Keywords
Citation
(2000), "Erosion of property rights", Property Management, Vol. 18 No. 4. https://doi.org/10.1108/pm.2000.11318dab.032
Publisher
:Emerald Group Publishing Limited
Copyright © 2000, MCB UP Limited
Erosion of property rights
Erosion of property rights
Keywords: Property rights, Global
The developer, Gustav Saedberg of Meglerhuset Saedberg AS, Kristiansand, claimed at a recent meeting of the European Union of Developers and Housebuilders, that property rights throughout the world are being eroded at an alarming rate by government. He pressed to have the issue debated at the annual world congress of FIABCI, the International Real Estate Federation, which was held in London from 27 May to 2 June this year.
Saedberg is a member of FIABCI's Norwegian Chapter and claims:
The situation is that, whereas all European countries, and most other countries with free market economies, have legal systems based on the almost sacred nature of private property rights, in practice you will find, on examination, that these rights are being steadily worn away by more and more restrictions.
The result was that planning consents were taking longer to get and, worse, the real property needs of communities everywhere were not being met. The situation was compounded by rising taxes on private property, sales taxes and yearly fees, plus, he said, "any other imposition which government could think of".
S.J. Berwin & Co., a City of London law firm and member of FIABCI's UK chapter as well as a principal sponsor of FIABCI 2000, feels this is a long-standing issue.
Pat Thomas, Planning and Environment Partner, says:
Investment in real estate is a sure indicator of the health of any economy and should not be frustrated. Governments must be satisfied that there has been an appropriate examination of the implications for property development before imposing blanket controls.
With its high international profile she saw FIABCI having a role encouraging a creative dialogue between property industry and government to address these problems.
Saedberg expresses delight at having got the S.J. Berwin property team, whose clients include Axa, Sun Life, British Land, Deutsche Bank and Marks & Spencer, amongst others, on his side.
He says:
We are going to need all the muscle we can get. There may be a lot of talk out there about a new world order, but the impulse of government to encroach on property rights is just as strong as it ever was.