Every year, the Local Government Association issues a press release quoting a figure for the number of unbuilt homes with planning permission. While the figure they quote is always an over-estimate, it is eagerly jumped on by those who oppose new housing development. It is evidence, critics claim, of land banking - the process by which house builders allegedly withhold new homes from the market in order to drive prices upwards.
There are a whole variety of reasons why this isn't true, but one of the key reasons is the effect of absorption rates - the speed at which a local housing market can absorb new homes being built.
In this piece for Housing Today our managing director, Paul Smith, explains what we can learn from sandwich chain Pret a Manger about how absorption rates effect housing delivery - and what they tells us about claims of land banking.
