Evening star., 1948-06-27

that the shifting value Of land
prevented the erection Of school
building
An End to Speculation
In Britain they think they have
solved the problem. Under this
new legislation speculation in real
estate becomes impossible from now
on. In one stroke the government
has frozen all land values at their
present level and at the same time
has assumed a tight control over
all land use as well. From hence
forth, all land will be worth to the
private owner only what 1t is worth
today, and that worth shall be
determined by the use to which the
land is being put today. This surely
marks the end of land speculation.
This action has been incorrectly
presented in the press as q ma.
tionalization OF the land" 1t is not.
Ownership of property still remains
vested In the private individual but
his free development and use OF
the land has been sharply curtailed.
How 1t Is Controlled
The owner may still make profit
on land-use, for the act only pre-
vents the realization of a develop
ment profit on the land itself, .
profit presumed to be realized by
sale. If Farmer Brown wants to
develop some of his pasture land
for suburban dwellings he may we'll
be prevented from doing so by his
local planning board on the grounds
that a suburban development at
that spot doesn't At in with local
housing plans, on the grounds that
his pasture Is more valuable to
England as a food producer, or even
on the esthetic grounds that houses
in that pasture will ruin the land
scape. In these instances land
value won't enter the picture.
But il Farmer Brown is given
permission to develop his land and
thus increase its value, this increase
or "betterment," as it Is termed,
will not accrue to Farmer Brown.
1t will 60 to the government in the
person of a Central Land Board
which has been created to pass
upon land values and collect
"betterment.
What Farmer Brown may collect
in rent or sales on his houses will
represent his profit. If he sells
both house and lot, anything over
the original pasture value that he
may realize on the lot goes to the
Central Land Board.
How Profit Is Realized
Nor is this all. II any planning
authority action, or even the mere
existence of planning scheme, I'M
proves the value of Farmer Browns
land, that betterment, too, goes to
the state. Thus If highway Is
put along one edge of the property.
"a highway which increases the
pastures realty value, Farmer
Brown is subject to betterment
charge.
Now the planning authorities can
go ahead with their land acquisi-
ton unhampered by the financial
burden of speculative price rises. II
they want to clear a slum and erect
new dwellings, they will buy the
land at slum value. And II they
want to build a whole new town
and they want to build several, as
matter of fact-they can AFFORD
to space it out with sufficient park
and recreation area instead OF
skimping as before.
Two-Way Rule Granted
This control of land use and freez-
ing of land value is the meat Of the
Town and Country Planning Act OF
1947. 1t is not, however, the total
function of the act, an involved and
lengthy piece Of legislation which
embraces all previous planning acts.
Many of its provisions supply badly
needed essentials to successful plan
ming and, as such, are quite interest,"
ing and sometimes not little con-
troversial.
The act does recognize the pos
sibility that land values may fall
as a result OF planning, as well as
rise, and it has provided funds for
compensation in these instances.
What happens when land values fall
for any other reasons is apparently
neither within the interest nor In
tention of the act.
The act gives tremendous land
use control powers which will per-
NIT authorities to map out ma
tionally co-ordinated schemes years
in advance, and, in the meantime,
prevent any contrary private de-
lNElOplllcllt III Piopcoco PiAA-o
area. This, in turn, means that
private developer must seek official
sanction before altering his property
in any way from its existing use, or
run the risk Of having 1t con-
demned later without reimburse
ment when a planning scheme ma
/ terializes. No developer would care
to proceed on his own with any
unauthorized development under
those circumstances.
Road Signs Covered
Out on the fringes OF the act there
lis one remarkable item which gives
the Ministry of Town and Country
Planning control OF unsightly bill
board advertising.
| An American, surveying the Town
and Country Planning Act for the
first time, would probably regard it
as a disturbing and radical example
of extreme British socialism. But
| in passing judgment on this meas
t,lre one should not forget that there