This initiative is all about the financing of the schemes, not who gets the profits. Following the recent financial crisis there are very few lenders prepared to provide finance for development schemes, meaning many simply don't happen. We're not talking about the giving away of land here, just delayed payment.
I'm well aware it's not exactly a direct comparison but how many people could afford to buy the land for a house and build it without being able to live in it for five years? How about if you scale that up 800 fold? Do you think you could persuade a bank to lend you money on these terms? This is the situation for the construction industry now, surely any proposals to bring forward much needed housing should be welcomed.
Fair point on the late delivery PSR, but as the developer won't get any money until the units start being sold they're going to be just as keen as the public sector bodies to get things done - they'll still have to finance the construction and will need a return on that investment as soon as possible. As the public sector will still own the land the worst case scenario is they'll own it with a part built scheme on it. It doesn't sound as though any of the sites produce any income, so what is the public sector losing?
Idly curious Mr Davidson - do you have any experience of the implementation of large scale redevelopment schemes, or are you just trying to take a cheap shot at people trying to alleviate a problem you clearly don't fully understand?