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LuckyOne

House prices aren't the issue - land prices are

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https://www.theguardian.com/money/blog/2017/nov/18/house-prices-land-prices-cheaper-homes

The essential point is that residential land is worth about 100 times the value of agricultural land.  As the planning process is the mechanism by which land use is reclassified, why should the increase in value go to owners upon reclassification rather than to society which gives planning permission and causes the increase in value?

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Land in demand is only as valuable as the planing permissions given to it, the laws surrounding it, the peace it enjoys, and the environment around it.....people often who have done nothing to contribute, that benefit from others hard work in the past and the present day.....build nice homes, make your road nice to live in with good businesses and infrastructure around it, everyone then wants a piece of the pie others have created.......when nobody cares for it, the jobs are no longer there, the environment difficult nobody will want it or want to pay a high price to live there.;)

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There is also something called "hope value" which is the anticipated value if it ever were to achieve planning permission. As a member of a community land Trust looking to purchase agricultural land worth some £4,000-£15,000 an acre. With special "exception status for self builders for local people" then the battle is to argue that it's not worth £1-2 million pounds per acre but somewhere between £15000 and £1 million pounds per Acre as it would never have full market value. 

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2 hours ago, LuckyOne said:

https://www.theguardian.com/money/blog/2017/nov/18/house-prices-land-prices-cheaper-homes

The essential point is that residential land is worth about 100 times the value of agricultural land.  As the planning process is the mechanism by which land use is reclassified, why should the increase in value go to owners upon reclassification rather than to society which gives planning permission and causes the increase in value?

This is just irrelevant, largely - mortgage lending is the problem! You can't build your way to affordable housing anytime soon - might take a generation or two! 

 

 

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I'd be happy for compulsory purchase but at a reasonable price and only from those with loads of land so that they're not really going to miss little bit of it. Say up to £250K an acre. So neither the £10K an acre for agricultural land nor the £1m+ for building land. I don't think it's fair to pay for the state to pay just the agricultural value.

You might not even need compulsory purchase. I'm pretty sure many landowners would love to get £250K an acre. Who wouldn't want a nice nest egg of £5 million for selling off a spare 20 acres? If planning permission was altered to the extent that something of this order was the market price then I think there would be plenty of takers. I also like the idea floated on this forum of serviced plots for self build. And other measures to stop big builders hoovering up all the land.

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1 hour ago, oldsport said:

I'd be happy for compulsory purchase but at a reasonable price and only from those with loads of land so that they're not really going to miss little bit of it. Say up to £250K an acre. So neither the £10K an acre for agricultural land nor the £1m+ for building land. I don't think it's fair to pay for the state to pay just the agricultural value.

You might not even need compulsory purchase. I'm pretty sure many landowners would love to get £250K an acre. Who wouldn't want a nice nest egg of £5 million for selling off a spare 20 acres? If planning permission was altered to the extent that something of this order was the market price then I think there would be plenty of takers. I also like the idea floated on this forum of serviced plots for self build. And other measures to stop big builders hoovering up all the land.

Are you crazy?! A nest egg of £5m?! This would simply be winning the lottery at taxpayer expense. Usual premium for compulsory purchase might be 20%, enough to replace your loss plus some for the inconvenience.... not 20 times!

 

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1 hour ago, BuyToLeech said:

Location, location, location:

5 bedroom detatched house on the island of yell, Shetland: 169k

4 bedroom detatched house, whalsay, Shetland: 200k

3 bedroom terrace, Kensington, london, 3M

 

 

 

Location, location, location

 

That is exactly what the land determines. Everything else can be homogenous. 

A decent modern low impact house can be built for 160k anywhere in the uk. Labour costs vary slightly but the land price varies dramatically. 

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27 minutes ago, nayth said:

Are you crazy?! A nest egg of £5m?! This would simply be winning the lottery at taxpayer expense. Usual premium for compulsory purchase might be 20%, enough to replace your loss plus some for the inconvenience.... not 20 times!

 

I meant £250K for the most expensive parts of the country and less elsewhere. But maybe that is a bit too high. So  maybe half that amount - the absolute figure isn't important.  My point was that I think it's fair to pay multiples of the agricultural value. The closer it is to the price that a farmer would voluntarily sell then the less animosity there will be. If say in Surrey the council paid £125K per acre for building land, rather than the £3 million per acre it would cost them at the moment, that's a gigantic saving. Why cause anger and resentment when there could be a good compromise?

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I'm part of a community land trust very close to Surrey which has a field in mind for a communal self build plan. This land would never be granted full market permission as it is designated a rural exception site for the local housing plan. At the moment it's worth around £5-15,000 per Acre and will be granted planning permission for affordable self builds only but have restrictions on what they can ever be sold for ( after a minimum number of years ownership as primary residence). Some of the landowners are holding out for the £1 million+ per acre which makes the whole scheme unviable. The difficulty is to overcoming the "hope value" and setting a realistic non market value which is acceptable to all. One of the landowners arguments is how it will decrease the value of their own properties.

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  • 407 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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