§ 14. Mr. Gibsonasked the Minister of Housing and Local Government if he is aware that land prices have, in some cases, trebled since the abolition of the development charge; and what steps he proposes to take to stop such practices.
§ Mr. H. MacmillanI have very little evidence that unreasonable prices are being asked for land. It is to be remembered that vendors can no longer expect anything from the £300 million fund and that developers no longer have to pay development charge; some increase in price may therefore be justified in some cases.
As regards the second part of the Question, I would refer the hon. Member to paragraphs 37 and 38 of Command Paper 8699; and to the powers which housing authorities are already exercising to make land available to private housebuilders.
§ Mr. GibsonThat circular does not in the least deal with the problem. Is the Minister aware that I have an instance of a group of self-help builders who negotiated for a piece of land in Surrey at a price of £3,700 and immediately the development charge was abolished the price jumped to £11,000? Does he regard that as reasonable, and in view of the fact that it is three times the original price, and therefore cannot include a development charge which surely would not be 300 per cent., does he not think it necessary for the Government to take some steps in the matter?
§ Mr. MacmillanWithout knowing what was the claim on the fund and, therefore, the difference between the existing use value and the total value, I could not answer, but the hon. Gentleman and his hon. Friends have a remedy, because they are still in time to vote against the Third Reading of the Bill which will abolish the development charge.