Getting the Best Out of Brownfield Development: The Benefits and Drawbacks for Homebuilders in Light of New Requirements

On the 13th February, Housing Secretary Michael Gove announced that brownfield development would be prioritised by local authorities in England, under a new policy going to consultation.  

So, what will this mean for homebuilders?  What are the benefits and drawbacks of developing on brownfield land?

In this blog, we will explore what the new focus on brownfield development could look like for the homebuilding industry, as well as how you can market its benefits to help sell more homes.

What is Brownfield Development?

‘Brownfield Development is a term in urban planning which includes land that has previously been contaminated or used by industrial waste that has now become vacant and unused,’ explains Planning Tank.  This often includes sites that were previously used as oil refineries, dry cleaners, railroads, petrol stations, and steel or other heavy manufacturing plants, for example.

Brownfield development is a form of regeneration which commonly requires preparatory decontamination works in order to clear the site of hazardous chemicals or pollutants in the soil.

The rapid growth of our urban areas requires a surge in new housing development constructed on previous brownfield sites, and these should include the development of green spaces.  It is important to note that, if left unused, land becomes degenerated, which will lead to decay.  It is therefore better to use this land for new developments, an act of regeneration that guarantees the area doesn’t go to waste. 

Why is Brownfield Development Being Prioritised?

As well as ensuring that we are using up available land, rather than letting it decay, there is another important reason to prioritise the development of brownfield sites.

Gove described the policy as, ‘Another important step forward in our Long-Term Plan for Housing, taking a brownfield first approach to deliver thousands of new homes where people want to live and work, without concreting over the countryside.’  Brownfield development allows for the preservation of our country’s natural landscape and all of its wildlife.

Gove also remarked that, ‘Our new brownfield presumption will tackle under delivery in our key towns and cities – where news homes are most needed to support jobs and drive growth.’  There is therefore an economic goal in this policy, as well as its environmental incentive.

The Drawbacks for Homebuilders in Tackling Brownfield Development

Preparatory Works

Any property developer knows that no construction project comes without its challenges, but two of the deterrents for homebuilders when it comes to brownfield development are the cost and timeframe associated with the preparatory works.  ‘Businesses and developers are often reluctant to build on brownfield development because of the expenses incurred on clearing contaminated waste,’ says Planning Tank.  Brick Tab elaborates, saying, ‘Furthermore, the contamination may have happened decades ago and is difficult to trace.’ 

Brownfield sites can also have utility services running through them.  These might require costly diversion and lengthy negotiations with utility companies, which is another complication to development on the site.

These factors can be off-putting for developers who are trying to swiftly deliver homes to meet the UK’s housing demands.

Limited Appeal and Space

Another point raised by Brick Tab is that, ‘The main disadvantage is the fact that brownfield sites often lack the appeal and space for development that greenfield sites do, including the presence of wildlife.’  This means there is sometimes a limit to the choice of what can be built on these sites and so gardens and houses may be smaller.  It will be down to the developer to encourage vegetation and wildlife back into the area, along with their construction responsibilities, to both increase biodiversity, and appeal to potential buyers.

Third Party Landowners

Another potential setback when planning for a brownfield development is that it might require site assembly, which means acquiring sites from several separate landowners and amalgamating them.  The developer can also encounter ransom strips issues, which are ‘Small strips of land owned by third parties which are required for access to the site,’ explains Brodies.

Conservation Issues

When it comes to the design phase, developers can face hurdles around listed buildings or conservation area issues, issues of privacy with neighbouring properties, or there could be limits to the character and appearance of the area.

‘Adjacent land uses can also pose problems,’ advises Brodies, going on to explain that, ‘Although planning policy encourages re-use of vacant premises/land, environmental health officers can often be overly cautious about potential impacts from new uses/premises.’

So, the planning and implementation of brownfield development does not come without any risks or disadvantages to the homebuilder.  But what are the benefits to the builder when developing on brownfield sites, and how can they use these to their advantage?

The Advantages of Brownfield Development

 Environmental

The most beneficial outcome of developing on brownfield land for the community at large is an environmental one.  ‘Protecting public health by cleaning up a contaminated site is one of the foremost benefits of brownfield redevelopment,’ explains Fehr Graham.  Many of the chemicals that regularly contaminate brownfield sites are those that have been linked to cancer, lung disease and early death.  According to Fehr Graham, ‘Industrial brownfield sites have often introduced contaminants such as solvents, heavy metals, polychlorinated biphenyls, lead-based paint, petroleum and asbestos into the environment.’

