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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Head of In-House Repairs and Maintenance

North Yorkshire Council
£69,228 - £78,018
We are seeking an exceptional and experienced leader to join our Housing service as Head of In-House Repairs and Maintenance. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Youth Justice Service Assistant Practitioner

Essex County Council
+ local gov benefits
Youth Justice Service Assistant PractitionerFixed Term, Full Time£33,049 to £37,698 per annum Location
Recuriter: Essex County Council

Children and Families Advisor - C&F Hub

Essex County Council
£26284.00 - £33256.00 per annum + + 26 Days Leave & Local Gov Pension
Children and Families Advisor - C&F HubFixed Term, Full Time£26,284 to £33,256 per annumLocation
Recuriter: Essex County Council

Principal Planner - Maldon District Council

Essex County Council
£41946.14 - £47266.03 per annum
Maldon District Council is working in partnership with Essex Shared Services to support the recruitment of the role of Principal Planner, a full-time England, Essex, Maldon
Recuriter: Essex County Council
Linkedin Banner