UNIMPROVED VALUE RATING.

New Zealand Herald, Volume LXVII, Issue 20650, 23 August 1930, Page 14

UNIMPROVED VALUE RATING.

Sir, —Your suburban critic: of rating on the unimproved vaiuo rather inadvertently concedes most of what the advocates of the system claim for it. Houses tend tc deteriorate from the day they are built but with progress and public need land constantly appreciates, providing a natural source of revenue. Sections in the districts affected according to your authority are "on the large side," and of "generous area," which most people would consider a great advantage. It is the desire for breathing spaco and elbow room, for lawns and gardens, that takes home builders to the suburbs, and a system which enables a large population to acquire these advantages must be considered a great, success. That land values decline in a time of adversity is the expression of an economic law, as sure in its incidence as the rise in values which accompanies prosperity. Everything else being equal, rates should do the same. But have not rental values declined in Queen Street and Karangahapo Road ? Any attempt to boost the price of land beyond its useful or productive value for speculative purposes is a foolish and dangerous thing, a monaco to industry, tho evil effects of which we are at present experiencing. Admittedly, rating on the unimproved value cheapens land by forcing unused sections on to the market and making them available for settlement This is one of its objectives. It will bo difficult to convince prospective home-builders in the suburbs that cheap land is a drawback. Rather is it an incentivo to get busy. The suggestion that districts that have adopted this rating reform are stagnating; may bo taken for what it is worth. Figaros show that from the City of Wellington down to the smallest road board area these are the places that have established records in building at various times. G. Henry. Epsom, August 11.