New development tax will restrict regeneration: Savills

March 9, 2004
Any new development land taxes arising from the Barker Review will severely bottle-neck development, FPD Savills head of research Yolande Barnes has warned today. "We are concerned with the onus falling very much on the deliverers of regeneration, in the belief that the costs of a tax will be translated to future landowners through the actions of the market. "But because of increasing costs at the development stage, long term funding issues are growing and a new tax would increase lead times even further. So measures designed to increase supply could lead to brakes on development sites," said Barnes. "Instead we need to look at decreasing costs and risks at that stage. Shifting taxes from developers to the landowner who benefits might be a way of achieving this."

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