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By P.A. Stone

We'd like constructions for housing and for the opposite prone they supply for us and our actions. Our calls for stimulate provide, making a marketplace. because the industry provides and providers those structures it makes calls for on nationwide assets, alterations nearby economies and populations, impacts the standard of existence and creates expenditures and merits. making plans execs got down to keep watch over the marketplace, occasionally removal imperfections, occasionally growing them. Their coverage judgements have to take account of the most probably adjustments in undefined, expertise, lifestyles types and expectancies and the calls for they are going to generate. simply because there are by no means enough assets to fulfill those calls for, challenging judgements must be taken. it really is crucial that the choice makers are as well-informed as attainable. this article describes how the marketplace operates, giving an image of the economics of improvement, use and administration of the outfitted atmosphere. the writer will pay specific awareness to the problems and concepts for the long run, to be able to bettering decision-taking in making plans.

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Extra info for Development and Planning Economy: Environmental and Resource Issues

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Which is undertaken depends on the future potential of the building and the costs of development work. Redevelopment is generally more costly than remodelling but usually produces a property with greater current value and a longer potential life (Chapters 11 and 12). The greater the possible increase in space and value from change in use, the more it is worth spending on development. Without redevelopment or remodelling values may decline even though town activity and prosperity is increasing; this would occur where properties in their existing form lack the potential and standards currently required.

Of course, a large proportion of the cost of a property in the central business district of a capital city arises from the site and property tax rather than the building itself. THE MARKET FOR LAND AND BUILT ENVIRONMENT 27 Public commercial occupiers are public corporations and other units which operate as commercial organizations. They tend to regard their buildings as a factor of production in the same way as private commercial occupiers. Where, however, they enjoy a monopoly in their field of production, for example the Central Electricity Generating Board, they are under less pressure to obtain the most economic building because they can meet additional costs of production, up to a point, by raising their prices.

Investors who purchase at such prices can generally obtain a fair return on their capital, but those who are owners at the time controls are imposed or increased are likely to incur real losses on selling. Legislation on rented property tends to reduce the amount of property available for letting. Often the capital value of a rent-controlled house is less than the cost of a replacement. It is not surprising, therefore, that where dwellings are subject to rent control and to secure tenancy, there is little building for the private rented market or that existing ones are sold off when the opportunity 32 OCCUPIERS occurs.

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