Housebuilder Networks and Residential Land Markets

Abstract

The commercial prospects of speculative housebuilders depend crucially on successful land acquisitions. This paper presents new evidence revealing the importance housebuilders attach to networks with other important actors in securing future land supplies. Since networks depend on trust, reputation and voluntary collaboration, they indicate the importance of social relations within the industry. The paper argues that UK speculative housebuilders rely more on networks than markets to source land and that they structure those networks to enhance their own competitive positions. Reflecting Granovetter’s belief in the strength of weak ties, the paper emphasises the breadth not depth of housebuilder networks and contends that social relations within the industry are primarily dependent on pragmatic considerations of mutual self-interest.