Once again the government is pointing the finger at housebuilders for our national housing shortage . This flies in the face of commercial reality. The cost of bringing forward land for development means that there is no incentive for developers to hoard land . That said as with any private sector business a scheme must be viable to permit development. Subsequent approvals, beyond initial planning permission, are just some of the many issues that can result in additional pre-construction delays. The country's housing shortage is a complex issue that involves collaborative working from the many parties involved to find a multi-faceted solution. Housebuilders understand the Prime Minister's challenge and appreciate their societal purpose. This must be undertaken however in the context of recognising the need for an adequate return on shareholder funds .
Although the number of planning permissions being granted in England has risen since 2010, the PM said this has not been matched by a corresponding rise in the number of homes being built. She pointed the finger of blame partly at developers who she said have a "perverse" financial incentive to hoard land once it had been approved for development rather than actually build on it. She criticised bonuses for construction bosses which are "based not on the number of homes they build but on their profits or share price".