Developers obviously make the most of the space but the ultimate decision on the layout of a new development is with the local Planner. They invariably ask for demand that the developer finances play areas, schools, sports fields/pavilions, upgrades of local amenities or roads etc.... Having been married to a developer/architect, I have seen many a beautifully planned development hacked to pieces by a Planner demanding more and smaller houses, less road parking space, and narrow pavements, in lieu of the original spaciously planned units and layout. So, it isn't always the fault or greed of the developer, although I agree that there are many unscrupulous builders out there with £ signs flashing in front of their eyes! 
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