When a new house is sold, a large payment has gone to the landowner. This payment is assured when planning permission is granted, multiplying the value of the land by hundreds of times.
The shortage of new homes keeps the cost of all housing high. This shortage starts with a shortage of places where new build is allowed – because of the lack of planning permission.
Planning permissions (& other) restrictions reward the rich and affluent, landowners and existing home owners, and penalise the less affluent, particularly the young.
Below are some estimates made by AI chatbots of the proportion of the value of a new house in the UK that goes to the landowner. The landowners cut derives from and artificially short resource – planning permission. Here is a summary summary table…
| Chatbot | Typical Landowner share | .. in High value areas |
| ChatGPT | 45.00% | 60.00% |
| Claude | 35.00% | 55.00% |
| Perplexity | 58.00% | >50% |
| DeepSeek | 30.00% | >50% |
| Grok | 30.00% | 42.50% |
| Gemini | 20.00% | 45.00% |
ChatGPT AI
[T]ypically 30–60% of the final sale price of a new home is captured by the landowner, once planning permission is granted.
In High demand areas (like York or London Fringe) 50% to 70%.
Claude AI
In the UK, land typically represents about one-third (30-40%) of the total cost of a new house.
In supply-constrained, high-demand markets, landowners capture far more of the house price—potentially 50-60% or more in extreme cases—because the scarcity of developable land means developers must pay whatever the market will bear while still covering construction costs and maintaining profit margins.
Perplexity AI
For a typical new-build home in the UK, something like one-half to two-thirds of the sale price is usually capitalised into the land value and therefore captured by the landowner.
In high-demand areas like York and the London fringe, land typically accounts for well over half of a new home’s price, and can easily reach around two thirds or more on standard suburban sites.
DeepSeek AI
Studies and industry estimates typically put the “land value at 20-40% of the final new build house price”. A common figure cited by bodies like the Home Builders Federation is around “1/3 (33%)”.
In York and the London Fringe, the landowner is the unequivocal financial winner, regularly capturing well over half the price of a new home.
Grok AI
In the UK, the portion of a new house’s sale price that goes to the landowner (via the land purchase price paid by the developer) typically ranges from 20-40%, depending on location, site specifics, planning obligations, and market conditions. A common industry rule of thumb is around one-third (approximately 33%).
York, the landowner’s share of a new house’s sale price (via development land value) is indeed higher than the UK average of 20-40%, often reaching 35-50% or more in prime spots.
Gemini AI
In the UK, the proportion of a new house price captured by the landowner (the “land value”) typically ranges between 15% and 35%, though this figure varies significantly by region and the specific type of land.
In these [high value] ,locations, the “land capture” often moves from the standard 20% toward 40% or even 50% of the total sale price.
ChatGPT AI
[T]ypically 30–60% of the final sale price of a new home is captured by the landowner, once planning permission is granted.
In High demand areas (like York or London Fringe) 50% to 70%.
Claude AI
In the UK, land typically represents about one-third (30-40%) of the total cost of a new house.
In supply-constrained, high-demand markets, landowners capture far more of the house price—potentially 50-60% or more in extreme cases—because the scarcity of developable land means developers must pay whatever the market will bear while still covering construction costs and maintaining profit margins.
Perplexity AI
For a typical new-build home in the UK, something like one-half to two-thirds of the sale price is usually capitalised into the land value and therefore captured by the landowner.
In high-demand areas like York and the London fringe, land typically accounts for well over half of a new home’s price, and can easily reach around two thirds or more on standard suburban sites.
DeepSeek AI
Studies and industry estimates typically put the “land value at 20-40% of the final new build house price”. A common figure cited by bodies like the Home Builders Federation is around “1/3 (33%)”.
In York and the London Fringe, the landowner is the unequivocal financial winner, regularly capturing well over half the price of a new home.
Grok AI
In the UK, the portion of a new house’s sale price that goes to the landowner (via the land purchase price paid by the developer) typically ranges from 20-40%, depending on location, site specifics, planning obligations, and market conditions. A common industry rule of thumb is around one-third (approximately 33%).
York, the landowner’s share of a new house’s sale price (via development land value) is indeed higher than the UK average of 20-40%, often reaching 35-50% or more in prime spots.
Gemini AI
In the UK, the proportion of a new house price captured by the landowner (the “land value”) typically ranges between 15% and 35%, though this figure varies significantly by region and the specific type of land.
In these [high value] ,locations, the “land capture” often moves from the standard 20% toward 40% or even 50% of the total sale price.
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