The Government is preparing legislation that would force property developers across England and Wales to publicly disclose their land option agreements, in a move designed to tackle concerns over land banking and create a more level playing field for smaller construction firms.
Planning Minister Matthew Pennycook is advancing proposals for a mandatory register that would be integrated with HM Land Registry systems, requiring developers to reveal details of sites they have under option but not yet developed. The transparency measure forms part of Labour's broader housing strategy, which seeks to accelerate delivery and break down barriers facing small and medium-sized enterprises in the development sector.
The initiative addresses long-standing criticism that major housebuilders accumulate land banks—securing sites through option agreements but delaying construction to manage supply and maintain pricing power. Such practices have been particularly evident around high-growth cities including Manchester, Birmingham, and Leeds, where development land commands premium values but delivery often lags behind planning approvals.
However, industry representatives have cautioned that additional disclosure requirements could introduce unwelcome complexity to property transactions, potentially deterring investment at a time when development finance remains challenging. The proposals may also face resistance from developers concerned about revealing commercial strategies to competitors, though supporters argue greater transparency could actually stimulate competition and accelerate housing delivery across England's major urban centres.
