Nearly one in three houses don’t get built despite being given go-ahead according to shelter

Press release with new research from Shelter headlines ‘Phantom Homes: Nearly one in three houses don’t get built despite being given go-ahead’

Housebuilders have failed to build more than 320,000 homes in the past five years even after being given the go-ahead, according to new research out today.

Figures from housing charity Shelter reveal this equates to nearly one in every three homes in England granted residential planning permission in the past five years. The problem is particularly acute in London where one in two remain unbuilt ‘Phantom Homes’.

In the same time period, the profits of the country’s top five housebuilders have soared by an astronomical 388% to a total of £3.3bn in 2016, according to the research.

Developer profit margins also increased over this time, along with payouts to their shareholders which rose to nearly £1 billion a year.

Shelter is warning that the country’s current housebuilding system encourages developers to sit on land and drip out new homes so as to keep prices high. The housing charity is calling on the government to get tough on developers by giving councils the power to tax those who aren’t building fast enough, as well as taking forwards policies outlined in the housing White Paper like granting planning permission to developers based on their track record.

 

Anne Baxendale, head of communications, policy and campaigns at Shelter, said: “Housebuilders are trickling out a handful of poor quality homes at a snail’s pace meaning there are simply not enough affordable homes and ordinary working families are bearing the brunt.

“While people across the country struggle with eye-wateringly high housing costs, developers’ profits are soaring into the billions. Time and again we hear the ‘red tape’ of the planning system being blamed but the real problem is a system where developers make more profit sitting on land than they would by building homes.

“It’s clear our housebuilding system has failed the nation but the government can turn things around by supporting a whole new approach. Shelter’s New Civic Housebuilding model listens to the needs of communities and gives more powers to councils to get developers building the high-quality genuinely affordable homes we need.”

 

Elizabeth, 35, rents in Worthing with her husband and their two children. She feels they have been completely priced out of owning a home of their own.

“My husband and I have been renting since we met 13 years ago. Despite him working his way up to a management position and myself working long hours, we’ve never been in a position to save anywhere near enough for a deposit on a house.

“We’ve more or less given up on the idea now. With two teenage children we need a place that can fit a whole family but that just seems impossible. Maybe when our children have grown up and left home we can finally get a small place for the two of us but it breaks my heart that we will never have a real family home of our own.”

Source of information Shelter

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Overseas Property

5 Must-Try Activities At Rosewood Baha Mar For An Unforgettable Stay

Tucked along the sparkling white sands of Cable Beach, Rosewood Baha Mar stands as a pinnacle of luxury in the heart of The Bahamas. This majestic island resort pairs stunning modern design with unparalleled service, amenities and natural beauty. From rejuvenating spa treatments to underwater adventures, Rosewood Baha Mar allows guests to craft their perfect…
Read More
Breaking News

Breaking Property News – 22/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Curious how the Building Safety Regulator will impact your future projects? Article by Will Varnals and Ed Resek Associate Director – Watts Group ‘The Building Safety Act has been described by government as the ‘Biggest Changes to Building Safety for a Generation’. Arguably, the most impactful change at…
Read More
Estate Agent Talk

Home Additions That Can Increase The Attractiveness of a Property

In the dynamic world of the property market, whether you’re in sales or lettings, staying ahead of the curve is crucial. As the property market evolves, so do the preferences of buyers and renters, meaning in order to maximise the attractiveness and value of your property, strategic additions and renovations can make all the difference.…
Read More
Home and Living

The Anatomy of a Perfectly Cozy Reading Nook

The Foundation: Choosing the Right Space Selecting the ideal spot for your reading nook is the cornerstone of its success. Consider a quiet corner bathed in natural light, away from the distractions of modern life. The goal is to create a haven where one can escape into the world of literature without interruptions. Location Matters…
Read More
Breaking News

Breaking Property News – 21/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Government announces new Short-term lets rules to protect communities and keep homes available. Press Release London February 2024 – Overview – ‘Short-term lets rules to protect communities and keep homes available. Local residents will be protected from being pushed out of their communities by excessive short-term…
Read More
Breaking News

Enhancing Security and User Experience with Face Recognition Technology

In an era where digital interactions dominate our daily lives, the need for robust and convenient security measures has never been greater. Traditional methods of authentication, such as passwords and PINs, are increasingly susceptible to breaches and hacks. In response to these challenges, face recognition technology has emerged as a cutting-edge solution, offering a unique…
Read More