Redrow Prime minister to demand that developers build on land they own
The prime minister, Theresa May, will request that developers construct homes on the land they own after data showed that the 10 largest house builders have over 400,000 untouched plots of land. May is hosting a summit for house builders and is expected to ask them to stop “landbanking”, or not developing plots of land that have already been granted planning permission. May is expected to discuss the housing crisis with developers, housing associations and council representatives, and has said she plans to fix the “broken” housing market by constructing more houses, releasing land and increasing support for the Help to Buy Scheme.

Theresa May will today demand that developers build homes on the land they own amid figures showing the ten biggest companies are sitting on more than 400,000 unused plots.

The Prime Minister will chair a summit with housebuilders at Downing Street to challenge them to construct more properties.

She is expected to raise the controversial practice of ‘landbanking’, which is blamed for hindering housebuilding as private companies sit on plots that have been granted planning permission.

A Government source said Mrs May would be ‘laying down a challenge’ to developers over the issue in a ‘robust but constructive way’.

Theresa May will today demand that developers build homes on the land they own amid figures showing the ten biggest companies are sitting on more than 400,000 unused plots

She will hold discussions on how to tackle the housing crisis with developers, councils and housing associations.

According to recent figures, the ten biggest developers have more than 400,000 plots earmarked for development, according to ousing charity Shelter.

Property developers are accused of sitting on the land while it rises in value before building on it.

But the House Building Federation, which represents the industry, said housebuilders do not make money from landbanking.

The Prime Minister has put housing at the centre of her strategy to win over the younger generation, who are struggling to get on to the housing ladder.

At her conference speech this year, she vowed to fix the ‘broken housing market’ by building more houses, ensuring councils release land and increasing investment in the Government’s Help to Buy scheme.

She also said she would give councils the powers to ensure developers ‘actually build homes once they’re given planning permission to do so’.

Today’s summit will also look at skill shortages in the construction industry and consider whether wider reforms of the planning system are needed.

Companies Persimmon, Taylor Wimpey, Barratt Group, Bellway, Redrow, Bovis, Berkeley Group, Galliford Try, Crest Nicholson and Countryside had a total of 404,040 plots in their current land bank, made up of land which has planning permission for housing or is close to getting it, according to Shelter.

This represents more than six years’ worth of housebuilding at their current build rate, the charity said.

It also estimated that the companies have 481,910 plots in their strategic landbank - land held by them and other organisations in the expectation they will get planning permission.

Companies Persimmon, Taylor Wimpey, Barratt Group, Bellway, Redrow, Bovis, Berkeley Group, Galliford Try, Crest Nicholson and Countryside had a total of 404,040 plots in their current land bank

All the FTSE 100-listed major housebuilders have increased their land bank stock on last year, according to their latest financial reports.

The last study by the Local Government Association (LGA) found there were nearly 500,000 plots in Britain which had planning permission but had not been built on.

Steve Turner, of the Home Builders Federation, denied that housebuilders didn’t make money from sitting on land.

‘Housebuilders do not make money from landbanking unnecessarily. Premises that are being landbanked are at various stages in the planning process,’ he said.

‘The planning process is extremely complex and in many cases it can take three to four years to get a sight to the point where builders can actually build.

‘As the industry looks to increase output, it needs a supply of housing. Builders do not make money from sitting on land.’