HC Deb 08 March 1972 vol 832 cc1429-31
14. Mr. H. Boardman

asked the Secretary of State for the Environment what estimate he has made of the effect on land prices generally of sale of land by auction.

Mr. Graham Page

It is not possible to assess the difference, if any, which auction sales make to the price of land generally.

Mr. Boardman

Is the Minister aware that the escalation of land prices at auction sales is probably greater than the escalation of prices of works of art? Will he consider a fair and practicable alternative to auction sales of land and ban such auctions?

Mr. Page

I do not think it would be possible to ban auction sales. It is the rare, exceptional auction which gets publicity about the increase in the price of land, but there is nothing to prove that auction sales generally increase the price of land.

26. Mr. Willey

asked the Secretary of State for the Environment whether he will make a further statement on the action he is taking to reduce land prices.

Mr. Graham Page

I would refer the right hon. Member to the answer which I gave him on 16th February. Land prices are related to the supply of land for development in particular locations and I will announce further initiatives when I have the results from the measures we have already taken to deal with the specific problems of areas of shortage.—[Vol. 831, c. 407–9.]

Mr. Wiley

Is the hon. Gentleman aware that according to figures published by his Department land prices were stable for the last 12 months of the Land Commission and during the last six months land prices were falling? Is he further aware that the same figures show that in the 12 months following the abolition of the Land Commission land prices have risen by 22 points? We all know that since then the increase has been steeper still. In view of this was it not absolutely scandalous to abolish betterment levy?

Mr. Page

The last six months of the Land Commission were the last six months of the previous Government. During that period the demand for houses dropped enormously. There was a complete slump in house building. The price went up because the demand increased during the first six months of the present Government.

Mr. James Hill

I am sure that my hon. Friend would like a constructive suggestion on this problem. Is it not true that most of the large developers stockpile land? Might it not be an advantage if planning authorities could do some long-term planning releases, thereby allowing developers not to sterilise and hoard land beyond their requirements?

Mr. Page

It is with this in view that conferences have been called under our regional controllers with developers, land owners and builders to see where the difficulties are and to identify them in terms of land availability. These conferences are having very good results.

Mr. Denis Howell

Is the hon. Gentleman aware that the price of land is now a great national scandal and that it was almost exactly two years ago that the Secretary of State promised to release more land and bring down the price? Is there the remotest possibility of that happening and, if so, when?

Mr. Page

Yes. As a result of circular 10/70 there are some interesting comprehensive development schemes coming forward. There is surplus land from the nationalised industries, especially British Railways, which has been brought forward. There are forms of partnership being investigated between local authorities, developers and landowners. There is the Action Group on London Housing. Through all these activities more land is coming forward. But the demand for it in certain areas as a result of the increased demand for housing under this Government is enormous.

Mr. Wiley

On a point of order. In view of the unsatisfactory nature of the Minister's answers, I beg to give notice that I shall seek to raise the matter on the Adjournment at the earliest opportunity.