Understanding Grey Belt Land

As the UK grapples with an escalating demand for new housing, “grey belt land” is emerging as a pivotal concept in national urban planning strategies. Deputy Prime Minister Angela Rayner has announced bold plans by the new Labour government to tackle the housing shortage by building 1.5 million homes over the next five years. A significant portion of this ambitious target hinges on the reclassification of underutilised or low-quality green belt into what is now termed “grey belt land.” This strategy provides a pragmatic approach to addressing housing needs while also considering environmental preservation.

What is Grey Belt Land?

Grey belt land refers to sections within the green belt that, despite their protected status, are of lower environmental or aesthetic value. The green belt, established more than 70 years ago, covers around 13% of England’s total land area and was designed to limit urban sprawl and preserve rural landscapes.

However, not all green belt land is equally valuable. The concept of grey belt land identifies those parcels that are less ecologically sensitive, such as scrubland, disused industrial sites, or abandoned roadside locations, typically located on the outskirts of towns and cities.

Implications for urban planning

This reclassification to grey belt land is a direct response to the pressing need for new housing, particularly in areas where green belt land is underutilised. Labour’s vision for grey belt land includes freeing up these low-quality areas to construct new homes, with a commitment that 50% of these dwellings will be affordable, with rents set at least 20% below the local market rate. This approach not only helps to alleviate the housing crisis but also ensures that development is targeted in areas where it will have the least environmental impact.

The strategic use of grey belt land offers the prospect of significantly easing the UK’s housing crisis. Figures suggest there are over 11,000 previously developed sites within the existing green belt capable of accommodating between 100,000 and 200,000 new homes. These sites represent less than 1% of green belt land, yet these sites could make a substantial contribution to meeting Labour’s housing targets.

More than homes

Beyond residential development, grey belt land has significant implications for the logistics sector, particularly as urban areas expand. The relationship between housing and logistics is crucial; as more homes are built, the demand for logistics infrastructure, especially warehousing, also increases. The logistics industry currently requires an average of 69 sq ft of warehouse space per home. This ratio is higher in regions with a national logistics focus, where it can exceed 100 sq ft per home. And the demand for this space is set to grow even more.

Consumer Behaviour is Changing – Fast

Our changing shopping habits have huge implications for Labour’s plans for grey belt land. The explosive growth of online shopping has significantly altered the retail landscape, driving a corresponding increase in the demand for last-mile logistics. Online sales constituted 26.5 percent of overall UK retail sales in 2022, over double the amount from 2012. Internet retail sales jumped by a huge 47 percent during the coronavirus pandemic in 2020 alone. This is directly fuelling the demand for logistics infrastructure that can facilitate fast and efficient delivery services.

Bridging the last mile

This shift has made last-mile logistics a critical consideration in urban planning. These facilities, which are responsible for delivering goods to consumers’ doorsteps, must be located close to population centres and major routes to minimise delivery times and reduce transportation costs. Reducing road miles also lowers fuel use, with a corresponding effect on carbon emissions.

Panattoni’s VPark scheme of industrial units in Basingstoke exemplifies the kind of high-quality space and proximity to urban centres that last mile logistics occupiers require. However, finding suitable sites for logistics facilities such as these is becoming increasingly challenging due to constraints on available land. This is particularly the case in densely populated areas where prospective development sites are often designated as green belt, despite being of a low grade.

Meeting housing and logistics needs simultaneously

To support the annual construction of 300,000 new homes, RICS estimates that the UK will need an additional 1.9 million square meters (20.6 million sq ft) of logistics warehouse floorspace each year. This expansion must be strategically aligned with existing and emerging logistics networks to effectively meet national and regional distribution needs.

Grey belt land provides a forward-looking solution to the UK’s urban planning challenges, ensuring housing and infrastructure can keep pace with the evolving demands of consumers and businesses. Integrating logistics planning with housing development on grey belt land is crucial for creating sustainable and viable communities.

The reclassification of certain areas to grey belt land could alleviate existing constraints, provided logistics developments are also prioritised during the planning process.

Panattoni: turning grey belt land into green developments

As the country’s largest logistics developer, Panattoni UK is well-positioned to help government unlock the potential of grey belt land.

Warehouses developed by the company fulfil the demand for high-quality last-mile facilities strategically positioned near consumer markets and major routes, two attributes that grey belt land can offer. Planning logistics developments alongside the delivery of new homes within grey belt land will contribute towards sustainable local economies, while reducing the ecological impacts associated with urban sprawl.

Panattoni is dedicated to making a positive contribution towards the new government’s infrastructure ambitions. Working together, the judicious use of grey belt land can create thriving and sustainable communities for everyone.