Britain’s major property developers possess sufficient land to potentially construct close to one million homes, but the current pace suggests completion could stretch over a period of 14 years, according to a recent study by Babelfish.
The study identified that the top five housebuilders in the country collectively hold land that could accommodate 869,000 homes, surpassing half of the government’s goal of constructing 1.5 million homes in this parliamentary term.
Landbanking, a practice where developers acquire extensive parcels of prime British land with future construction intentions, is prevalent among these companies. Barratt Redrow leads with ownership or control over 253,698 potential plots, although their yearly completion rate of 16,565 homes implies a construction timeline exceeding 15 years.
Similarly, Taylor Wimpey commands 209,772 plots, sufficient for more than a two-decade construction period based on their previous year’s output of 10,735 homes.
Dale Vince OBE, the founder of Babelfish, has called upon Andy Burnham to address the housing crisis, emphasizing a flawed system that prioritizes land banking over actual home building.
In response to concerns raised, a consortium comprising Barratt Redrow, Taylor Wimpey, Persimmon, Vistry, Bellway, Berkeley Group, and Bloor Homes agreed to contribute £100 million towards affordable housing initiatives following a Competition and Markets Authority investigation. The investigation, concluded in 2024, highlighted that while developers were not intentionally hoarding land beyond planning requirements, the scale of landbanks exceeded market expectations.
Steve Turner, Executive Director at the Home Builders Federation, countered the claims of land banking, asserting that most plots lacked planning permission, rendering them unusable for construction. Turner emphasized the prolonged and unpredictable nature of the planning process, stating that builders rely on land reserves at varying stages of development. He stressed that profitability for house builders hinges on actual construction and sales, underscoring the industry’s commitment to boosting housing output.
