FAQs about the Brownfield Land Release Fund 2 (BLRF2) Round 4.
Preparing your application
What should I do if I need help with my application?
Please contact your OPE Partnership Lead or your Regional Programme Manager in the first instance. You will also find details of your local OPE Partnership on these web pages.
Who is eligible to apply for BLRF2.4?
The fund is open to councils across England, specifically: Borough, County, District, London Borough, Metropolitan Borough, and Unitary Councils. The Greater London Authority (GLA) is also eligible, but please note this relates to the GLA only and does not comprise the whole GLA Group.
Mayoral Combined Authorities (MCAs) are also eligible, as are their constituent councils. For BLRF2.4, Greater Manchester Combined Authority, West Midlands Combined Authority, and their constituent councils with full voting rights, will not be eligible to receive funding, as an Integrated Settlement has been provided. Councils in these MCAs should approach their Combined Authority to understand local funding opportunities.
A council is required to meet the eligibility criteria set out in the Fund Details. This includes confirming that they will engage with their relevant local OPE Partnership, or similar public property partnership, working collaboratively with other public bodies on their property assets and strategies.
Can I apply if I am not part of an OPE partnership?
No. If you are not already part of an existing OPE partnership, please contact the relevant Regional Programme Managers for your area.
If you are interested in applying for funding but there is no OPE partnership in your area, please speak to your Regional Programme Manager for advice on establishing a partnership as part of your application.
Is there a limit to the number of applications an individual council can submit?
No. Councils should factor in their ability to deliver all schemes to the required timescales, should all be successful. Each application must relate to an individual site, although we would accept sites that are divided by roads, provided these do not create a significant barrier between parcels of land and sites that would otherwise be contiguous. Multi-site, portfolio applications are not eligible for this funding route.
Are there any links to resources, apart from the application documents, that could help me with my application?
Yes. Below are links to some websites and resource hubs that may provide useful thinking when developing your application:
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You can find more examples of previous BLRF/LRF projects in the OPE case study library, and your OPE partnership will also be a good source of information.
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Homes England - The Government’s housing and regeneration agency
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Homes England online webinars - recordings of webinars designed to support councils when building homes
Will you hold any workshops for prospective applicants?
A recording from a webinar held on 17 July is available.
Fund requirements
How does this fund differ from previous rounds of BLRF/LRF?
BLRF2.4 aims to retain the impact and flexibility of previous schemes but places a greater emphasis on supporting economic growth and regeneration by contributing to the UK Government’s mission for growth by contributing to the 1.5 million new homes target over the course of this parliament.
A key change for BLRF2.4 is that there is no fixed bidding window. Bids will be accepted from the fund opening date until all the capital grant has been allocated.
We strongly encourage councils to have early discussions about their pipeline of suitable sites with Regional Teams, as far as possible, before filling in the Investment Case, to discuss their overall suitability for investment funding, identify their readiness for land release by 30 September 2027, and their ability to enter into contract for the works to be funded by BLRF, by 31 March 2026.
Can projects only be funded on brownfield land?
Yes - we are only accepting applications for funding for projects taking place on brownfield land.
What qualifies as brownfield land?
Land that meets the National Planning Policy Framework definition of “previously developed land” qualifies as brownfield for this fund:
- Previously developed land: Land which has been lawfully developed and is or was occupied by a permanent structure and any fixed surface infrastructure associated with it, including the curtilage of the developed land (although it should not be assumed that the whole of the curtilage should be developed). It also includes land comprising large areas of fixed surface infrastructure such as large areas of hardstanding which have been lawfully developed. Previously developed land excludes: land that is or was last occupied by agricultural or forestry buildings; land that has been developed for minerals extraction or waste disposal by landfill, where provision for restoration has been made through development management procedures; land in built-up areas such as residential gardens, parks, recreation grounds and allotments; and land that was previously developed but where the remains of the permanent structure or fixed surface structure have blended into the landscape
Where can I find out about other public land near my site?
Central government has a number of property tools that can support local authorities to better manage their assets, support wider public sector working, and reduce in-house costs of establishing bespoke services
The InSite Government Property Portal is now available. It is the central database of Central Government Civil Estate properties and land. It is also used to record the estates of the Devolved Administrations and increasingly by other wider public sector bodies.
What types of housing can I deliver using the fund?
The fund allows councils to determine the type, tenure and delivery mechanism for the new homes, drawing on their understanding of local needs. There are no restrictions in type or tenure.
