Land Banking: The Silent Threat to Scotland’s Prosperity and How AGR Can Solve It

Land banking, the strategic accumulation of land by investors for future sale or development, is a growing concern in Scotland. This practice keeps vast areas of land unused and inaccessible, contributing to housing shortages and economic stagnation.

The Impact of Land Banking on Scotland

Land banking involves the purchase and holding of land with no immediate intention of developing it. Investors, often large corporations or wealthy individuals, bank on the land's value increasing over time, creating a reserve of land that remains unused for years, sometimes decades.

In Scotland, this practice has led to significant challenges, particularly in urban areas where the demand for affordable housing and commercial space is high. With land locked away by speculators, communities are left struggling with inflated property prices, reduced access to green spaces, and limited opportunities for economic growth. This practice directly undermines the potential for development that benefits the wider society.

Moreover, the impact extends beyond the immediate economic implications. Land banking exacerbates social inequality, as those who can afford to buy and hold land reap substantial profits, while the average citizen faces ever-increasing living costs. The ripple effects can be seen in the lack of affordable housing, the stagnation of local businesses, and the general decline in community well-being.

AGR: A Pathway to Economic Justice

Annual Ground Rent (AGR) offers a practical solution to the issues posed by land banking. By implementing AGR, Scotland could discourage the practice of land banking by ensuring that all landowners pay a rent based on the value of the land they hold, regardless of whether they develop it or not.

This would create a financial incentive for landowners to put their land to productive use rather than hoarding it. Unused land would no longer be a dormant asset but a liability, prompting either development or sale to those who would use it more effectively. This shift could lead to an increase in the availability of land for housing, businesses, and public amenities, addressing many of the issues that land banking currently exacerbates.

AGR aligns with the Georgist principle that the value of land, which is created by the community and not the individual owner, should be shared among the public. By adopting AGR, Scotland could ensure that the benefits of land ownership are more equitably distributed, reducing speculation and promoting sustainable development.

Conclusion and Call to Action

Land banking is a silent threat to Scotland’s prosperity, but it doesn’t have to be. By implementing Annual Ground Rent, Scotland can discourage this practice and unlock the potential for equitable development and growth. This is a solution that promotes fairness, encourages responsible land use, and benefits everyone in the community.

To find out more about how AGR can transform Scotland’s land use policies and contribute to a more just society, visit the Scottish Land Revenue Group (SLRG) and explore the resources available on AGR. Together, we can take action against land banking and build a better future for all.

Written with the assistance of ChatGPT.