CPT 857 Planning and Real Estate Role of the Public Sector

1. CPT 857Planning and Real EstateRole of the Public Sector Dr Frances Plimmer f.plimmer@btinternet.com

2. Contents: • Public Ownership; • Direct Public Influence; • Indirect Public Influence • Planning; • Taxation; • Compulsory Acquisition.

3. Public Ownership • Owned on behalf of Community; • Concept of Stewardship; • Can comprise: • All land; • Land used for public purposes (roads); • Land used for Community purposes (library); • Land used for Government purposes (courts) • Land used for quasi-government purposes (British Telecom; Vodaphone?).

4. Public Authorities • Central Government / State; • Regional Bodies e.g. Health Boards; • Local Authorities / Municipalities; • Parish / Community Councils etc; • QANGOs (non-departmental public bodies); • Private Bodies with Legislative Powers e.g. Oil Companies.

5. Private Rights • Tort – Freedom from Civil Wrong e.g. • Negligence (Duty of Care); • Nuisance; • Trespass; • Occupiers’ Liability. • Contract – Private rights e.g. • Boundary walls; • Right of Light; • Right of Access.

6. Direct Public Influence • Government Legislation and Policies: • Security; • Economic; • Transport; • Housing; • Education; etc. • Provides legislative framework; • Provides policy statements for responsible authorities;

7. Land Registers / Cadastres; • Records land etc. transactions; • Limitations on Land Ownership; • National Planning Policies; • Transport issues – public and private; • Building Regulations; • Health Controls; • Human Rights Policies; • Conservation / Preservation;

8. Judiciary; • Devolution; • Subsidiarity; • Grants, subsidies; • Shapes the “what”, “where” and “when” of: • Demand in market; • Supply in market; • Extracts revenue from property; • Engages with Private Sector to offset government obligations.

9. International Influences • IFRS (Financial Reporting Standards); • IVS (International Valuation Standards); • ISO e.g. 14001 – EMS; • Global Economic Situation; • Climate Change / Sustainability; • EU Influences e.g. • VAT; • Basel II; • Land Fill Directive.

10. Options: Do anything which is not against the law Do only that which is permitted in law Cultural Differences affect law and practice

11. Indirect Public Influence • Taxation of transactions; • Compulsory registration of land / title; • Controls over money supply; • Land use planning; • Consultation process; • Environmental protection; • Provision of infrastructure; • Regulation of professions etc.

12. Pattern of Public Ownership • Varies globally; • Should reflect needs etc of community; • Consider: • Traditional; • Collective; • Economic purposes. • Individual owners’ decisions; • Compulsory Acquisition - Expropriation.

13. Planning / Zoning • Central Government Strategic Policy; • Local Government Implementation: • Plans; • Policy Statements; • Decisions on applications; • Appeal to Secretary of State. • Highest and Best Use (habu); • Reactive rather than Proactive in UK.

14. Building etc Regulations • Construction; • Heath and Safety; • Minimum Standards; • Recommended Solutions; • Varied across the UK; • Nationally set; locally implemented.

15. Taxation • EU Law – VAT; • Central Government Legislation; • Central or Local Government Implementation; • Agencies: • HM Revenue & Customs; • Local Authorities.

16. Acquisition; Award of Planning Permission; Betterment; Development / Redevelopment; Disposal of Materials; Improvements; Transactions; During Ownership: Bare Land Occupation; Empty Property; Lettings: Sub-letting; Assignment; Investment; Disposal. Taxation on:

17. General Taxes: VAT; Income Tax / Corporation Tax; CGT; IHT. Property-Specific: Capital Allowances; Stamp Duty / SDLT; Land Fill Taxes; Planning Fees; Transport Tax; Betterment Tax; CIL; Rates / Council Tax. Major Property Taxes

18. Compulsory Acquisition • Taking of land rights for “public good”; • Authorised by Government / State; • Acquiring Authority – ultra vires; • (Re) Development by: • Public; or • Private sector; • Compensation should be payable; • Statutory process, rights, appeal etc.

19. UK Legislation • Powers to agencies; • Specifies purposes; • Process; • Authorised Compulsion; • Rights to Compensation; • Identifies land to be taken.

20. Compulsory Acquisition • Balances Needs of Community against Rights of the Individual; • Politically sensitive; • Culturally unacceptable; • Expensive; • Lengthy processes; • Complex procedures / processes; • Rights transferred to Compensation; • Limited Public comprehension; • Professional advice expensive.

21. Compensation • Essential recompense for loss of land rights; • Must exist in Legislation; • Rarely adequate: • “Fair”; • “Just”; • “No more and no less than loss”; • “Market value”; • Land may be given in exchange; • Balance struck between taxpayer and claimant.

22. Compensation • Land taken; • Injurious affection – depreciation in value: • Severance; • Existence of new works; • Other losses (Disturbance): • Loss of profits; • Removal costs; • Fixtures and Fittings; • Fees etc.

23. Limitations in UK • Betterment set-off; • Limited loss where no land is taken; • “Market Value” reflects “no scheme” world; • Need for comparable market evidence.

24. Alternatives • Purchase by agreement (legislation necessary); • Land Consolidation / Adjustment; • Land Banking (LAW); • Land Swop; • Pre-emption Rights.

25. Bibliography • Williamson, I, Enemark, S, Wallace, J, Rajabifard A (2010) Land Administration for Sustainable Development. Redlands Ca: ESRI.