Land Banking — House of Commons, 2021-06-10
Topic: Housing
Christian Wakeford (Conservative, Centre-right): I thank the hon. Member—indeed, he is my hon. Friend in this instance—for that helpful intervention. I will certainly get on to that point later in my argument. I have a particular concern when developer A holds field X, gets planning permission and then does not build, but they also happen to hold fields Y and Z, and it is just to create a greater need to get planning permission on those. The only real benefit is to the developer and their balance sheet. As my hon. Friend said, it is very much these developers who take advantage of the planning system; it allows them to profit without the homes being built—homes that we desperately need—in the locations that we need them As I was saying, land banking is a pitfall in a very complex planning system where developers buy and store a pipeline of land and obtain planning permission for that land, with no immediate intention to build the homes that have been approved. Being granted planning permission can increase the value of the land by more than 100 times in some instances, but instead of building homes, the developer sells the land off for profit. This practice is purely an investment for big property developers, and it inflates land prices, making it even more difficult for people to buy the homes they desperately need. It prevents young people and families from getting on the property ladder, and it also prevents the elderly from being able to downsize and move into bungalows, because we are not building the homes that we need In Britain, the timescales involved in land banking are particularly long, with people seeming to land bank in some instances for between five and 10 years of their building supply, compared with other countries such as Germany, Japan, the USA and even France, which have much shorter timescales. Indeed, in some of those countries, the phenomenon barely exists, so why is the UK different? Unfortunately, it is because of our planning system Land banking is also posing a serious threat to our green belt as the Greater Manchester Mayor, Andy Burnham, has sought to look for extra space to build several thousand new homes by encroaching on green-belt areas such as Elton reservoir and Simister village in my constituency. I made a pledge during the election campaign to oppose those green-belt developers and find a meaningful solution so that we do not need to build on that land, and I make that commitment again to the electorate and the good people of Bury South I carried out a survey of my constituents recently. It found that roughly 56% of residents in Bury South felt that the green belt should never be built on, and that 95% took the view that Elton reservoir needed to be taken out of Mayor Andy Burnham’s house building plan, so if there is anything the Minister can do to assist in helping with that, it would be greatly appreciated. To add to the pushback against green-belt development, my local green-belt protection group in Bury South, Bury Folk Keep It Green, is roughly 10,000 members strong across a borough of 180,000 people, so it is a very large group. I hugely respect and admire the work it has been doing not only to bring the consensus on protecting our green belt to the fore, but to ensure that everyone in the constituency is aware of what is at risk and what could be destroyed The results speak for themselves. Let us listen to the people, and let us not destroy these precious areas of green space that we have pledged to protect. The planning White Paper talks about democratising a planning system that unfortunately fails far too many people. These are areas that have helped so many people mentally and physically during the pandemic, when we were all being told to go out and take advantage of our green fields and open green spaces. Indeed, I myself have taken my daughter for walks around Elton reservoir. We need to ensure that those areas are there for many years to come, so that many families can carry on enjoying them We need to look at changing the rules around the English planning system, ensure that legislation reflects ways to tackle the housing crisis and stop egregious cases of land banking, ensuring that land is built on and not stored. The 2017 Local Government Association report suggested introducing a council tax charge 12 months after planning permission had been granted, which would act as a disincentive for large property developers to land bank. It could also incentivise those developers to start building in the first place, further negating the need to build on our green spaces. If developers were forced to pay all that money every month, they would start building pretty quickly The Government should also work to bring thousands of empty homes and other types of property back into use, to ease the housing shortage and maximise the use of existing stock. The latest report suggested that there were roughly 665,000 vacant dwellings in the UK, and we need to make use of them. We are saying that we need to build 2 million homes, and those empty homes and those that are land banked represent a huge proportion of what we need to build I welcome the Government’s dedication and success in addressing the housing crisis and the protection of the environment. However, I urge them to reconsider the system we are currently operating in. We need a planning system that can bring about a better quality of life for all and a more sustainable future. We need a system that can bring down the price of land, capture land values for the public benefit and make housing truly affordable so that every family can ultimately benefit from the right to buy, get on the property ladder and take advantage of what we all should have as a fundamental right. I shall close by thanking the Minister for his kind words in our many conversations. I hope he will agree not only that we need to change, which is why we are bringing forward these changes now, but that we need to ensure that democracy and ultimately the people have a final say in this.