Land released with capacity for housing should be quantified in the number of homes being delivered on the site. The following categories of homes can apply:
- a market home
- an affordable or starter home
- build to rent
- student accommodation (to note, 4 student rooms equates to 1 home)
- key worker accommodation (including health and military service personnel and family accommodation provided this adds to the net housing supply)
- retirement/care apartments (which count as dwellings/homes)
- a care home (to note, 4 care home rooms is equivalent to 1 home).
How do we evidence a general or specialised housing need?
Councils are required to regularly update their Housing and Economic Land Availability Assessment (HELAA). This will contain information on an area’s level of general housing need calculated by the use of the “Standard method”. This provides an unconstrained assessment of the number of homes needed in an area. In the event that an authority only has a specialised need, such as affordable housing, the HELAA should also contain the necessary evidence to demonstrate this. In most cases an extract of the relevant section(s) of the HELAA would be acceptable.
How is affordable housing defined?
Affordable housing is defined as being “Housing for sale or rent, for those whose needs are not met by the market (including housing that provides a subsidised route to home ownership and/or is for essential local workers)” and which complies with one or more of the definitions set by the National Planning Policy Framework (NPPF), which are outlined on the NPPF website.
To note, in our Project Overview tab of the Investment Case , we define “social rent” as rents that are 30-60 per cent of market rents, and “affordable rent” as rents that are up to 80 per cent of market rent. To clarify whilst we welcome applications for all types of affordable housing, only Social and Affordable rent have a quantifiable benefit in terms of the Value for Money (VfM) Assessment.
What is the definition of ‘Land Release’?
Please refer to the Draft Grant Funding Agreement under How to Apply, for the formal definitions of land release.
Land can be defined as “released” when:
a) An unconditional contract, development agreement or building licence with a private sector partner is signed, or a freehold or leasehold transfer takes place;
b) Land has transferred to a development vehicle owned, or partly owned, by the local authority; or
c) The point at which development begins on site if (a) and (b) have not happened.
One Public Estate defines the development start on site as actions such as excavation for strip or trench foundations or for pad footings, digging out and preparation of ground for raft foundations, vibrofication, piling, boring for piling or pile driving or drainage works specific to the scheme.
Is there a limit on the amount of funding that can be applied for per housing unit?
BLRF2.4 is aimed at small and medium-sized sites. As a guide however, the average size of a successful BLRF2 project was 54 homes, while the median was 26 homes.
Projects are expected to have a funding ask of up to £2 million. Should a council feel there is a strong strategic case for a larger application, exemplary evidence of the deliverability, risk management and project governance approaches to assure being in contract for BLRF2.4 funded works by 31 March 2026 and land release by 30 September 2027 will be required.
Is there a minimum number of housing units that an application can include?
No. However all projects seeking funding would need to show clear justification in their application for the number of homes being released.
What is the minimum benefit cost ratio (BCR) a project must achieve for BLRF2.4?
Applications must achieve a Benefit Cost Ratio (BCR) of 1.0 or above, after both the BCR and non-monetised impacts (NMIs) are considered, to pass the Value for Money gateway criteria. There is no minimum BCR score required for schemes to use NMIs.
The VfM assessment considers if the total benefits of supporting the scheme likely exceed the total costs. This will consider both impacts that can be readily and robustly valued as well as those that cannot. Any material risks and uncertainty to the assessment will also be considered on a case-by-case basis.
We would continue to stress that under BLRF2, this metric is a gateway criterion, where achieving this minimum value for money score allows a scheme to pass to the next stage of assessment.
Please note that the Value for Money assessment has been updated since BLRF2.3 and we would encourage applicants to review the Value for Money Guidance.
What are non-monetised impacts?
NMIs are impacts which are difficult to monetise with accuracy, such as energy efficiency and transport impacts, because they have a large potential range.
You can find examples of NMIs and guidance on how to determine whether or not these are required and applicable to your application through our Value for Money Guidance.
All NMIs must be clearly linked to your proposed project.
Is there guidance on calculating the non-monetised impacts?
Yes. Please refer to the Value for Money Guidance which is available in the How to Apply section of the website.
Should my application include non-monetised impacts (NMIs), if the benefit cost ratio (BCR) is already over 1.0?
Value for Money is a gateway criterion and will not be competitively scored. We would encourage NMIs to be included where schemes have a Benefit Cost Ratio close to, or below, 1.0. We reserve the right to amend an applicants’ existing use value adjustment and additionality assessment, which could in turn reduce the BCR below the qualifying gateway.
