Strategic opportunities for rural estates: housing

When considering how to extract value from land assets, housing development may present an attractive option. With the UK government's commitment to boosting housebuilding firmly set, there are likely to be opportunities on the horizon.

However, to make the most of these opportunities you need to plan now, as those who are proactive will be best positioned to benefit.

Why act now?

The government has confirmed the reintroduction of mandatory housing targets to meet its 1.5 million UK homes aim. For some local authorities, this may mean a three-fold increase in housing numbers in rural areas.

As well as housing targets, proposed changes to the National Planning Policy Framework (NPPF) designed to unlock the planning system to boost housebuilding are to be finalised by the end of this year.

Many local authorities have already started to review their development plans to meet these targets, and by taking a strategic approach now, rural estate owners must be well-prepared for these new changes.

The housing opportunity

Many rural estate owners may not immediately think of housing development as an attractive option when considering how to generate value from their land assets, preferring to rely on traditional income sources such as agriculture, forestry, or visitor enterprises. However, as the national policy landscape shifts and development pressures mount, the need for housing development in the countryside can no longer be ignored.

We are facing a rural housing crisis, and the acute lack of affordable homes is exacerbated by planning constraints, community resistance, secondary homes and holiday lets, which limit rental property supply.

Difficulties in meeting the housing needs of an aging population, combined with the government's focus on increasing housing numbers, are creating an urgent need for new homes in rural communities.

Estate-led strategic housing development offers rural estates an attractive way to unlock land value, generate capital for reinvestment, and support the long-term sustainability of local communities.

Often, suitable development land is located on the periphery of the estate, near neighbouring settlements, which helps avoid fragmentation of the estate and preserves the integrity of existing operations.

We have worked with numerous rural estates to successfully secure land allocations and planning consents for housing, partnering with developers to bring projects to fruition. There are various options available, ranging from outright land sales with planning consent to joint ventures and partnerships. Many estate owners prefer joint ventures as they offer more control over the type and quality of homes built, ensuring the development aligns with the estate’s values and long-term goals.

The role of strategic planning

There are opportunities to deliver rural housing on a variety of scales, but for larger developments, engaging with the planning authority’s ‘local development plan’ process is usually the best way to proceed. These plans set out the development needs for an area, and the land supply needed to meet them and provide an opportunity for estates to engage with planning officers to consider how their land might contribute to the required supply.

At Rural Solutions, we play a key role in facilitating these discussions, helping estates demonstrate their value to the local area - whether as an employer, purchaser of local goods, or contributor to the economy - and exploring how they can expand these contributions in line with local priorities.

We act as a facilitator between estate owners and authorities, using our expertise to identify opportunities, ensure effective communication, and position estates to benefit from new housing policies. Estates can establish effective relationships with local authorities, as both must focus long-term, on high quality outcomes and wish to focus on not solely housing, but also economic and environmental considerations. This allows us to position estates as a preferred provider of housing sites to local authorities.

Presenting well-supported development sites by addressing issues like access, flood risk, landscape impact, and the provision of local services, helps make a case for viability and strengthens discussions with authorities. Our holistic planning approach ensures that all aspects of your estate are considered, highlighting its broader contributions to the local community and positioning your development proposal for success.

Be prepared

Housing development can be a key part of the strategy for the long-term sustainability of rural estates, and done well can not only deliver value for the estate but to the local community and ensure the long-term viability of both.

If you would like to discuss what opportunities there may be for you and your estate to contribute to the rural housing crisis, please get in touch.

Email us at info@ruralsolutions.co.uk or call 01756 797501.