NPPF 2024 – The Loopholes That Closed and The Doors That Opened

Just when you thought the planning system couldn’t get more complex, the 2024 NPPF has arrived with game-changing implications for landowners and developers. The December 2024 revisions to the National Planning Policy Framework represent one of the most significant shifts in planning policy in recent years, with far-reaching consequences for anyone involved in land development.

As specialists in optimising land value through our proprietary Land Value Accelerator Method™, we’ve analysed these changes in depth to identify both the closed loopholes and the new opportunities. Our findings reveal a transformed planning landscape with substantial implications for strategic land promotion and development.

But what if the biggest opportunities aren’t where most people are looking? What if the conventional wisdom about these changes misses the most significant value creation possibilities?

Let’s explore the key changes, their implications, and the strategic approaches that could make all the difference in this new planning environment.

For years, paragraph 11d of the NPPF has been the developer’s best friend. This “tilted balance” mechanism has been the basis for countless successful planning appeals, particularly in areas where local authorities couldn’t demonstrate a 5-year housing land supply. When triggered, it shifts the presumption in favour of sustainable development, requiring councils to grant permission unless specific conditions are met.

The good news? This powerful mechanism remains in the 2024 NPPF. The tilted balance is still triggered when:

• There are no relevant development plan policies, OR
• The policies most important for determining the application are out-of-date

And yes, the lack of a 5-year housing land supply still renders relevant policies “out-of-date,” maintaining this crucial pathway for development.

But here’s where things get interesting. The 2024 NPPF has subtly but significantly recalibrated the tilted balance by adding new considerations to paragraph 11d(ii). Now, when assessing whether adverse impacts would “significantly and demonstrably” outweigh benefits, decision-makers must have “particular regard to key policies for:

• Directing development to sustainable locations
• Making effective use of land
• Securing well-designed places
• Addressing climate change”

This represents a paradigm shift in how the tilted balance operates. While the mechanism remains, councils now have additional grounds to refuse applications even when the tilted balance is engaged. The subjective nature of these considerations creates both challenges and opportunities.

With these new considerations in play, how might developers need to adapt their strategies to maintain the advantage? Could proactively addressing these factors in your applications create a competitive edge while others are still catching up?

The Grey Belt Revolution – A Fundamental Shift in Green Belt Policy

For decades, Green Belt was sacrosanct in planning terms. The fundamental aim of Green Belt policy has always been to prevent urban sprawl by keeping land permanently open, with “openness” and “permanence” as its essential characteristics. Development within the Green Belt has been presumed inappropriate unless very special circumstances could be demonstrated – a high bar that has protected these areas from significant development.

But the 2024 NPPF has introduced a revolutionary concept that fundamentally changes the game: Grey Belt.

Grey Belt land is defined as land within the Green Belt that:

• Makes a weak or moderate contribution to Green Belt purposes (a), (b), and (d)
• Is not subject to other protective designations in footnote 7 of the NPPF
• Would not fundamentally undermine the purposes of the remaining Green Belt if developed

This represents nothing short of a paradigm shift in Green Belt policy. For the first time, the NPPF creates a formal pathway for development on certain Green Belt land without requiring “very special circumstances.”

The assessment process requires authorities to:

1. Divide Green Belt into assessment areas
2. Evaluate each area’s contribution to purposes (a), (b), and (d)
3. Consider whether other protective policies would restrict development
4. Identify Grey Belt land
5. Assess whether development would fundamentally undermine remaining Green Belt

When Green Belt release is necessary, the NPPF now establishes a clear hierarchy:

1. Previously developed land (first priority)
2. Grey Belt land that is not previously developed (second priority)
3. Other Green Belt locations (last resort)

The subjective nature of assessing “weak” or “moderate” contribution to Green Belt purposes creates significant interpretation opportunities. Developers can potentially argue that land qualifies as Grey Belt even without formal designation in local plans, opening up previously protected land for development consideration.

Could your Green Belt land actually be Grey Belt land in disguise? Have you assessed your land holdings against the new Grey Belt criteria? The answers could unlock substantial value that was previously constrained by Green Belt designation.

If you’ve previously explored barn conversions under Class Q permitted development rights, it’s time to take another look. The May 2024 updates to Class Q represent a dramatic expansion of development potential for agricultural buildings.

