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

Café Assistant - Harlow Library & ACL Centre

Essex County Council
Up to £25959.0000 per annum
Café Assistant - Harlow Library & ACL CentrePermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Lead Officer - Housing ICT (CX Asset Management) - EFDC

Essex County Council
£500.0000 - £650.0000 per day
Lead Officer - Housing ICT (CX Asset Management) - Epping Forest District CouncilRemote Worker £500-£650 per day Umbrella, dependant on experiencePart England, Essex, Epping
Recuriter: Essex County Council

Lead Officer - Housing ICT (Cx Housing) - EFDC

Essex County Council
£500.0000 - £650.0000 per day
Lead Officer - Housing ICT (Cx Housing)- Epping Forest District Council Remote Worker £500-£650 per day Umbrella, dependant on experience Part-Time,3 England, Essex, Epping
Recuriter: Essex County Council

Part Time Vocational Trainer - Health and Social Care

Essex County Council
£38466.00 - £45254.00 per annum + Pro Rata
Part Time Vocational Trainer - Health and Social Care - South EssexPermanent, Part Time£29,468 to £34,668 Per Annum (full time equivalent) Location
Recuriter: Essex County Council

Procurement Support Officer

Essex County Council
£25959.00 - £28621.00 per annum + + 26 Days Leave & Local Gov Pension
Procurement Support OfficerPermanent, Full Time£25,959 to £28,621 Per AnnumLocation
Recuriter: Essex County Council
Linkedin Banner