land tenure 

Land for new green towns, and often new green quarters, is usually brought into public ownership, either by agreement or under compulsory purchase powers. The route is:

This method:

As the ground rents will continually rise with inflation, they are a reliable source of future income against which, even before they become payable, the development corporation can borrow.

Although ConnectedCities prefers the above approach, the principles of which were at the core of Howard’s original thinking, there are similar methods which have been proposed. Co-operative Land Banks (CLBs) own the land, and their shares are distributed to residents pro-rata to the area occupied by their dwelling. Ownership in a dwelling or commercial building takes the form of shares in the CLB and a transferable lease from the CLB. Leases on dwellings are perpetual. Those for other buildings are time-limited.

Residents gain equity in the entire site, not just the area occupied by their dwelling.

The CLB is a company with shares, but there is one vote per resident no matter how many shares they may hold. ‘Pioneer’ homebuyers are issued their share gratis. Later buyers purchase the dwelling from the previous owner and the shares for the land from the CLB.

Land values and their attribution within a new green town.

If the land is removed from the equation builders are no longer competing on how much they will pay for it. Instead they are competing on how attractive a product they can offer for the money which the house purchaser has available after paying land rent.

The value of a house in the open freehold market system consists of two elements: land and building. The person who is prepared to pay most for the land gets to build the house. But since the package of land and house together has a fixed value determined by how much potential purchasers can afford, the person who has paid the most for the land has to build the cheapest house.