Barker Review of Housing
Tony Gosling
tony at gaia.org
Mon Sep 1 14:33:06 BST 2003
Barker Review
Barker Review of Housing Supply,
1 Horse Guards Road
London SW1A 2HQ
A definition is required for 'Affordable Housing'
Houses already are 'affordable' if this means at £60,000 for a new 3 bed
dwelling. Many companies advertise kit houses around this price, conforming
to all the building regulations and thousands are erected annually in UK.
The cost of a typical house.
A sixth of an acre of agricultural land may cost £500. Materials for a 3
bedroomed house may cost £50-60,000, Contractors' labour costs perhaps
£15,000, yet houses costing £75,000 to build are selling for £250,000, &
£350,000
Examples cover the 70 hectares which formerly were the Poundbury and Middle
farms at Dorchester belonging to the Prince of Wales. The land received
planning permission for houses in 1991. Valued on 31st Jan at
£500 per acre,overnight it increased to £360,000 per acre. This is geared
up
again as houses designed for moneyed people are built so that the property
increases from a value of £500 per acre to £2.1 million per acre (see
Poundbury example at 6 dwellings per acre.)
The difference between the materials + construction cost and the selling
price is the site cost + the profit margin. The latter in turn is marked up
to be in line with the site cost.
Land Speculation and Monopoly
It is the aim of land speculators systematically to acquire the
agricultural land which surrounds every village, town and city in the
country. This process has virtually been completed in UK, leaving this
country with one of the biggest concentrations of land ownership and with
the most volatile and high house prices.
Land is always a monopoly: land is the only monopoly
This is known by every land holder but escapes the grasp of the Monopolies
Commisson as it does the general population, also landless.. He who owns a
field has 100% monopoly of that piece of land. Land is not interchangeable.
A village in Hertfordshire cannot expand into the Cheviot Hills.
The town planner, in trying to meet the growing needs of the community,
has no option but to allow expansion into land adjacent to the existing
town. Access to a field is 100% determined by the ownership of the adjacent
fields. The illogical anomaly exists that the Monopoly Commission is charged
with investigating the provision of goods and services but not of the only
true monopoly that of land. It could be argued that the provision of land,
rights of access etc are a service and therefore under the remit of the
Commission.
History of the people's commons and the House of Commons
In 1830's an unrepresentative Government enabled the exclusion of the
landless, that is the people, from the use of Common Land by sponsoring a
General Enclosure Act which enabled any land speculators with capital, by
fulfilling not-onerous conditions to privatise formerly Commons land and
acquire it as his property without purchase. History has absentmindedly
failed to record this National Revolution, that of the Landowning
Dictatorship (landownership was a qualification for voting for the
parliament) in a country which remembers the Peasant revolt of 1381
(These conditions were not temporary and in many instances the changed use
of that land to-day makes it questionable whether the present owner has
forfeited rights conferred by the Act.)
The rapid effect was to deprive the general population
of free access to the countryside, of building land, grazing, food
gathering and collection of fire making and building materials.
'Commons' were not comparable with present-day, often picturesque,
village greens used for recreation , but were the vital resource of rural
and therefore the generality of the people. Without the village common
even a small farmer could not survive since his plough team of oxen required
a vast common to provide otherwise non-existent pasture: commonless meant
firewoodless, rabbit pie less, timber less, herb less, nut less, medicine
less-
and for the widow,goose-less and goat-less, for some home-less and for
others life-less.
Thus the present land monopoly by the capital owners is not an ancient
relic of our history but a modern initiative of a priveleged elite
turning a natural resource to a private domain. (Read John Clare on the
enclosure of Helpstone Common)
This discriminatory social engineering has not been re-engineered by the
representative governments which followed the Reform Act of the nineteenth
century and the womens' franchise act which is as recent as 1918.
The present land ownership pattern has the benefit of neither an ancient
lineage or modern utility It is not equitable, sanctioned by democratic
aclaim nor is it immutable.
It has a baleful effect on everything surrounding the building of houses .-
type of houses built (e.g. middle class estates) who builds the houses
(Large construction companies), who owns the land (investment corporations,
insurance companies, plc's,
all accessing public capital ) also the
inheritors of the priveleged political class and crucially it effects the
selling price of the resulting restricted supply of houses. All are
effected detrimentally by this monopoly. The result is that the price of
houses is determined not by the cost of building but the monopoly of actual
and potential building land.
Firstly the restriction of the supply drives up the price.
The second factor driving up the price of houses is the consequent
speculation in the price of land treated as a commodity not a natural
resource
The third factor is speculation in the rising price of existing houses.
The fourth factor is the rising demand for houses from an increasing
constituency of would- be home makers. This is a minor factor compared
with (2) and (3)
A fifth factor is any restrictions on the granting of planning permission.
A sixth factor is the acquisition of second homes, some for renting out.
The six elements above have different constituencies.
Different value judgements can be attached to these factors.
Different measures can be taken to relieve these pressures as appropriate.
