Navigating Brownfield Project Funding and Approval

As cities face growing demand for housing and economic growth, navigating brownfield project funding and approval has emerged as a vital strategy for sustainable urban regeneration.

Brownfield sites offer opportunities to reclaim and revitalise urban spaces while addressing environmental, economic, and social challenges. With local authorities playing a central role in allocating funding, developers can take advantage of substantial benefits by tapping into brownfield funding programs. In this thought leadership piece, Talal Zabar, Senior Quantity Surveyor, discusses his experience of supporting developers in navigating brownfield project funding and approval through local authorities and how this support has helped access the potential of these underused spaces.

The Case for Brownfield Redevelopment

There are many advantages to redeveloping brownfield sites. These sites are often in urban areas with established infrastructure, reducing the need for additional investment in utilities, roads, and public transport. This not only makes redevelopment more cost-effective but also helps prevent urban sprawl, a major concern for growing cities. Brownfield redevelopment also actively contributes to environmental sustainability by remediating contaminated land, improving public health, and creating cleaner, safer urban environments.

From an economic perspective, bringing underused areas back to life can stimulate local economies by attracting businesses, creating jobs, and increasing property values. Local authorities and governments recognise these benefits, which is why brownfield projects often receive significant financial support through incentives such as the Brownfield Housing Fund. This £67 million initiative, administered by the Department for Levelling Up, Housing & Communities, aims to create 4,500 new homes across West Yorkshire and has already boosted economic activity in the region (West Yorkshire Combined Authority).

What Developers Need to Know about Brownfield Funding

Securing brownfield funding can be a game-changer for developers, but it requires careful planning and alignment with local and regional priorities. One prime example is the Goitside Conservation Area project in Bradford City, where brownfield funding played a crucial role in transforming a fire-damaged, underutilised building into 77 new apartments.

To be eligible for funding, developers must ensure their projects meet specific criteria. This includes site location and condition, housing delivery potential, alignment with regional strategies, project readiness, sustainability, and partnership opportunities. Additionally, projects that emphasise sustainability—such as energy-efficient designs and low-carbon construction—are particularly attractive to local authorities, given the increasing focus on climate goals.

Building a Strong Business Case for Brownfield Project Approval

When working for our clients, Vextrix recognises the importance of a thorough and well-organised application. Key components of an application includes:

1. Financial Viability: Detailed cost assessments and spend profiles are essential to demonstrate the financial health of a project. Local authorities need assurance that the project is financially viable and offers value for money.
2. Environmental Impact: Brownfield sites often have contamination issues, so addressing environmental concerns through remediation plans is crucial. Our Environmental impact assessment outlines how a project can improve the site while meeting sustainability targets.
3. Project Readiness: We need to show that the project is ready to proceed, with the necessary permissions, designs, and partnerships in place. This demonstrates that funding can be put to immediate use, helping to achieve housing and economic goals.
4. Strategic Alignment: Vextrix ensures that the project is aligned with local and regional development strategies, demonstrating how the project would fit within broader policy frameworks to increase its appeal.

The Importance of Early Engagement

One of the most valuable lessons we’ve learned is the importance of early and consistent engagement with local authorities and stakeholders. Early engagement allows our developer client to gain feedback on their proposals, ensuring alignment with the local priorities which reduces the risk of setbacks during the application process. Local authorities can provide critical insights into how to tailor projects to meet funding criteria, which can significantly improve the chances of approval.

For example, in the Goitside Conservation Area project, early consultation with local authorities ensured that the developer’s vision for restoring the building’s original features aligned with regional heritage preservation goals. This collaboration also helped streamline the application process, demonstrating the value of building strong relationships with local decision-makers.

Don’t expect a quick process!

Timescales differ from one project to another. The funding for the Galem House project took approximately 24 months from initial engagement. The main stages were:

• Initial consultation
• Pre-application
• Formal application
• Review and Feedback
• Funding decision

Key Tips for Developers Seeking Brownfield Funding

Securing brownfield funding requires a strategic approach. Below are some key tips we learned that may benefit other developers in securing funding:

1. Understand the Funding Criteria: Familiarise yourself with the specific goals and criteria of the funding program, whether it’s environmental remediation, affordable housing, or community regeneration.
2. Engage Early: Start discussions with local authorities and stakeholders early in the process to gather feedback and ensure your project is aligned with local needs.
3. Prepare Comprehensive Documentation: Detailed documentation, such as financial viability studies, environmental impact assessments, and project plans, is crucial to demonstrate feasibility.
4. Highlight Partnerships: Collaborating with local councils, housing associations, and community groups can help strengthen your application by showcasing broad-based support.
5. Emphasise Sustainability: Projects that incorporate sustainable practices such as energy efficiency, green spaces, and low-carbon construction will align with climate goals and be more likely to secure funding.
6. Remain Flexible: Be prepared to adjust your plans based on feedback from the funding body. Flexibility and responsiveness can be key differentiators in a competitive funding environment.