Housebuilders accused of ‘restricting supply’

Housebuilders are being blamed for the lack of housing supply after it was suggested that they are intentionally ‘holding back’ the construction of new homes to keep property prices artificially high in order to boost profits. The latest figures from Glenigan, which were compiled for the Local Government Association, show that 475,647 homes in England now have planning permission granted but have yet to be built. This figure is up 60 per cent since 2010, but the number of new homes being built has increased at a lower rate of 48 per cent, owed in part to the fact that the average length of time it takes for developers to complete a new home has jumped from 24 months to 32. Labour MP Clive Betts, Chair of the Local Government Select Committee, has reignited a long-running row between policymakers and the housebuilding sector over who is to blame for the current housing shortage by accusing the big housebuilders of failure to speed up housebuilding “to maximise their profits rather than addressing the country’s housing need.” “These are private companies who are very simply trying to make money for their shareholders. They are restricting supply and the government urgently needs to…