If this country is to achieve its housebuilding targets, then we must think smarter about where these new homes are built.
It appears that the new government shares this sentiment and made this the subject of one of its first announcements since sweeping to power.
Its plans, including redesignation of some areas of green belt will have caught the ear of developers and spark an acceleration in site acquisition strategies, which will present opportunities for landowners.
Rachel Reeves, in her first speech as the new Chancellor of the Exchequer, since Labour’s landslide victory, laid out a comprehensive plan to stimulate the British economy. Her vision focused on planning reform, renewable energy, and infrastructure development, creating opportunities and delivering growth.
Within this announcement was the Chancellor’s acknowledgement of the importance of developing brownfield and ‘grey belt’ land to meet housing targets.
‘Grey belt’ is a new addition to the lexicon of language regarding housebuilding, which, although not an official term, will be in common use over the term of this parliament and potentially beyond. It was coined by Labour in April and essentially it means areas of unattractive or poor-quality green belt land, which it will target for new housing.
There is no official data on the grey belt, but a study by estate agent Knight Frank suggests that up to 200,000 homes could be built on these sites.
Landowners with property in this new designation can anticipate increased demand and potentially more favourable development terms.
Of course, the availability of land doesn’t guarantee it will become a new housing scheme. Overcoming the hurdles of the planning process has becoming increasingly challenging.
However, as trailed in the election campaign, one of the key themes from Reeves’ speech was Labour’s attempts to deliver planning reform.
As we know, the planning system has been bogged down in regulation. Reeves’ commitment to reforming the National Planning Policy Framework (NPPF) aims to streamline these processes, restoring mandatory housing targets and prioritising growth.
This is encouraging news for landowners and developers who have faced delay after delay in planning applications. Part of the solution will be to support local authorities with 300 additional planning officers, a move expected to reduce the backlog of planning applications, allowing landowners to progress their development plans more smoothly and efficiently.
It appears the direction of travel is already positive for the government as planning approvals in June ahead of the general election increased by 20 percent, according to analysts Barbour ABI, which for landowners that would like to see their property made available for uses other than housing, the Chancellor also announced the end of the ban on onshore wind.
This change opens up new opportunities for renewable energy initiatives, offering new revenue streams while contributing to the country’s green energy goals. This is an excellent opportunity to diversify land use and income.
Even though these announcements are at an early stage, it is the news many will have wanted to hear. In fact, our team at Savage Silk is already handling an increase in enquiries from landowners keen to discover what their options will be.
Working closely with experienced lawyers and land agents, landowners will be able to unlock the opportunity to maximise on the value of their land.
Rachel Reeves’ speech outlined a clear and ambitious plan for economic growth and stability. She offers an opportunity, in rhetoric at least, to seize new opportunities, engage in dynamic projects, and contribute to the country’s economic development.
Britain, she said, is ready to build again, and now is the time to get involved.