Britain’s largest property developers possess sufficient land to construct almost one million residences, according to a recent study. However, at the current pace of development, it could take up to 14 years to complete this housing stock. Babelfish’s research shows that the top five housebuilders in the UK own land that could potentially accommodate 869,000 homes, surpassing half of the government’s target to build 1.5 million homes during this Parliament.
Landbanking occurs when developers acquire significant parcels of valuable British land with intentions to develop them in the future. Barratt Redrow holds the largest private landbank, with control over 253,698 potential housing plots. Despite delivering 16,565 homes last year, the company would require over 15 years to exhaust its current pipeline at the same rate. Taylor Wimpey, on the other hand, commands 209,772 plots, sufficient for over 20 years of construction based on their previous output of 10,735 homes.
Dale Vince OBE, the founder of Babelfish, has called upon Andy Burnham to address the housing crisis by challenging a system that prioritizes land banking over home construction. Vince emphasized the need to incentivize developers to cease landbanking practices and expedite construction efforts for the benefit of the country.
In a separate development, 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. While the companies denied any wrongdoing, the Authority’s 2024 report highlighted that landbank sizes exceeded what would be expected in a well-functioning market.
Responding to the concerns, Steve Turner, Executive Director at the Home Builders Federation, refuted claims of land banking by stating that the majority of plots lack planning status, rendering them non-buildable. Turner emphasized the lengthy and unpredictable nature of the planning process, highlighting that builders require a continuous supply of land at varying stages for successful home construction. He reiterated that house builders rely on building and selling homes for revenue and expressed the industry’s eagerness to boost housing output.