The Grey Belt Awakens: What Sadiq Khan's New London Plan Means for Development

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Melissa Keen
May 14, 2025
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There’s been quite the stir in planning circles (and political ones too) after Sadiq Khan revealed plans to build new homes on sections of London’s Green Belt as part of the New London Plan. The phrase Grey Belt is back in the spotlight (if it ever left), and so is the debate around how we solve the capital’s housing crisis without bulldozing every blade of grass in sight.

Let’s unpack what’s happening and what it could mean for developers.

What Did Sadiq Actually Say?

Launching the policy shift that will form part of the next London Plan, Khan pledged to review low quality Green Belt land for development. His argument? Some parts of the Green Belt are not green, not open, not accessible, and are providing very little biodiversity benefit. We’re talking about underused scrubland, abandoned petrol stations, disused car parks… sites with little ecological value, but lots of development potential at a time when thousands of Londoners are on housing waiting lists.

To be clear, he’s NOT suggesting a free for all. The plan is to reclassify parts of this so-called ‘Grey Belt’ to allow for genuinely affordable housing, especially around well connected transport hubs. It’s a shift in approach, but not an all-out assault on protected green space.

Sources:
📰 BBC News – Sadiq Khan backs building on Green Belt
📰 The Guardian – Khan to announce Grey Belt building plan

A Green Belt History Refresher

The Green Belt was created to prevent urban sprawl and to protect the countryside. Noble intentions, yes - but the planning map hasn’t exactly kept pace with modern needs. Some sites designated as ‘protected’ decades ago are now sitting next to busy A-roads or surrounded by development on all sides. It’s hard to justify keeping them locked away when Londoners are struggling to find homes they can actually afford.

Still, it’s a politically sensitive subject. Expect some spirited opposition, especially from campaigners and MPs in outer boroughs.

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Enter the Grey Belt - And Why It Matters

At LandTech, we’ve been talking about the Grey Belt for a while. Our platform helps identify these often overlooked sites - places that might be technically in the Green Belt, but that are primed for smart, sustainable development.

This is a moment for the industry. A more pragmatic approach to planning could open up land that’s just been sitting there, contributing neither to housing supply nor biodiversity. For developers, it’s an opportunity to rethink what’s possible - and where.

Want to see where this land might be hiding? Our Grey Belt data can help you cut through the noise and spot the opportunities.

What This Means for Planning Policy

This announcement signals a more flexible mindset at City Hall and brings their policy into line with that of the national Government.. Rather than defending every inch of Green Belt on principle, there’s now a growing appetite for using land in a more strategic way.

We’re likely to see more emphasis on:

  • Affordable housing linked to transport
  • Better use of underperforming land
  • A move away from blanket restrictions to more nuanced local appraisals

Of course, words and policies are different things. This isn’t a green light just yet - but the direction of travel is clear.

In Short?

The Grey Belt is no longer just a talking point. It could soon become a central pillar of London’s planning strategy.

For developers, this is the time to get ahead of the curve. If your pipeline is feeling the squeeze, or you’re struggling to make the numbers stack up in central zones, start looking to the Grey Belt. It’s not just an idea; it’s an opportunity.

And if you want to find the best of it before everyone else does? You know where to find us!

 

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