Win VIP tickets
THOUSANDS of landowners are to be stung by a £3 billion windfall tax as part
of a massive housebuilding programme to be announced by the Chancellor on
Monday.
Gordon Brown will use his Pre-Budget Report to disclose ambitious targets for
hundreds of thousands of homes to be built over the next decade, The Times
has learnt.
As part of the Government’s response to the Kate Barker report on housing, the
Chancellor will also be pressing ahead with proposals to tax landowners who
sell their land after obtaining planning permission.
At present the value of a piece of undeveloped land can increase tenfold once
planning consent is granted but the landowner can keep the profit.
Under the plans, the Chancellor would take a proportion of the gain made by
the landowner — likely to be about 20 per cent. It is understood that this
will be earmarked to invest in homes and infrastructure for new communities
such as transport links and schools.
But the plan has already been attacked by property developers who claim that
it could lead to less land being made available for housing.
John Ritblat, the chairman of British Land, the property company, said last
month that such a tax would be “utter madness” and suggested that it could
stifle development.
Mr Ritblat gave warning that the new tax, also known as a planning gain
supplement, which is likely to apply to land for residential and commercial
development, would backfire just as the housing market was beginning to
recover.
On Monday, Mr Brown may announce different options on how the windfall tax
could be levied to ensure that it does not prohibit new developments, and he
may exclude some land.
Organisations such as the Town and Country Planning Association have said that
the money must not go back to a general pot in the Treasury. “My concern is
that the majority of the revenue money should go on providing a local
infrastructure for all communities if new housing is to come forward,”
Gideon Amos, its director, said.
Mr Amos estimated that about £3 billion a year could be raised by the new tax.
“In some greenfield sites, between £100,000 and £200,000 could be raised per
acre,” he said.
Yvette Cooper, the Housing Minister, signalled Mr Brown’s programme yesterday
after setting out the case for an urgent expansion to help first-time buyers
and young people.
Ms Cooper told The Times that within ten years only 31 per cent of all
two-earner couples aged 30 would be able to afford a home — compared with 54
per cent now. She also said that in the past 30 years the number of
households had increased by 30 per cent but housebuilding had fallen by 50
per cent. “We need to act now to make houses more affordable for the next
generation,” Ms Cooper said. “Apart from help for first-time buyers, support
for social housing and low mortgage rates, we also need to recognise the
importance of building more homes.”
In her report in March last year Ms Barker, a member of the Bank of England’s
Monetary Policy Committee, called for between 70,000 and 120,000 houses to
be built every year in addition to current plans. The Town and Country
Planning Association has also argued that at least 220,000 homes need to be
built each year — 64,000 more than at present. It is still unclear how many
extra homes will be announced on Monday. Sources said that the targets would
be ambitious even though John Prescott’s plans for tens of thousands of new
homes have already met opposition.
The Deputy Prime Minister suggested yesterday that housing developers could be
forced to disclose the scale of their landholdings to shame them into
building more homes.
Mr Brown will announce an overhaul of planning laws to ensure that the homes
are built more quickly.
Another measure expected to be included in the Pre-Budget Report is giving
local authorities a share in the profits when they grant planning permission
for privately owned land.
Lenders continue to use tight criteria to decide who will — and will not — qualify for a home loan, so follow these tips
A golden oldie standing in the shadow of an 11th-century castle awaits discovery in Lewes, East Sussex,
The designer recalls his teenage years in a village near Milan, where he learnt the ropes of the family traditions
Eco furnishings now have syle as well as substance, thanks to a new breed of designers who recycle materials
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more




Cut your legal costs
Track your fitness goals together with other members
Essential reading whether you're buying, selling, improving or moving
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£23,093 - £56,211
The Office for National Statistics
Newport, South Wales
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.