Brent and Harrow
5 May 2016 Vote for
Sadiq Khan Mayor of London
Navin Shah GLA Brent & Harrow
Labour Party Londonwide

Press Releases

Navin in the News

Archive

Activity Map

Navin's News: house building

Roadmap for house building will unlock thousands of London’s land banked homes

I call for an end to land banking in London and supports proposals whereby developers will have to use or lose their planning permission. The proposals would help tackle land banking in London by unlocking the 210,000 homes with planning permission but which aren’t being built and would also create the new supply the capital desperately needs.

The proposals would allow councils to impose escalating fees on developers who refuse to build, backed up by the threat of compulsory purchase orders for the very worst offenders. This would give councils the tools they need to effectively tackle land banking, where developers maximise value by sitting on land instead of building on it.

The average price for a house in Harrow in June this year was £355,716. The annual change in house prices has increased by 2.1% per cent. The average price for a house in Brent in June this year was £421,933. The annual change in house prices has increased by 8.3% per cent.

 I welcome the proposals this week, which outlined some ground-breaking proposals to tackle London’s housing crisis and build the homes that London needs.

Use it or lose it planning permission is a fair yet forceful way to shift the 210,000 homes in London which have planning permission but are not being built. Under the current system, developers find it more profitable to sit on land than to build on it. This is an innovative response to the land banking that is much to blame for our housing crisis.

Only 18,000 homes were completed in London last year and in Brent average annual house price has increased by 8.3 per cent and in Harrow 2.1%. On average, it now costs £306,414 to buy a flat in Brent and in Harrow a flat costs £244,079.

The Mayor admits he needs to build 40,000 homes a year. This is far short of the 52,000 to 60,000 that experts say are needed. There’s crying need for homes across all tenures, but especially for people on low to modest incomes.

The national house building programme is also great news for the capital. London must already accommodate a rapidly rising population, but if the rest of the southeast fails to meet its own needs, particularly for affordable housing, then the pressure on London could be even greater.

Notes

  1. Labour leader Ed Miliband gave his speech at Labour party conference on 24 September 2013.
  2. The figures for the average house prices can be found here: http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/counties/html/county39.stm
  3. The Greater London Authority’s report Barriers to Housing Delivery identified 210,000 potential homes in London which have planning permission but aren’t being built (GLA, http://www.london.gov.uk/priorities/planning/publications/barriers-to-housing-delivery)
  4. The Department for Communities and Local Government says only 18,000 homes were completed in London last year (DCLG, Table 253, https://www.gov.uk/government/statistical-data-sets/live-tables-on-house-building)
Permanent link to this article
27th September 2013