HC Deb 09 February 1960 vol 617 cc212-3
17. Mr. A. Henderson

asked the Minister of Housing and Local Government and Minister for Welsh Affairs whether his attention has been called to the effect of the Town and Country Planning Act, 1959, upon the purchase price of land; and what steps he proposes to take to enable local authorities to purchase land for housing purposes at reasonable prices.

Mr. H. Brooke

As I understand it, the right hon. and learned Gentleman is suggesting that local authorities should not pay the market value for land which they purchase for housing purposes. But it was a principal objective of the Town and Country Planning Act, 1959, to substitute this just requirement for the previous formula under which an owner might receive compensation well below the market value of the land.

Mr. Henderson

Is the Minister aware that, in 1955, twenty acres of land required by the Rowley Regis Borough Council for housing was valued by the district valuer at £5,000, and that, in November of last year, it was valued for the same purpose at £48,000? Does not the Minister consider that this will have a crippling effect on the efforts of local authorities, not only to provide housing, but to provide playing fields for the country's youth?

Mr. Brooke

I could not make any comment on the case quoted by the right hon. and learned Gentleman without knowing the full circumstances and, in particular, without knowing whether any new planning permission in the interval had affected the value.

Mr. M. Stewart

Although the case quoted by my right hon. and learned Friend the Member for Rowley Regis and Tipton (Mr. A. Henderson) is particularly striking, is the right hon. Gentleman aware that it is only an example of a general tendency throughout the country that is worrying a great many local authorities and has been commented on in responsible journals? Will he look at this again?

Mr. Brooke

I hope that the hon. Gentleman does not wish to go back on the 1959 Act, which established market value as the basis for compensation. I roust say that, as long as we hold to green belts, land in their neighbourhood that is available for building is bound to rise in value.

Mr. Henderson

But will not the right hon. Gentleman look into this question again? Is he aware of another case in Dunstable, where the local council paid £225,000 for 24 acres of ground required for open space and for playing fields? How, in those circumstances, does he expect local authorities to carry out their obligations to the community?

Mr. Brooke

I am glad to say that the local authority associations themselves accepted that local authorities should pay the market value when they are acquiring land. For most local authorities, and certainly as regards housing, which is the most important local authority function, the price of the land is only a small fraction of the cost of the houses.