Greenfield vs. Brownfield: Everything You Need to Know
Greenfield and brownfield development is an important topic in the UK. Take a look at our guide to learn more about these special property development sites.
There has been a lot of talk about new homes and how the government believes it will build 1.5 million in the next five years. A lot of this talk has been around planning reforms to loosen restrictions and allow for more developments on greenfield and brownfield land. But what do these terms mean? And how does the government plan on accomplishing this?
Greenfield vs Brownfield: What is the Difference?
There are a variety of factors developers consider when building new homes. These include the likes of location, budget, infrastructure, the impact on the surrounding areas and more. As such, these considerations come into play when developing or redeveloping land into homes.
Greenfield sites tend to be more rural and located on the fringes of cities and towns whereas brownfield sites are usually outmoded urban buildings or industrial estates. However, the differences don’t end there.
What is a Brownfield Site?
A brownfield site is any land that was previously built on. This includes old factories, former office buildings, quarries, power plants, the list goes on. These sites, are often located in prime areas for development near transport links as well as towns and cities and offer several benefits such as:
- Reducing the need for development on greenfield sites.
- Creating more housing.
- Regenerating disused/run-down areas.
- Ensuring contaminated sites are cleaned up.
These benefits come at a greater cost which can be why developers aren’t keen to take on a brownfield site. Services like contamination and clean up, demolishing the existing structure, or meeting the demands of local councils and residents can all mean more hoops to jump through before a brownfield site can be developed.
This is because disturbing former industrial sites can release contaminated soil, VOCs, asbestos, and other harmful chemicals into the surrounding area. As such, it is integral that any brownfield development is cleaned thoroughly to protect the residents of the new homes as well as the surrounding community and ecosystem.
What is a Greenfield Site?
Initially set by the government to combat urban sprawl, the National Planning Policy Framework (NPPF) protects around 6,326 square miles representing around 12% of the UK’s total land area. These greenfield sites are designated to local councils to protect and cluster around 15 urban cores.
Labelled as greenfield, these areas are often highly sought after by developers as these are parcels of land, usually in attractive surroundings, without any existing structures or issues. This means for developers a greenfield site:
- Offers plenty of room to build.
- Fewer costs for clean up and preparation.
- Often allows for future phases of development.
- Fewer restrictions on planning due to existing infrastructure or buildings.
This means they represent a blank slate that many developers find attractive but do come with their own set of issues too.
Primarily, this is the location as most areas with access to schools, major roads, shops, and other amenities are already built on. Another concern is public backlash as many UK residents are concerned with any projects that take up green space and create even more urban sprawl.
How will the Government Free up Greenfield and Brownfield Sites?
So, these are the areas the government looks to unlock for development. But why? And how?
The Why
The why is plain to see. There are not enough homes for the market which has led to increasing property prices making it harder for new home buyers to get on the ladder. A study by Heriot Watt University estimated that ‘around 340,000 new homes [are] needed to be supplied in England each year, of which 145,000 should be affordable.’
Introducing more properties into the market should make more room for property owners and landlords to invest, move, and sell, which should support the growth of the market as a whole.
The How
The previous Conservative government set targets of 300,000 homes a year but managed around 235,000 per year for 2021-2022 and 2022-2023. Thes figures failed to combat rising property demand with a particular need for ‘affordable housing’. Affordable housing is a combination of properties that fit into categories such as affordable rent, social rent, intermediate rent, and affordable shared ownership.
These categories matter as the government ‘[plans to introduce] golden rules for the way it releases low-quality green belt land’ according to the BBC. This will mean that for any greenfield development, 50% will have to fit into the affordable category. By comparison, any projects on brownfield sites will only need 10% to be affordable.
This leads to big decisions for developers. Whether to put more investment in cleaning up brownfields for high-end developments or to take advantage of fewer restrictions on greenfields but ensure that any projects are more affordable.
We will see how successful this plan is in the long run but it’s interesting to see a new approach to housing. As long as developers feel there is an opportunity and communities feel heard, this plan just might work.
Contact Us
In these times, it’s best to learn about intentions and plans, examine the market, and make informed decisions. To assist with this we offer a range of valuation and survey services to help you make the most of your investment. For more information on how we can assist, contact our team today
