7 Things to Consider Before Developing on Greenfield Land
In December 2024 Jonathan Wish, a partner in Knight Frank's Development and Planning team in Newcastle, set out considerations for landowners thinking of selling greenfield land for development. He said the potential returns can be large but the workstreams can seem daunting, and that agricultural, environmental, development and planning specialists can help.
His first point was to establish whether the land suits residential, commercial or mixed use, which depends on infrastructure access, local planning policy, physical constraints and market demand. Second, he advised testing the economics against alternatives: although a development sale usually brings the best return, continuing to farm or leasing for solar and battery storage may suit some families, especially where good grid connections exist but development is unlikely.
Third, he urged an early review of inheritance tax and capital gains tax exposure, warning that when several owners combine to form a large site or strategic urban extension, double taxation can arise unless handled carefully. He added that the firm does not give tax advice but can work with a landowner's advisers.
Fourth, groundwork: strategic asset management plans can tackle land use, tenancy arrangements, rights of way and title issues, and some schemes need extra land for biodiversity net gain. Surveys, vision documents and 'call for sites' submissions can be started while the owner keeps control. Fifth, choose a developer whose aims match yours, through an option, promotion, hybrid option, conditional or unconditional sale.
Sixth, for sites over 150 homes, consider selling in phased parcels rather than all at once, balancing this against possible tax changes. Seventh, engage early: planning typically takes five to ten years, and missing a call for sites window can push land into more speculative territory. Wish drew on his own farming background in making the case.
Source: Knight Frank Newcastle, original article (5 December 2024)
