Land Banking

Opened the debate

The hon. Member raised concerns about the disparity between planning permissions granted and homes built, highlighting issues with land banking and its detrimental impact on green belt areas such as Elton reservoir in Bury South. He cited statistics indicating that while nearly 400,000 homes were given planning permission in England in 2019, only 240,000 were actually built. Over a decade, the backlog of unbuilt homes stands at approximately one million. The MP emphasised the need to prioritise brownfield development and protect green spaces from unnecessary encroachment by developers. He called for measures like introducing a council tax charge on unconstructed land with planning permission as an incentive against speculative land banking. Additionally, he acknowledged local groups such as Bury Folk Keep It Green in advocating for preservation of Elton reservoir.

Government Response

The Minister welcomed the discussion, reaffirming the Government's commitment to addressing the housing crisis while protecting green spaces. He noted that while some argue that speculative land banking hinders build-out rates, Sir Oliver Letwin’s review found this view overstated for major house developers. The Government is exploring options to support a faster build out through proposed planning reforms and are analysing responses to their consultation on the Planning for the Future White Paper. Regarding enforcement against wilful abuse of the planning system by landowners, further details will be provided when introducing relevant legislation. He highlighted initiatives such as empty homes incentives, infrastructure funding, and green belt protection policies including prioritising brownfield development over encroaching upon green belts unless all other options have been exhausted. The Minister concluded by announcing plans for a comprehensive Planning Bill to modernise the system and ensure democratic engagement.