Accusations house builders are land-banking to boost house prices are ‘largely an illusion’ and more effort should be made to release land through the planning system, planning consultants claim.
A new report from Nathaniel Lichfield & Partners (NLP) explored whether the business models of developers were compatible with a hoarding of land, and relates this to the risks of bringing new homes forward through the planning system.
They concluded that given the significant costs and risks involved in land promotion, construction and sales, allegations of land banking were ‘misplaced’.
The study - Stock and Flow: Planning Permissions and Housing Output - also noted that in order for the Government to hit its target of 200,000 new homes a year – or even the House of Lords Economic Affairs Committee’s 300,000 homes - policy efforts should focus on increasing the supply of land.
Planning departments should receive more resources and proactive measures to reduce barriers to development should be taken, the report recommends.
