There was an interesting comment from one interviewee that, around 45% of all planning permissions were granted to people who were not house builders, he appeared to suggest that the 45% were speculative applications to lock in value to land, to be held as an capital investment rather than to be built on.
Be interested to know who said that, since a PP only lasts 3 years so can't lock in value for very long :-) and at a very considerable cost to obtain the PP. And the "start development to lock it in and landbank it" tactic can only be done after Detailed PP has been obtained afaik.
Yes .. it is probably land owners looking to capture part of the uplift.
The main reason they do it is that it is almost impossible to sell land without PP to developers, who are hugely risk averse, unless there is a high probability that they will get PP. Even then, eg if it is zoned in a local plan for housing, they will want 50-75% of the uplift value, after deducting costs.
The question to ask anyone like that is always: how many houses / housing estates have you built in the last 5 years?
If we think that is a problem, I'd put half the blame on landowners not making sure they have good enough advisers, and half on the planning system for being too complicated, half on an illiquid and untransparent market, and half on large developers for being barstewards.
Edited by ferdinand, 07 January 2016 - 09:37 AM.