New research published by Shelter suggests that nearly one out of every three sites that have received planning permission for housing have not been completed in the last five years.
Shelter found that only 68% of these sites had completed properties built on them during this time period, which suggests that 320,000 homes remain unbuilt despite the green light having been provided. This suggests that landowners and developers are ‘land banking’, or sitting on the land and waiting for its value to go up.
The deficit is especially high in London, where 52% of the comprehensive planning permissions granted for residential properties have been completed during the past five years, with a year-long interval between permission being given and a home being constructed. This translates to a shortage of 106,968 homes with planning permission during that time.
Areas around London, on the other hand, have been witnessing more building activity, with 86% of homes with planning permission having been completed in the east of England and 71% in the South East.