Britain’s top housebuilders possess sufficient land for constructing close to one million residences, as per a recent study. However, at the current pace, it may take about 14 years to accomplish this feat. Babelfish’s analysis revealed that the five largest housebuilders in the country hold land capable of accommodating 869,000 homes, which is more than half of the government’s target for this Parliament.
A landbank refers to developers acquiring significant parcels of prime British land with intentions to develop them in the future. Barratt Redrow leads in private landbank ownership with 253,698 potential plots under its control. Despite completing 16,565 homes last year, the company would require over 15 years to complete its current landbank. Similarly, Taylor Wimpey has control over 209,772 plots, equivalent to over 20 years of construction based on their last year’s output of 10,735 homes.
Dale Vince OBE, the founder of Babelfish, has called on Andy Burnham to address the housing crisis by discouraging land banking in favor of increased home construction. He highlighted the dominance of the top developers in the housing market, emphasizing the urgent need for action to meet the country’s housing demands.
In response to concerns over land banking, several major housebuilders, including Barratt Redrow, Taylor Wimpey, Persimmon, Vistry, Bellway, Berkeley Group, and Bloor Homes, agreed to contribute £100 million towards affordable housing programs following a Competition and Markets Authority investigation. The investigation, concluded in 2024, highlighted that although developers were not intentionally hoarding land beyond planning requirements, the size of their landbanks exceeded expectations for a well-functioning market.
Steve Turner, the Executive Director at the Home Builders Federation, defended the industry against accusations of land banking, stating that obtaining planning permission for land development is a time-consuming process. He emphasized that land is a crucial resource for housebuilders and that the industry is keen to boost home construction to meet demand.
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