The Competition and Markets Authority (CMA) has released two working papers aimed at gathering feedback on the impact of landbanks and planning regulations on competition and housing delivery in the UK. This initiative follows a previous working paper on estate management charges published earlier in November.

In its analysis of landbanks, the CMA found that over a million plots are held in landbanks, but in many local areas, this land is owned by multiple builders. The CMA is particularly interested in understanding whether competition is being harmed in areas where a few housebuilders control significant amounts of developable land.

The CMA is also exploring planning reforms that could enhance competition among housebuilders and increase housing supply. Proposed options include adopting a zoning approach to development, streamlining the consultation process for planning applications, and establishing effective housing targets that reflect local needs.

Dan Turnbull, Director of Markets at the CMA, emphasized the importance of addressing concerns regarding landbank usage and complex planning rules that may hinder competition and delay new home construction. The CMA is inviting feedback from industry stakeholders, including council planning departments, builders, and landowners, before finalizing its report early next year.

The CMA plans to publish its final report by February 27, 2024, after assessing all feedback received on the working papers. The analysis of land banking involved data from over 5,800 sites held by 11 major housebuilders, revealing significant land holdings in both long-term and short-term land banks.