ENG-1968 — Page 180

LAND AND HOUSING

127

To ensure that scarce land is put to the best possible use, all sales or grants are subject to a covenant in which the lessee undertakes to develop up to a certain rateable value within a specified period. The amount he must spend depends on the location and the type of development allowed. In addition to the covenant, new leases contain clauses controlling the use to which land may be put, to accord with town planning. They also provide for the annual payment of Crown rent.

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The relaxation of time limits on building developments announced in November 1965, was again continued in the year under review. This concession applied to developers owning land which was either the subject of an exclusion order (see the section of this chapter on 'Rent Control') made before July 1, 1965, or held from the Government under conditions of sale or grant executed before July 1, 1965, and on which development had not begun or had not been completed. These developers became eligible to apply for an extension of one year-free of either penalty or premium--of the time limit by which they were bound to begin or complete their approved development scheme, or to fulfil their building covenant. On application, a further free extension of 12 months was granted to those developers who had availed themselves of the previous concession. It was felt that this concession, which will be the final one, was still appropriate at this time when, in certain categories of domestic and other premises, supply still exceeded demand. At the end of this concessionary period, the original covenant period will start to run again.

In order to assist owners of industrial lots where the premium is payable by instalments a concession permits the sub-letting of parts of the building without having to pay the outstanding balance of premium subject to certain conditions. Previously the balance of premium outstanding became payable in the event of any sub-letting.

A further concession to owners of industrial lots where the premium is payable by instalments, was introduced during the year. This entitled owners to assign their lots without having to fulfil the building covenant or pay off outstanding instalments of premium prior to the assignment, subject to the assignee under- taking to fulfil the building covenant and pay the instalments of

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