Developers face ‘use it or lose it’ tax

Developers will face new “use it or lose it” taxes for failing to build homes on land that already has planning permission, with Housing Secretary Robert Jenrick said to be considering a levy as ministers look to encourage higher rates of building. It has been suggested that housebuilders could be forced to pay full council tax on all the properties in a project from one to two years after securing planning permission, regardless of whether they have been built. The CPRE has demanded levies on developers who fail to build, with Tom Fyans, campaigns and policy director at the countryside charity, saying: “In the eye of an affordable housing crisis we need a ‘use it or lose it’ approach”. Local Government Association analysis shows that since 2010/11, around 2.8m homes have been approved for construction but only 1.6m have been built.

The Times (14/05/2021)