New-York tribune., 1901-06-11
LONDON RENTALS.
PRIVILEGES OF GROUND LANDLORDS
AND BUILDING LESSEES- PROPER
TY OWNING REMUNERATIvE
-OCCUPIERS BEARING
ALL THE RISKS
london May %

but I was mainly interested in proving that
cheapness in house rents delusion in the
best residential portions Of London. and that
with the law bearing heavily here against ten
ants ard in favor Of landlords there was little
difference between the two cities in the final
cost OF the occupation of house There is an
other phase Of the subject which is equally in
teresting. This is the comparative security Of
land and house property in the two cities as a
permanent investment. In this respect the facts.
I fear, viii bear strongly against the America n
system of taxing the land owner and releasing
the tenant from responsibilities for repairs and
local taxation. Land owning and house owning
n large English city remains A profitable in
vesrment, because the burdens Of taxation and
repairs are carried by the occupiers In Ameri-
can cities real estate is less attractive as per
naanenr investment than il was formerly The
house owner letting II 70 a tenant is confronted
with increasing local taxation and property as
sessments, and he is compelled 10 make constant
expen ditures for repairs. The margin Of profit
IS narrowed and not infrequenty wiped out In
American towns there is a growing prejudice
against real estate holdings as permanent in
vestments and increasing disposition the
part Of property owners 70 sell their houses and
TO put their money into industriala and railway
stocks.
Many square miles Of the best residential and
business sections Of London are under the CON
troll Of few wealthy land owners, such as the
Duke Of Westminster and the Duke Of Bedford.
and ST. -Irban London has been built UP 20
great extent by building contractors and i'm
provernent companies on long term leases. The
ground landlords highly favored class. who
take no risks and are exempt from taxation
They are not taxed for unoccupied land, nor are
special assessments for street Opep'ngs and i'm
provenents levied against them. Parliament
has not sanctioned the "betterment' principle
and the burdens Of local taxation are borne not
by land owners. but by occupiers. The value OF
land in central and suburban London and in
provincial cities has increased by leaps and
bounds decade after decade without effort
sacrifice on the part of the ground landlords;
and they have steadily been enriched by the
general advancement Of the community and by
the increase Of population. The unearned in
crement is theirs. and the House of Lords is
their stronghold Of defence against Radical leg
islation. They toll not. neither do they spin:
and they are not taxed. except as the income tax
touches them in common with all other classes;
and they hold the reversion TO all buildings con-
structed upon their land. and are enriched by
the rise OF valuations caused by the growth and
expansion Of urban communities Eight years
ago their interests were menaced when the
House Of Commons under Liberal control passed
an act authorizing the London County Council
the cost Of local improvements; but the House
Of Lords protected the ground landlords by re-
5ecting this special taxation clause. The rights
of the ground landlords have remained inviola-
BILE Their estates improved and developed
by building lessees without liability their
part, and everything ultimately falls into their
possession.
GROUND LANDLORDS SATISFIED.
So well satisfied ground landlords with
their exemptions from local taxation and La
bilities for repairs that they are disposed on
the expiration Of ninety-nine year or eighty year
leases 10 gram renewals for long periods rather
than 70 take advantage OF the reversion Of the
buildings 10 Them when they have never paid
for construction improvement and have
never been taxed Whenever however. the
locality is highly favored either as a fashion
able residential section or as a centre Of bust
ness they have the option Of taking complete
possession Of the houses and buildings which
lessees and tenants have erected and improved
This is sometimes immense source Of
wealth Some OF the costliest centres Of Lon
don fashion from time TO time revert to the
ground landlords who profit by every invest
rnent Of capital made during a long period and
by the general advancement Of the community
These wealthy ground landlords in this way pro-
vide OF the strongest arguments for land
naturalization on the economic side. II is not
easy TO answer the question, Why should not
the unearned increment fall TO the State or to
The municipality instead Of the rich and pro
tected ground landlords, who have a mo-
nopoly Of privilege and no share in the burdens
OF taxation?' Birmingham acted upon this prac-
teal business policy when in clearing the slums
and in opening Corporation-st. as a spacious
thoroUghfare il retained the rights Of a ground
landlord, with the reversion of all buildings
erected an long term leases. II will be en-
nched ultimately by that magnificent invest
mcnt. Other progressive English and Scotch
municipalities have cleared and improved OBJ
noxious quarters by similar policies and ac-
CURED the ultimate reversion OF property
which lessees and occuplers are systematically
improving.
II the investments Of land owners in cities and
towns are secured by the conditions Of tenure
and taxation, those Of the building lessees are
also safe. and they are not a rule anxious 10
acquire freehold. nor do they favor any measure
OF leasehold enfranchisement, whether in the
form OF compulsory purchase Of statutory
option TO purchase attached TO leases Of Ger
tain length. ] speaking Of agricultural
holdings. but Of ordinary leasehods in large
cities. and especially in London While the land
owners have dictated terms 10 the building
lessees for desirable ground in near growing
cities, and have retained their ground rights and
privileges Of ultimate reversion without liza
blity TO local taxation. the burdens have been
shifted upon occupiers so to render the in
vestment safe and remunerative- The West
End house, for example. or the suburban cot
tage. has been built at the iessees expense on a
long lease; and the property has been let in
turn by those who own the buildings. but not
land hss%- has n NTH