Wouldn't LVT encourage overdevelopment?

Monday, 01 December 2008 19:11
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Nobody is proposing that the planning system be abolished, and planning control is a major constraint on tall buildings. But it is the lack of a land value tax that leads to persistent attempts to put up tall buildings, often in unsuitable locations with poor access. This is because so much land is underused or unused, that an artificial shortage is created which makes it economically viable to over-develop land. In reality the demand for housing and office space is not infinite but constrained by population size, transport access, etc. Nobody would want to put up an office block out in the middle of nowhere if there was an ample supply of premises in central locations.
 

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