What is meant by market failure?
Market failure occurs where the market alone cannot achieve an economically efficient outcome. In the case of BLRF2.4, this will occur where there is a need to provide remediation works or infrastructure that no developers would be able or willing to fund to make the land suitable for housing. Those works would have been deemed too costly by the (public sector) land owner creating a funding gap which leaves the site stalled and with no prospect of being released for housing.
For most BLRF2.4 schemes the most common form of market failure will be this viability gap, as evidenced through a Development Appraisal illustrating that the site could not be delivered without subsidy, due to the abnormal costs and market conditions associated with the site.
Any assessment can include a level of profitability for potential developers based on standard market expectations in relation to project risk. We would not normally expect this to exceed 20 per cent profit on costs. Please note that BLRF2 will only support the current market value for the land and cannot be used to cover historic acquisition values. This reflects RICS valuation guidance and NPPF viability guidance.
Where councils are intending to retain ownership of a site and offer the properties for rent, an understanding of the time period when that investment will be returned, including any interest payments would also help to demonstrate market failure.
Please set out clearly the source of data used in any appraisal and how/by whom any professional judgments were taken. Please refer to the additionality assessment within the Technical Annex for further details on how the market failure will be considered.
The application should include evidence to support applicants’ responses to the additionality assessment within the Technical Annex where relevant, such as:
- Demonstration of clear site-specific market failures, including, where relevant, evidence that the works would not have been undertaken by the private sector.
- Demonstration that the viability/funding gap could not be solved by reasonable changes to the specification of the project that would be acceptable to the council.
- Details of existing landowners that might complicate land assembly.
- Details of how delivery will be accelerated by this funding.
Where any viability/funding gap could be met by reasonable changes to the specification of the scheme the appraisal should set out how those changes have been considered and why they have been disregarded. Such reasoning could include compliance with a range of council policies and commitments.
Please contact your OPE Regional Programme Manager for further advice on market failure.
When assessing Market Failure how should purchase price be taken into consideration?
Please contact your OPE Regional Programme Manager for further advice on market failure. Land cost should be included in the Development appraisal. The purpose of the fund is to meet abnormal remediation and other costs that mean that the project would be otherwise unavailable. Where a council is looking for a return on its investment in land that is higher than the actual market value, no market failure can be shown.
How do I calculate the number of homes to be released?
The proposed number of new homes to be delivered minus any inhabitable homes replaced. For example, if you are demolishing 100 homes and building 120 homes, the number of homes enabled by land released will be 20. We would need to see proportionate evidence that homes were no longer habitable as part of any application. Please contact your OPE Regional Programme Manager for further advice on this matter.
Would a portfolio of sites be eligible for funding?
No. Only single site applications are eligible. Sites that are divided by roads can be considered a single site provided these do not create a significant barrier between parcels of land and sites would be otherwise contiguous. You may submit as many separate applications for sites as you wish. The single site can be part of a larger development/regeneration programme, however BLRF2.4 funding can only be used to support the council-owned brownfield land portion within it.
Is a scheme still eligible if it requires additional public funding to release the land?
In appraising costs we will only take account of any pre-development costs to central government that have been secured. This will reflect both spending through BLRF2.4 , and any other funding that is required from central government. This figure should be input into the Technical Annex. This should not include any money spent or recovered by the council. All costs and benefits will be discounted at the standard rate of 3.5 per cent p.a.
Further guidance on other government funding is provided within the updated Fund Details.
Can I apply for BLRF2.4 if I have applied for other government support for the same project but that funding has not been confirmed?
BLRF2.4 funding can be provided alongside other government funding to unlock brownfield projects: in such cases the assessment of value for money will take all government funding into account. Where councils are seeking other government funding for the same project, this should be made clear within the application.
We advise you to review the Value for Money Guidance and the Fund Details, and discuss with your OPE Regional Programme Manager at an early stage in preparing your application.
Can BLRF2.4 be used on sites where work has already started?
No. We would however consider applications from projects where site investigations have commenced and uncovered unanticipated issues, such as contamination, that have resulted in a project becoming unviable and stalled.
BLRF2.4 is for sites that show clear evidence of a market failure and are unable to progress without intervention. We would not be able to meet any costs that have already been committed. Funding is not available for works already undertaken or contracted before the Grant Funding Agreement (GFA) is signed by all parties.
An explanation of market failure can be found within the FAQ question ‘What is meant by market failure?’
What constitutes a sunk cost and when should that be included in the TA as other government funding?
