Mark Whitehead 19 September 2018

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

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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

School Crossing Patrol

Durham County Council
Grade 1 £3,781 (approx.) £13.27 per hour
Join our School Crossing Patrol Service!   Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit Peterlee
Recuriter: Durham County Council

Early Years Teaching Assistant

Durham County Council
£26,016 - £26,847 pro rata
Required from January 2027 or sooner if possible 37 Hours per week, Monday – Friday 8.30am to 4.15pm and 5.00pm on a Wednesday.  Term time only plus 2 Spennymoor
Recuriter: Durham County Council

Home Support Worker

Durham County Council
Grade 5 - £27,274 - £29,542 pro rata to hours worked
We are excited to be expanding our team of Home Support Workers within Hawthorn House, a dual scheme comprising of respite / short break care, and in Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £3,733 (approx.) £13.27 per hour
Join our School Crossing Patrol Service!   Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit Durham
Recuriter: Durham County Council
Linkedin Banner