Economics of Land, Development & Planning

Summary module description:
The module covers the economic analysis of the economics of property development, of the land use planning system, and of the taxation of land and property. An understanding of the functioning of the land and property market is crucial to an understanding of both land use planning, and of the taxation of real estate, but in the past it has been frequently ignored, misunderstood, or misrepresented. With respect to the land market the module stresses, firstly, its informational inefficiency, and, secondly, the role of the owners of land in determining its use. The standard assumptions in the past have been, despite evidence to the contrary, that the market is efficient and that owners respond passively to demand. Economic analysis is used to explain various features of the land market and is also shown to be necessary to an understanding of the effects of the planning system. With respect to the latter, the lectures seek to explain, in economic terms, why land use planning may be necessary, but go on to show that British policies of constraint on land uses have significant effects, in particular in raising house and land prices, with consequences for both the wider economy and the planning system itself. The impact of the planning system on land and values leads into a discussion of the economics, practicality, and politics of the taxation of land and property.

Aims:
The module aims to provide an understanding, from an economist?s point of view, of three linked topics - the functioning of the markets in land and real estate, the way the land use planning system functions, and the taxation of land and real estate.

Assessable learning outcomes:
At the end of the module students should have an understanding of the way the land market operates, of the economics of planning, and of the economics of land and property taxation, and so should be able to understand and comment on planning and other policies which affect property markets, and also to predict the effects of changes in government policy and of other events which affect the market, particularly as they affect the process of property development.

Additional outcomes:

Outline content:
The module will include some of the following topics:
Received theory and market inefficiency.
Factors affecting the supply of land for development.
Compulsory purchase and other forms of government intervention.
Information and uncertainty.
Land banking and land development.
The welfare economics of planning.
The economic consequences of planning.
The taxation of land and property.
Brief description of teaching and learning methods:
During the course of the term there are 10 weekly two hour lectures, during which there will be time for discussion.

Summative Assessment Methods:
Written exam 80%
Written assignment including essay 20%

Other information on summative assessment:
A total of two essays will be required (normally 2000 words maximum) on subject matter related to the module. Each essay will be worth 10% of the overall mark for the module.

So far as possible, to make the assignments both realistic and relevant, the essays will be on current topics, for example a question raised by the government of the day in consultation papers.

Formative assessment methods:

Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late, in accordance with the University policy.
where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Length of examination:
One 3-hour unseen written paper.
Part 3 examinations are held in the Summer term.

Requirements for a pass:
A minimum overall mark of 40%.