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

Youth Support Worker in Training

Essex County Council
£25580.00 - £26924.00 per annum + + 26 Days Leave & local Gov Pension
Youth Support Worker in TrainingPermanent, Full Time£25,580 to £26,924 per annum plus an Outer Fringe allowance of £954 paLocation
Recuriter: Essex County Council

Community Support Worker

Essex County Council
£25395.00 - £32131.00 per annum + + 26 Days Leave & Local Gov Pension
Community Support WorkerPermanent, Full Time£25,395 to £32,131 per annumLocation
Recuriter: Essex County Council

Assistant Director – Public Health (Partnerships & Commissioning)

Leicestershire County Council
£98,673 - £111,60
You will report to our Director of Public Health who is a chief officer of the council reporting to the Chief Executive Leicestershire
Recuriter: Leicestershire County Council

District Youth & Community Worker in Training

Essex County Council
£29606.00 - £36837.00 per annum + Per Annum
District Youth & Community Worker in TrainingPermanent, Full TimeFrom £29,606 to £36,837 per annum depending on experience, plus an Outer Fringe allow England, Essex, Harlow
Recuriter: Essex County Council

Senior Youth Worker (South and Vale)

Oxfordshire County Council
£38220 - £40777
Are you passionate about making a diffe... Oxfordshire
Recuriter: Oxfordshire County Council
Linkedin Banner