Last July, Angela Rayner announced an overhaul of the National Planning Policy Framework (NPPF) as part of the Government's pledge to deliver 1.5 million homes over the next five years and get Britain building again.
In December, the Government published a revised version of the NPPF, considering the responses received during the consultation.
The NPPF sets out the Government's planning policies for England and how these should be applied. It provides a framework within which locally prepared plans can sustainably provide sufficient housing and other development.
Under the revised NPPF, if a local planning authority is unable to meet housing targets after considering all opportunities to effectively use brownfield land, then some low-quality Green Belt land can be freed up to become part of a 'grey belt' to allow new homes to be built.
Our Agriculture and Commercial Property Lawyers look at some of the changes and the opportunities available to landowners.
Brownfield development
The Government has published a Planning Reform Working Paper called "Brownfield Passport: Making the Most of Urban Land". It proposes options for a form of brownfield passport that would be more specific about the development that should be regarded as acceptable on brownfield sites.
The default answer to suitable proposals would be a straightforward "yes"."
Paragraph 125 of the revised NPPF states that planning policies and decisions should give substantial weight to the value of using suitable brownfield land for homes and other identified needs, and those development proposals should be approved "unless substantial harm would be caused".
'Grey belt'
Under the current rules, development on land designated as Green Belt is regarded as inappropriate and should only be granted planning permission where 'very special circumstances' exist.
The 'grey belt' is a concept introduced by Labour during the 2024 general election to identify poor-quality, underutilised sections within the Green Belt. Examples of land likely to be considered grey belts are car parks, petrol stations, caravan parks, campsites and quarries.
The Government has revised the NPPF definition based on consultation feedback to ensure clarity. The confirmed definition of grey belt land is:
"land in the Green Belt comprising previously developed land and/or any other land that, in either case, does not strongly contribute to any of purposes (a), (b) or (d) in paragraph 143. 'Grey belt' excludes land where policies relating to the areas or assets in footnote 7 (other than Green Belt) would provide a strong reason for refusing or restricting development".
The definition of grey belt land refers to land which does not "strongly contribute" to three of the five purposes of the Green Belt (referred to as paragraph 143 in the above definition).
These purposes are:
- to check the unrestricted sprawl of large built-up areas
- to prevent neighbouring towns from merging into one another
- to preserve the setting and special character of historic towns
The two other Green Belt purposes, to safeguard the countryside from encroachment and to assist in urban regeneration, have not been included as considerations.
Footnote 7, referred to in the definition of 'grey belt', includes designations for environmental protection, such as habitat sites, SSSIs, AONBs, and National Parks. Areas at risk of flooding or coastal change are also excluded.
The revised NPPF adds guidance on where building homes or other developments on Green Belt land could be considered appropriate.
The guidance includes four criteria which would need to be met for development to be considered appropriate:
- The development would utilise grey belt land and not fundamentally undermine the purpose of the remaining Green Belt in the area;
- There is a demonstrable unmet need for the type of development proposed;
- The development would be in a sustainable location;
- Where the development meets the 'Golden Rules' (see below).
'Golden Rules' for Green Belt development
The NPPF states that a development that complies with the Golden Rules should be given significant weight in favour of being granted permission. The Golden Rules are:
- Affordable housing: Local planning authorities should set a specific affordable housing requirement for major development involving the provision of housing on land within the Green Belt through their local plans. This requirement should be set at a higher level than that which would otherwise apply to land that is not within the Green Belt and requires at least 50% of the housing to be affordable unless this would make the development of these sites unviable. Before development plan policies for affordable housing are updated, the affordable housing contribution required to satisfy the Golden Rules will be 15% above the highest existing local affordable housing requirement, subject to a cap of 50%. In the absence of a pre-existing requirement for affordable housing, a 50% affordable housing contribution will apply by default.
- Improvements to local or national infrastructure: Any development must include new public services and infrastructure (such as new schools, nurseries, GP surgeries and transport links) to deliver well-designed, connected places.
- Local green spaces: Residential development schemes must provide new or improved existing green spaces that are accessible to the public. New residents should be able to access good quality green spaces within a short walk of their home, whether through onsite provision or through access to offsite spaces.
In short, major development needs to prioritise affordability, improve infrastructure and provide or improve accessible green spaces.
These golden rules will be paramount to local planning authorities when determining planning applications.
Opportunities for landowners
With all this focus on house building, how can landowners unlock additional value from their land?
Entering into an arrangement with a developer or promoter can be an effective way for landowners to do this, particularly if they don't have the time, experience, or money to fund the promotion and planning application process themselves.
Option agreements and conditional contracts are the traditional methods for developers to acquire land for development to maximise its value and minimise some of the risks.
However, promotion agreements have become popular in recent times because it is often difficult for developers to obtain finance to purchase development sites.
When negotiated well, both types of agreement can secure a satisfactory outcome.
The specific circumstances of the land, its location, local market characteristics and the planning legacy of the area should all be considered, which is why it is always sensible to seek professional advice as early as possible in the process.
Contact Our Agriculture and Commercial Property Team
Our Agriculture and Commercial Property Team has extensive experience in helping draft option agreements, conditional contracts and promotion agreements.
We will provide clear, concise and practical advice tailored to suit you.
01619414000
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Katie Bartley
Solicitor
Katie joined Myerson as a Trainee Solicitor in 2024 and qualified as a Solicitor in 2026.
Prior to this, Katie graduated from the University of Liverpool in 2022 with a 2:1 in BA Politics, before studying MA Law at the University of Law in 2023 and achieving a Commendation.
About Katie Bartley