Bob Hoskins

Name: Bob Hoskins
Social Capital: 7SC
commented on Spending Plan 2015-03-19 10:28:49 +0000 · Flag
Not a cost cutting idea but rather a money generating one which would also solve the housing crisis and improve our infrastructure:

When land is re-zoned for example if residential building is permitted on agricultural or commercial land the land owner captures the entire increase in value. Similarly when infrastructure is improved, school catchment areas changed or local amenities improved the increase in property values is captured by property owners.

This means

(1) The private sector captures all the value from re-zoning and improvement.
(2) Councils have no real incentive to improve their local area or increase the housing stock

Instead we should follow the dutch model:

In Dutch cities a public land development strategy, involves public purchase, ownership and servicing of land and active planning for land use before land is released for actual development to the private sector. This guarantees building developments according to public policies, it realises full cost recovery of all public works via the sale of building plots and it captures at least part of the surplus value of the land (after a change in use).

This would:

Capture a huge amount of value for the tax payer
Increase development and housing supply
Improve quality and standards of housing development