Capital says that a line in Labour’s manifesto promising to “ensure that for specific types of development schemes, landowners are awarded fair compensation rather than inflated prices based on the prospect of planning permission” raises the prospect of acquiring land for less, allowing a Labour government to increase the pace of housebuilding and thereby boost the economy.
Capital notes that up to 75 per cent of land value appreciation from infrastructure and planning permission is currently accrued by landowners. Were this instead captured by the state, it argues, “the proceeds could be used to fund public housebuilding or attractive contracts for private housebuilders.”