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

Customer Payment Solutions Lead (Business Support) - EFDC

Essex County Council
Up to £15.0000 per hour
Customer Payment Solutions Lead (Business Support) - Epping Forest District Council 30 Hours per Week Part-Time, Temporary Up to 11 Month Contract£15 England, Essex
Recuriter: Essex County Council

Targeted Youth Advisor

Essex County Council
£28514.00 - £33545.00 per annum
Targeted Youth AdvisorPermanent, Full Time£28,514 to £33,545 per annumLocation
Recuriter: Essex County Council

Part Time Business Operations Assistant - ACL

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Business Operations Assistant - ACLPermanent, Part Time£25,081 per annumLocation
Recuriter: Essex County Council

Multi Therapy Assistant

London Borough of Richmond upon Thames and London Borough of Wandsworth
£35,391 - £42,888 per annum
Multi Therapy Assistant£35,391 - �... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Part Time Business Operations Assistant - ACL

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Business Operations Assistant - ACLPermanent, Part Time£25,081 per annum, full time equivalentLocation
Recuriter: Essex County Council
Linkedin Banner