By Josh Raines
Managing Director of Landmark Geodata
Close to the midpoint of 2025, the land development sector faces three core market forces. The inherent manifesto opportunities for innovative technology, the practical impact of recent statutory policy changes, and the urgent need to mitigate the environmental impact.
This complex combination of factors is offset by the perception that specialized budgets are limited to innovation and skilled personnel tackling these challenges. As a result, everyone except the biggest players in the market feel financially constrained.
These are top-line insights revealed during the annual independent study of landmark Geodata, which sampled the opinions of senior experts in commercial and/or residential land development projects across the country. We've delved into the latest trends in technology, regulation and sustainability. In doing so, we asked what has changed over the past 12 months, how the sector is adapting, and where it is now.
Technology infrastructure is currently unnegotiable
Our research shows that technology maturity has improved across sectors, and that Tech Solutions is part of the infrastructure of the land development industry.
Almost three-quarters of the developers we spoke to (73%) expect to use technologies like AI and virtual reality in 2025. That figure rose to 83% for large companies. This is a prize that is desirable for better data integration. The majority (65%) support the possibility that AI can have a positive impact on the work, allowing for greater efficiency through process automation (this year is considered a key area of improvement). Expected benefits include remote initial feasibility assessments, including the ability to research the site without visiting the site.
Impact of regulatory and legislative changes
Over the past few years, there have been many new compliance and legislative demands in the land development sector.
The NPPF framework updates say its impact is felt so strong (both residential and commercial), and are above the ranking of about three-quarters (73%). The less ambiguous, more normative policy is designed to unlock land values, with Brownfield sites being particularly focused as a priority and taking into account greenfield sites that meet the definition of “grey belt.”
Although the net profit of biodiversity (BNG) has been in force for over a year, it poses a major challenge for all developers who say (65%) are affecting the business to a large or medium level. Resource issues limit all players except for the largest players (57%). However, solutions were found through collaboration and engagement.
Recognizing that BNG is delaying the process of submitting plans (42% say it takes “much longer” to process plans), and 25% responded that there are fewer planning applications as a result. This is a response to increased complexity with early stage due diligence and compliance, which can lead to increased cost per application. You may find small entities particularly challenging.
Future Homes Standard (FHS) also makes its own requests as it is a cost inherent in maintaining a compliance feed on the developer's balance sheet. More than a third (37%) felt that they were not prepared or slightly prepared for the implications of this legally binding policy. And perhaps we'll talk about the scale and complexity of implementation.
Difficult investment choices
Sustainable development practices are incorporated into all or most developments to reduce environmental impacts and promote environmentally friendly living. However, statistics show complex situations.
This may expect the use of energy-efficient materials and appliances (68%) to be at the top of the rankings, as this will naturally supply the compliance required by FHS. However, following this is not due to bicycle storage/parking facilities (65%) and construction waste reduction strategies (57%), rather than more end-user-oriented green solutions (48%), such as water recycling systems (45%) and low-flow plumbing systems.
Budget constraints are clearly looming. That said, this year, 65% of developers said they would increase the priorities given to green investments in 2025. However, there is a significant division between smaller concerns that can be more difficult and large companies that can afford to invest.
Our research reveals a fundamental photograph of the land development market, which strives to advance the best foot forward through strengthened collaboration and digital solutions amidst the backdrop of strict regulatory reforms. Both could enable developers to overcome barriers and navigate an ever-evolving planning environment.
Find out the full trends in the report: Developer technology, regulatory, and sustainability trends. Download the copy here.
