Brownfield development costs reduce

Real estate 360

Brownfield development is a critical crossroads. While investors and developers have historically prioritised greenfield sites, updated planning rules and tax reliefs now make brownfield development more cost-effective than ever before. Will the sector grasp the opportunity?

From December, councils must keep up-to-date registers of brownfield land available for housing. ‘Permission in principle’ rules will also be introduced to simplify this planning process on these sites. The sector overwhelmingly expects the new rules to have a positive effect on brownfield development.

Over recent years, permission in principle rules that allow the conversion of offices into residential space have been widely adopted across the sector. It is likely that a simplified planning process for brownfield development will equally become an effective lever to bring forward residential and commercial projects on these sites.

A shorter planning process will help reduce complexity and costs. When these savings are coupled with available tax incentives for remediation, brownfield development will become a more affordable choice. As demand for housing intensifies, investors that can square the investment case for brownfield development could find new opportunities for growth.

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