How grey belt reforms are affecting property developers

Grey belt reforms have made planning permission easier for many property developers, but infrastructure costs and planning uncertainty are still holding many back. Shawbrook surveyed 500 professional property developers in August 2026. More than half (56%) said the reforms have made planning permission easier, yet only 42% had been considering grey belt land for future development.

Key findings

• 56% of developers said grey belt reforms have made it easier to obtain planning permission.
• 51% said the reforms have improved the financial viability of grey belt development.
• 42% had been considering grey belt land for future development.
• 52% said infrastructure requirements and costs are preventing them from pursuing more grey belt development, the most common barrier.
• 21% said the latest reforms have created additional uncertainty for their business.

What is grey belt land?

Grey belt land is land in the green belt that is previously developed, or that does not strongly contribute to certain green belt purposes. The concept was introduced in the National Planning Policy Framework (NPPF) in December 2024 to release land for development while protecting the core purposes of the green belt.

How are grey belt reforms helping property developers?

More than half (56%) of property developers said the grey belt policy reforms have made it easier to obtain planning permission. A similar proportion (51%) said the reforms had improved the financial viability of grey belt development.

Two in five (40%) said the changes had made them more likely to pursue grey belt sites, while 39% said they had reduced planning times.

Why are developers still cautious about grey belt land?

Despite the positive effect of the reforms, just two in five (42%) property developers had been considering grey belt land for future development. More than one in five (21%) said the latest reforms had created additional uncertainty when it comes to their business.

Infrastructure requirements and costs were the most common factor preventing developers from pursuing more grey belt development (52%), followed by planning uncertainty (43%) and environmental requirements (42%). Land costs (37%) and local opposition (27%) also featured. Only 6% pointed to a lack of clarity around what qualifies as grey belt, which suggests the main concern is the cost and risk of delivering these sites rather than how they are defined. Just 2% said nothing was preventing them.

What is it like to build on grey belt land?

Among developers who have built on grey belt land, two in five (41%) said starting work was straightforward. A third (33%) said it was complicated, and 8% said it had been delayed.

How can grey belt sites be made viable?

Terry Woodley, Managing Director, Development Finance at Shawbrook, said:

“Unlocking land is a welcome step, but it won’t deliver on its own unless it also addresses developers’ concerns that these sites will be costly, complicated and commercially unviable. The reforms are clearly heading in the right direction, and more than half of developers telling us that planning permission has become easier shows they’re having an effect.

“Grey belt sites are often not a developer’s first choice, and the additional infrastructure and environmental requirements can add cost and work that developers have to absorb. Over time, more successful schemes should build confidence, but the Government can help speed that up. Local authorities making confident use of the compulsory purchase powers already introduced could help assemble sites more quickly, clearer and simpler planning requirements would reduce uncertainty, and targeted incentives could help more schemes stack up. Getting those right would help the industry keep building, rather than stalling at the first hurdle.”