The resulting anomaly
It is the central concern of the tiny minority who own the land of Britain
, and are insulated from housing needs to seek to benefit from the needs of
the majority who have need of housing. The people's need generates the
value of all the houses and the tiny minority owning land feed on this need.
Why should the Prince of Wales cause houses to be built to sell at £350,000
each?
Because the geared-up price of land is out of the reach of those living on
income and is available only to those with substantial capital , self build
housing remains , in UK, the solution of a tiny minority. In other
countries
it is a viable option which many take advantage of to solve their housing
needs. Historically in Britain it was and world wide it is the preferred
means of solving housing needs. Not th eleast reason is that the labour cost
of a self build house is nil and the profit mark up is equally attractive.
An incidental result of land cost being out of reach of income earmers is to
drive them into the arms of the banks, building societies and money lenders.
Interest payments dictate building quickly and militate against part time
builders and if the site cost does not prove an insurmountable obstacle, it
will prove impossible to build in one's spare time with the interest
payments dictating quick completion
Popular myths about house building
'There is a shortage of land' Anyone who has driven to Edinburgh from
London must see that there are miles and miles of unpopulated land and also
unproductive land..
Britain is 'overcrowded' To anyone who has seen the intensive use of
agricultural land in Indonesia or the Himalayan kingdoms , Britain seems
underused and largely deserted.
'Brown field sites are preferable' These are not necessarily preferable to
green field sites. To city dwellers deprived of fresh air , green vistas and
recreation space a vacant city site is of more utility as a green lung- park
or recreation ground than is the equivalent area to the world at large in a
rural location. Thousands of acres of farm land are unproductive and
expensively maintained as 'set aside land' on which no crops can be grown.
'Changing the status quo' is 'Social Engineering'
The Enclosure Acts were anti social Social Engineering, and Social
Engineering by an unrepresentative government. The Factory Acts,
The Town and Country Planning Acts , the Education Acts, the National
Insurance Acts and the National Service Acts etc were Social Engineering.
Britain needs its farmland for national security and self sufficiency.
Britain is not nor ever has been self sufficient in food. It is not valid
both to seek national security by joining EC and through ring fencing 'farm'
land from other development.
Before we acknowledge self sufficiency in food as a national target we
should query the advisability of importing out of season vegetables and
exotic fruits and basic foods from abroad- potatoes from Cyprus and mutton
from New Zealand. CAP pays farmers not to grow food on hundreds of
thousands of acres. CAP pays farmers to grow non food crops. Intervention
Board destroys tons of food annually. We grow and fish £billions for our
pets.
"HMG will, can, should, create full employment" In a no- longer industrial
society? The farmers stole (and steal) employment when they dismissed
agricultural workers in their hundreds of thousands, and intensified
ploughing,drilling, spraying and harvesting,into the work typically, of one
tractor driver servicing hundreds of acres. Whilst clinging unproductively
to land no longer needed for food production, and all this at public
expense.
The farmers banished their best customers when they banished the
farmworkers and delivered themselves into the hands of the supermarkets.
Farmers now, encouraged by the government, are misusing the land as
un-needed golfcourses, dirt tracks for off road vehicles,riding trails,and
any other money making activity, maintaining their priveleged position
accessing public money as agriculturalists and bolstering the land monopoly
and incidentally despoiling the landscape with jerry built industrial
prefabricated buildings.
The present blighted housing landscape.
The present land regime which delivers housing provision into the hands of
highly capitalised ,profit motivated construction companies and determines
the character of the new houses we see built will meet the ability to borrow
of the middle classes not the needs of those with the worst or no
housing. Architecturally vacuous housing schemes,'estates' of predictable
brick houses built on postage stamp plots, in segregated car owning
communities, with no acknowledgement of the local vernacular in variety,
size, style or materials such housing blights the countryside.
The possibility is to free the imagination, experience, personality and
ingenuity of individual self builders. This is the way that the countryside
we know and respect was formed. What possible objection could there be to
reproducing the parks, village green, high street, 'shambles' etc of Saffron
Walden in Essex, creating another Abbottsbury in the countryside of Dorset
or a reproduction of Swanston village on the south of the Pentland hills of
Scotland?- in all of them allowing the spontanaity of size, materials,and
type which give our countryside and its regions their character This
could be done by radically relaxed planning restrictions and greatly
increasing building regulations.
The Great Wens
Large cities, especially metropoli are a very recent innovation. They were
a response to driving people off the land under the Enclosure Acts of the
1800's and the simultaneous onset of the Industrial Revolution requiring
large work forces living adjacent to manufactories. There are many reasons
to believe that Cities are redundant.
Increased motor car use and parking in streets not designed for them, the
saturation of car ownership ,air pollution, street crime, disease, and the
pressure on public services, and the concomitant sucking in of commuters ,
the attraction there of immigrants
Many factors suggest that cities are redundant, their structure crumbling
and their original role has died along with our industrial past and that
future trends will make city life intolerable.
