Shelter says more than 300,000 homes with planning permission not yet built

More than 320,000 homes across the country exist on paper only, according to new research by housing and homelessness charity Shelter.

An analysis of government and industry statistics reveals that just 68% of homes in England with residential planning permission have been completed over the past five years. 

The calculation, which allows for a one year time lag between a home being given the go-ahead and the build being completed, reveals a shortfall of 324,315 homes.

Dubbed 鈥榩hantom housing鈥 by campaigners, the problem is at its worst in London. 

Around one in two homes with permission in the capital have not been built 鈥 representing 106,968 properties that remain unbuilt.

The current housebuilding system encourages developers to hold onto land and deliberately drip feed new homes so as to keep prices high, according to Shelter.

It is calling on the government to take a tougher stance on developers and give councils powers to tax those who are not building quickly enough.

Anne Baxendale, head of communications, policy and campaigns at Shelter, said: 鈥淗ousebuilders are trickling out a handful of poor quality homes at a snail鈥檚 pace.鈥 

She added: 鈥淭ime and again we hear the 鈥榬ed tape鈥 of the planning system being blamed but the real problem is a system where developers make more profit sitting on land than they would by building homes.鈥

But the Home Builders Federation has hit back at the findings. 

In a statement, David O鈥橪eary, the organisation鈥檚 policy director, said: 鈥淢any of these so called 鈥楶hantom Homes鈥 will be plots on sites where construction is underway but it obviously takes time to actually build out all the homes.鈥

He added: 鈥淥versimplified and ideologically driven analysis distracts from the efforts of builders large and small, public and private to tackle the housing crisis.鈥

Planning permissions are an indication of the intention to build but the majority of land is not yet at a stage where construction can start, according to O鈥橪eary.

A spokesperson for the Department for Communities and Local Government said: 鈥淭he government has been clear that we want to tackle barriers to stalled developments, so we are investing 拢2.3 billion to deliver the infrastructure needed to support new homes.鈥

He added: 鈥淲e know the build out of sites remains slow, that鈥檚 why in our housing white paper we鈥檝e set out a number measures to speed up delivery including a new housing delivery test to ensure new homes get built on time and give councils a range of tools to make this happen.鈥

Shadow housing minister John Healy rebutted the government鈥檚 position. 鈥淭his latest research shows that even after seven years Tory Ministers are still failing to get a grip on the housing crisis, with one in three potential new homes not being built despite being given the go ahead,鈥 he said.

鈥淗ousebuilding is still falling far short of what the country needs.鈥