Mark Whitehead 19 September 2018

Landowners make £13bn profit every year just for getting planning permission, says report

Landowners make £13bn profit every year just for getting planning permission, says report image

Housing campaigners are demanding action over huge profits being made by developers just by gaining planning permission for land they have bought.

The Centre for Progressive Policy and the National Housing Federation say landowners in England made more than £13bn in 2016/17, more than the global profits of Amazon, McDonald’s and Coca Cola combined.

They say the price of agricultural land immediately multiplies by 275 once it receives planning permission, before a single home is built.

It means housing associations are finding it increasingly difficult to afford land for new homes.

The two campaigning organisations say the profits should be 'captured' and put to use build up to 100,000 affordable homes every year as well as roads and other infrastructure.

This could include demanding that at least half the homes built on disused public land are affordable to people on the lowest incomes

David Orr, chief executive of the National Housing Federation, said: 'In the face of a disastrous housing crisis, it is clear that the broken housing market is simply not delivering.

'What’s more, the way we buy and sell land is the key cause. Now we need a fundamental rethink to tackle this fundamental problem.'

However, the figures were dismissed by the CLA who said the claims are distorting the view of how the value of land is captured.

CLA director of policy and advice, Christopher Price, said: “These figures do not present an accurate view of the price land is sold for, nor do they accurately reflect the extent to which the state already captures the increased value of residential land compared to agricultural land.'

SIGN UP
For your free daily news bulletin
Highways jobs

Education, Health and Care (EHC) Co-ordinators

Buckinghamshire Council
£30,874 - £37,188 per annum
Interested in a career as an EHC Coordinator? Come along to our drop-in event to meet members of the SEND team and find out more about the role! England, Buckinghamshire, Aylesbury
Recuriter: Buckinghamshire Council

Head of the Gloucestershire Pension Fund

Gloucestershire County Council
up to £71,376
Give your time and talent for the people who gave us theirs. Gloucestershire
Recuriter: Gloucestershire County Council

Head of Quality, Performance and Systems

Norfolk County Council
£65,817 - £73,638 per annum
Children’s Services in Norfolk are on a rapid upward trajectory. Norwich, Norfolk
Recuriter: Norfolk County Council

Social Worker - Youth Offending Team

Essex County Council
Negotiable
This post is based in Epping Please ensure you provide a supporting statement when applying for this role. We cannot accept any applications without England, Essex, Harlow
Recuriter: Essex County Council

SEND 16-25 Officer

Sandwell Metropolitan Borough Council
£29,636 - £33,799 per annum
An exciting opportunity has become available in a busy Special Educational Needs team. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores how councils can tackle modern slavery and trafficking in their supply chains, finds out more about Cambridge's first cohousing scheme and the launch of a new project to build a shared service pattern library for local government.

This issue also contains a special focus on children's services and how councils are protecting children following local safeguarding children boards being abolished.

Register for your free magazine