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Brownfield Funding: The Potential of Underused Land

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Written by Hannah Saunders

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Jul 30, 2025

Brownfield funding plays a vital role in transforming underused or derelict land into much-needed housing and revitalised communities. Across England, brownfield development grants are helping to overcome the complex barriers associated with redeveloping previously used land. From modest infill plots to strategic city centre sites, targeted funding can mean the difference between stagnation and progress.

This guide explores the main types of brownfield funding available, including brownfield grants for councils and developers, and what makes a strong application. We also reference local examples in Yorkshire, Liverpool and other Combined Authority areas, illustrating the wider funding landscape. Throughout, we highlight how Thornton & Lowe can support your organisation with bid writing, feasibility, procurement and delivery planning.

What is Brownfield Land?

Brownfield land refers to previously developed land that is no longer in active use. It typically requires intervention due to challenges like contamination, derelict structures, or access constraints that can undermine viability.

Examples include:

  • Former industrial or manufacturing sites
  • Disused council depots, car parks or NHS land
  • Redundant military estates
  • Vacant buildings in urban centres

Brownfield redevelopment supports sustainable urban growth, reduces pressure on greenbelt land and makes use of existing infrastructure. But due to abnormal costs, many sites remain dormant without public funding.

England’s Brownfield Grant Landscape

Several public funding streams currently support brownfield development. While they evolve over time, the most consistent national programmes include:

  1. Brownfield, Infrastructure and Land (BIL) Fund – managed by Homes England for larger-scale, housing-led regeneration
  2. Brownfield Land Release Fund (BLRF) – administered via One Public Estate to unlock council-owned brownfield land

These are complemented by regional brownfield housing funds delivered by Combined Authorities under devolution agreements with the Ministry for Housing Communities and Local Government. These regional grants are increasingly important in supporting site-specific regeneration.

Brownfield, Infrastructure and Land Fund (BIL Fund)

The BIL Fund provides grant, loan or equity finance to help deliver housing-led brownfield regeneration schemes with up to £1bn available for projects across England. It’s particularly focused on strategic or complex sites with large abnormal costs.

What BIL Can Fund

  • Site remediation and clearance
  • Strategic infrastructure like roads and utilities
  • Restoration of heritage structures
  • Land acquisition, preparation and enabling works
  • Provision of on- and off-site utilities and transport infrastructure
  • Feasibility and technical support costs

Mixed-use schemes are eligible if housing is the lead outcome.

Who Can Apply

  • Local authorities
  • Developers (including SME consortia)
  • Registered Providers
  • Joint ventures or LLPs

Applicants must demonstrate the funding gap, housing outcomes, alignment with local plans and that the project delivers value for money. Thornton & Lowe supports with developing robust business cases and completing detailed submissions.

Brownfield Land Release Fund (BLRF)

BLRF funding, delivered by One Public Estate, is designed to help councils unlock surplus council-owned land by covering upfront abnormal costs. It supports small to medium-sized sites that are otherwise unviable.

Key Principles

  • Focuses on local authority-owned brownfield sites
  • Targets enabling works rather than construction
  • Encourages innovation, SME involvement and Modern Methods of Construction (MMC)
  • Requires land release within three years

What BLRF Typically Covers

  • Groundworks, site levelling and access improvements
  • Demolition, asbestos removal, and contamination remediation
  • Minor infrastructure or environmental constraints

BLRF2 Insights

The second round of BLRF (2022–2025) allocated £180 million nationally. Councils with clear strategic priorities and robust local plans were generally more successful. Submissions were scored across criteria including deliverability, innovation, and alignment with housing need.

Ongoing rounds may follow a similar structure, so early preparation is key.

Local and Regional Brownfield Housing Funds

Many Combined Authorities have their own brownfield programmes aligned with local housing and economic strategies. While each has unique priorities, they all aim to unlock difficult brownfield sites to deliver more homes, faster. These programmes are usually open to local authorities, Registered Providers and private developers. Applications need to demonstrate value for money and often social value.

Summary Table: Key Brownfield Grant Routes

Screenshot 2025 07 30 at 16 01 26

Making a Successful Brownfield Grant Application

Successful bids share a few common traits. Funders want to see a clear rationale, with evidence that public funding will unlock housing that would otherwise stall.

To strengthen your brownfield funding bid:

  • Identify abnormal costs precisely, with evidence and cost breakdowns
  • Provide a viable, timed delivery programme and project governance structure
  • Align with national and local policies, such as housing, regeneration and net zero
  • Set clear outputs: homes (type and tenure), apprenticeships, carbon impact
  • Demonstrate how the scheme supports wider community objectives

Regional examples show that funders favour:

  • Proposals linked to active Local Plans and housing strategies
  • Strong local partnerships and political backing
  • Mixed delivery routes including custom build or SME-led schemes

We help clients craft compelling narratives, cost justifications and supporting evidence to secure funding.

Why Brownfield Development Grants Matter

Brownfield grants help unlock housing without building on greenfield land. They support compact growth, reduce sprawl and often breathe new life into neglected places.

When used effectively, brownfield funding contributes to:

  • More affordable homes in high-demand urban areas
  • Sustainable neighbourhoods with existing transport and services
  • Land reuse that minimises infrastructure costs
  • Reduced land banking and dereliction

But the process is rarely simple. From technical surveys and procurement through to project governance and funding compliance, brownfield delivery needs clear planning and resource.

Contact our Social Housing Consultancy Team

Contact

Thornton & Lowe provides end-to-end support, including:

  • Feasibility assessments
  • Funding strategy and bid writing
  • Project mobilisation and monitoring

If you’re considering a brownfield grant, or already managing a stalled scheme, speak to our social housing consultancy team to explore what’s possible.

Last updated: July 2025

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