Developers accused of 'immoral cash grab' over housing land in County Durham

Yahoo

26-07-2025

The Northern Echo has been running a series of articles into the state of housebuilding across the region. In one of his final pieces, Patrick Gouldsbrough looks at the issue of 'land banking'.
Developers have been accused of an 'immoral cash grab' when it comes to banking up land and building on it when it's most profitable in County Durham.
Amid mounting resident frustrations and a string of unfinished developments across the region, local politicians are calling for national law changes to force developers to build the homes they've promised or risk losing planning permission altogether.
'In Durham, we are actually at a point where we have a surplus of approved housing developments,' said Alex Neil, Liberal Democrat councillor for Langley and Esh.
'We have the houses we need locally and are meeting current national house building targets despite approving many more developments than said target.
Alex Neil, Liberal Democrat councillor for Langley and Esh (Image: DURHAM COUNTY COUNCIL) "We are now at the point where the national targets are going up.
"This is going to mean excessive house building for our local needs and would likely lead to housing developments being accepted where they aren't at the same quality as some of our other developments in recent years.'
Mr Neil has also highlighted what he describes as a "broken national planning system" where councils lack the authority to ensure the timely completion of developments.
'Unfinished housing is a key concern of the council and is a major issue that needs a solution.
"As it stands, national law prevents councils, such as Durham, from forcing the building of houses once approved."
A housing estate site (Image: SARAH CALDECOTT) "Our local Lib Dem councillors are keen to see national legislation changed to allow councils like ours to force builders to construct their planned developments in a timelier manner or risk the removal of their planning permission,' he said.
'The banking of land to wait until houses will be more profitable is not just an issue to meet housing requirements, but is also an immoral cash grab from large corporations.
'This response represents the stance of me and my Liberal Democrat colleagues on Durham County Council as Durham's official opposition party."
In response to accusations of the practice of land banking, Colin Willetts, deputy managing Director at Homes by Esh, said: 'I can confirm that Homes by Esh does not land bank – our process is to commence work on developments as soon as planning permission is granted.'
Colin Willetts, deputy managing Director at Homes by Esh (Image: HOMES BY ESH) Other housebuilders have also denied that land banking is part of their practices.
The Home Builders Federation (HBF), which is the representative body of the home building industry in England and Wales, has also denied that it uses the practices across the UK.
A spokesperson for the HBF said: 'Repeated independent investigations have concluded that house builders do not land bank.
"Having made a significant investment in land and navigated the lengthy and costly planning process, there is absolutely no benefit in delaying construction and getting a return on investment by selling homes.
"There is often a misunderstanding of the various stages in the planning process, but until developers have an implementable permission, which can take years from when an initial outline permission is granted, no work is allowed to start on site.'
Councillor Chris Lines (Image: SARAH CALDECOTT) Elsewhere in County Durham, in the town of Sedgefield, which has seen its population surge by over 30 per cent in the past decade, Councillor Chris Lines warns that runaway development is placing unsustainable pressure on infrastructure and community identity.
'They're changing all the time,' he said of local and neighbourhood plans.
'We're in danger of places growing at such a vast rate that the supporting infrastructure simply can't keep up.'
He added: 'Yes, it's positive to see new families, vibrant businesses, and homes for young people. But we must ask: at what cost?'
Cllr Lines cited unfinished roads, schools at capacity, and merging town boundaries as signs that growth is now outpacing planning.
The Taylor Wimpey Eden Gardens estate in Sedgefield, County Durham (Image: SARAH CALDECOTT)
Using the sprawling Wynyard development as an example, he cautioned against the 'join-up' risk, where distinct towns blur into one another due to vanishing green buffers.
'We need to protect the shape and identity of our places,' he added.
'Growth should never come at the expense of community character.'
His concerns echoed issues seen across the Eden Gardens estate in Sedgefield.
'People have moved in, yet the footpaths and parts of the road network are still incomplete,' Cllr Lines said.
'It's a classic story. Residents are left in limbo while councils can't adopt the site because the basics simply aren't finished.'
Story Homes' 59 house development in Blackwell, Darlington (Image: SARAH CALDECOTT) In neighbouring Darlington, a pattern of delayed completion and deteriorating trust between developers and residents is playing out in multiple neighbourhoods.
At the 59-home Carmel Road South estate by Story Homes—where homes sell from £520,000—residents have raised serious safety concerns over what they call 'dangerously unfinished' roads and pavements.
Despite the final home being completed in April, basic infrastructure remains incomplete.
The Central Park North development in Darlington (Image: SARAH CALDECOTT) The developer blames 'unforeseen technical challenges and ecological requirements,' but assures residents that it is 'fully committed to completing the outstanding works.'
In Central Park North, a Keepmoat development launched in 2015 with plans for 350 homes, residents say the estate still resembles a construction site.
Safety fences, patchy roads, and unkept green spaces mar what was supposed to be a flagship project.
Bellway's housing development in Hurworth, near Darlington (Image: SARAH CALDECOTT) Keepmoat insists it remains 'committed to completing their work on the site in the coming months.'
In Hurworth, Bellway Homes faces intense criticism from Cllr Lorraine Tostevin, who called the estate 'a disgrace' six years after its construction began.
Unfinished footpaths and roads, she says, are particularly hazardous for disabled residents.
Read more:
Echo Comment on incomplete Darlington estates
Darlington estate is 'complete mess' with 'accident waiting ...
New rules could see housebuilders who leave sites unfinished ...
Central Park North, Darlington "massive joke," say residents
Bellway claims it is now addressing the issue 'as a matter of urgency.'
And in Heighington, Bellway's Meadow Rise development has remained in limbo for more than two years since the final house was sold.
'People have paid upwards of £250,000 for their homes. They rightly expect better, not years of delay and a landscape of broken promises,' said Cllr Gerald Lee, who covers the area.
Bellway now says it will begin 'adoption works' on July 21, with completion expected within four weeks.