Deliberate landbanking by housebuilders is a myth

JohnWallace-4 (2)

The suggestion that housebuilders deliberately landbank is, to put it bluntly, poppycock

The Competition and Markets Authority’s interim report into the housebuilding sector found that landbanking by large housebuilders had increased over the last decade and said it was “concerned that competition may be being distorted if land is held for longer and in larger quantities than is necessary”, noting that some landbanking is unavoidable given the time taken to identify and procure land and then put it through planning.

The reality is that developers are not incentivised to landbank, but that delays to the building -out of permitted schemes are incurred for a host of reasons including slow planning procedures, labour or material shortages, high interest rates, a depressed housing market or the commercial unviability of the permitted scheme. All of that is in the context of Brexit, covid-related price inflation, legislative changes requiring energy efficiency, second staircases and so forth.

Read more…

Login or Register for free to continue reading Housing Today

To continue enjoying, REGISTER FOR FREE

Already registered? Login here

Stay at the forefront of thought leadership with news and analysis from award-winning journalists. Sign up below to receive:

  • Breaking industry news as it happens
  • Gain access to Housing Today’s Specialist CPD modules
  • Expert News and analysis

It takes less than one minute….

Join the Housing Today community - REGISTER TODAY

… or subscribe for full access - Subscribe now