Farmers and landowners have the best opportunity in a generation to secure residential planning permissions, according to Will Mackenzie, a Director at Rural Insight Land & Development.

The new National Planning Policy Framework (NPPF) could herald the fastest rate of housebuilding for over half a century, creating a positive environment in which to submit applications for single houses, small-scale developments or larger projects. 

"The recent new NPPF effectively reintroduced mandatory housing targets for local authorities in a bid to deliver the government's target of building 1.5m new homes over the next five years," says Mr Mackenzie of the Leicestershire-based firm of land and property advisors.

"Some local authorities have seen their target doubled, so land that would previously been very unlikely to be granted planning permission could be considered more appropriate for development."

Depending on the location, land with planning permission for residential development could be worth anything from £500,000 to £1.5m/acre, he says.

"Some sites that were viewed as five- to 10-year opportunities could now be worth pursuing more immediately. Applications that were previously refused may also be worth revisiting.

"Given the acute financial pressures farmers are under – and the spectre of higher Inheritance Tax bills following the Budget – the capital raised from such projects could be much-needed to pay bills, invest back in the business, or fund a diversification or new project for the next generation. 

"With rollover relief still available, there is an opportunity to buy more land, too, potentially allowing scaling up and cost-spreading."

Farmers should engage with their local authority, making it aware they have land available by submitting to the 'call for sites' process, advises Mr Mackenzie.

"We do this for free for farmers and landowners and have noticed a sharp upturn in inquiries about this service in recent weeks. Councils have a timetable for the 'call for sites' process, though, so it's important to meet the deadline."

One key change in the NPFF was the introduction of the term 'grey belt' for Green Belt land that doesn't perform any of the functions it was originally designed to do, such as preventing the spread of a large town. "This means proposals in parts of the Green Belt, an area once seen as hallowed and untouchable by planners, could be green-lit."

The changes to the NPFF could also put farmers and landowners in a stronger negotiating position. 

"Developers are now likely to submit planning applications in the next year or two that might previously have been in their five- or even 10-year plan, so could find themselves with a strategic supply shortage. They'll be hungry for new sites so could be prepared to offer strong financial terms for strategic land."

* For more information, contact Will Mackenzie at will.mackenzie@rild.co.uk