Is it easier to get planning on grey belt land? What developers say

By the Bridge & Build Finance team · 26 October 2026

What did the Shawbrook research find?

Shawbrook Development Finance surveyed property developers about the grey belt policy. These are the main findings, as reported by The Intermediary on 23 October.

• 56% said the reforms had made it easier to secure planning permission.
• 51% said the financial viability of grey belt development had improved.
• 40% said the changes made them more likely to pursue grey belt sites, and 39% said planning times were shorter.
• 42% had been considering grey belt land for future development, while 21% said the reforms had added uncertainty for their business.
• The barriers cited most were infrastructure requirements and costs (52%), planning uncertainty (43%), environmental requirements (42%) and land costs (37%), followed by local opposition (27%), affordable housing requirements (26%) and a lack of suitable sites (23%).
• Of developers who had built on grey belt land, 41% said starting work had been straightforward, 33% said it was complicated and 8% reported delays.

Terry Woodley, managing director of development finance at Shawbrook, said that "unlocking land is a welcome step, but it won't deliver on its own" unless it also addresses developers' concerns about cost and viability. Shawbrook is one of the lenders on our panel; see our Shawbrook lender profile.

What is grey belt land?

The National Planning Policy Framework glossary defines grey belt as land in the Green Belt that is previously developed land or any other land that does not strongly contribute to certain Green Belt purposes. Councils identify it through a Green Belt assessment.

Under policy GB7 in the framework's Green Belt chapter, building on grey belt is not treated as inappropriate in the Green Belt if four conditions are met. The scheme must not fundamentally undermine the purposes of the remaining Green Belt in the plan area, there must be an evidenced unmet need for that type of development, the site must be in a sustainable location, and major housing must meet the Golden Rules. For housing, unmet need means the council lacks a five-year supply of deliverable sites, or scored below 75% on the Housing Delivery Test over the previous three years.

So grey belt status is not a planning permission. Whether a site qualifies is a judgement for the council, which is why the research found so much uncertainty. Our report on housing supply and planning reform covers the wider changes to the framework in August.

What are the Golden Rules?

Policy GB8 sets three contributions for major housing on land released from, or built in, the Green Belt.

• Affordable housing. Until local plans set their own figure, the requirement is 15 percentage points above the highest existing affordable housing requirement, capped at 50%. Where there is no existing requirement, 50% applies by default.
• Infrastructure. Necessary improvements to local or national infrastructure.
• Green space. New or improved green space open to the public, within a short walk for residents.

A viability case to reduce these is only allowed in limited cases, such as previously developed land with costs that were not accounted for, or a strategic site. For most schemes, the Golden Rules shape the gross development value and what you can pay for the land. Our guides to gross development value and residual land value show how to work back from the end value to a land price that still leaves a profit.

Will lenders fund a grey belt site?

Lenders look at a grey belt scheme much as they look at any other, with more attention on the planning and the costs the research highlights.

• Before planning. Most development lenders want full planning before they fund the build. To buy a site and hold it while you apply, planning gain bridging and land finance are the usual routes. Allow for a longer process, as our report on planning delays and bridging extensions explains.
• Once consented. Ground-up development finance funds the build in stages. Lenders will want the cost of infrastructure and green space in the build budget, not left as a contingency.
• Affordable homes. A higher affordable share changes the sales plan. Lenders will want to see who is buying those homes and on what terms. Our page on social and community housing finance covers schemes with affordable homes.

Our guide to planning permission and development finance explains what lenders need at each stage.

What it means for your funding

The research suggests grey belt is opening up, but slowly, and the developers going ahead are the ones whose numbers carry the extra costs. Before you commit to a site, cover these points.

• Price in the Golden Rules, infrastructure and green space from the start.
• Get planning advice on whether the land is likely to count as grey belt, and on the council's housing supply position.
• Stress test your development appraisal for a longer planning period and higher costs.
• Plan the finance in stages, from buying the land through to the build and the exit.

We search the market across development finance lenders and approach those whose criteria suit your site.

Common questions

This article reports news and published figures as at 26 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.