NPPF 2026 – Five Opportunities for the Residential Sector

The titled balance under paragraph 11 of the previous NPPF is replaced by a new place-based approach to decision making under policies S3, S4 and S5.

Policy S3 continues to set out a presumption in favour of sustainable development. Crucially, Policy S4 dictates that applications within settlement boundaries should be approved unless adverse impacts substantially outweigh the benefits. This creates a much more permissive framework, significantly strengthening the presumption in favour of development on a wider range of in-settlement sites.

Policy S5 introduces supports for residential and mixed-use development outside settlements which are within reasonable walking distance of well-connected stations. Reasonable walking distance is generally around 800 metres or around 10 minutes’ walk. Policy GB7 provides a separate Green Belt route for certain qualifying station-related development. Together, these policies fundamentally unlock previously discounted sites that boast strong transit connectivity.

Policy S5 contains a route for development outside settlements where it would address an evidenced unmet need. This includes, but is not limited to, housing proposals where the local planning authority cannot demonstrate a five-year supply of deliverable housing sites or scores below 75% in the most recent Housing Delivery Test. To qualify, development must be physically well-connected to the existing settlement and of an appropriate scale when taking into account the existing or proposed availability of infrastructure.

Policy L3 introduces mandatory minimum densities near well-connected stations: at least 35 dwellings per hectare (dph) for standard connectivity, rising to 45 dph around stations with higher-frequency services.

More broadly, the framework pushes for higher density development within settlements, warning that proposals that fail to use land efficiently should be refused. These minimum density requirements and expectations should be factored into initial site capacity assessments.

Plan makers must now allocate an additional 10% of their housing requirement on sites between 1–2.5 hectares, alongside the existing 10% mandate for sites under 1 hectare. Furthermore, a new "medium development" category (10–49 dwellings on sites up to 2.5 hectares) is introduced. These mid-sized schemes benefit from major development policies while enjoying exclusive, tailored provisions that do not apply to larger projects.

While unlocking these sites still hinges on viability and infrastructure capacity, the revised NPPF 2026 presents major opportunities for well-located residential development, making this the ideal time to reassess land portfolios.

JLL’s planning experts can help you navigate these changes. We can review your portfolios, identify newly viable opportunities, and develop planning strategies to unlock your assets' full potential. Get in touch with our team to explore your next steps.