Economic Sustainability in Housebuilding and Development: A Blueprint for Resilient Growth

Economic sustainability is a cornerstone of successful housing development. It refers to the capacity of a project to remain financially viable in the long term while contributing positively to the wider economy. At Bartons Planning & Development Consultancy, we recognise that economic sustainability is not just about profit—it’s about creating developments that are resilient to market shifts, offer long-term returns, and contribute meaningfully to the communities in which they are built. Our expertise in planning, commercial acumen, and economic analysis enables us to provide clients with a pathway to achieving economic sustainability while maximising returns.

In this blog, we explore how economic sustainability intersects with housing development, the policies that influence it, and the strategies that developers and landowners can employ to enhance the economic viability of their projects.

Understanding Economic Sustainability in Housing Development

Economic sustainability in housing development involves creating projects that can sustain their financial viability over the long term, even in the face of economic uncertainties. This requires careful planning, strategic investment, and a focus on value creation across the entire lifecycle of the development. Economic sustainability encompasses aspects such as ensuring market demand, optimising land value, efficient use of resources, reducing operational costs, and designing developments that generate a lasting economic benefit to the community.

For developers and landowners, focusing on economic sustainability ensures not only that projects are profitable but also that they are resilient, adaptable, and aligned with broader economic and policy trends. At Bartons, our approach combines rigorous economic analysis with planning and development expertise, ensuring our clients achieve both their financial and social objectives.

Key Policies Influencing Economic Sustainability

Various planning policies and legislative frameworks shape the economic sustainability of housing projects. Understanding these policies and how they impact development can help landowners and developers make informed decisions to maximise their returns.

1. National Planning Policy Framework (NPPF): The NPPF emphasises the need for sustainable economic growth as part of the planning process. It supports developments that contribute to building a strong, responsive, and competitive economy by ensuring the right land is available at the right time and in the right places. At Bartons, we leverage the principles of the NPPF to help clients create economically viable projects that are aligned with national growth priorities.

2. Viability Assessments: Local planning authorities often require viability assessments to ensure that housing developments are deliverable and that they contribute to local economic objectives. These assessments help determine the economic feasibility of projects, considering factors such as construction costs, affordable housing contributions, and Section 106 or Community Infrastructure Levy (CIL) requirements. Our expertise in preparing viability assessments ensures that our clients can demonstrate the deliverability of their projects while maximising economic returns.

3. Local Plans and Economic Strategies: Local authorities often have economic strategies that align with their broader local plans, focusing on economic growth, employment generation, and investment attraction. Understanding these local priorities is essential for ensuring that housing developments contribute to the broader economic goals of the area and receive support from planning authorities. Bartons’ knowledge of local economic strategies allows us to guide clients in aligning their projects with these priorities, enhancing the likelihood of planning success.

Strategies for Economic Sustainability in Development Projects

Achieving economic sustainability in housing development requires a combination of strategic planning, efficient resource use, and proactive management throughout the lifecycle of a project. Here are key strategies that developers and landowners can employ to ensure the economic sustainability of their schemes:

1. Market Analysis and Demand Forecasting

Understanding market demand is critical to ensuring the long-term viability of a housing project. This involves conducting thorough market analysis to identify the types of housing that are in demand, the pricing levels that the market can sustain, and the socio-economic demographics of the area. Bartons assists clients with detailed market studies that help shape the development strategy, ensuring that the project meets market needs and maximises profitability.

2. Optimising Land Value and Use

The economic sustainability of a development is heavily influenced by how land is used and optimised. Identifying the highest and best use of a site—considering factors such as location, local planning policies, and infrastructure—is key to unlocking maximum land value. Bartons provides clients with comprehensive land appraisal services, ensuring that sites are optimally used and that development proposals align with both market needs and planning requirements, maximising land value and returns.

3. Efficient Use of Resources and Cost Management

Economic sustainability also involves efficient resource use, including minimising construction costs and reducing waste. By adopting modern methods of construction (MMC) and leveraging off-site manufacturing, developers can reduce construction timelines, labour costs, and material waste—all of which contribute to improved economic outcomes. Bartons supports clients in identifying and implementing cost-effective construction methods, ensuring developments are delivered on time and within budget.

4. Mixed-Use Developments and Diversification

Mixed-use developments are a powerful strategy for enhancing the economic sustainability of housing projects. By incorporating residential, commercial, and community facilities within a single development, developers can create a diversified income stream that enhances resilience against market volatility. Mixed-use developments also tend to be more attractive to investors and end-users, as they provide a range of amenities that enhance the overall living experience. Bartons has extensive experience in guiding clients through the complexities of mixed-use schemes, ensuring they are well-positioned to maximise economic benefits.

5. Long-Term Investment Perspective

Economic sustainability requires a long-term perspective on investment. This means considering not just the initial development costs and returns, but also the long-term operational costs, maintenance, and the potential for value appreciation. Developments that are designed with a long-term view are more likely to be resilient to market fluctuations and provide ongoing returns. Bartons works with clients to develop financially sustainable models that incorporate long-term management strategies, ensuring developments remain economically viable well into the future.

Economic Sustainability and Planning Gain: Navigating Section 106 and CIL

Planning obligations, such as Section 106 agreements and the Community Infrastructure Levy (CIL), are tools used by planning authorities to ensure that developments contribute positively to the local economy and community. These obligations often involve financial contributions to infrastructure, affordable housing, and other community benefits.

At Bartons, we help clients navigate these obligations from both a compliance and a commercial perspective. Our negotiation expertise ensures that the financial impact of Section 106 and CIL is minimised, allowing clients to retain a greater portion of the economic value generated by their projects. We also explore opportunities for planning gain that can enhance project viability, such as negotiating phased payments or identifying alternative contributions that align better with the project’s financial objectives.

The Role of Bartons in Delivering Economically Sustainable Developments

At Bartons Planning & Development Consultancy, our focus on economic sustainability means that we support clients at every stage of the development process—from initial feasibility and planning through to construction and post-completion management. Our approach combines in-depth planning knowledge with commercial expertise, ensuring that clients can create developments that are financially sound, resilient, and capable of delivering long-term returns.

Our services include:

• Economic Feasibility Analysis: We provide clients with detailed economic assessments that help determine project viability and identify areas where value can be maximised.
• Land Use Optimisation: By leveraging our planning and development knowledge, we help clients unlock the full potential of their sites, ensuring developments are aligned with market needs and policy requirements.
• Cost Management and Efficiency: Our expertise in cost management ensures that projects are delivered efficiently, with a focus on minimising waste and optimising resources to enhance economic returns.

Conclusion: Partner with Bartons for Economic Sustainability Success

Economic sustainability is about creating developments that are not only profitable today but also resilient and capable of delivering value well into the future. At Bartons Planning & Development Consultancy, we understand the importance of balancing immediate financial goals with long-term sustainability, and we provide clients with the strategic guidance needed to achieve this balance.

Whether you are a landowner looking to maximise the value of your site or a developer seeking to create economically sustainable housing schemes, Bartons can provide the expertise and insight you need. Get in touch with us today to learn how we can support your development project and help you build a resilient, economically sustainable future.