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August 19, 2006

Timmy Elsewhere

Something at the ASI on the new Tory plans for selling off social housing.

August 19, 2006 in The Blogger Himself | Permalink

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Comments

"Given that, in the south, where the shortages are most severe, the vast majority of the value of a house is in fact the permission to build it"

What are you basing that on?

Tim adds: Come along Jim. What’s the price of agricultural land? What’s the price of land with building permission? What’s the cost of constructing a house? Some little Barratt’s shoebox costs less than 100 k to build and sells for over 200k. It’s the land with planning permission that costs the money.

Posted by: Jim | Aug 19, 2006 10:39:39 AM

So why does land with planning permission in London cost five times land with planning permission in the North East? I'm not denying planning permission doesn't increase the value of land - obviously it does - I just think even if all land was developable housing in highly desirable locations would still cost much more.

Posted by: Jim | Aug 19, 2006 11:32:33 AM

Jim,

Have you thought about why London is a "highly desirable location"?

Follow the trail of money from a company in London, and you'll get back to government in the end.

There are very few cases where a businessman in the sticks would hire a supplier in London - they're too expensive.

Posted by: Tim Almond | Aug 19, 2006 11:05:15 PM

"Have you thought about why London is a "highly desirable location"?"

Yes, it's because that's where the jobs, services and amenities are. If that's all down to the government (which I think is self-evidently untrue, but let's play along with it for a minute), then presumably you'll be asking for more government spending in other areas to drag their economies up too.

Tim adds: London’s expensive because of the green belt. A wonderful subsidy to landlords in central London that is.

Posted by: Jim | Aug 20, 2006 11:14:06 AM

"London’s expensive because of the green belt."

Other parts of England have a green belt as well but aren't as expensive. Why?

Posted by: Jim | Aug 20, 2006 11:54:50 AM

Jim,

"presumably you'll be asking for more government spending in other areas to drag their economies up too"

No, the opposite. Cut the size of government, give the money back to the people and see more jobs created organically from the wealth in peoples pockets.

Posted by: Tim Almond | Aug 20, 2006 2:21:18 PM