Report reveals that house builders own enough land to build 615,000 new homes

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20th January 2016 11:33 - Construction

According to a new report, the largest house builders in the United Kingdom own enough land to construct more than 615,000 new properties.Report reveals that house builders own enough land to build 615,000 new homes

Recent research from the Guardian has revealed that the average house price in the United Kingdom is approximately £200,000. The Guardian also revealed that the 9 house builders in the FTSE 100 and FTSE 250 financial indexes own a total of 615,152 housing plots within their land banks.

Of the house builders, the 4 largest companies were Barratt, Berkeley, Taylor Wimpey and Persimmon, all of which either own or have the option to construct houses on more than 450,000 plots of land. In 2015, the 4 largest house builders issued or declared more than £1.5bn to shareholders.

The construction sector said that the rate of house building had increased notably over the last few years. However, 2 large companies attributed the increasingly long period of gaining planning permission, to cutbacks in council planning permission departments.

Head of Policy at Shelter, Toby Lloyd, the housing charity, claimed that developers do not need to have a pipeline of available sites. He said of the topic:

“But when house building is still stubbornly low and landbanks are this large, it isa signal of how dysfunctional our house building system is,” he told the Guardian.

“These are private companies so it’s reasonable for them to seek profits. But when their profits are so high we should be questioning why the Government is directing subsidies towards developers to build barely affordable starter homes and away from providing the genuinely affordable housing we so desperately need.”

Market research for Nationwide, the building society, discovered that the average cost of a house in the United Kingdom was £196,999 in December, following a 4.5 per cent increase throughout the year.

The Department for Communities and Local Government claimed that it wanted to ensure that those who aspire to own their own home has the chance to do just that.

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