The new NPPF creates significant opportunities for residential development

Further to our update issued on 1st August, setting out the key changes in the new draft of the National Planning Policy Framework (NPPF), which is now out for consultation until 24^th September 2024, this newsletter focuses on the significant opportunities the proposals create for landowners, developers and investors working within the residential sector.

By way of summary, these changes include, inter alia:

• Housing Need / The Standard Method: Strengthening of the requirement for local authorities to meet housing need in policy and a revised method for calculating housing need so that 370,000 homes a year can be delivered.
• Five Year Housing Land Supply: Strengthening the importance of local authorities maintaining a five-year housing land supply.
• Green Belt Reviews: Increased emphasis on Green Belt reviews where an authority cannot meet its identified need for housing, commercial or other development.  Unmet housing need can constitute the ‘very special circumstances’ needed to justify developing Green Belt land.
• Grey Belt: A new category of Green Belt land, not only for previously developed land, but also for green fields/undeveloped land which makes a limited contribution to the five Green Belt purposes.
• Brownfield Land: Development on brownfield land should be regarded as “acceptable in principle”.
• Local Plans: Increased emphasis on the preparation of Local Plans and delivery with new housing figures taken into account.

What opportunities does this create?

There is now significant scope for development to come forward on sites where it may have previously seemed difficult and therefore, now is the perfect time to review potential development sites and / or existing assets, with a view to understanding whether there is potential for development to be unlocked. Rapleys’ team of experts is well placed to advise on how best to capitalise on these proposed changes.

Increased Housing Numbers

More sites will be required to meet increased levels of identified housing needs. We can advise on what increases are likely to be applied to individual local authorities and the opportunities this may create.

Local Plans

Whilst we expect to see some authorities seeking to take advantage of transitional arrangements, we expect that most Local Authorities will ultimately need to plan for increased housing numbers. This creates new opportunities to positively promote sites through the Local Plan process. We can work with you to actively engage in the Local Plan process and to maximise the opportunity of having sites allocated.

Green Belt / Grey Belt

The new draft NPPF still identifies a preference for development on Brownfield Land, but proposed changes to Green Belt policy create opportunities for development within the Green Belt which would not previously have been supported. To deliver the housing numbers needed, Green Belt reviews and release of Green Belt land will be required, as will development of Grey Belt land, whether that is previously developed land or land which provides a limited contribution to the Green Belt purposes.

If you have a site or a wider portfolio which includes land that might fall into this category, we would be happy to provide advice on future development potential, development strategy, and on how best to unlock maximum value for your land.