The new government has pledged to build 1.5 million new homes across the country within five years and has recognised that councils should prioritise building on brownfield sites to help meet this target. But what are brownfield sites, and why should property developers be drawn to them?
Put simply, brownfield sites are areas of land that either had or still have structures and buildings or were previously developed in some way but are now typically not used. Examples of brownfield sites include unused factories or carparks that may currently sit dormant, waiting to be redeveloped.
Historically, land with no previous development, known as greenfield sites, were identified as the optimum areas for new housing. However recently, this view has changed as the government has placed significant emphasis on prioritising the use of brownfield sites to increase the amount of new housing being built.
Why does this matter?
It matters because building on brownfield sites has the environmental benefit of protecting what’s known as the green belt. This land essentially acts as a boundary, helping to stop the expansion of town and city developments into the countryside. Have you ever noticed houses that used to overlook a field and are now overlooked by a mass of new housing? We need to protect these green belts by utilising unused areas, like brownfield sites. These sites are commonly located in towns and cities, which allows the green belt to do its job of protecting urban sprawl.
Aside from having an advantageous environmental impact, building on brownfield sites has significant benefits for developers and investors…
What are the benefits?
Low Acquisition Costs: A key benefit for developers and investors is that brownfield sites typically have a lower acquisition cost than greenfield sites. However, this does depend on the structures already on the sites and how much it would cost to redevelop and clean them.
Redevelopment: The existing structures on brownfield sites can be extremely useful within the redevelopment process. As mentioned by Jason Star, “brownfield sites are typically located in urban areas with good infrastructures, including road and rail links, public transport links, and utilities such as water and electricity.”
Additionally, the existing infrastructure on these sites can provide foundations, structures, and materials that can be utilised. This reduces the cost of materials and labour and the time of completion and redirects money for investment elsewhere.
Demand: According to Zoopla, buyer demand was a fifth higher in August 2024 than in August 2023. There has also been an increase in demand for rented accommodation due to the lack of available housing ready to purchase. For many, the dream of owning their home is becoming less likely unless something changes.
With the likely potential for 1.5 million new homes being built across the country thanks to the new government, Keir Starmer emphasises that this “would recapture the dream of homeownership with help for first-time buyers and new infrastructure to support families and communities.”
Therefore, new land areas need to be utilised to meet this target. Property developers and investors are being redirected towards alternative options, the main one being brownfield sites and their substantial opportunities for large and profitable housing developments.
Local Economy: Lastly, the local economy is likely to boost as new homes and businesses bring an influx of people to these areas. This increase in socialisation, employment, and spending not only increases local economies but also improves the potential for investment in the local area, which will subsequently result in further sociological and financial inclines.
How can Attwells Help?
If you are a property developer, are thinking about purchasing a brownfield site, or have any questions in general, don’t hesitate to contact Rrjedha Dana on 0207 449 3136.
Our blogs and articles are correct at the time of writing.
These have been created for marketing purposes only and should not be considered as legal advice.
