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

Tenancy Sustainment Officer

Durham County Council
Grade 9 £36,581 - £40,444
This is a rewarding opportunity to make a real difference to the lives of individuals and families with multiple and complex needs who have experience Spennymoor
Recuriter: Durham County Council

Strategic Housing and Commissioning Team Leader

Durham County Council
Grade 13 £48,738 - £53,051
Lead the strategic development and commissioning of housing and support services that prevent homelessness, reduce rough sleeping and improve outcomes Seaham
Recuriter: Durham County Council

Cleaner

Durham County Council
£25,614 Pro Rata
Cleaner Grade 1- £25,614  (pro rata) Permanent - Part time, 12.5 hours per week Currently 3.30pm to 6pm Monday to Friday (subject to change depending Durham
Recuriter: Durham County Council

Environmental Health Practitioner

Durham County Council
Career Graded 11-12 - G11 £42,123 - £46,579 / G12 £45,529 - £49,817
We are recruiting two Environmental Health Practitioners to join our Community Protection Service. Working within our Nuisance Action or Environmental Durham
Recuriter: Durham County Council

Service Manager, Children's Residential

Essex County Council
Up to £0.0000 per annum
Service Manager, Children's ResidentialPermanent, Full Time£69,241 to £78,950 per annumLocation
Recuriter: Essex County Council
Linkedin Banner