Planning logjam drives mergers–Pretty

March 1, 2007
<p>Former Barratt boss David Pretty has warned that the planning system has become one of the key drivers for continuing consolidation in the housing market, as a result of its restrictions on land supply. Pretty told Housebuilder: “The planning system is putting real pressure on the industry to consolidate because it is leading to a situation where it is so difficult to acquire land that companies are being forced to acquire others in order to secure the landbanks that are essential to growth. </p> <p>“Consolidations are not only occurring because companies want to grow per se, there are two reasons: one being, to acquire new skills, the other prime driver being the state of the planning system. “Securing large enough landbanks to give performance in the future is one of the major reasons why there is pressure for consolidation to continue.” Pretty suggested that the situation may in some cases result in housing output in fact being reduced at a time when the country needs the opposite to occur. Pretty, who spent 16 years on Barratt’s board, four as chief executive prior to Mark Clare taking over, added that he was “delighted”with the news that the plc had won the …

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