land owners and land prices

Interesting article in yesterday's Adam Smith blog, about land prices. British land prices are highly inflated, but land owners want it that way, and will fight against any attempt to lower prices. The most immediate result of land rent is of course to reduce land prices (because unproductive land is no longer profitable, so must be sold to someone who can use it better. Supply goes up, demand goes down, so the price goes down.).

Affordable housing - another benefit of land rent.