In a significant move that pits the government against two of Britain's most popular discount retailers, Lidl and Aldi are being compelled to sell off parcels of land they have been holding for years without development.
The crackdown, spearheaded by Levelling Up Secretary Michael Gove, targets the practice known as 'land banking,' where companies acquire and sit on land with planning permission, potentially stifling local development and exacerbating housing shortages.
Government Flexes New Planning Muscles
The Department for Levelling Up, Housing and Communities has confirmed it has issued Holding Directions, a powerful planning tool, to several local councils. These directives prevent councils from approving applications on specific sites, effectively forcing the supermarkets' hands.
This action is enabled by recent reforms within the Levelling Up and Regeneration Act 2023, which grant the government greater powers to intervene in local planning processes where development is deemed unnecessarily delayed.
The Sites Under Scrutiny
Among the sites affected are a Lidl-owned plot in Colchester, where planning permission was granted over five years ago, and an Aldi site in Southampton. The government's intervention signals a clear intent to ensure that approved land is used for its intended purpose—to build homes and create local amenities—rather than being held speculatively.
A government spokesman stated the move ensures that "developers cannot thwart the planning system by sitting on land with planning permission."
Supermarkets Push Back
Both supermarket chains have defended their positions. A Lidl spokesperson emphasised their status as one of the UK's "fastest-growing retailers," with a pipeline of new stores and thousands of jobs planned. They argued that the process of developing new sites is complex and time-consuming, often delayed by factors like infrastructure upgrades.
Aldi echoed this sentiment, stating they remain committed to their expansion plans but face "lengthy and complex planning processes." The retailer insisted it does not engage in land banking for financial gain.
A Wider Message to Developers
This intervention is seen as a shot across the bow for the wider property development industry. The government is making it clear that it will use its new powers to unblock stalled sites across the country, aiming to accelerate construction and meet national housing targets.
For shoppers and communities, the outcome could mean new stores and increased competition sooner rather than later. For the property sector, it heralds an era of increased scrutiny on how quickly approved projects move from the drawing board to reality.
