Time to End the Land Banking Scandal – Developers Must Build, Not Just Hoard Permissions

I listened with interest this morning to Craig Bennett, CEO of The Wildlife Trusts, on BBC Radio 4, discussing the chronic failure of housebuilders to deliver homes – even after planning permission has been granted. His comments echoed a point I’ve been raising repeatedly with government over many years, though sadly those warnings have largely fallen on deaf ears.

In a recent Guardian article (1 April 2025), Bennett highlights a fundamental flaw in the UK housing system: developers are making as much—if not more—money speculating on land values than they are from actually building homes. It’s a deeply dysfunctional model, and one that’s failing communities up and down the country.

This issue feels especially relevant here in Waverley, where we’ve seen firsthand how developers shift their strategies away from actual delivery. For example, Sigma Homes—who have a site in Dunsfold—recently announced a strategic move away from direct housebuilding, instead pivoting to focus on land and planning transactions. It’s yet another example of the speculative nature of development that can delay delivery and frustrate communities.

Despite consistent and strong lobbying from local councils—including Waverley—and national bodies like the Local Government Association, successive governments have refused to act. Developers can amass planning permissions with no real obligation to build within a reasonable timeframe. Incredibly, when housing delivery targets are missed, the current system actually rewards developers with even more planning permissions. It’s a perverse incentive that puts local authorities in an impossible position and sacrifices more of our countryside to speculative development.

It’s time for a reset. According to the Institute for Public Policy Research (IPPR), a staggering 1.4 million homes granted permission since 2007 remain unbuilt (IPPR report link). Before any more greenfield sites are handed over to developers, we need to see meaningful action to ensure that existing permissions are built out—and fast.

Liberal Democrats have long championed a more responsible and transparent planning system, one that delivers the homes people need in the right places, not just profits for developers. We will continue to push for reform that ensures developers can’t game the system while local communities bear the brunt.

It’s time for government to finally listen.

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