NHBC was pleased to support the Association for Rental Living (ARL) in the delivery of a recent webinar, which examined the processes and challenges associated with brownfield site development. Unlocking brownfield sites for mixed tenure development attracted a broad mix of industry stakeholders including BTR developers, investors, consultants and operators.
Considering key steps in unlocking complex sites for development and the reputational and financial risks of getting it wrong, the webinar offered a broad look at what developers and investors must consider when unlocking brownfield sites. It also examined how informed, expert-led approaches can deliver long-term returns and what to consider before and after land acquisition,
The webinar provided advice on navigating constrained sites, repurposing opportunities and explained how to seek practical guidance on land viability and delivery. It also showcased NHBC’s role in the sector beyond warranty and insurance, demonstrating its expertise in technical services, site viability and risk mitigation.
Those attending joined experts from NHBC and the wider rental living sector to explore how complex sites are being transformed into viable, successful BTR developments. Hosted by NHBC, the event’s contributors included Phil Jones, Development Director at Placefirst, Scott Edwards, Commercial Manager at Urban&Civic PLC and Karen Thornton, Land Quality Service Manager at NHBC.
The webinar guided attendees through the journey from pre-acquisition assessment to post-acquisition viability, highlighting critical considerations and pitfalls to avoid. A varied agenda covered the potential risks and rewards of brownfield development, the current political landscape, sector collaboration and the hurdles the wider industry faces.
The current political and planning landscape
Phil Jones noted the industry has seen a lot of change over the past 15 years – with a turbulent political landscape, multiple housing ministers and changing building regulations, he said it had been a challenging period for the property market. Phil also made reference to biodiversity net gain and the Building Safety Act – both important and welcomed changes to development, but they add further considerations when assessing build viability. These, in addition to the upcoming Future Homes Standard regulations and the Renters’ Rights Act, mean residential planning is becoming more complex than ever before. He said he felt really positive about the future of the sector and what's to come – despite the obvious challenges and various external factors at play, demand for quality build to rent homes was strong and good placemaking was being encouraged by government.
Karen Thornton said there were multiple competing factors at play in the brownfield sector at present and that legislative challenges were only part of this. She said the Brownfield Release Fund had been a game-changer, and that without it some high-profile schemes wouldn’t have taken place. She recognised it also represented some challenges, with multiple parties chasing the same funding and complex rules and qualifiers but described it as an essential driver for brownfield development. Karen also referenced local planning and regulation challenges, such as navigating landfill tax relief and environmental permits and how they can slow projects from moving forwards.
While agreeing with Phil and Karen about the changing legislative landscape, Scott Edwards made the point that Urban&Civic had found local authorities had generally been supportive of their aims. He described them as very engaged and that the potential for new tenures was often seen as a positive. Scott said BTR is a growing sector and that currently demand was outstripping supply, but it would be helpful for viability discussions, on a local and national level, if the sector could evidence that demand with solid data.
Unlocking Complex Sites spearheaded by Build-to-Rent
Scott Edwards said he believed strategic land has benefits over smaller developments, with a wider impact on public amenities and transport links, as well as more flexible phasing and sequencing to meet fluctuating demand. He predicted a lot would change in the market over the next decade or more, and that flexibility to react and responds to changing demand would be key to delivering successful developments. He shared that he thinks strategic land offers more opportunities for meaningful placemaking and community cohesion with a mixed tenure approach at the heart of this. With smaller urban sites, developers may have to work more with what’s already available in the locale which may be more restrictive than a strategic land project.
Phil Jones said it was important to Placefirst to assess the local market and the infrastructure needed when considering a new site. Key transport links and local employers are a big driver in this, as well as competition from other home builders and the quality of nearby schools. A desktop based due diligence process which considered the likes of utilities, flood risk and availability on connections is undertaken, which is especially important for brownfield sites. Phil said the nature of a brownfield redevelopment varies massively, with obvious differences between an old primary school and an ex-tannery for example, both recent instances of developments his teams have undertaken.
Karen Thornton agreed due diligence was key and that timing was important – she said it was essential to look at ground conditions and the status of the land as soon as possible. Early engagement with remedial specialists, even if all the information is not yet available, should be undertaken at the first opportunity. Desktop studies and site investigations can be initiated quickly and a remedial strategy pencilled out, with information gaps identified. Limitations and constraints may be discovered early and help assess viability.
