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.'

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Group Exercise Instructor

North Yorkshire Council
£18.04 - £20.46
We are looking for enthusiastic Group Exercise Instructors to provide classes at both our Tadcaster and Selby Leisure and Wellbeing Hubs. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Relief School Crossing Patrol

North Yorkshire Council
£13.28 - £13.92 per hour
You will be responsible, reliable and will play an important role in ensuring the safety of children crossing the road on the way to and from school. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Medical Passenger Assistant

North Yorkshire Council
£28,153 – £30,023 pro rata per annum
We are looking for a caring, flexible and committed person to support a client on journeys Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Multi-Systemic Therapy Practitioner

Cheshire East Council
£41,771 - £48,072 per annum
As a Multi-Systemic Therapy Practitioner, you'll work intensively with families facing complex challenges Macclesfield, Cheshire
Recuriter: Cheshire East Council

Functional Family Therapy Team Supervisor

Cheshire East Council
£48,072 - £54,994 per annum
You'll provide leadership, coaching and clinical oversight to a team delivering evidence-based interventions that strengthen family relationships Macclesfield, Cheshire
Recuriter: Cheshire East Council
Linkedin Banner