UK Land Planning

Site Reallocation or 'Change of Use' in Land Investment

Any UK land site offered as a land investment is likely to have one of the UK land classifications described below. For it to be a profitable land investment, it is likely to need to undergo a change of use or reallocation from one of the below to ’residential development land’. This is because the most sizeable chunk of value-creation in any land investment lies precisely here: in the change of use or ’reallocation’ of the subject site. Indeed without being reallocated, a land investment site cannot be awarded planning permission.

Reallocation of investment land sites under the new planning regime takes place in the Local Development Framework. The reallocation process for land investment sites is lengthy and requiring of specialist land planning skills, especially given the legislation is very new. Once reallocation of a land investment site has been achieved, the success or otherwise of the land planning application rests on the quality and suitability of the designs and the extent to which they would enhance the area.

Land investment sites are typically classified as being one of the following:

Brownfield English Land
This English land classification denotes land on which development has existed before. It could have been used as industrial, commercial or residential development land. It is relatively unusual to find well-located Brownfield as a land investment. In most cases sustainable Brownfield development land sites have been developed-out, or remain in the land bank of land developers for imminent development. Of course, new opportunities for land investment in Brownfield sites arise on an on-going basis as sites are disposed of by their owners.

For those considering investing in land, promising land investment opportunities can be found in Brownfield sites, especially where ’change of use’ is required. E.g. a UK land site which was once used as a petrol station would require a change of use to house a residential development. This could be attractive as a land investment because, as stated above, significant value lies in change of use or ’reallocation’

Greenfield English Land
This English land classification denotes that development has not existed on a site before, but that no property and development restrictions are in place. It is relatively unusual to find well-located Greenfield English land without planning permission or property and development as a land investment. As with Brownfield sites, in most cases sustainable Greenfield development land sites were either developed-out long ago, or remain in the land bank of large house builders for future development.

Much of the UK’s land has a Greenfield classification but often is unsuitable development land because it lacks a local economy, services or infrastructure. As a result, promising Greenfield land investment sites are rare: the ones which are available are usually fields which are many miles from development. Beware these land investments. These types of land investments should be seen as being long to very long term. To profit in the medium term from investing in land, investors should therefore consider exceptional, well-located Green Belt land investments near existing communities.

Green Belt English Land
This English land classification denotes zones of UK land mainly on the outskirts of large cities. Green Belts were established on large swathes of English land to contain ’urban sprawl’ in the post-war era. Historically, developing on Green Belt English land has been rare. However it is now accepted, from the Government through to local English land use planning authorities, that Green Belts are outdated given the enlarged UK population and housing crisis. The re-drawing of Green Belt boundaries of land without planning permission is imminent, which opens up genuine UK land investment opportunities.

Typically Green Belts exist on arable UK land, although they also pertain in some sub-metropolitan areas. In fact, those considering investing in land should note that English land sites in sub-metropolitan areas can represent excellent UK land investments. Moreover, Green Belt English land investments in sustainable areas around existing towns and villages can also be shrewd land investments. This is because land planning authorities are more minded to extend existing conurbations than seek to create entirely new ones.

It is therefore true that very substantial gains can be achieved from a Green Belt land investment site if it is carefully selected. Firstly, this is due to the significant uplift in value UK land experiences upon being reallocated (i.e. from Green Belt to residential development land). Secondly, it is sustainable sites within Green Belt which are the most likely UK investment land to be awarded planning permission in a medium-term time frame, resulting in large land investment gains.