Land auctions may boost council funds
COMMUNITY land auctions whereby more plots could be made available for new homes are to be trialled.
Local councils are being invited to join the 12-month pilot, which will initially involve only land owned by the public sector. If successful, it would then be rolled out. Under the scheme, local authorities would be able to ask landowners to submit sealed bids giving the price at which they would be prepared to sell their land.
The council would then have the right to buy the land at that price for a specified period, grant planning permission and auction it off to developers. The model means that local authorities would capture the lion’s share of the land value uplift.