HC Deb 20 February 1968 vol 759 cc225-6
29. Mr. Rossi

asked the Minister of Housing and Local Government what increase in land prices has taken place since 6th April, 1967; and what effect the starting of the betterment levy has had an those prices.

Mr. MacDermot

Recent prices in the land market have not shown a constant pattern and it will be some time before a firm judgment can be made on trends in 1967. The figures so far available suggest that the average increase for the year 1967 seems likely to be lower than in recent years.

My right hon. Friend has asked the Land Commission to use their acquisition powers if there is evidence of landowners trying to pass on the levy in increased prices.

Mr. Rossi

From what source does the Minister of State derive his information, because the professional information appears to indicate a 20 per cent. increase in the cost of land based on pre-levy prices? This is the professional information as shown, for example, in the Financial Times which, in detailed terms, means an increase of £200 in the cost of a three-bedroomed house as a result of the levy?

Mr. MacDermot

The information comes from a wide variety of sources and includes the reporting of transactions to the Inland Revenue. I assure the hon. Gentleman that the figures that he is quoting are very wide of the mark and very wide of the figures to which I have referred. It is too early for me to try to give any firm figure, but I assure the House that the indications are that there will be a substantial drop in the rate of growth.

Mr. Frank Allaun

Is my right hon. Friend aware of the feeling that the big landowners, their lawyers, surveyors and political spokesmen will succeed somehow in circumventing the intentions of the Act and that more drastic action is needed to deal with the land racket?

Mr. MacDermot

I hope that any hon. Members who have evidence to suggest that the levy is being passed on in increased prices will report these matters to the Land Commission.

Mr. Rossi

On a point of order. In view of the unsatisfactory nature of the reply, I beg to give notice that I wish to raise the matter on the Adjournment at the earliest possible moment.