Britain’s leading property developers possess sufficient land to construct nearly one million residences, as per a recent study. However, at the current pace of development, it could take up to 14 years to achieve this goal. The research by Babelfish revealed that the top five housebuilders in the country own land that could accommodate 869,000 homes, which is more than half of the government’s target for 1.5 million homes in this parliamentary term.
Landbanking involves developers acquiring large areas of prime British land with the intention to develop it in the future. Barratt Redrow holds the largest private landbank, with 253,698 potential plots under its control. Despite completing the highest number of homes last year among all developers, the company would require over 15 years to build out its current pipeline. Similarly, Taylor Wimpey controls 209,772 plots, which could sustain construction for over 20 years based on their previous year’s output.
Dale Vince OBE, the founder of Babelfish, has urged Andy Burnham to address the housing crisis by reforming a system that favors land banking over actual home construction. He highlighted the dominance of the top developers in the housing market, emphasizing the need for incentivizing them to expedite building processes.
In response to concerns over land banking, the Competition and Markets Authority reached a resolution in 2024 where major developers, including Barratt Redrow, Taylor Wimpey, Persimmon, Vistry, Bellway, Berkeley Group, and Bloor Homes, agreed to contribute £100 million towards affordable housing initiatives. The authority acknowledged the presence of larger landbanks than necessary for a well-functioning market.
Steve Turner, Executive Director at the Home Builders Federation, rebutted claims of deliberate land banking by stating that most plots lack planning permission, making them unusable for immediate construction. He emphasized the lengthy planning process as a key factor in holding land for future development stages, reiterating that house builders only profit from building and selling homes, thus aiming to increase output.
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