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

Enterprise Architect

Essex County Council
£68635.0000 - £80746.0000 per annum
Enterprise ArchitectFixed Term, Full TimeUp to £80,746 per annumLocation
Recuriter: Essex County Council

Partnership and Improvement Manager SEND WMF2888e

Westmorland and Furness Council
£51,356 to £52,413
Are you passionate about improving outcomes for children and young people with Special Educational Needs and Disabilities (SEND)? Cumbria / Various
Recuriter: Westmorland and Furness Council

Shovel Driver/Plant Operative - Chelmsford

Essex County Council
Up to £28033.00 per annum
Shovel Driver/Plant Operative - ChelmsfordPermanent, Full Time£28,033 per annum Location
Recuriter: Essex County Council

Environmental Health Officer - WMF2890e

Westmorland and Furness Council
£42,839 - £44,075
This is an exciting opportunity for you to join Westmorland and Furness Council as an Environmental Health Officer Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Public Health Strategic Manager

Durham County Council
Band 2 - £66,164 - £68,493
We are seeking to appoint enthusiastic individual who is passionate about the health of people in County Durham, to join our Public Health team as a P Spennymoor
Recuriter: Durham County Council
Linkedin Banner