Overload on the planning system
james36armstrong at hotmail.com
Wed Sep 26 09:38:27 BST 2007
Overload on the planning and mortgage systems.
£175 :the cost of a daisy patch before planning application
£56,250 :the same patch as a single building plot
£120,375 :the value to the bank after the mortgage of £56,250 is repaid over 25 years
another (£120,000 plus) :for the mortgage (and repayment ratio) for the house built on this site
(add repayments on 2nd mortgages taken out as house prices rise which total £565biliion nationally) compare with the current Public Sector Borrowing Requirement of £19.2 Billion for 2007.
multiply by 2, the growth of house prices over the past seven years. (and again in the next 7?)
increase this mortgage repayment debt as traditionally low interest rates climb.
multiply by 12million , the number of mortgages in UK
This financial construct is an incidental product of the present planning system which was not designed for that purpose and the predictable outcome of the explicit policy of Gordon Brown and the Bank of England in 1997 to 'growth in the economy' via the City financial sector fed by consumer debt based on rising house prices and High Street spending.
Rising house prices is the central economic policy lever of Gordon Brown, the Treasury, the Bank of England and the mpc.
It is also unsustainable (Lord Eddie George speech to Treasury Select Committee 20 Mar 07.)
It is unsupportable by the present planning system.
It is premised by the ownership by a handful of developers principally seven giant housebuilding corporations of virtually all permissioned land in UK.
And can only flourish in UK where two thirds of land in UK is controlled by 189,000 families.
Measures to extend house ownership have been explicit government policy in UK since 1980's
The construct needs amending at several points.
Upholding the competition law by punishing monopoly landbanking
Redirecting planning to address the needs of the house needy not those of the financial sector
And end rewarding landowners at the expense of vulnerable house needy people.
Measures to reduce the monopoly price charged for land for societal need for building houses
Regulating predatory and unlawful self attesting mortgage lending
Ending culpable regulatory failure by FSA and OFT
At a deeper level government ethics are questioned and constitutional reform suggested.
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