The Haringey Development Vehicle is a disaster in the making Councillors you should drop it like a hot potato.

4 March 2017

To Labour Councillors of the London Borough of Haringey

The Haringey Development Vehicle is a disaster in the making you should drop it like a hot potato. 

There is no future for the residents of Haringey in supporting a failed UK housing regime, through the Haringey Development Vehicle (HDV). The UK housing regime has, since the 1979 government, profited the rich and powerful land owners, and the national and international property speculators, at a huge cost to the majority of UK households in bailing out the banks and tax lost to overseas tax-free banks. You are forcing council tenants and leaseholders into that disastrous legacy.

The HDV is a disaster in the making and you should drop it like a hot potato. That is because it is market centered not people centered. It takes land on which the poorest taxpayers of the borough live in order to make it available to richer people. It puts land currently free to the council into a chaotic London housing market already in crisis. It will make the 42% of land owning home owners and landlords in the borough richer and the 58% of landless tenants of all tenures poorer. That is because there is no definition of affordable rents in the UK related to the costs of the human needs for shelter, food, fuel clothes and other necessities. The cost of housing depends on the tyranny of the market dominated by national and international speculators like Lend Lease who are sucking the wealth of the UK out of the country into their tax havens. 

Last week some students of journalism asked what the Leader of the Council thought about of Lend Lease paying $56 million to avoid prosecution for corruption in the US and parking profits tax free in the Channel Islands; the leader of the council replied "I know they are not perfect".  To want to build more homes is obviously a priority for all politicians but not at any price and certainly not at the market price Haringey residents who are council tenants or lease holders are being forced to pay. 

The current market driven London housing crisis can only end in tears for the majority and take the HDV with it. The way forward for all Haringey residents is to drop the HDV and to support the Mayor of London who is exploring the Land Value Tax (LVT) and the dropping of other inefficient taxes. The LVT has two powerful advantages over the present regime. 

  • It forces empty property and unused land into use for work and homes. There are an estimated 57,000 empty properties in London, 600,000 unused plots of land owned by the four big builders in the UK and record numbers of evictions recorded by the Ministry of Justice.
  • Land cannot be put into an overseas tax-free bank. 

Please read the website of Harrisberg Pensylvania to see how well LVT works. 

With good wishes, 

Rev Paul Nicolson, 

Tottenham N17