New NPPF opportunities on the horizon for Development?

There is no doubt that the government has a pro-growth agenda and on a near-weekly basis we are seeing news articles with one new initiative or another. One key area for growth is in the housing target, where the Government aims to deliver 1.5 million homes over the next five years and the new NPPF is key in how the Government expects this target to be reached. We will discuss just some of the key points arising from the new NPPF.

• Plan-making and housing targets

There is no doubt that the focus of the NPPF remains on sustainable development through the making of local plans, but the challenge for the Government remains that many local authorities have been delayed in progressing their local plans.

The transitional arrangements proposed by the new NPPF give local authorities until 12 March 2025 to progress their local plans to the ‘Regulation 19’ stage and so long as that plan’s draft housing requirement meets at least 80% of local housing need (or the plan has already been submitted for examination) then such local plans can continue under the previous NPPF regime.

For those local authorities who might reach Regulation 19 stage but cannot demonstrate a housing requirement (meaning allocations) which is over 80% of the housing need, such local authorities need to revise their local plans to reflect this new revised NPPF and then progress swiftly with examination (by June 2026 (or December 2026, if returning to Regulation 18)).

So what is the Standard Methodology? In short, this is the measure of housing need to identify the minimum number of homes that local authorities are to plan for. It is now a requirement for local authorities to use this Standard Method.

In some local authority areas the increase is great and indeed the largest increases are seen in the south east. Looking close to home (for FSP), in the district of Hart for example their figure has increased 252% to 750 per annum (up from 297) and in Wokingham, the figure has increased 178% from 748 to 1,336. In West Berkshire their figure has increased 216% to 1,070 (up from 495) and in South Oxon a 104% increase from 579 to 1179. Buckinghamshire – right in the heart of the highly trailed “Oxford-Cambridge arc” – has an increase of 141% from 2912 to 4122.

Some local authorities are already aware that with these new higher targets, their allocations need revising. In some cases, this might lead to local authorities issuing a fresh call for sites to identify land that may be suitable for development. If you are a landowner, this may present you with fresh opportunities for your land that may be worth exploring.

• What land is suitable for Development – the Grey Belt and Green Belt

The new NPPF makes clear that the focus for the Government remains on brownfield development first (otherwise known as ‘previously developed land’) and indeed the NPPF goes as far as to say that brownfield proposals should be “approved unless substantial harm would be caused” which is a positive shift in emphasis particularly towards urban development.

Closely following in suitability for Development, is the so called ‘grey belt’. This is land within the Green Belt that has minimal impact on the core objectives of the Green Belt.

So what is Green Belt? Green Belt is not actually defined in the NPPF but it is generally understood to be protected land around towns, cities and large built-up areas where the aim is to prevent urban sprawl and to help prevent the merger of neighbouring towns. The idea of the Green Belt was first introduced in the 1930s and has been largely protected since then.

Whilst there is some clarity on what is meant by Grey Belt, the same remains vague – who exactly determines what a ‘limited contribution’ to the Green Belt principles looks like?

With local authorities facing higher targets, it is expected that more local authorities will need to look at Green Belt land to fulfil their requirements. Indeed, it will now be mandatory to review Green Belt boundaries where a local authority cannot meet its local housing need (where it has exhausted other options).

Development on Green Belt land (whether it is now considered part of the ‘Grey’ Belt or not) is going to be unpopular and in an attempt to try and make the same more palatable (perhaps) the new NPPF clearly sets out that where Green Belt land is released for development through local plans, new “Golden Rules” are to apply. These Golden Rules apply to major development involving housing, and on such sites:

• Affordable Housing – is to be provided at a level at least 15% above the highest existing affordable housing requirement within local policy, subject to a cap of 50%. If there is no local policy requirement then the cap will apply.
• Infrastructure – new developments must contribute to necessary local and national infrastructure such as healthcare and education facilities
• Green Space – new and improved accesses to green spaces for the public are to be provided.

Whilst there is no doubt that the requirement for more Affordable Housing is a great step towards tackling the affordability crisis, the market will continue to be a major factor in how much developers pursue Grey Belt projects, particularly whilst many existing projects are already been stalled by the inability to sell Affordable Housing to registered providers.

Landowners may be wise to consider their landholdings now, and whether they are interested in having their land put under an option agreement or promotion agreement, whereby a developer or promoter facilitate (at their cost) their land being considered in any ‘call for sites’.

We will be publishing more information on other aspects of the NPPF, in particular as further details emerge.