Demand for strategic development land remains one of the most active areas in the current development landscape. Developers are increasingly drawn to these opportunities, encouraged by a supportive planning framework and strong political momentum from central government resulting in Local Authorities’ approving new schemes which might othewise have been refused.
Developer Behaviour
When the current housing market is slow, housebuilders often look to the long-term, investing heavily in strategic sites to secure their pipelines and absorbing speculative risk in pursuit of future certainty.
Where there are good prospects for planning in the next 3 to 5 years, strategic land is achieving notable premiums. Major PLC housebuilders are leading the charge, aggressively seeking to bolster their pipelines with any land capable of providing over 100 units. Whilst those with the capability to do so are securing land for significant developments capable of providing thousands of units, there is certainly caution around over exposure to sites of this scale given the time and cost associated with promoting them over a longer time horizon.
Meanwhile, smaller developers are taking a more measured approach, concentrating on maximising value from their existing land banks or targeting sites already close to planning approval.
Key Challenges
- Viability pressures: Rising build costs, labour shortages, infrastructure requirements and regulatory obligations are placing pressure on land values.
- Planning delays and uncertainty: Shifting policies, economic volatility, and political change all contribute to caution among developers.
- Environmental and land-use constraints: Growing emphasis on biodiversity, net-zero targets, neutriant neutrality, and food security means more cost and scrutiny on greenfield and greybelt development.
Outlook
The market outlook is mixed. On one hand, strategic land will remain a cornerstone of supply, particularly where local authorities face housing shortfalls. On the other, the flatlining of greenfield values suggests appetite may soften if supply rises faster than demand, or at least commercial terms offered to landowners will be less appealing. Brownfield sites offer significant potential in the planning climale, but as ever will only be deliverable if barriers to viability and deliverability can be overcome.
For those able to navigate the risks—particularly planning uncertainty and rising costs—strategic land still represents a valuable long-term play.
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