Insurance News Archive

Developer merger indicates commercial property "land famine"

A proposed merger between developers Taylor Woodrow and George Wimpey has been greeted with concern by the National Association of Estate Agents (NAEA).

In a statement from George Wimpey, the two companies noted that the merger should bring benefits including a better ability to "take through the planning process and develop significant parcels of land, enhancing the value created."

But the NAEA believes that lack of available land for development is holding back construction companies and forcing them to consolidate their assets, despite the government's professed desire for more house-building in the future.

President elect of the NAEA Stewart Lily said: "The Woodrow-Wimpey merger is yet another sign of the insufficient quantities of land coming through the planning system.

"When two such major players find themselves struggling to maintain landbanks it is clear that the problem of land famine is reaching critical levels."

If Taylor Woodrow and George Wimpey complete a merger it will create the UK's largest house-building group, completing around 22,000 houses each year.

29 Mar 2007