A NORTH-EAST council has welcomed plans by the Government to clamp down on housebuilders who gain planning permission but fail to start building.

Chancellor Philip Hammond announced an urgent review into the so-called “land banking” during his budget speech on Wednesday.

He said there was a “significant gap between the number of planning permissions and houses being built and added the Government could use “direct intervention compulsory purchase powers” if it found that “vitally needed land is being withheld from the market for commercial, rather than technical, reasons.”

As of April 1, this year, Durham County Council had 10,205 houses with planning permission on sites that had not been started.

Mike Allum, Durham County Council’s spatial policy manager, said: “We’re always looking for opportunities to ensure the delivery of much-needed new housing in the county, as demonstrated by the recent publication of our local plan timetable.

“We therefore welcome the review announced by the Chancellor to look at ensuring that sites with planning permission are built in a timely manner.”

Hartlepool Borough Council reported only 370 out of 2,319 homes with planning permission had been started.

However, Hambleton, Richmondshire and Middlesbrough councils all said this it not an issue in their areas.

Tim Breitmeyer, president of the CLA, which represents landowners, farmers and rural business across England and Wales, said: “We welcome the increase in the number of small sites in local plans and the further funding for the Home Builders Fund.

“We also look forward to participating in the review to be led by Oliver Letwin into the build-out rates of land with planning permission for housing.

“It is important that we remove any barriers to getting homes built. We will, however, strongly resist the suggestion of blanket changes to policies on compulsory purchase of land for house building. This should only ever be a last resort.

“Councils should be focused on establishing effective partnerships with local landowners, not seeking to forcibly remove their property.”

The results of the review by Mr Letwin will be revealed in the spring budget, which is usually delivered in March.