Another environmental benefit of regenerating brownfield site for development is that it restores biodiversity in an otherwise baron plot, by reintroducing vegetation and encouraging wildlife back into the area.  And, as Evolution 5 point out, ‘Their development over greenfield sites undoubtedly protects and preserves the UK’s limited untouched green areas and preserves rural spaces and sustainability.’

As brownfield sites are often located in urban areas, this can ‘Minimize transportation-related emissions and energy consumption,’ argues Fehr Graham.  They point out that, ‘Electricity distribution in dense urban areas is more efficient than in sparsely populated suburban areas.  This results in nearly 25% energy savings in a redeveloped brownfield site when compared to greenfield development.’  So, the environmental impact of brownfield development is a positive one.

Economic

Despite the often costly and time-consuming preparatory works involved in the initial stages of brownfield construction, Evolution 5 points out that ‘Land Remediation Relief is an enhanced corporation tax relief of 150% for cleaning up contamination in land or buildings, which can generate significant savings on development projects involving contaminated or derelict sites.’

There is also a ‘Potential cost reduction through connecting to existing roads and utilities,’ advises PBC today.  As brownfield site are often located in existing towns and cities, ‘Much of the infrastructure needed for development, such as road networks, electricity networks and amenities, is already in place, which can reduce developer costs and timescales,’ Evolution 5 elaborates.

Other economic benefits highlighted by PBC Today are the, ‘Potential access to funding mechanisms, fast-tracked planning permissions and quicker occupation.’  The availability of funding and shorter timeframes for planning permissions help speed up the rate of development once construction is underway, delivering properties for sale sooner which can then be sold to bring in revenue.

There is also an economic gain for the community in the case of brownfield development.  As brownfield developments attract business and lead to job creation and retention, as well as private investment, in the United States, ‘The EPA estimates redeveloped brownfields support 11-13% of job and housing growth between 2013 and 2030,’ reveals Fehr Graham.  And in the UK, as described by Evolution 5, ‘Brownfield regeneration projects in the UK have proven to breathe new life into the country’s towns and cities.  They can provide affordable housing, generate employment opportunities, and create new safe and enjoyable spaces for communities.’

 So, the economic gains of brownfield developments are those that can be shared between developer and community.

Community

The benefits of brownfield developments to the community are many.  Not only does the construction site itself lead to an increase in job opportunities for people in the area, but the development will often include places for recreation and activity that offer long-term employment prospects for local residents.

Modern developments also require the inclusion of green spaces, meaning that urban landscapes are improved with an increase in spaces for outdoor recreation and places to unwind outside.  This improves mental wellbeing for locals, as does the close proximity to towns and cities.  PBC Today go as far to argue that brownfield development’s urban location, ‘Promotes walking and cycling (improved health and well-being) and encourages the use of public transport (less traffic).’

There is also the potential for a significant increase in property valuation to homes surrounding developed brownfield sites, which is of huge benefit to homeowners in the area.

Selling Brownfield Developments

Today’s consumer is concerned about the wellbeing of both themself and their planet.  In fact, ‘Research by Money Supermarket found that 54% of buyers would prefer to buy or rent a home with a sustainability stamp of approval,’ reveals HBB Solutions.  ‘Susan Clayton, an environmental psychologist at the College of Wooster, says that for many people, their home is part of their self-definition,’ wrote The Atlantic.  This means we want a home that reflects our values.

Be sure that you promote the environmental benefits of your development as a priority.  This should not be second or third page information – it is headline material.  This is sustainable development in a world so focused on sustainability it is advertised on everything from food packaging to bedlinens.  People want to know that choosing this home, on your development, is a chance for them to ‘do their bit’ for the planet.

And then there are the community benefits that they can enjoy by living in one of your homes.  The communities developed on brownfield site have the benefit of being close to existing cities and towns, and all the associated hustle and bustle of urban life.  But they are also reintroducing biodiversity and green spaces to previously derelict eyesores.  Residents choosing to live here get to have the best of both worlds – and this is a worthy selling point for your marketing materials.

Finally, and perhaps obviously, the sustainable benefits of your development are a fantastic message to be putting out there about your brand and its values.  It is important that home users know that you value the environmental benefits of your building projects and put them at the forefront of your development plans.  To ensure you send that message home, along with guidance on how your residents can best live a sustainable life in your new community, it is a great idea to supply Sustainability and Community Guides.