By Josh Rains,

Managing Director, Landmark Geodata

As we approach the halfway mark of 2025, the land development sector faces three core market forces: the manifest opportunities inherent in innovative technology, the practical impact of recent statutory policy change, and the pressing need to reduce environmental impact.

This complex combination of factors is offset by a recognition that dedicated budgets, be they for tech innovation or skilled personnel to tackle these challenges, are limited.  As a result, financial constraints are being felt by all but the largest players in the market.

These are the topline insights revealed when Landmark Geodata conducted its annual independent research, sampling the opinions of senior professionals in commercial and/or residential land development businesses across the country. We delved into the latest trends in tech, regulation and sustainability. In doing so, we asked what has changed in the past 12 months, how the sector is adapting, and where the opportunities now lie.

Tech infrastructure now non-negotiable

Our research showed technological maturity is enhancing across the sector, with tech solutions part of the infrastructure of the land development industry.

Nearly three quarters (73%) of the developers we spoke to now expect to use technologies such as AI and virtual reality more in 2025. That figure rose to 83% for bigger firms. Better data integration is the desired prize. The majority (65%) are supportive of AI’s potential to positively impact work, enabling greater efficiency through process automation (this year it is seen as the critical area for improvement). Anticipated benefits include remote early-stage feasibility assessments, such as the ability to survey sites without visiting them.

Regulatory and legislative changes impact

The last couple of years have seen a slew of new compliance and legislative demands in the land development sector.

NPPF framework updates tops the ranking with almost three quarters (73%) of those we spoke to (in both residential and commercial) saying its impact would be keenly felt. Its less ambiguous, more prescriptive policies are designed to unlock land value, with a particular emphasis on brownfield sites as a priority and the consideration of green field sites that meet the ‘grey belt’ definition.

Biodiversity Net Gain (BNG), which has been in force for over a year, is posing significant challenges to all developers with (65%) stating it has impacted their businesses to a significant or moderate degree. Resource issues constrain all but the biggest players with (57%) having no tools in place; but solutions are being found through collaboration and engagement.

The perception is that BNG is slowing planning submission processes (42% said plans now take ‘much longer’ to process) and 25% said they have submitted fewer planning applications as a result. This is potentially a response to the increasing complexity around early stage due diligence and compliance, which could be leading to an increased cost per application. A situation smaller entities may find particularly challenging.

The Future Homes Standard (FHS) also makes its own demands, as the costs inherent in maintaining compliance feed into developers’ balance sheets. More than a third (37%) felt unprepared or only slightly prepared for the implications of this legally binding policy; and perhaps speaks to the scale and complexity of implementation.

Difficult investment choices

Sustainable development practices are being incorporated into all or most developments to reduce environmental impact and promote eco-friendly living. However, the statistics present a mixed picture.

One might expect the use of energy efficient materials and appliances (68%) to top the rankings, as this naturally feeds into the compliance demanded by FHS. However, this was closely followed by bicycle storage/parking facilities (65%) and construction waste reduction strategies (57%) rather than more end-user orientated green solutions, such as water recycling systems (45%) or low flow plumbing systems (48%).

Budgetary constraints clearly loom large. That said, this year 65% of developers said they will be increasing the priority given to green investment in 2025. However, there is a notable split between larger businesses who can afford to invest versus smaller concerns that may find it more difficult.

Our research reveals an underlying picture of a land development market striving to put its best foot forward through enhanced collaboration and digital solutions amid a backdrop of exacting regulatory reform. Both have the potential to enable developers to overcome barriers and navigate the ever-evolving planning landscape.

Explore the full trends in our report: Trends in tech, regulation and sustainability for developers.  Download your copy here.