Won’t the site rent be passed on to the tenant?
Site rent cannot be passed onto the tennant because the landlord is already charging the market price. Additionally, it cannot be passed on because there is now an increased supply of rental properties on the market. Tennants can now threaten to move if the landlord attempts to pass it on. When rent is collected on unimproved values, land will become much more readily and cheaply available. Many more people will have access to sites and be in a position to build their own houses and create or operate businesses. All you’d need to borrow, if at all, would be equal to about 10% of the current unimproved site value; enough to cover the first year’s site rent. Compare this to the gigantic burden of current mortgages at inflated interest rates. Many existing tenants would move and take up sites elsewhere. The law of supply and demand will reverse the current situation by forcing landlords to compete to attract tenants by; improving terms and conditions, carrying out building and internal im
