Deliberate landbanking by housebuilders is a myth

JohnWallace-4 (2)

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

The Competition and Markets Authority鈥檚 interim report into the housebuilding sector found that landbanking by large housebuilders had increased over the last decade and said it was 鈥渃oncerned that competition may be being distorted if land is held for longer and in larger quantities than is necessary鈥, 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鈥

This is PREMIUM content, available to subscribers only

You are not currently logged in. Subscribers may LOGIN here.

to access this story

Gated access promo


A subscription will provide access to the latest industry news, expert analysis & comment from industry leaders,  data and research - including our popular annual league tables. You will receive:

  • Print/digital issues delivered to your door/inbox
  • Unlimited access to building.co.uk including our archive
  • Print/digital supplements
  • 好色先生TVletters - unlimited access to the stories behind the headlines

now 

 

Get access to premium content