Suchergebnisse

Purpose
The purpose of this paper is to review the issues involved in land value taxation and betterment and the issues involved in apportioning value between land and improvements.


Design/methodology/approach
The theoretical and valuation issues in betterment are reviewed and a case study of a betterment tax introduced in the UK is used to illustrate the practical problems in implementation.


Findings
The idea of land value taxation depends upon being able to apportion property values between land and improvements. This raises both theoretical and practical problems that are difficult to overcome.


Practical implications
The apportionment property values between land and improvements produces results that cannot be verified by market evidence, suggesting that an alternative approach be adopted through value-based recurrent property taxes revalued at frequent intervals.


Originality/value
Much of the literature has concentrated on the theoretical advantages of land value taxation rather than examining the practical problems of implementation. These suggest a different approach with less emphasis on betterment taxes and more on how recurrent property taxes can be an effective instrument for value capture.

Purpose– The purpose of this paper is to review the issues involved in the implementation of mass valuation systems and the conditions needed for doing so.Design/methodology/approach– The method makes use of case studies of and fieldwork in countries that have either recently introduced mass valuations, brought about major changes in their systems or have been working towards introducing mass valuations.Findings– Mass valuation depends upon a degree of development and transparency in property markets and an institutional structure capable of collecting and maintaining up-to-date price data and attributes of properties. Countries introducing mass valuation may need to undertake work on improving the institutional basis for this as a pre-condition for successful implementation of mass valuation.Practical implications– Although much of the literature is concerned with how to improve the statistical modelling of market prices, there are significant issues concerned with the type and quality of the data used in mass valuation models and the requirements for successful use of mass valuations.Originality/value– Much of the literature on mass valuation takes the form of the development of statistical models of value. There has been much less attention given to the issues involved in the implementation of mass valuation.

Purpose
– The purpose of this paper is to examine a device used in leasehold enfranchisement valuations known as the graph of relativity, which shows the percentage of the freehold value of a dwelling that a lease of a given unexpired term comprises. There are a number of such graphs in existence put forward by practitioners based on their experience and as a result of research but they contain different values. The paper explores why this might be the case and how this issue can be resolved.


Design/methodology/approach
– The paper examines the literature on graphs of relativity and the various graphs that have been published and critically examines the methodologies behind them to see if these account for the differences between them.


Findings
– There are different methodologies that have been employed in producing the graphs, including transaction evidence, the opinions of practitioners, and tribunal decisions, and these may account for some of the differences. Many of the graphs are based upon relatively small samples, particularly at specific points on the graphs, so there are likely to be differences as a result of sampling errors. The graphs mix together properties with different characteristics, which could be a further source of variability.


Practical implications
– Further research is needed to produce a more definitive graph of relativity based on a larger sample of properties and that reflects the differences between properties.


Originality/value
– The paper challenges the notion that there is a single graph of relativity in which the length of the lease term remaining is the only significant variable and argues that there are likely to be multiple graphs of relativity that reflect the risks associated with investing in leasehold property.

Purpose
– The purpose of this paper is to review the economic theories that lie behind the assessment of compulsory purchase compensation and the issues that arise from them.


Design/methodology/approach
– The method has been to review the literature about the theories and the critiques of them and to examine the extent to which they provide guidance in specific cases.


Findings
– The Hicks-Kaldor compensation test was developed as a way around certain problems in welfare economics but attempts to use it to determine whether projects involving compulsory purchase increase welfare are subject to a number of problems. Ultimately, there are issues of equity as well as efficiency so that a test that just looks at efficiency issues is problematic.


Practical implications
– Understanding the weaknesses in the theoretical models behind compulsory purchase compensation can help policy makers devise alternative approaches in situations in which land has to be assembled for regeneration or infrastructure projects and fairer systems of compensation.


Originality/value
– The use of the Hicks-Kaldor test has been challenged in environmental economics but the validity of these criticisms for compulsory purchase has not been recognised to the same extent. The use of some original case studies helps to identify some of the issues and alternatives.

Research undertaken by the World Bank in Europe and the Central Asia Region indicates that there are four principal preconditions for introducing value-based recurrent property tax reforms: comprehensive property registration, a reliable source of data about the prices achieved in transactions, a valuation infrastructure that complies with internationally-recognized standards, and an efficient tax collection system. In spite of the arguments in favor of value-based recurrent property taxes, many countries raise revenue from recurrent property taxes using an area basis, and most countries raise relatively little revenue from recurrent property taxes. The paper has been written according to both the dogmatic-legal method and comparative method. It presents current solutions adopted in post-Soviet European countries in order to draw out recommendations and suggestions for Poland. The original reasoning for the paper is that, amongst many scientific papers concerning thorough debate of property tax systems, few have focused on post-Soviet countries and the issues that arise in transition countries. Most concern Western European or North American countries with different economies, politics, institutions, and histories to the Eastern ones. Authors of the paper believe that the article can fill the gap in discussions on the shape of the property tax system reform in Poland and the reforms carried out in Eastern Europe countries.

Purpose– The purpose is to review what is known about property bubbles and their causes.Design/methodology/approach– The method has been to review the literature on bubbles in the property and other asset markets to examine their likely causes and whether there are specific aspects of the property market that make it more prone to bubbles.Findings– The property market has features that make it susceptible to bubbles, particularly inelasticity in supply and the absence of short selling. Bubbles can develop where there are heterogeneous beliefs. The way in which property tends to be financed helps to facilitate bubbles and transmit their effects onto the wider economy.Practical implications– The collapse in property prices after the financial crisis of 2008, like previous bubble collapses, has inflicted serious damage on the wider economy through losses of banks' capital, reductions in lending, and increased risk aversion. Understanding why bubbles exist offers the potential to devise policies to limit the impact of their collapse.Originality/value– Much of the literature on asset bubbles is based on securities markets. It is important to recognise the differences between the property market and securities markets, particularly how investment is financed.

PurposeThe purpose of this paper is to review what is known about property cycles following the financial crisis of 2008.Design/methodology/approachThe method is to review the literature on property cycles published since the 1930s, to examine the extent to which endogenous causes have been identified as distinct from exogenous factors that may have produced cyclicality resulting from weak adjustment mechanisms but not cycles.FindingsWhilst there is broad consensus that the property market has delays in adjustment which produce oscillations resulting from external shocks, it is more difficult to identify endogenous causes of cycles, though there are some possible candidates, notably technical progress.Practical implicationsThe slump after 2008 has cost savers and taxpayers dear, so better means of predicting cycles so that policy makers can mitigate them is desirable.Originality/valueThe debate about whether property cycles result from exogenous shocks or endogenous causes is in danger of being lost sight of. If the former, then the property industry is a channel through which external factors feed through to the economy, albeit magnified by weak adjustment factors. If there are endogenous causes, then policy makers would be unwise to overlook their potential destabilising impact on the economy.

PurposeLand governance plays an important part in influencing the quality of valuations. The purpose of this paper is to review the different meanings of governance.Design/methodology/approachThe World Bank Indicators of Governance, Jones Lang LaSalle's Global Real Estate Transparency Index (GRETI) and other data sources have been consulted.FindingsThe paper discusses what is meant by good governance and how this can be measured.Originality/valueThe paper presents some evidence to suggest that market transparency requires freedom of information and association, and is associated with factors such as the quality of institutions, the absence of corruption, and the quality of corporate governance.