The UK government has unveiled significant reforms to the National Planning Policy Framework (NPPF), aiming to address the nation’s housing crisis and promote sustainable development. These 2024 NPPF changes, announced in December, will reshape the planning landscape, presenting new opportunities and challenges for developers.
Key Changes in the NPPF
1. Mandatory Housing Targets
The 2024 NPPF changes reintroduce mandatory housing targets of 370,000 homes annually, aiming for 1.5 million over five years. Alongside this, local planning authorities must now demonstrate a five-year housing land supply (5YHLS), reversing relaxed rules from December 2023.
From July 2026, older local plans will face stricter requirements, needing a six-year housing land supply. These changes place greater pressure on councils to maintain a pipeline of deliverable sites and on developers to align with the tightened regulations.
2. “Grey Belt” Land
A new policy introduces the concept of “grey belt” land, referring to areas within the green belt that hold lower environmental or amenity value. Local authorities are encouraged to review and unlock these areas for potential development, easing constraints in regions where housing demand is highest. A development that complies with the Golden Rules should be afforded substantial weight in favour of granting planning permission.
Three Golden Rules for Green Belt development:
- Deliver affordable housing 15% above the local target (capped at 50%).
- Enhance infrastructure.
- Create or improve green spaces and landscape settings.
While a national 50% affordable housing target was proposed, concerns about regional viability have led to more flexible rules. Local authorities can now set their own “golden rules” in local plans.
If no local target exists, a 50% affordable housing default applies. These changes aim to balance housing delivery with green belt preservation.
3. “Brownfield First” Approach
The framework emphasises redevelopment of brownfield sites to minimise environmental impacts and preserve greenfield land. This approach encourages urban regeneration and efficient use of previously developed areas.
4. Presumption in Favour of Sustainable Development
The updated NPPF strengthens the presumption in favour of sustainable development, making it harder for councils to reject planning applications unless clear and substantial harm can be demonstrated.
5. Build-Out Timelines
Developers must adhere to stricter build-out timelines, with penalties for delays. This change aims to accelerate housing delivery and reduce the backlog of uncompleted projects.
6. Design Quality and Sustainability
The NPPF places greater emphasis on high-quality, sustainable design. Developers must demonstrate how their projects contribute to creating well-designed, environmentally friendly communities.
Additions to the NPPF
- Affordable Housing Requirements: Developments on grey belt sites must include a higher proportion of affordable housing, with a cap of 50%, subject to Viability. The focus on affordable housing is one of the most impactful 2024 NPPF changes for developers.
- Increased Planning Fees: Local planning authorities will now charge higher fees for single dwelling householder applications to fund better resources and improve planning processes.
Removals from the NPPF
- “Beauty” Terminology: References to “beauty” have been removed, shifting the focus to measurable aspects of design quality and sustainability.
- Removal of Annex 4 – Benchmark Land Values: The proposed Annex 4, which addressed benchmark land values, particularly concerning Green Belt land, has not been included in the final version of the NPPF despite the Government still believing it has merit. Consequently, the approach to determining land values remains as established prior to these proposals. The Government will consider benchmark land values in 2025.
The Biggest Opportunities for Property Development
1. Unlocking Grey Belt Potential
The new focus on grey belt land opens up vast opportunities for development in areas previously constrained by green belt policies. Developers who can identify and appraise these sites quickly will have a significant advantage in securing planning approvals under the 2024 NPPF changes.
2. Urban Regeneration on Brownfield Sites
With the “brownfield first” approach, urban areas ripe for regeneration present lucrative opportunities. Projects that transform derelict or underutilised urban sites can benefit from government support and reduced opposition.
3. Affordable Housing Developments
The emphasis on affordable housing provides opportunities for developers specialising in mixed-use or affordable housing projects. By meeting affordable housing quotas, developers can align with government priorities and streamline planning approvals.
4. Sustainability as a Competitive Edge
The heightened focus on sustainability incentivises developers to innovate with eco-friendly designs and construction methods. Modern Methods of Construction (MMC) such as modular housing or timber frame systems can reduce costs, accelerate timelines, and align with policy objectives.
5. Opportunities in High-Demand Regions
Regions with acute housing shortages, particularly in urban and suburban areas, stand to benefit most from the revised targets. Developers who strategically target these regions can capitalise on high demand and streamlined planning processes.
6. Regional Growth Hubs
With housing targets back in focus, regional growth hubs (like those near transportation corridors or economic centres) might receive greater attention, offering lucrative development areas.
7. Targeting Local Authorities Under Pressure to Deliver
The reinstatement of the five-year housing land supply (5YHLS) requirement creates specific opportunities in areas where councils struggle to meet these targets. Developers can focus on local planning authorities (LPAs) with under-delivering pipelines or outdated local plans, where the “presumption in favor of sustainable development” applies. These areas may be more open to approving sustainable developments, particularly edge-of-settlement or infill sites, to address unmet housing needs.
How Viability Supports Developers in Navigating the New NPPF
At Viability, we specialise in simplifying site viability assessments, ensuring developers can adapt quickly to the evolving planning landscape. Our platform automates site appraisals, provides accurate build cost data, and incorporates Modern Methods of Construction (MMC) for scenario analysis. Learn more about how Viability automates site viability assessments on our Features Page.
By using Viability, developers can:
- Quickly identify profitable opportunities on grey belt and brownfield sites.
- Optimise site designs for affordable housing requirements.
- Evaluate sustainability and compliance with the 2024 NPPF changes.
With the updated NPPF’s emphasis on housing delivery and sustainability, Viability’s tools empower developers to reduce risks, save time, and make informed decisions.
Conclusion
The 2024 NPPF changes represent a transformative moment for the UK’s property development sector. While challenges remain, the opportunities to unlock land potential, innovate in design and construction, and meet ambitious housing targets are immense. Developers who stay ahead of these changes and leverage advanced tools like Viability will be best positioned to succeed in this new era of planning and development.