Government urged to give councils power to seize land from developers and build cheaper homes.
Land-banking is when builders buy sites and hold on to them for future use to keep the prices high
MINISTERS have been urged to arm councils with stronger powers to seize land from fat cat developers stockpiling it – and build cheaper homes themselves.
A powerful think tank says home builders must sign up to build houses more quickly or face beefed-up fines and compulsory purchase orders for not doing so.
Councils to be armed with powers to build cheaper homes
The Civitas report said local authorities could then snap up the land more cheaply to provide lower priced homes compared to those on the second hand market.
Urgent action was needed because the Government’s Housing White Paper was unlikely to push on house building to the levels the country needs.
He blasted “land-banking” - buying and holding on to sites for future use - and blamed developers for deliberately building homes slowly and “drip feeding” them into the market to keep prices high.
He said: “What is required is a new land and planning framework that enables developers to sell homes more cheaply, and so build them more quickly, by purchasing the land at lower prices.
It's becoming harder for young people to get on the housing ladder
An overhaul of the system would involve placing contractual rules on landowners alongside planning permission, to speed up house building by developers.
This would cover start and completion dates as well as building rates.
The proposals would also encourage fines if contracts are breached.