CLA criticises 'landowners pocket £13bn a year' claim

The report reveals that agricultural land now becomes 275 times more expensive once it receives planning permission
The report reveals that agricultural land now becomes 275 times more expensive once it receives planning permission

The CLA has criticised a new report for peddling "false claims" after it highlighted how landowners make billions of pounds of profit from selling land with planning permission.

The report, by the Centre for Progressive Policy and the National Housing Federation, claims English landowners made £13bn just through obtaining planning permission.

Landowners' total profits are more than the global profits of Amazon, McDonald's and Coca Cola combined, it states.

The new report also reveals that agricultural land now becomes 275 times more expensive once it receives planning permission, even before a single home is built.

But the CLA, which represents landowners and farmers, has challenged the claim, calling the report out for having "misleading figures".

CLA Director of Policy and Advice, Christopher Price said the figures in the report do not present an accurate view of the price land is sold for.

“Nor do they accurately reflect the extent to which the state already captures the increased value of residential land compared to agricultural land,” Mr Price said.

“Government data on land values that underpin the assumptions in the report itself states the figures ‘may be significantly higher than could reasonably be obtained for land in the actual market’ and strongly recommends the figures are used only for policy appraisal.

“While there is an uplift in the value of the land, the current system already captures a high proportion of this value to fund affordable housing, GP surgeries, schools and other infrastructure.

“These planning obligations are a pre-requisite to any development going ahead and exist to mitigate the impact of development. The Government has recently taken steps to ensure developers contribute fully to these obligations.”

Mr Price said the current system achieves an "equilibrium" which ensures landowners are incentivised to sell land, that developers build and social infrastructure like affordable homes and schools are catered for.

He added: “We are concerned that using these misleading figures as the basis to extract further value will break this equilibrium and stall land coming on to the market, holding back the delivery of all types of homes.”