Developer merger is worrying sign of land famine

The National Association of Estate Agents (NAEA) has renewed its concerns over UK land supply following the announcement of the merger between two of Britain’s largest housing developers Taylor Woodrow and George Wimpey.

The Association believes that addressing the “Build-Absolutely-Nothing-Anywhere-Near-Anyone” (BANANA) mentality that has developed in many areas of the UK could help to tackle this crucial issue.

Land scarcity has been cited as one of the major reasons for the recent Woodrow-Wimpey merger. While the government has been putting pressure on the industry to increase the number of new homes constructed year on year, some local authorities have been clamping down on planning permissions creating policies of constraint; a catch-22 situation.

Stewart Lilly, President elect at the NAEA, comments: “The Woodrow-Wimpey merger is yet another sign of the insufficient quantities of land coming through the planning system. When two such major players find themselves struggling to maintain land banks it is clear that the problem of land famine is reaching critical levels.

“With the government’s home building targets causing pressure on the one hand and the “Build-Absolutely-Nothing-Anywhere-Near-Anybody” (BANANA) supporters resisting development on the other, we are working ourselves into an impossible position. This situation clearly cannot continue over the long term. While the government is trying to tackle the land issue through initiatives such as its latest PPS3 planning policy, a general shift in mentality is needed before any real change can be seen. Rather than communities viewing themselves in isolation, the country as a whole needs to start taking responsibility for the housing issue.”