THE NEW TOWNS

)3

6. WHO IS TO OWN NEW TOWNS?

The way in which New Towns are to be disposed of by the Development
Corporations still lies in the future, perhaps ten, fifteen or even twenty years
from now. That, at least, was the original intention, though some Conservative
 interests have privately discussed the idea that parts of them should be
sold off to private investment trusts in order more speedily to recoup some
of the capital outlay. Such a move, if seriously proposed, should be
strenuously resisted. There is no case for it whatsoever.

Sale of Freeholds

Yet some small steps have already been made in that direction. The
Development Corporation, it was intended, should be the main ground landlord,
 disposing of land and property only on long leases. This would permit
it to retain the development value of its properties, and retain substantial
planning rights. Since the Conservative Government took office, and since
it has been putting considerable pressure on the Corporation boards for
quick and cheap results, there has been a growing tendency to dispose of
frecholds. While this may not be so serious a matter where it affects private
residential property, provided that the frecholds are in a special area, it is
a different matter where shops and industrial premises are concerned,
especially shops in the town and neighbourhood centres. The value of these
sites will grow rapidly as the New Town approaches maturity; yet speculative
 interests are being permitted to gain a footing in a number of towns and
become, in exchange for undertaking some part of the development cost,
ground landlords themselves.
What this may mean can be simply illustrated. Suppose a multiple
store is sold a building site in the town centre. It may erect its own store,
and use part of the site for smaller premises that it lets on lease. In ten
years time, that site and the buildings on it may have doubled or trebled in
value—an increase that accrues to. the freeholder. If the freeholder sells
then, he has made a capital profit; if, for any reason, the Development
Corporation, or its successor in title, needed to re-acquire the site and the
property, it would have to pay at a valuation greatly exceeding the original
cost. Yet all the capital gain would have arisen because of the increased
size and prosperity of the town as a whole, something for which the
Corporation has been primarily responsible. A Labour Government should
therefore put a stop to sale of freeholds.

Handing-over New Towns
It may seem early yet to discuss the eventual hand-over of New Towns
and the problems that will then arise. But, before too long, some of those
problems will have to be faced and they will be faced more effectively if
there is some informed opinion about them.
The second interim Report of the Reith Committee (para. 82) had this
lo say: —