The rules have changed, doubling your potential yield while halving the maximum unit size. Here are the key modifications:

• Maximum number of dwellings increased from 5 to 10 per agricultural unit
• Total maximum floorspace increased from 865 sqm to 1,000 sqm
• Maximum size per dwelling reduced from 465 sqm to 150 sqm

But that’s not all. The changes also include new extension provisions:

• Single storey rear extensions of up to 4m now permitted
• Extensions must be on existing hard surfaces that were present on or before July 24, 2023 (or have existed for at least 10 years)

Eligibility criteria have also been updated:

• The barn must have a suitable existing access to a “public highway”
• External walls can now be installed, allowing conversion of barns that are open on one or more sides
• Barns that existed on or before July 24, 2023 and were part of an agricultural unit can qualify even if they’ve ceased to be part of the agricultural unit (subject to certain conditions)

Perhaps most interestingly, transitional arrangements allow developments permitted under previous Class Q rules to continue for 12 months (until May 20, 2025). During this transitional period, applications can still be made under old rules (e.g., for larger dwellings up to 465 sqm).

This creates a strategic opportunity to evaluate which approach – old rules or new rules – would maximise value for your specific circumstances. For some sites, fewer larger units might generate more value, while for others, more numerous smaller units could be optimal.

With these changes, is it time to reassess those agricultural buildings you previously dismissed? Could the ability to create up to 10 dwellings transform the economics of conversion projects that weren’t previously viable?

For more details, please read our guide to barn conversion planning permissions.

The barriers to commercial conversions have fallen, creating immediate value uplift opportunities for owners of commercial properties. The March 2024 updates to Class MA permitted development rights represent a significant liberalisation of the commercial to residential conversion pathway.

Two major restrictions have been completely removed:

• The previous 1,500 sqm maximum floorspace limit has been eliminated
• The requirement that buildings must have been vacant for at least 3 months prior to application has been removed

This means that very large commercial buildings can now be converted to residential use, and currently occupied buildings can be considered for conversion without waiting periods. For commercial property owners, this creates immediate opportunities to reassess the highest and best use of their assets.

The assessment criteria for Prior Approval applications remain unchanged, covering transport impacts, contamination risks, flooding risks, noise impacts, impact on conservation areas, provision of adequate natural light, relationship with industrial neighbours, and impact of loss of services. National space standards still apply (minimum 37 sqm per dwelling), and external alterations still require separate full planning permission.

What value might be hiding in plain sight within your commercial portfolio? Could buildings that were previously ineligible due to size now represent significant residential development opportunities? With no vacancy requirement, the potential for immediate value uplift without income loss during a vacancy period creates compelling economics for conversion.

The winners in this new landscape won’t be those who simply understand the changes, but those who systematically optimise their approach. The complexity of the 2024 NPPF changes creates both challenges and opportunities, with several cross-cutting strategic themes emerging from our analysis:

1. Subjective Assessment Opportunities: Both Grey Belt and tilted balance mechanisms rely on subjective assessments that can be challenged with expert evidence. Developing expertise in these assessment methodologies can create significant competitive advantage.
2. Transitional Provision Strategies: Both Class Q and Class MA have transitional provisions that create strategic opportunities to apply either old or new rules based on which creates more value for specific sites.
3. Newly Eligible Site Identification: Systematically identifying sites that were previously ineligible but now qualify under the new rules can uncover substantial value creation opportunities before the market fully adjusts.
4. Technical Requirement Leverage: Using technical requirements to challenge council positions remains a viable strategy, particularly with the new subjective elements introduced in the 2024 NPPF.

At Intelligent Land, we’ve already begun adapting our Land Value Accelerator Method™ to incorporate these changes and maximise value creation opportunities for our clients. Our systematic approach to land optimisation is particularly valuable in navigating complex planning changes like those in the 2024 NPPF.

In this complex new environment, can you afford not to have a systematic approach to optimisation? How might a methodical analysis of your land and property portfolio against these new criteria uncover hidden value?

The 2024 NPPF changes represent both challenges and opportunities for landowners and developers. While some loopholes have closed, significant new doors have opened – particularly through the Grey Belt designation, expanded Class Q rights, and liberalised Class MA provisions.

The complexity of these changes creates a competitive advantage for those with sophisticated approaches to land promotion and development. By systematically incorporating these changes into your strategy, you can position yourself to capitalise on the new opportunities while others are still figuring out the rules.

We invite you to contact Intelligent Land for a discussion about how our Land Value Accelerator Method™ can help you navigate these changes and maximise the value of your land and property assets. Our systematic approach to identifying and optimising development opportunities is particularly valuable in this transformed planning landscape.

As these changes reshape the planning landscape, who will be positioned to capitalise on the opportunities while others are still figuring out the rules? Will you be among them?

The LVA Method™ Advantage

The Land Value Accelerator Method™ developed by Mark Hewett of Intelligent Land is a proprietary approach to optimising land value through strategic planning and development approaches. The method orchestrates specialised algorithms- the Black Box Advantage!

This systematic approach to land optimisation is particularly valuable in navigating complex planning changes like those in the 2024 NPPF, helping landowners and developers identify and capitalise on opportunities that others might miss.