What matters are costs and benefits affected by funding decisions still to be made. In terms of BLRF2.4 projects, we consider a sunk cost to be one that was incurred prior to the 2025/26 financial year, and which has no prospect of being recovered.
Where that cost was supported by historic government funding we would also consider that a sunk cost. Thus because the cost/funding is regarded as disconnected from the current application, it would not need to be considered as part of the “other government funding” column in the TA. It is also important that all housing outputs that would be delivered anyway, as a result of sunk costs already incurred, if a project was not to receive BLRF2.4 funding are also excluded from the TA.
Can I apply for additional funding to an existing B/LRF project?
No, existing B/LRF projects are not eligible for additional funding.
Can a council still apply for a site where there are Nutrient Neutrality issues that are impacting on its ability to grant planning permission?
We would still welcome applications from councils where nutrient neutrality is an issue. We recognise that national policy is developing in this area, and there are a number of local solutions that have been developed that have been considered to mitigate the negative nutrient neutrality impacts of development. We would expect applicants to have identified potential mitigation solutions that would allow development of the site within the Land Release timeframe set out in the GFA. Your Regional Programme Manager can provide more specific advice as circumstances vary between river catchments.
Does BLRF2.4 only apply to land, or could it be used on a site where buildings already exist and may need demolition or repurposing?
Both are eligible as long as the land is brownfield. Please refer to the definition of brownfield land above.
Do mixed-use sites qualify for BLRF2.4?
Yes. The Technical Annex will only take into account land released for housing, however inclusion of mixed-uses may support wider place-based ambitions and planning objectives in your area.
Can community-led housing groups take on the development role?
Yes, if the land is in council ownership at the point of application, and there are upfront capital costs required to release the land.
What costs are eligible for funding?
The BLRF2.4 funding will provide upfront capital investment in order to create a viable scheme and can cover abnormal costs that may include:
- Site levelling, groundworks, demolition, remediation
- Provision of small-scale infrastructure
- Highways works or other access challenges
- Addressing environmental constraints
- External works, substructure and piling
- Asbestos removal
- Sewer diversions
- On site Biodiversity Net Gain mitigations and other natural environmental mitigations
Physical works for site activation (such as hoardings, welfare facilities, skips etc) can be included but not any associated revenue costs.
This is not an exhaustive list. If your proposed expenditure does not fall into these categories please contact your OPE Partnership Lead or Regional Programme Manager for further advice.
What costs are not eligible for funding?
The following are not eligible for funding through BLRF2.4:
- Revenue costs, such as officer time, work management fees, professional fees, planning fees and planning consultancy, design fees, highways inspection and management and project management including revenue costs associated with site activation.
- Early stage feasibility studies
- Community engagement
- Off-site infrastructure unless directly related and proportionate to the scheme
- Design/planning costs
- Procurement costs
- Costs related to the construction of the housing
- Most site investigations unless directly associated with facilitating another eligible cost.
This is not an exhaustive list, your OPE Partnership Programme Manager or Regional Programme Manager can help with any specific queries for costs not listed above.
Can a BLRF2.4 application be for one part of a larger project which involves multiple land owners?
Yes. Applications can be part of wider projects or schemes, however the application should only relate to works which release land for housing on council-owned land.
Does planning permission need to be in place before applying for BLRF2.4?
No. Planning permission (if appropriate for the site) is not a requirement at the point of application. However your Investment Case must include a short planning statement outlining the planning policy position and planning history for the site. The statement should identify the key planning considerations to be addressed in delivering the funded project.
Please refer to the section on planning permission within the Fund Details for full information.
What are reasonable changes to a project and what justification would there be for them to be disregarded when identifying a viability gap?
Reasonable changes to the specification of the scheme would involve changing the specification of any final scheme to reduce any additional costs associated with those requirements, for example reducing the level of affordable housing from 100 per cent to policy compliant. The justification for disregarding such a change could be based on site specific circumstances and/or a wider council policies or objective for an area for example a resolution that the council would seek to maximise affordable housing in all council-owned sites or similar policy objectives.
Can my application include a contingency within my costs?
Generic contingency for a project is not eligible - please refer to FAQ concerning cost inflation.
How should the application address possible cost inflation?
Your cost estimate should use a base date for tender prices based on the projected start date for the works to take place. Sources such as BCIS recognise projected increases in both material and labour costs in future years. Applicants should refer to the Treasury Green Book (as amended 2022)
Applicants should recognise the potential for cost inflation between the date of application and the delivery of works and should base cost estimates on the projected delivery period. The BLRF programme will not cover cost overruns.
