How can developers and commercial investors benefit from Labour’s planning reforms? Below, we look at 5 exciting opportunities from the new ‘grey belt’ land.
Labour’s catchy slogan, ‘Get Britain Building Again’, has materialised into new planning reforms, with ‘grey-belt’ land now a key focus.
The aim is to create a significant opportunity for property investors in both the commercial and buy to let sectors. However, with reduced planning permission barriers and a push for infrastructure in local communities, property developers are set to benefit the most.
Here are the 5 key opportunities that grey belt land could offer.
1. An increase in development sites
Labour plans to assign previously developed or neglected areas within the green belt to new grey belt land. This will include derelict buildings, concrete areas, and disused car parks. Consequently, this type of land offers developers a great opportunity to explore new projects and help achieve new housing targets.
Planning restrictions have previously made these areas difficult to build on; however, they are set to be easier to develop (more on this below). The ideal would be for the government to offer grants to developers to help upscale these areas within the communities.
Beyond new homes and residential spaces, the grey belt land is set to offer new commercial investment opportunities, such as retail, offices, and semi-commercial units. Consequently, the commercial sector can look forward to a prosperous future.
2. Simplified planning processes
Labour’s proposal for planning reforms will allow local authorities to review and classify grey belt land for redevelopment. With fewer planning hurdles, this should streamline the process for developers seeking planning permission. Therefore, property developers interested in these new schemes can expect fewer delays often associated with development projects, meaning projects will move forward faster to help meet increased housing targets.
3. Meeting the home building targets
Grey belt land will be a key contributor to the government’s target of building an astronomical 1.5 million homes over the next 5 years. The regional focus will be on areas with the largest housing shortages, and preliminary searches have already found over 70,000 potential grey build sites across England.
Developers can, therefore, boost their portfolio profits by taking advantage of these new opportunities to develop sought-after properties in these key locations, particularly those near big cities.
4. Support for sustainable development
The government has introduced its ‘5 golden rules’ for grey development, which should ensure the projects meet community demand and keep up with environmental standards. These rules include:
- Brownfield development first – Existing brownfield sites to be prioritised before considering grey belt land
- Grey belt development second – Only once brownfield sites are exhausted
- Prioritising affordable homes – Reclassified green belt sites (to grey belt) must include at least 50% affordable housing
- A boost to public infrastructure – Development should include new or improved public services and infrastructure, including transport links and community facilities
- Protect green spaces – Work to improve existing green spaces and create new ones for the public alongside development works
With sustainable development as a key priority, these guidelines provide a clear framework for eco-conscious developers and attract long-term investment.
5. Growth for commercial investment
As mentioned, new grey belt land is a fantastic opportunity for developers, new housing, and the commercial sector. Commercial and semi-commercial properties will be key in grey belt developments, driving local economic growth and regeneration. Moreover, the initiative allows commercial investors to diversify their portfolios and capitalise on the high demand for office spaces and retail hubs in the newly developed communities.
Other factors to consider
While the grey belt initiative offers exciting opportunities, developers must consider a number of challenges. For one, reclassification processes can take time and be difficult to navigate, requiring careful planning from local authorities. Furthermore, local communities will be concerned about the grey belt land’s environmental impact and its benefits to the area.
However, for developers and commercial investors, grey belt land could catalyse the next wave of UK property building and investment, offering new growth opportunities.
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