership is government interference, it's a fantasy to suggest we can have a market for government permits but not have government interference.

Yes ownership is ultimately backed by the force of the state. But we can minimise the amount of government interference, which took a giant leap forward with the Town and Country Planning Act 1947.

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You can build the 3 million properties we need on just 10% of the sacred greenbelt around London - it's almost a century ago since it was set out for goodness sake!

The message is getting out there...

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Alistair Heath again. This time is "hidden taxes and levies" on developers.

http://www.cityam.co...uk-house-prices

But there is no free lunch – if you slap a tax on home construction, somebody will have to pay it. Fewer new homes will be built, and those that are will be sold at higher prices. New homes would be substantially cheaper and more plentiful in the absence of these levies. It would make more sense to abolish the current planning gain tax system altogether, flood the market with new buildable land (thus eliminating super-profits from planning) and raise any funds needed to pay for any new social housing through the normal tax system. -
Edited by aSecureTenant

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  • 242 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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