If I was a land owner - what incentive would I have to submit my land to a 'community land auction'?
In effect hand over the economic planning gain to the public sector?
Surely the economically sensible idea is the *share* the planning gain with the seller and so incentivise them to submit land to auction. Exact split tbd but maybe the seller should gain 50%. If the public sector gains 50% then that is surely far better than 0%? The public sctor should streamline the planning process and make it easy and quick for the land seller in return for their economic gain.
If not then why bother? If the land is valuable submit it for planning on the local development plan and capture the planning gain for yourself?
Where I live there are famers sat on very valuable parcels of land that will have a enormous planning gain when sold for development and they are banking them. This land was on the local development plan and for murky reasons was removed......
Issue is how to balance the economic incentives to encourage land owners to 'sell' but not to create a conflict of interest between the state and the land owners.
I think Sam's wording at points is just slightly brief where he says council is getting the planning gain. Really it is more like the land owner and council are negotiating a mutually agreeable split through the auction process.
Hi Sam
If I was a land owner - what incentive would I have to submit my land to a 'community land auction'?
In effect hand over the economic planning gain to the public sector?
Surely the economically sensible idea is the *share* the planning gain with the seller and so incentivise them to submit land to auction. Exact split tbd but maybe the seller should gain 50%. If the public sector gains 50% then that is surely far better than 0%? The public sctor should streamline the planning process and make it easy and quick for the land seller in return for their economic gain.
If not then why bother? If the land is valuable submit it for planning on the local development plan and capture the planning gain for yourself?
Where I live there are famers sat on very valuable parcels of land that will have a enormous planning gain when sold for development and they are banking them. This land was on the local development plan and for murky reasons was removed......
You can submit your bid at high value of course.
But, planning won't be neutral here so if your parcel isn't picked then you just won't get permission.
Issue is how to balance the economic incentives to encourage land owners to 'sell' but not to create a conflict of interest between the state and the land owners.
I think Sam's wording at points is just slightly brief where he says council is getting the planning gain. Really it is more like the land owner and council are negotiating a mutually agreeable split through the auction process.