With Britain needing upwards of a quarter-million homes to deal with its rising population. Cheap, fast, but controversial, read the pros and cons of greenfield land, in order to see if they’re right for you.
What is greenfield land?
In short, greenfield land is previously-undeveloped land. While many are former agricultural plots, no building work has been constructed on them, leaving them a possible blank canvas for property developers, should planning permission be granted.
Greenfield land is not to be confused with the similar term “green belt land”, though many greenfield locations are also green belt, and are the source of the controversy surrounding property development. Read on to find the benefits and drawbacks of greenfields, and what the green belt controversy is.
Benefits of greenfield land
Simpler and straightforward: Being ‘blank canvases’ for development means that there are likely to be no prior complications to developing property on the land.
Shovel-ready: In contrast to brownfield land (land previously developed — mostly commercial and industrial), where hazardous chemicals or other pollutants may have seeped into the ground, requiring more time and money to remove, greenfield land is almost always ‘shovel-ready’.
Quicker and cheaper: Developing on greenfield land could in theory be quicker and cheaper than brownfield land, even if the greenfield land may have a higher initial cost, as land preparation and groundwork cleaning costs could be minimal in comparison to developing on brownfield land.
Greater flexibility: Without being constrained by existing structures or other similar factors, as property developers, you will have more flexibility with your designs.
Greater scalability: If you’re looking into the long-term, greenfield land is also easier to expand in the future, as it will often be located next to another greenfield land, which you could possibly expand development towards.
Drawbacks of greenfields
No existing infrastructure: Being previously-underdeveloped means that there will be no existing infrastructure to the land. Water, electricity, fibre and landlines, and even potentially even road access may all have to be laid down, which could impact costs and development time.
Distance from urban areas and services: Greenfield land within urban areas is incredibly rare. It is almost guaranteed that any greenfield land will at the very best be on the outskirts of existing urban areas. As a result, there will be no immediate access to the services that urban areas provide. While undoubtedly, ideal for commercial or industrial development, if you’re looking to develop residential properties, especially social housing, these distances might prove to be problematic.
Social objections: Unlike brownfield developments, which tend to be received positively, greenfield developments are sometimes the opposite. Concerns about loss of wildlife, environmental damage, and increased traffic levels for locals are some of the most common objections you may receive when proposing development. Complaints may force you to alter, amend, or otherwise restrict your initial development plans.
If you were looking to develop greenfield land in places governed by North West Leicestershire District Council, for example, you would be limited to building housing affordable for local residents. Note that this is only one example, as other local councils tend to usually have similar restrictions on greenfield land in place.
The green belt controversy
Initially established by the Town and Country Planning Act of 1947, green belts form part of the government’s plans to combat urban sprawl by establishing protected areas of countryside with heavy restrictions or outright banning of development of property.
While effective in maintaining green land in the UK, it has caused problems for developers, as the shortage in available land has driven up prices substantially.
According to an article written in 2013, published by Inside Housing, in the 1950s, the purchase of land accounted for approximately 25% of the overall price; in 2013 that price was closer to the 70% mark, and consequently has driven up the cost of property development. Therefore, you can imagine what the price today would be.
With the release of the September 2022 mini-budget, it was hoped that Kwasi Kwarteng’s ambitious plans to overhaul and ease restrictions on development would include green belt exemptions in the proposed “Investment Zones”, but this proposal has not appeared to have been taken forward.
Choosing whether to build on greenfield or brownfield land is ultimately down to the project’s needs. Therefore, to help find the best land to develop for your project, please don’t hesitate to contact us at Barney Estates & Auctioneers.
This article is purely speculative and should not be mistaken for financial advice. Readers should consult a professional independently before making any financial decisions.