_7 things to consider before developing on greenfield land: A guide for landowners

Greenfield development offers the potential for significant financial returns, but several workstreams can look daunting on the first review. Engaging with experts in agriculture, environmental management, development and planning can help navigate the complexities of greenfield development.

Understand the development potential

The crucial first step is understanding if your land is suitable for residential, commercial, or mixed-use development. Factors such as access to infrastructure, local planning policies, physical constraints and market demand play a significant role in determining its potential. Engaging with experts with a deep knowledge of the process can give you a clear picture of what is achievable.

Economic viability

While selling your land for development normally yields the highest returns and secures a solid financial future for you and your family, it's essential to ‘sense-check’ this compared to other possibilities. Sometimes, continuing farming in the short term or exploring solar and battery storage can be right for some families, especially where development may not be achievable but there are good grid connections.

Consider tax implications – beyond CGT and IHT

A thorough review of the landowner's IHT (Inheritance Tax) and CGT (Capital Gains Tax) position is critical at the outset. Complexity increases when multiple landowners joint together to create a significant development site or Strategic Urban Extension (SUE), as this can create unpalatable double taxation if not managed properly. While we are not tax advisors, our extensive sector experience helps us identify potential issues early. We can either work alongside your current advisors or recommend specialists to help you navigate towards the best solution.

Laying the groundwork for success

Strategic Asset Management Plans (SAMPs) help prepare existing assets and resolve potential issues proactively. Early consideration concerning current land use, occupancy arrangements (such as tenancy restructuring), rights of way management, and Land Registry title matters may be needed. Some developments require additional land for Biodiversity Net Gain (BNG), and strategically allocating BNG areas now can preserve your land's natural state while ensuring its ecological value is enhanced during development.

For landowners who wish to retain control during the early stages, we can begin conducting surveys, preparing vision documents, and submitting land into the 'call for sites' once these foundational elements are in place. This proactive approach helps reduce uncertainty before engaging with developers.

Partner wisely

Choosing a development partner that aligns with your values and objectives is essential. Developers today are increasingly mindful of integrating green spaces and preserving elements of the land’s natural state, allowing you to contribute to the region's growth while still honouring its agricultural past. Whether through an option, promotion, hybrid-option agreement, subject to planning or unconditional sale, we are confident there is the right developer out there to meet your objectives, and we will align the best legal structure to ensure those objectives are met.

Strategic phasing

For sites over 150 homes, and certainly, those capable of delivering thousands of homes, consider phased parcel sales rather than selling all your land at once. This approach enables you to retain control over the pace and nature of development, potentially leading to better financial outcomes and greater flexibility. A phased approach also enables you to adapt to market changes, although it does need to be balanced against potential tax changes.

Early engagement is key

As someone with farming roots, I understand how daily agricultural demands can make it challenging to focus on development opportunities. Yet timing is crucial in planning - much like steering an oil tanker, the process requires careful, forward-thinking navigation. Missing a Call for Sites window can significantly impact your prospects, potentially relegating it to more speculative territory. While the planning journey typically spans 5-10 years, those who engage early often gain a strategic advantage. Even if development feels distant, starting conversations now ensures you're fully prepared when opportunities arise.

How can we support you with greenfield land?

With extensive experience in land transactions and development consulting, our Land Agency team is equipped to provide insightful, actionable advice for not only greenfield land, but every aspect of development land. We work across public and private sectors, delivering tailored guidance for landowners. Our proven expertise and successful track record ensure that your land goals are in capable hands.