Brownfield is an unpopular, risky investment for developers. Or is it? Can a little polishing make them shine? Here’s a quick guide.

What is brownfield?

A brownfield site refers to land that has already been developed but is no longer in use. It’s the land equivalent of the spare room you close off when guests arrive: cluttered, unloved, unused. Examples of brownfield land include abandoned factories, recreational land and old office blocks. Does it contain hazardous chemicals? Invasive weeds? More than likely!

Is brownfield development a risk?

Unlike greenfield, which is new and usually chemically pure, brownfield’s history can make it a riskier option for developers.

High upfront costs

Getting the site ready for the foundation phase will likely come with overheads you wouldn’t pay for when buying greenfield, like having to get rid of contaminants or invasive weeds. As you well know, each “clean-up” will cost money which may be too dear if you’re a new developer.

Hidden costs

It’s not always clear what developers may face on an already-used site. There may be hidden costs to pay to get the site ready for development. We’ve lost count of how many times our director has been called to a site to deal with knotweed or Mare’s Tail, because no one identified the plants before the land was purchased!

Low demand

It’s a brownfield site for a reason. If it’s already a ghost town, economic growth can be sluggish. Going back to the analogy of the spare room where we all hide our hoard, it’s not the room we show guests, is it? There’s low demand to visit the room — it’s where people dump their old mattresses! 

With potential risks like these, you might wonder if brownfield is even worth a second glance? It certainly doesn’t gleam with investment potential. Or does it?

Why brown is better

Despite having to pay higher upfront costs, brownfield could offer a better ROI. Here’s why we think these diamonds are worth a second glance and polish.

1. Higher value
   
   When you invest in brownfield, you have the opportunity to build higher-value developments. Since these sites need remediation, they attract premium projects and premium market prices. Simply put, you pay more upfront and charge more later. Like doing up a classic car...it costs a lot, but well worth it in the end! More and more, investors are capitalising on a rising demand for luxury and high-end housing, particularly in urban areas where space is limited. You’ll see things like infill and backland development which are quite popular. 
   
   
2. Brown is ... greener?
   
   How do we protect our natural world and slow climate change? Leave greenfield land alone, that’s what.
   
   According to a 2022 report by The Countryside Charity, over 23,000 brownfield sites have the potential to create 1.2 million new homes. If that’s not a good way to put neglected land to good use and help the environment, we don’t know what is.
   
   
3. Upfront funding
   
   The Brownfield Land Release Fund is a government scheme that gives funding to local councils to incentivise developers to build on brownfield sites. And it’s no small amount, either. In fact, the government in late 2024 announced they were injecting £68m into the project.
   
   So, if the upfront remediation costs of brownfield put you off, it’s nice to know you may not be out of pocket if the local council can help.

If you’re interested in investing in brownfield in your area, contact your local council to see what funding might be available to you. You should also check out brownfield registers to see what land might be available to develop.

If you do find your diamond in a bit of rough (the rough being invasive weeds like Japanese knotweed and giant hogweed) you know who to call. No, it’s not ghostbusters ... it’s TCM Soil Solutions. Call now to book your survey on: 0330 678 1077.