Those who accuse housebuilders of landbanking misunderstand how development works

By Huseyin Huseyin 2026-09-14T06:00:00

The idea that developers routinely profit from withholding consented land is wrong and diverts political energy from the structural reforms needed to boost delivery, writes Huseyin Huseyin

The accusation is persistent and familiar. Developers secure planning permission, deliberately withhold sites from the market, restrict housing supply and wait for land values to rise. It is a compelling narrative offering a convenient explanation for the UK’s chronic housing shortage. It is also, in any meaningful sense, wrong.

While isolated examples undoubtedly exist, the suggestion that developers routinely profit by holding consented land misunderstands the financial mechanics of how homes get built.

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