Land banking is the practice whereby developers allegedly avoid building homes that they have planning permission for, preferring instead to sit on the land. By deliberately restricting the supply of housing, so the theory goes, developers push up house prices allowing them to make even bigger profits in the future.
But does it really happen?
Local residents and politicians often cite land banking as the reason why not enough homes are being built.
The inconvenient truth for them, though, is that land banking just doesn’t happen.
Paul Smith, our managing director, explains why in his latest article for Building magazine.
The Strategic Land Group are a specialist land promoter. We work with owners to deliver planning permission on their sites at our cost and risk. Our return is a share of the value once the site is sold – so if we don’t succeed, it doesn’t cost you a thing.
If you own or know of a site that could benefit from our approach, get in touch today.