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How much undeveloped land is owned by builders?
ILW
Posts: 18,333 Forumite
Just wondering if anyone had any idea.
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I don't know the amount but I think it was huge. They said before the credit crunch on Wake up to money that the big builders were buying up other builders to get their hands on the land banks.
What we do know is that the biggest role of builders is to maintain land banks, building homes is a secondary concern. The value of land banks is being manipulated as the builders are technically insolvent, so in their annual reports they value their landbanks artificially higher to compensate against loses.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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What we do know is that the biggest role of builders is to maintain land banks, building homes is a secondary concern. The value of land banks is being manipulated as the builders are technically insolvent, so in their annual reports they value their landbanks artificially higher to compensate against loses.
Whilst I don't agree with every single little word of that statement, I do agree that with the big builders most of the profitability comes from taking what is essentially greenfield or other land and getting planning permission.
Try doing that as an individual and somehow, without the 'planning consultants' and 'close partnership with the council', it's impossible.
Very sad situation.0 -
princeofpounds wrote: »I do agree that with the big builders most of the profitability comes from taking what is essentially greenfield or other land and getting planning permission.
Try doing that as an individual and somehow, without the 'planning consultants' and 'close partnership with the council', it's impossible.
Very sad situation.
I agree with this view. I know of an individual with some land that is ripe for development (multi property) but understanding what is and isn't possible is a nightmare with out enlisting professional consultancy advice and networks.
I also agree with Brit(???) that IME a large proportion developers profits do come from careful management of their land banks over years."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
What we do know is that the biggest role of builders is to maintain land banks, building homes is a secondary concern. The value of land banks is being manipulated as the builders are technically insolvent, so in their annual reports they value their landbanks artificially higher to compensate against loses.
English law allows actions for libel to be brought in the High Court for any published statements which are alleged to defame a named or identifiable individual (or individuals) in a manner which causes them loss in their trade or profession, or causes a reasonable person to think worse of him, her or them.
A defamatory statement is presumed to be false, unless the defendant can prove its truth.
Brit.... You should know better than to make unsubstantiated allegations of fraud.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Just wondering if anyone had any idea.
Plots with planning permission is currently around 350,000 from memory, which is about a 3 year supply at current build rates.
No idea how much is owned without planning permission.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »English law allows actions for libel to be brought in the High Court for any published statements which are alleged to defame a named or identifiable individual (or individuals) in a manner which causes them loss in their trade or profession, or causes a reasonable person to think worse of him, her or them.
A defamatory statement is presumed to be false, unless the defendant can prove its truth.
Brit.... You should know better than to make unsubstantiated allegations of fraud.
Where is the Libel Hamish if it is true? Do the house builders sue the financial correspondents every time this issue comes up every year with the builders annual report. No they don't because it is true.
Land Bank revaluation is a key part of the builders strategy.
We should campaign for a Land bank tax for lower house prices.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Where is the Libel Hamish if it is true?
If it is true then prove it.
Or even quote a single reputable source claiming that:
1. The builders are currently insolvent
2. They knowingly report false values of their major assets in company accounts.
Because that's what you appear to be claiming, and if it's true then it's a criminal offence.
If it's a lie however, you could well be in a spot of bother yourself, should the legal team for any of the builders read this thread.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I don't know the amount but I think it was huge. They said before the credit crunch on Wake up to money that the big builders were buying up other builders to get their hands on the land banks.
What we do know is that the biggest role of builders is to maintain land banks, building homes is a secondary concern. The value of land banks is being manipulated as the builders are technically insolvent, so in their annual reports they value their landbanks artificially higher to compensate against loses.
does any have an evidence of this
presumably people have studied the accounts of these companies and can substaniate this
one would have assumed it was pretty easy to do
one would have thought that HMRC would be interested in the masssive tax evasion too
personally I have no idea whether it's tru or not but there must be lots of evidence if it is all true.0 -
It's not libel. No one has been identified.0
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Valuing of assets is always open to a certain amount of artistic license.0
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