Britain doesn’t have enough homes. In London alone, it is estimated that 526,000 new houses need to be built to keep up with its booming population, but only 200,000 were built across the entirety of the UK. There is a housing crisis, but there may be an answer to this problem.
Across the UK, more and more developers are turning towards a previously-overlooked type of land: brownfields. With the government creating a new £180 million fund dedicated to transforming these land sites into houses, brownfield land is becoming a much sought-after commodity. If you’re looking to develop residential property, you might be overlooking these land oppertutnies. Read on to see if brownfield land could be suitable for you.
What is brownfield land?
Simply put, brownfield land is land which has been previously developed. They are the former land sites of industrial, commercial, or even agricultural developments which now lay vacant. Shuttered storefronts, vacant paved lands, disused farm plots: brownfields are very common in urban areas and ideal locations for housing projects.
In 2018, the Campaign To Protect Rural England estimated that approximately 26,256 hectares of brownfield land identified by Local Planning Authorities were available, and able to provide for approximately 1.1 million homes.
Advantages of brownfield land
Easier Planning Permission: With the need for homes rising considerably every year, governments and local councils are eagerly encouraging development on brownfield land. With every acre of greenfield land developed meaning one more acre of wildlife habitats destroyed, there is a greater incentive for brownfield land to be developed on first. The National Planning Policy Framework is set up to encourage LPAs to be weighted substantially in favour of projects using brownfield land.
Economic Reinvigoration: Dead, empty lots of concrete and shuttered stores do little for their surrounding areas. Developing on brownfields helps to reinvigorate local areas, bringing more people and commerce to its area
Social Image: Developing on brownfield land is seen as an environmentally-friendly choice, preventing the loss of more green land and protecting UK wildlife. If you’re looking to promote yourself as an eco-friendly business, brownfield land is an ideal choice.
Existing Infrastructure: While not a guarantee, especially with more rural brownfield lands, it is likely that existing infrastructure will be present on a brownfield, cutting down on the time needed to install pipes and electrical systems compared to a greenfield, where these will have to be factored into the time to build.
Disadvantages of brownfield land
Higher Potential Costs & Risk: While having infrastructure left behind may be a benefit, that’s not the only thing likely to be left behind. Pollutants and other harmful chemicals may be present on disused sites, especially brownfields which were the former sites of industrial or manufacturing facilities. Environmental checks must be carried out before any work can begin, especially when assessing suitability for residential spaces, and if any harmful elements are found, they must be removed which can potentially take a long time.
However, councils and LPAs are becoming more proactive in their efforts to make brownfields “shovel-ready” for development: planning, zoning, surveying, and conducting environmental and infrastructure work before they’re available for sale.
While this does not guarantee that every available brownfield land will be “shovel-ready”, efforts are being made to make them less risky and overall as costly an option as they are known to be historically.
Renovation Costs: If the brownfield land you are looking to purchase already contains existing structures, there is a risk that they will not meet contemporary structural and building codes. Thus, extensive renovations may be required first before they become suitable for purpose.
Ultimately, whether a brownfield is right for you comes down to your risk tolerance and what is best for your development needs. With multiple grants and schemes in place, and continuing to be released, brownfields are becoming a more popular choice. If you have any questions about developing on brownfield land, please do not hesitate to contact us.
This article is purely speculative and should not be mistaken for financial advice. Readers should consult a professional independently before making any financial decisions.