Submitting your application
Which forms need to be submitted?
For each site, applicants must submit one Investment Case and one Technical Annex, as well as supporting evidence. The Investment Case must be signed by the council’s S151 Officer or Chief Executive.
How do I submit my application?
You will need to submit your project application via SharePoint or email to [email protected]
SharePoint is recommended where you have multiple large files to submit. Your OPE regional team will provide you with a secure link for you to do so.
You no longer need to send your application to your OPE Partnership Manager, and OPE Partnerships are no longer required to collate and submit all applications for the partnership, as in previous rounds of BLRF funding, but it is appropriate and helpful to advise your OPE Partnership Manager of your application.
If you are submitting via SharePoint, you must notify OPE immediately after uploading. Send an email to [email protected] to confirm the submission and list the documents uploaded, cc'ing in your OPE Regional Team.
Please note if using email, that the maximum size the OPE mailbox can receive in one email is 25 MB. Outbound size restrictions within your organisation may be lower. We can accept zip files.
Is there a preferred naming convention for files and attachments submitted as part of a BLRF2.4 funding application?
The preferred file naming conventions are:
- Investment Case: Partnership_Council_Scheme_IC
- Technical Annex: Partnership_Council_scheme_TA
- Appendices: Partnership_Councilscheme_app1
Please ensure file names are kept to Sharepoint’s maximum 255 characters, so do please shorten the file name where needed. The above file naming conventions are a guide only.
Should the council inform the relevant MP?
Before the final application is submitted, councils (or OPE partnerships) must notify the MP where the proposed site is located by email or letter. If the site crosses two constituency boundaries please notify both MPs. Please note the requirement is that MPs are informed, rather than seeking endorsement or approval.
What is the deadline for applications?
There is no fixed bidding round for this fund. You can submit Investment Cases from opening for as long as there is funding available. However the BLRF2.4 funded works contract deadline (31 March 2026) and the land release deadline (30 September 2027) will not change.
When will the funding awards be confirmed?
BLRF2.4 grants (capital) are paid under the Housing Grants, Construction and Regeneration Act 1996, s.126 (Grant paid with the consent of His Majesty’s Treasury) and are awarded directly to the council in which the project sits.
Funding awards to councils will be published on the OPE website and at gov.uk. Please note if successful, we will usually publish the council name and funding amount.
In alignment with the Government’s shift towards continuous market engagement, the Brownfield Land Release Fund has adopted a continuous market engagement application and funding model. Local authorities can now submit applications at any time, as there is no longer a fixed deadline. Applications will be assessed on an ongoing basis by One Public Estate and the Ministry of Housing, Communities and Local Government, via a newly established Investment Panel. Funding will be released in regular tranches until the full allocation is committed. This approach is designed to provide greater flexibility and enable earlier access to funding, allowing successful applicants to proceed with procurement and delivery without waiting for the conclusion of a traditional funding round.
There is no fixed bidding window for this BLRF round of funding. Bids will be accepted from the fund opening date until all the capital grant has been allocated. As such, funding awards will be announced once they have been approved by a joint One Public Estate and Ministry of Housing, Communities and LGA Investment Panel, and other internal approval processes.
Delivery and reporting requirements
Is there a deadline for delivery of housing following release of land?
The project timings must ensure contracts for BLRF2.4-funded activity are able to be signed by 31 March 2026 and evidence returned to OPE by 10 April 2026.
The project must release land by 30 September 2027.
House-building is expected to complete within two years of the land being released.
What happens if my project faces delays?
Applications should offer a high level of confidence in delivery. The project must be able to release land by 30 September 2027.
If land cannot be released by this date MHCLG will require unspent funding to be returned. Short extensions may be considered, but will only be made in truly exceptional circumstances and only if due to issues that could not reasonably have been foreseen at application.
What are the reporting requirements if my application is successful?
All councils will be required to report on progress of their project. Specifically, councils will be required to report against six milestones, which is currently required three times a year. They are:
- Procurement of infrastructure works; Contractor Commencement Date. This refers to the Funded Works, i.e the infrastructure and remediation works the Grant supports, in accordance with the Bid
- Commencement of BLRF funded works date. This refers to the first of the Funded Works, if multiple
- Completion of BLRF funded works date (last of the Funded Works, if multiple
- Date land is to be released
- Expected start on site (new homes)
- Expected development end date (final housing unit completion).