Thursday, February 25, 2010

Shapps challenges housebuilders to commit corporate suicide

Shapps challenges housebuilders to embrace free market ideals

"Shadow housing minister Grant Shapps has challenged housebuilders to embrace his new planning proposals and shake off the restraints of a "planned system". Speaking at the NHBC's General Election Lecture series, Shapps confirmed his plans to give local communities more power over new development in their area, an idea that the industry fears could cut off new homes supply. But Shapps told the audience: "I can't believe that big housebuilders, instead of relying on their own wit and knowhow, want a planned system rather than a free market system." Surely, the "free market" is between those who want to buy new houses and those who want to build them? The more local the power to restrict planning, the more likely it is that it will be restricted.

Posted by mark wadsworth @ 12:25 PM (1141 views)
Please complete the required fields.



9 thoughts on “Shapps challenges housebuilders to commit corporate suicide

  • Hi Mark

    I think the last 2 sentences to the above were added by you.

    Yes, if planning can’t be overruled by Whitehall, then nothing will get done on a local level as most seem to purvey the NIMBY attitude.

    There must be soem target or something set by the powers that be rather than local level.

    As I’ve said before there should always have to be made available in every town and village a good choice of plots for small developers and self builders.

    Reply
    Please complete the required fields.



  • They won’t embrace it, because this would lead to their breakup. But, the middle managers are stupid for supporting this system, because they would have, could have been CEO’s of the future smaller builders, and would have made more money and would have had more autonomy in the long run.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    STR, the last two sentences were mine.

    I can see the NIMBYs’ problem in that they only see or suffer the losses (actual or perceived) while society as a whole benefits – you can’t legislate against selfishness.

    So a better system of land ownership would be to set up UK Land plc, which acquires all UK land for an equal and opposite value of its own share capital, charges market rents and pays out rents as X pence dividends per share every month, i.e. it would be like Georgism but with unequal shares of the dividends.

    Instead of owning a £200,000 house and living “rent free”, you then own £200,000 worth of shares in UK Land plc, pay £8,000 rent and get £8,000 in dividends.

    So if there were to be a development that reduces the rental value of where you live, you aren’t too bothered because your dividend income stays the same but the rent you pay goes down. And assuming that new construction boosts the total rental value of the UK, the capital value of your shares and your dividend income would go up.

    Conversely, UK Land plc would be doing its best to maximise its rental income by building railways and paying for more policemen or whatever it is that boosts rental values, and of course, if would keep smelly factories well away from residential areas anyway.

    Reply
    Please complete the required fields.



  • In my view,the notion of a severe housing shortage is a misnomer. There aren’t millions of people homeless, there are millions who aspire to buy, but can’t because the supply side is choked off due to the 2million dwellings locked away in the BTL scam.
    As for restraint from housebuilders, you might as well as foxes to consider a vegetarian diet.They are buisnesses, competing for profits – the ‘market’ will not solve this cunundrum without state direction.

    Reply
    Please complete the required fields.



  • Surely bulldozing the wishes of local people is a superior way of getting the consent of the masses

    Yeah, right

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Sneaker, all people are “local people”, so that is meaningless.

    The Home-Owner-Ists cheerfully only look at their side of the equation – keeping house prices inflated and ignore the cost born by those who have to pay a fortune to buy a house.

    The Priced Out Generation are people too, aren’t they?

    Reply
    Please complete the required fields.



  • Mark

    Yes your idea there is a grander version of my idea where by local authorities own the rental properties for each town and the local community can by shares in that company and receive dividends etc.

    braindeed

    There aren’t millions of people homeless, there are millions who aspire to buy, but can’t because the supply side is choked off due to the 2million dwellings locked away in the BTL scam.

    I fully agree with that.

    Reply
    Please complete the required fields.



  • mark wadsworth @6 et al

    Your reference to home-ownerists is a strange one.
    70% of the UK housing stock is owner occupied. If you take the remaining percentage, the greater proportion are either local authority or Housing Associations ….these people effectively ‘own’ their own homes. So if we say 5% of the population is on the other side (homeless, or aspiring to home ownership) , you are using a derogatory term to describe 95% of the population.
    It’s hardly a sound constituency to launch a campaign. I do share your overarching view as to the inequities of the current housing market, but if you offend 9.5 people in 10 for doing what they see as best ,you may as well howl at the moon.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Braindeed, correct. But …

    1. I would rather be in the honest minority, however unpopular that may be, than just lie and polemicise.

    2. Even Home-Owner-Ists have children.

    3. As a simple observation, Home-Owner-Ist policies get us nowhere, they always end in nasty recessions.

    4. I never said that all ‘homeowners’ were ‘Home-Owner-Ists’, there is a distinction here. A homeowner is somebody who goes abroad on holiday. A Home-Owner-Ist is the person who goes abroad on holiday and then complains about all the bl**dy tourists.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>