SWEEPING CHANGES

Otago Daily Times, Issue 26355, 9 January 1947, Page 5

SWEEPING CHANGES

BRITISH LAND LAWS VALUE BASED ON USE NO DEVELOPMENT PROFIT FOR OVfNERS LONDON. Jan. 7. Land in Britain is not to be nationalised, but sweeping controversial changes are proposed in the Town and Country Planning Bill published today, says Reuter’s lobbyist. Mr L. Silkin will move the second reading at the end of January, and it may be law by July. The Bill defines two elements in land values—first, the value for the purpose for which it has been used, which is defined as existing use value; secondly, by the value for potentially more profitable use; for example, the development of farm land as building estates or replacement of houses by shops or cinemas, which is defined as development value. Permission Needed for Development The Bill provides:— 1. That no land development may occur without permission. The landowner will be free to continue using the land for existing purposes, but the question whether the land may be developed will be governed by the interests of the community. 2. When permission to develop is refused, no compensation will be payable except in a few special cases. 3. When development is permitted, any resulting increase in the land value will be collected by the State as a development charge, which is payable before development is carried out. Any increase in value which accrues without development will remain with the owner.

The effect of these three provisions together is that the market value of the land will be reduced broadly to the value attributable to its present use. Landowners will thus lose their development values immediately, and the Bill provides for payment to them on this account. 4. A Central Land Board will be established, with the prime duty of the collection and reallocating of development charges. Increase to Accrue to State An accompanying White Paper says the Government’s view is that when community activities increase the existing value of land k the betterment should be collected by the State instead of by the landowner, and that owners who lose development value through the Bill are not entitled to compensation as a legal right. The Government recognises, however, that if no payments are made, hardship could be caused to many who acquired the land in expectation of development. A capital sum of £300,000,000, therefore, will be made available to meet claims for payment made to the Central Land Board. The effect of the development charge system will be that land bought for development will change hands at about its face value for existing use, The purchaser, in reckoning how much he can afford to pay, will take into account what he will have to pay to the Central Land Board. In total he will pay no more than he would pay at present, but, instead of paying all to the owner, he will pay part to the owner and part to the Central Land Board. Existing Value Unaltered While taking away from the owners the development value of their land, the Bill leaves them ifs existing value. Farmers can continue farming and the ordinary householder can continue normal life. Reuter’s lobbyist says that the Bill will not touch the average, person. It is officially calculated that 85 per cent, of houses and other properties in the United Kingdom are not involved, because they are not connected with development projects. The position of the private land developer is also unchanged, except that he will have to pay a proportion of the price of the land, as the Development Charge Bill does not interfere with a person selling his house at a profit, as r.o development is involved if a house is changing hands and its use is not changed. This compensation and betterment problem has been regarded as the great obstacle. Once it is out of the way the new planning scheme can go ahead. This provides that local planning authorities will have to submit development schemes within three years. These plans will be reviewed every five years. County Councils for the first time are given direct planning functions. All purchases of land for public use will be at the existing use value. The 1939 standard is being retained. Outdoor advertisements, such as hoardings, will be controlled, and historic buildings preserved.