The UK’s dysfunctional land market is likely one of the key drivers of our damaged housing mannequin. Reforming it’s due to this fact important to deal with the housing disaster. This analysis identifies the extent of public achieve if the federal government builds on its predecessor’s reforms to restrict the impression of ‘hope worth’ on land valuations topic to Obligatory Buy Order.
This paper explores the extent to which this reform would improve the monetary viability of a mass social home constructing programme by considerably lowering the quantity of grant funding required to ship it. As our analysis outlines, hope worth reform may scale back the general public grant required to construct 90,000 social houses per yr by £4.5bn, shrinking the up-front general price by round 1 / 4. Alternatively, these reforms may enable the identical quantity of public grant to be stretched additional, constructing a further 27,000 social hire houses per yr.
Ministers ought to really feel emboldened to proceed with these additional land reforms, enhancing the viability of a programme of mass social home constructing which is indispensable to resolving the housing disaster. Additional reforms to hope worth are important if ministers are to construct the amount of social houses required to hit their general targets to construct 1.5m new houses over this parliament.
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