The unthinking , uncritical apathy by HMG at the concentration of
population in the Souith East and in cities in general, fuels the demand for
housing in that area and suffers from the dearth of land to meet the
expansion needs of the concentrated population. Trying to meet these needs
in the South East is self defeating as it further increases the problem of
the growth of the city exacerbating the anomalies.
The location of the seat of government attracts population increase.
There is every reason to locate the administrative centre of national
government out of London. The South East of England is overcrowded.
The restriction on the individual's right to solve his housing needs by self
build can be seen as a restriction on his human rights. It can also be
viewed
as an illogical anomaly in a government which aspires to increasing
employment. Self build offers a means of giving useful employment to those
who need it, increasing the housing stock and providing houses at the lowest
possible cost.
Fiscal measures to discourage speculation in land , to encourage self
building, discourage speculation in house prices,
the Relocation of central government,
Liberalised Planning laws and toughened up building regulations
Reduction of CAP grants fueling land rents and returns,
Repeal of the discriminatory Enclosure Acts and revision in the light of
the demonstrably redundant need for enclosing marginal land
HMG have an important educative and informative role in exposing the
monopoly of the predatory land speculators, in encouraging design of
traditional local building designs and town plans. The reference of land
transactions to the Monopolies Commission is among the steps which are
needed .
A misinformation campaign by the land lobby.
Highly interested land monopolists constitute perhaps the most effective,
organised, vocal and professional lobby which influences both the government
and the media. This includes NFU, CLA and CPRE. The farmers who despoil
the landscape with prefabricated buildings, pollute the streams with
effluent and the air with chemical sprays proclaim themselves providers of
"Beautiful countryside care of British farmers." CLA spokesmen, typically
poorly educated and unqualified regularly claim themselves self appointed
'guardianship of the countryside' . Farmers to-day claim that they (not the
boys who gathered stones for sixpence a week or the Tolpuddle Martyrs who
refused to reduce their wages below sixpence per day, they the farmers 'made
the countryside' we love to-day (conveniently forgetting alike the Anglo
Saxon deforesters and the Middle European labour gangs, and that the miles
of hedges planted 100 years ago have been ripped out within our lifetime.
'Safeguarding the countryside' also includes shooting things that dig,
crawl or fly and when it is convenient ploughing up stone age barrows and
sensitive scientific habitats.
This puts a responsibility on HMG to inform the public in general how the
privileges accorded to land holders are being respected.
Royal Institute of Town
Planners Evidence reviewed
Without a reappraisal of the present provision of house building the
'crisis' will not be avoided.
The replacement of National highly capitalised Building contractors by the
self buld builder solving his own housing needs locally as the main
provider of houses should be the aim of the Housing Minister.
It is symptomatic of the 'crisis' that the actual and potential
most important builders of houses , historically and in other countries
contemporarily , and the most highly motivated,i.e. the self-build house a
builder is not mentioned in the RTPI evidence.
Reduction of the price of land offers the most scope for reduction in house
prices. ) that land costs are rising while actual construction costs and
materials are falling due to improved mechanisation , standardisation and
technical improvements, makes discussion of 'housebuilding',' affordable
housing', 'social housing' , without addressing this 'motor' which leads the
housing 'drive' misdirected.
There are reasons to believe that the Chancellor of the Excqueqer's terms to
the review misunderstands the nature of the problem.
The writer's experience of house building is of the self-builder. Having
financed, site-located, designed, planned, drafted, costed and part built,
part contracted out a house in London's Muswell Hill, lived in it as home
and later sold it. CAP is one of the biggest single influences making land
a 'market' and therefore putting in 'the market' the cost of land for
housing.I understand the CAP regime. I am also an environmentalist and
professional nature guide. I take an active and I would say informed role in
campaigning for review of the land monopoly.
Self-build along with ending the land monopoly can provide all the housing
needed by the population, provide unlimited self employment, disperse house
building and congestion, reduce commuting and pressure on rail and road
networks and absolutely reduce the price of the self build house and deflate
the artificial boom in the price of the existing house stock.
The valid point made by the RTPI submission is that housing provision rests
on political considerations. RTPI fails to recognise that the political
decisions of the unrepresentative nineteenth century legislators need to be
reversed by HMG now, starting with the repeal of the Enclosure Acts t put a
large reserve of land back in the public domain. Such a reserve of land will
devalue the land hoard of the speculators and deflate speculation. A land
policy is needed motivated by the needs of the sufferers of the housing
crisis not the traditional elite who at present can manipulate the price and
therefore the supply of land.
This justifies the employment of the doctrine of 'Eminent Domain' in order
to
Realign the resource of land to meet the human needs and rights of the
people of Britain.
With respect, the Review, without taking into account this standpoint , is ,
like the evidence of the RTPI ,unlikely to effect the "crisis" or even
understand the issues.
james Armstrong
References
Marion Shoard 'This Land is Ours'
Henry George 'Land Tax'
Dorchester County Council, Planning dept. 'Town Plan , April, 2003'
John Clare "Remembrances"
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