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How Have Greenfield-brownfield Swaps Already Enabled House Building?

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By Author: Bradley Weiss
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Local councils are tasked with writing home building agendas. That might require eating into green belts - but "third way" solutions can lessen the loss.


A community meeting at the Wilmslow Library in Cheshire (south of Manchester) in January 2013 illustrated both the problems and solutions around homebuilding in the UK. For anyone considering investing in capital growth properties, listen up: These local residents and their planning authorities hold the cards on development.


In this standing-room-only meeting, campaigners for green belt preservation challenged the consultants presenting a Draft Local Plan, which proposed that a number of homes be built on what is technically Greenfield and green belt land. Included was a proposed community in adjacent Handforth, largely self-contained with 1,800 homes with area for an additional 500 homes in future years. Opponents argued that at least 800 homes could be built on brownfield land. Defending the plan, one consultant said, "Clearly locally ...
... there will undeniably be considerable impact on green belt. It would be foolish to suggest otherwise, but rather perhaps that we put an impact in a concentrated way than perhaps scatter it far and wide."


The entirety of the conversation was far ranging, but it provides evidence that a “nibbling” into green fields is being pursued for homes development. This community is required by the Government to develop a long-range plan to increase housing overall, a national imperative to accommodate a growing population and to overcome the deficiencies in building over the past decade. And yet, the solutions are not simple.


The Campaign to Protect Rural England (CPRE), which advocates for absolute preservation of green belt land, fears that the Localism Act of 2011 endangers green space overall. In contrast, Chancellor George Osborne seems to indicate a nuanced position, that trading off some green space for development in workable if land elsewhere is brought into the greenbelt. Counter to the insistence by CPRE that greenbelts be preserved, former Under-Secretary of State, Department for Communities and Local Government MP Nick Boles speaks about the viability and deliverability of land for housing, which in many places means that green fields and green belt lands are more economically feasible than brownfield land. Some such locations where this approach is already in some level of discussion and planning:


Nottinghamshire/East Midlands - In Broxtowe, more than 1,100 dwellings are proposed, with an additional 5,000 homes in Rushcliffe.


Cambridge/East of England - With 11,000 homes built on green belt lands since 2003, with an additional 1,880 proposed. An area north of Waterbeach Village is being proposed for a green belt swap.


Bedfordshire/London Metro Green Belt - About 11,000 homes are proposed for construction by 2031. Additionally, a 52-hectare area is requested for a rail freight terminal.


Epping Forest district/London Metro Green Belt - With the release of 1 per cent of this green belt, 1,250 dwellings could be built.


Cheshire East/North West - To accommodate 5,680 homes, the council proposes swaps and extensions that alter the green belt footprint.


Christchurch and East Dorset/South West - 3,000 homes in the Local Plan Core Strategy on green belt territory.


Birmingham/West Midlands - The construction of 30,000 homes would be in addition to 43,000 dwellings on brownfield sites. This is on green belt land, where the Birmingham Airport might expand along with the addition of a major high-speed rail line.


Of note, there are things other than homes (rail lines, airports, office parks) that are part of what nibbles at the green belts. All speak to overall population growth, and the challenges of maintaining metro boundaries set forth almost a century ago.


Where does this leave the investor? For individuals and institutions that recognise the pressing need for and opportunity in development, it’s a recognition that English cities are bursting at the seams. A capital growth fund focused on housing and commercial development looks for ways and places to build which support the economy and alleviate the housing shortage. But it need not be an either/or situation. A distributed approach to green fields, adaptive to commercial centres and efficient and clean transportation modes, helps address 21st century needs with coherent solutions. Green-brown swaps, if developed in good faith, might be the "third way" means by which to satisfy all parties.


Investors should also approach all involvement in real estate with a balanced understanding of the risks and rewards. Be certain to consult an independent financial advisor before entering any investment.

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