Tax Plot Sales
Following the recommendations made in the Barker report, the chancellor, Gordon Brown, has called for a consultation into landowners selling plots to housebuilders to be taxed on profits.
The report recommends that tax paid on the profits should be invested into local communities.
It is hoped these measures ease the NIMBY tendency to oppose all forms of new development, preventing new homes being built.
Between 70,000 and 120,000 extra homes need to be built in England alone each year, in addition to the current figure of 125,000, to reduce house price inflation.
Ms Barker, also made calls for the planning system to be simplified and speeded up, with the councillors having less power to intervene in decisions.
The issue of land supply was highlighted as a major problem. Local authorities have been called to identify more land for development, including 20 to 40% more than that required. This would provide a land bank readily available should house prices in the area rise too quickly.
Regional planning bodies should set the affordability threshold, beyon which would trigger the release of the land.
Councils would be provided with the necessary funds to improve facilities for residents in the development areas.
Permission to develop is the catalyst for a dramatic rise in values, driving up the price of a hectare of land in the North from £7,500 to £1.2m.
The report also recommends that councils should charge higher tax on second homes.
