Building land dearth hits construction

DEMAND for houses has returned but a dearth of building land is crimping building activity, the head of housebuilder Redrow warned yesterday.

The firm, which reported a lower first-half loss and healthier trading, said the planning system is also preventing it ramping up activity to meet demand.

Chairman Steve Morgan said: "We're desperately trying to increase our debt, we're trying to buy land. There's not enough of it on the market. If we had more sites, we could build and sell more houses. There are people who seem reluctant to sell at today's prices."