My experience is in Scotland only, but when i wanted to build my house in Aberdeenshire in 2005, planning told me I could develop the property only if the old building still had a roof
However, I went back to them and told them that no one else could build anything on the plot as it was landlocked by our land, and that if I didn't get planning the whole site and field would go rampant. I also said that I would prefer to take the two conjoined workers cottages down and use the granite blocks to face a completely new building, and that the new house was for me to live in. I had already sold the old cottage I was in along with about a third of the land
When they came out to look they realised it was sensible to allow me to build a house to improve the amenity of the hamlet, and granted permission
I have heard of that stipulation in other cases, but only in Scotland.