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Construction groups hit by threat of crackdown on property developers
The government is looking to crack down on property developers, including greater use of compulsory purchase powers and potentially removing planning permission if land is not developed in time.
Housing secretary Sajid Javid said the Government wanted to adopt a more "muscular" approach towards developers, nimbys and landowners to drive up the supply of new homes.
"We've got a housing crisis," Javid told The Times. "We've got no time for anyone who is just anti development for the sake of it.
"If you are 'nimby', the government is not going to be your friend. We are on the side of people who want more homes."
The news hit listed housebuilders hard, with Persimmon, Barratt Developments, Taylor Wimpey and Berkeley Group all losing ground when London opened.
As part of the government's drive to kick start housebuilding, Javid and Tory grandee Oliver Letwin are carrying out a review into land banking, the practice of buying land but not immediately developing it. The findings of the review, which spooked builders back when it was announced in the Chancellor's autumn budget, are expected to be formally published in the spring.
As well as potentially losing planning permission and greater use of compulsory purchase powers, other measures being considered include introducing new charges on land that rockets in value after being approved for development.
Analysis by housing charity Shelter found that developers were sitting on almost a million housing plots.
"There is definitely some hoarding of land by developers," said Javid. "The Government needs to play a more active, more muscular role."
Developers have long denied sitting on land with planning permission, arguing that it makes little financial sense. According to The Times, housebuilders created 183,570 new homes in England last year, the most for a decade. Once combined with conversions of other buildings, such as former offices, into homes, that number rose to 217,350.
The government, however, is targeting 300,000 new homes a year.
"If the government were to implement a 'use it or lose it' rule, or windfall tax retrospectively on all land that has got planning permission, you are talking armageddon," said Anthony Codling, housing analyst at Jefferies.
"Share prices are linked to the value of the land that housebuilders hold, so if you reduce the value of land, that has a direct effect."