Britain’s five largest housebuilders currently control enough land to construct nearly one million homes, according to recent data. However, at the current pace of development, it could take more than a decade to build out these sites, raising renewed concerns about the effectiveness of land use amid the ongoing housing crisis.
The companies hold combined land banks for approximately 869,000 potential homes. Barratt Redrow owns the largest portfolio, with around 253,700 plots in both short and long-term holdings. Despite completing 16,565 homes last year—the highest among its peers—it would take the company over 15 years to develop all its land at the current rate. Taylor Wimpey follows closely, controlling about 209,772 plots, which would last for more than 20 years based on its 2025 output of 10,735 homes.
The practice of purchasing land for future development, often referred to as “land banking,” has drawn criticism from housing campaigners. Dale Vince, an activist advocating for reform, called on incoming Prime Minister Andy Burnham to intervene, arguing that the system allows developers to prioritize profits by releasing land slowly rather than meeting urgent housing needs. “They’re sitting on vast reserves of land, and releasing it at a snail’s pace – that suits their business model, their profits, rather than the country’s needs,” Vince said. He urged Burnham to implement incentives to encourage quicker construction.
On the other hand, representatives from the housebuilding industry dispute the accusation of deliberate land withholding. Steve Turner, executive director of the Home Builders Federation, highlighted that the majority of land held by these companies does not yet have planning permission, which is a significant barrier to development. He noted that obtaining planning approval can take many years and maintained that builders have financial incentives to complete homes promptly, as their profit depends on construction and sales.
A 2024 investigation by the Competition and Markets Authority (CMA) found that while developers including Barratt Redrow, Taylor Wimpey, Persimmon, Vistry, Bellway, Berkeley Group, and Bloor Homes were not intentionally withholding land beyond what the planning system necessitates, the size of their land banks was still larger than expected for the market. The CMA’s findings suggest that the extent of land held is influenced by the complexities of the planning process rather than a strategic effort to limit housing supply.
The contrasting views underscore the complexity of addressing Britain’s housing shortage, with industry challenges in securing planning permissions and campaigners pushing for policy changes to accelerate building on existing land holdings. As discussions continue, the balance between incentivizing development and navigating regulatory hurdles remains a central issue in efforts to expand housing availability.