Even as urban land values softened (-4.5% annually in 2025) and greenfield values edged lower (-1.4%), appetite for long-term sites remained robust, as shown by Savills Research analysing Q4 2025 development land indices. 

With proposed reforms in the National Planning Policy Framework (NPPF) in England focused, among many other things, on improving housing supply, there is a clear desire among developers to future-proof delivery supported by a more favourable planning environment.

The strategic land market has traditionally taken a much longer-term approach to things; however, planning policy changes have empowered housebuilders, developers and land promoters to improve their respective pipelines. Strategic sites are now being evaluated by what can be achieved within the next five years or, more specifically, within this parliament.

Planning reform and policy signals have materially reshaped both where and how fast promoters, housebuilders and landowners are seeking to deliver homes.

A clear pivot: planning reform accelerating timeframes

Over recent months we’ve seen wholesale changes in the appetite for strategic land driven by the proposed planning reforms. The focus has shifted from speculative, longer-dated options to schemes that can reach consent and mobilise quickly.

Historically, short-term plans outside of local plans – considered a practical no-go under the previous government, except in exceptional circumstances – are now being pursued where the presumption in favour and higher housing numbers can be applied to unlock sites quickly.

Why strategic land remains the bright spot

Despite weaker sales rates across the market, strategic land is offering greater pipeline certainty and an opportunity to align delivery with expected market improvements beyond 2026. The long-term view associated with strategic land is supported by the positive rhetoric on housebuilding from the government.

Meanwhile, Scotland’s experience underscores the story: greenfield values rose 2.7% over the past year as competition for allocated sites intensified under NPF4 – even as urban land values continued to fall, reflecting higher build costs and slower sales. 

The new speed limit: deliver now, de-risk later

With a heightened focus on delivery within this parliament, those with strategic land or seeking to build up their pipeline will be looking to bring forward consents swiftly to avoid any potential pause should there be a change in government at the next general election and, subsequently, planning policy. Often this may mean accepting sub-optimal planning positions, conditions or viability to secure the principle of a consent with the intention of improving these elements in due course once consent has been secured.

However, there remains healthy caution relating to actual delivery. Securing outline consent is a crucial milestone, but development management (reserved matters, conditions, S106 and phasing) is where timelines can expand and risk accumulates, and there is disconnect between national policy and local government decision-making and resource. The government is focused on delivering 1.5 million homes in this parliament, and the proposed reforms to the planning system are aimed at unlocking sites more efficiently, but resourcing, funding and simplifying the process at the development management stage pose a significant barrier to this being even close to being achieved.

This all points to more consents, but a lag in delivery. This gap between consent and start on site is already visible in the broader delivery picture: larger developers have maintained operations and increased their share of output (44% in the year to Q3 2025, up from 39% two years earlier), while SMEs – more exposed to slow sales and extended build-out – are progressing more cautiously.

Strategic land selection is also increasingly regionally calibrated:

• North of England: There is more affordability headroom for buyers, and sales rates are closer to historic norms (0.7 per outlet per week), improving the near-term case for outlet growth and phased delivery. This has caused housebuilders and promoters to push further north in their quest to sign up strategic land.
• South East and southern markets: Affordability pressures have been acute, contributing to more pronounced land value softening (South East greenfield -4.0%, urban -5.2% in 2025) and viability challenges in urban sites – requiring sharper land bids, product mix changes, or infrastructure/abnormals funding solutions. Despite this, appetite remains to pursue short-term planning application-led strategies in areas which have historically been hamstrung by Green Belt designations.

Outlook: consent momentum now, delivery upturn later

Market-wide transactions are expected to be lower in 2026, tempering near-term new-build sales. But the outlook beyond 2026 is more positive, with stronger transactional activity and value growth anticipated. Strategic land remains the best route to de-risked pipelines, especially where sites align with local plans, benefit from presumption in favour, and can progress through development management efficiently.

Well-located strategic sites are in demand and promoters are increasingly ready to move now to capitalise on indications of improving conditions, such as a rise in planning applications across England. However, the challenge will be in the execution and turning consents into starts, structuring projects that are viable in the South of England and affordable in the North. Further attention may be required to avoid lengthy delays.

Further information

Contact Patrick Moseley