Trade body calls on government to focus instead on the 鈥榓ctual reasons鈥� for subdued supply
The Home Builders Federation (HBF) has said its members do not sit on land and has urged government to focus instead on the 鈥榓ctual reasons鈥� for subdued housing supply.
The trade body is critical of the government鈥檚 proposals announced over the weekend aimed at increasing the speed at which sites with planning permission are built out.
Under the proposals housebuilders will be required to commit to specific delivery timeframes before they get planning permission and could face financial penalties if they fail to meet them. The penalties will be 鈥渨orth thousands per unbuilt home鈥� and paid directly to local planning authorities.
The Ministry of Housing, Communities and Local Government (MHCLG) also said those 鈥渄eliberately sitting on vital land鈥� could see their sites acquired by councils where there is a case in the public interest and stripped of future planning permissions.
However, the HBF has pointed out that several independent reviews have concluded housebuilders do not deliberately sit on land.
An HBF spokesperson said: 鈥淭he reality is that developers only see a return on investment when they sell homes.
鈥淗aving purchased land and navigated the costly and bureaucratic planning process, there is no reason at all not to build and sell homes.鈥�
The Competition and Markets Authority鈥檚 report into the housebuilding market last year found housebuilders do not sit on land without attempting to build on it. Paul Smith, managing director of the Strategic Land Group, in March wrote in 星空传媒鈥檚 sister publication Housing Today that that have looked for the practice and none have found evidence of it. The CMA report said: 鈥淲hile large housebuilders hold large amounts of land in absolute terms, they do not appear to hold onto this land without attempting to develop it for an amount of time that is disproportionate, given our understanding of the features of the planning system
The HBF spokesperson said: 鈥淕overnment needs to focus on addressing the actual reasons as to why supply is not increasing - the lack of government support for first time buyers that is suppressing demand and the dearth of housing associations in the market for affordable homes .
鈥淲hile the planning changes announced last year and the government鈥檚 ambition are very welcome, much more is needed if we are to get anywhere near the challenging target it has set.鈥�
Under the government proposals, developers will be required to provide a 鈥渂uild-out statement鈥� with their planning applications setting out a timeframe for the scheme.
They will be required to provide a commencement notice when they start work and submit an annual progress report. These measures will be set out in a technical consultation paper and will be brought in using powers under the Levelling Up and Regeneration Act 2023.
The government鈥檚 working paper, called 鈥楽peeding Up Build Out鈥�, said the financial penalties will be a 鈥渓ast resort鈥� for councils to use where a developer has fallen 鈥�10% or more鈥� behind the build-out schedule agreed in its planning permission. . The plan will require primary legislation and will only apply to future planning permissions.
The paper also sets out other measures designed to speed up build out as the government aims to deliver 1.5m homes by the end of the parliament. It will confirm a plan to de-risk the use of compulsory purchase orders on stalled sites and reform completion notices councils can issue to cancel a planning permission if a development is unlikely to complete within a reasonable time period.
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