Tatton Teaser
Posted 24 July 2024
Since Labour has come into the power the focus has rapidly turned to planning and land use with a key policy from the Labour manifesto to build 1.5 million new homes over the next parliament.
Based on Government data from 2022, England has a land area of just over 13,046,000 hectares with just over 37.4% of the areas protected against development by one or more natural designation including National Parks, Areas of Outstanding Natural Beauty (AONBs) and Sites of Specific Interest (SSSIs). Whilst 10.4% of England’s land is located within Flood Zone 3 and 8.4% at risk of flooding from rivers and seas. This still leaves significant scope of land that can be considered for homes.
Despite highlighting problems with the planning system that has curtailed house building in England, the reaction to known listed housebuilding names has been more muted. With these main companies listed below individually all outperforming the FTSE 100, 250 and FTSE 350 Real Estate Sector over the past 20 years. Undoubtedly, low interest rates and tax breaks have helped support the rise of housebuilders over this period but given this added impetus from government, scope of land availability and target for new homes this outperformance could well continue.
Thank you Claire Bennison for the analysis.