The pressing issue of land ownership has resurfaced in contemporary politics, according to journalist and author Mike Bird in his latest work, *The Land Trap: A New History of the World’s Oldest Asset*. His analysis arrives at a critical juncture, highlighting how financial interests among politicians continue to shape the conversation surrounding land use and ownership in the UK and beyond.
Bird references a speech from 1909 by liberal politician David Lloyd George, who criticized landlords for profiting from the hard work of others without contributing to society. Today, this sentiment feels relevant once more, as a recent analysis showed that a quarter of all Conservative MPs earn over £10,000 annually from property rentals, while 44 Labour MPs, or 11%, have similar financial interests. This ongoing tension over property rights is further emphasized by the recent campaign of New York City mayor-elect Zohran Mamdani, who made “freeze the rent” a central pledge.
The dynamics of land ownership have shifted dramatically since the Industrial Revolution. As economies evolved, the wealthiest individuals often escaped high taxes by relocating to areas with more favorable policies, such as the Gulf states. In a world increasingly dominated by technology companies and digital assets, the historical significance of land seems to have diminished. Bird notes the diminished legacy of economic thinker Henry George, who advocated for a single tax on land in the 19th century. His ideas highlighted the economic inefficiencies stemming from monopolies of land ownership, which contribute to inequality. In the years since, political discourse has largely focused on class politics on the left and identity issues on the right.
Bird’s book also explores the implications of real estate as a financial instrument. Major corporations, such as McDonald’s, have leveraged land ownership for profit, often earning more from rentals than from product sales. The real estate sector has been pivotal in China’s economic expansion, where local governments depend on land sales for revenue. However, Bird warns that China now faces a dilemma: it must choose between allowing property prices to plummet, thereby erasing middle-class wealth, or maintaining high prices at the expense of broader economic vitality.
The term “land trap” encapsulates the challenges many economies face today. Despite the historical importance of land, Bird argues it has not kept pace with advancements in technology and living standards. The stark reality is that while the devices we use have evolved significantly, the quality of housing has scarcely improved over the past century.
Bird’s narrative lacks some critical elements, particularly regarding the impact of engineering and technology on land use. The famous adage, “Buy land, they’re not making it any more,” overlooks the role of innovations like steel frames and elevators that transformed urban landscapes. Additionally, the increasing threat of climate change, which can devastate land value through floods and wildfires, receives minimal attention. This oversight is particularly concerning as vulnerable communities, such as tenant farmers, face the brunt of these environmental challenges.
The book serves as an insightful introduction to the economics of land ownership but falls short in addressing the social consequences of these economic structures. The private rental market often disincentivizes landlords from investing in property due to the ease of filling vacancies, while public funding for housing repairs diminishes. This combination has contributed to a deteriorating rental sector, particularly in the UK, where the introduction of buy-to-let mortgages has exacerbated issues of access to quality housing.
Bird argues that the systems currently in place have failed to provide adequate shelter, leading to the re-emergence of slum-like conditions. *The Land Trap* prompts readers to reconsider the fundamental role of land ownership in society and how it continues to shape economic and political landscapes. The book is available for purchase from Hodder for £25.