Risks and Rewards – Navigating Viability Challenges
Scott Edwards said the unknown aspects were the trickiest points to navigate on a brownfield site, using unexpected archaeological finds as an example. Many people wouldn’t expect much of significance to be found on an old brownfield site, but they can end up being of local or national archaeological significance, delaying development. On the other side he said, even greenfield sites can hide unexpected historic contamination below the surface so developers should never make assumptions about land being clean and ‘ready to roll’. Having to be dynamic and responsive is key, and strategic land projects allow greater flexibility to work around particularly challenging areas of the development.
Phil Jones agreed with Scott and Karen about the importance of due diligence and said early investigations going above and beyond was essential to ensuring a quality development and protecting profit. He said Placefirst’s pre-planning stage was comprehensive with cost certainties so when planning permission was granted site development could start quickly and delays avoided. Operator developers are only rewarded once residents are in situ, so turning around a site from purchase to completion must be efficient and timings are key.
Collaborative Solutions and Overcoming Hurdles
Karen Thornton said collaboration was essential for unlocking brownfield sites given their complex nature. She used a site she had consulted on as an example, a former fertilizer factory which had been derelict for over thirty years. Various developers had tried to unlock the site but a myriad of technical challenges including discoloured soil and leachable contamination entering controlled waters had prevented this. Working with the developer Karen recommended a phased approach, with the lower risk areas of the site focussed on initially so Homes England funding could be secured, giving more time to assess and remediate the higher risk parts. It reassured the investors, stakeholders and local planners and provided much-needed mixed-tenure housing on long-derelict land.
Delivering long term, sustainable returns
Phil Jones said long term thinking was important because investment in a new neighbourhood is long term in itself – the immediate neighbours, the local authority and other statutory and non-statutory stakeholders need to be on board with proposals from the outset and be kept on side throughout the build phase and beyond. He said that embedding the development in the local community is key, and by employing resident services managers responsible for the post-build phase who meet with local businesses, local gym operators, restaurants and shops, securing deals for customers massively helps with this. This encourages customers to spend within the local economy and drive regeneration and helps create a sustainable development.
Scott Edwards said best in class buildings, and ensuring quality construction that will last helps deliver returns, especially given the nature of BTR. Entire life cycle costs, not just capital expenditure on day one must also be considered along with community cohesion and local investment.
Takeaways included:
- a well-designed and thoughtfully executed BTR development can be the catalyst for wider area change and regeneration
- anticipating change by incorporating climate resilience in designs, considering extreme weather, flood risks, and emerging contaminants is good practice
- taking the time to understand all stakeholders and engaging the right companies and individuals at the earliest opportunity is crucial for the successful delivery of complex brownfield sites
- increasingly planning policies are supportive of brownfield and greybelt development, which investors should take advantage of.
“We are delighted to have collaborated with ARL members, and NHBC, to facilitate this topical and insightful webinar”, commented Brendan Geraghty, CEO at the Association for Rental Living. “BTR can be a powerful catalyst for redevelopment, acting as an anchor tenant for brownfield regeneration as part of a mixed-tenure approach. This well-attended ARL webinar brought together experts from every stage of the redevelopment process, offering insights into the challenges faced as well as the collaborative solutions available. This webinar will help to equip us to develop all appropriate brownfield land into the homes of all tenures, including BTR, in our national efforts to solve the housing crisis.”
“Brownfield sites are being considered for development more readily now than in recent years”, said Karen Thornton, Land Quality Services Manager at NHBC. With the government’s ambitious housing targets and a real demand for new homes across the UK, it makes sense for developers and investors to explore brownfield sites. While some of these sites are complex or present remediation challenges, many can be unlocked with the right guidance. It was a pleasure to help explain NHBC’s role in this and the ways we can help at the ARL’s recent webinar.”
NHBC works in partnership with developers and investors to bring forward challenging or complex sites that otherwise might have been considered unviable. Last year NHBC helped unlock 191 hectares of brownfield land for residential or residential-led development.
For those who missed the webinar, Unlocking brownfield sites for mixed tenure development, it can be viewed online here.