In 2010 David Cameron commissioned Philip Green to conduct an ‘efficiency review’ for the new coalition government, and he duly reported that the state, ‘the largest tenant/owner in the country’, was ‘wholly inefficient’ when it came to the use and management of space. The estate agent Savills, acting as a lobbyist more than a disinterested party, estimated in 2015 that England had enough surplus land to build two million homes, if only it could be released. Everybody could have a home, this and many other similar calculations implied, if only planners and bureaucrats would get out of the way and stop hoarding land.
In fact, the private rather than the public sector has been doing the hoarding. In Christophers’s words, ‘The private sector does not lack land; and nor, more significantly, does it lack land that is suitable for commercial development, or for which planning permission has been granted.’ A report in the Times last year showed that out of more than 1.7 million applications for residential planning permission granted between 2006 and 2014, fewer than half had been completed after three years. According to the Local Government Association in 2016, councils consistently approved more than 80 per cent of major residential planning applications; but the difference between the number of houses being approved and those actually being built was almost 500,000 – ‘and this gap is increasing.’ The hardly radical figure of Oliver Letwin identified the real brake on house-building when he published the interim conclusions to his inquiry into low completion rates last year. What governed the numbers, he decided, was the absorption rate – ‘the rate at which newly constructed homes can be sold into (or are believed by the house-builder to be able to be sold successfully into) the local market without materially disturbing the market price’. For ‘materially disturbing’ read ‘lowering’: to protect profits, developers are sitting on land that has been given planning permission. ‘Efficiency’ in this instance is a concept confined to the shareholder.