an assembly can stop the landscam

[james armstrong]

THE LAND UNDERNEATH YOUR HOUSE (if you have one) COSTS YOU £62,500
THIS IS HIDDEN WITHIN THE ASKING PRICE OF YOUR HOUSE.
  Government guide-lines cram  20 houses to the acre. As prime farmland at 
£3,500 per acre the site cost would work out at £175 per house .  Once the 
price has jumped to £1,250,000 per acre (the current planning gain for the 
landowner) each house has £62,500 worth of land under the foundations, 
garden  & driveway. The monopoly element in your mortgage pays for this 
windfall. This part of your mortgage repayments  costs £440.20 per month. 
WHEN MORTGAGING YOUR HOUSE,  THE CORNER OF THE FIELD  WHICH THE FARMER 
VALUES AT £175  AND FOR WHICH THE LANDOWNER RECEIVED £62,500, COSTS THE 
MORTGAGE PAYER £133,125 BEFORE HE HAS PAID IT BACK 25 YRS LATER
Here's how- You might say the first £62,500- goes to pay for the land under 
the house. At 7.25 %APR over 25 years  for every £1 you borrow you pay back 
over the  life of the mortgage, £2.13 in repayments and interest. ( figures 
from a Halifax BS quotation in 2007) By then you have paid £133,125 for the 
same land valued at   £175  as cow pasture.   There is then a potential 
saving of £101 per week on your mortgage if you and we combine to stop the 
windfall gains going to landowners  and enable land to be used for houses at 
the same £ rate as for grazing cows.
Next we have got to enable housebuyers to use this land , not landowners to 
hoard it, nor building societies to exploit it to boost  interest incomes 
and  setting up fees, surveyors fees, conveyancing fees and cancellation 
fees.   For £175 the houseowner can have the life time's use of the land on 
which his house is to be built. At this  low £175 'one off ' charge  for 
land use  obtainable from the Land Holding Trust, the mortgage lender can 
concentrate on advancing  money for the houses themselves.  The nation has 
no responsibility for supporting the banks' hidden £13billion housing  land 
monopoly mortgage  scam and housebuyers have little inclination  to be 
further exploited. Exploitation of people by means of the  land is long  
established in history.The House of Lords cemented this exploitation within  
the constitution. It is therefore appropriate now to  safeguard the land 
from future exploitation by replacing the House of Lords by the Assembly of 
the
People, charged with safeguarding  people from being exploited by means of 
land ownership -especially  building land ownership-  monopoly  ---which 
certainly has more authenticity in a democracy.
THE MORTGAGE LENDERS  £7billion MONOPOLY TAKE
For every 100,000 houses built at the extraordinary land price, from the  
inflated windfall gains for purchasing  the land alone, or rewarding the 
hoarders, mortgage lenders receive  100,000 times  £133,000.
This is £13,300 million or something over £13billion.   If the land was sold 
at farmland prices this income would disappear since every sane housebuyer 
would pay a 'one off '  payment of £175.to use  the land underneath his 
house.  For the  100,000 houses at the alternative  lower  land value the 
comparison would be £17,500,000 - something over £17million (not £billion) - 
  approximately 1,000 times cheaper than at present. A net and unnecessary  
addition of £7 billion  goes  to the lenders  in addition to the landowners' 
already unnecessary windfall of £6 billion for the land for each  100,000 
houses. By the time the builders have added their profit margin (usually 
inflated by their monopoly of supply ) and their positioning of the new 
houses to the more affluent end of the market -result? a housing crisis  on 
three levels.  Unquantifiable personal  distress. Unacceptable social  
divisiveness between haves and have nots..  Obscene wealth accumulation in 
the City (explaining the  £19 billion  Christmas bonuses) An example from 
personal experience: A house I  'self-built' in north London in 1985 for 
£55,000 and subsequently sold,  is now on the market for £550,000. This 
quantification  of the crisis outweighs even  the hysterical press hype. 
These scams explain the shortage of houses supplied. Freeing people's lives 
from this burden of mortgage repayments would release domestic 
entrepeneurial  energy now stifled by the City. The Landowners' windfall and 
the mortgage lenders income from the inflated site cost depends on 
maintaining monopoly  conditions within the market for new houses.  Barker 
confirms it exists- split between only seven giant corporate builders. They 
depend on rising prices, short supply and (which the report fails to note) 
restricting entry of potential self- builders.   Given the restrictive 
nature of the  planning laws- and the restrictive distribution of the 
ownership of  land in Britain "Is there doubt about the cause of the 
crisis?" Landowners, mortgage lenders, and national builders  benefit from 
the restricted supply of building land.  The Bank of England MPC guides and  
control the economy. They also  benefit from the rise in house prices.- even 
10% annual inflation of the housing pound does not affect the sterling 
exchange rate which in the past has caused governments to fall.END  ' 
Housing articles,  The land costs £62,500' 832 words

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