Gaining planning permission can be a complex process. To guide you through this we have drawn up a list of frequently asked questions.
We can talk you through the details and implications and see how they relate to your land, so please feel free to call us today.
There are a number of different routes available to a landowner in order to realise Planning Permission Approval for Development on their land. They could pay for and manage the process by themselves or find a house builder to do it for them. Alternatively, they can find a promoter to handle the complete planning and selling process.
In a Land Promotion Agreement the Promoter will use their own resources, funds and expertise to pay for and manage the entire Planning Process within a given time-period. This can cost anywhere from £50,000 to £1 million+ depending on the size, nature and complexity of the site. These costs are repaid only if planning is gained.
For larger sites, it may be possible to enter into an Option Agreement. This gives the option holder a right to buy the land once it has obtained Planning. For the Landowner, there is the opportunity to receive an up-front payment.
Land Home Limited are a well established company founded by Andrew Jewson and Mark Pritchett. We specialise in identifying potential Development land and facilitating Option & Promotion agreements on these sites in order for the Landowner to achieve Planning. Together we have over 50 years of experience in preparing and submitting Planning Applications, building both commercial and residential property, and selling land to Developers and House Builders.
Yes, an upfront Option or Promotion fee can sometimes be agreed, depending on the size and development potential of the land.
Land Home Limited use our experience and expertise to find and negotiate the best deals possible on behalf of Landowners.
In an Option Agreement, the Landowner enters into a formal agreement with a Developer. The Option holder pays an upfront fee in return for the right to buy the land at a specified time in the future, at a price based on the value of the land once Planning Permission has been successfully obtained. If planning is not obtained then the Landowner keeps the Option Fee and also retains the Title to their land.
With a Land Promotion Agreement (LPA), the Landowner enters into a formal agreement with a Promoter. The Promoter will apply for planning permission on behalf of the Landowner. Should the Planning Application be successful the subsequent proceeds of the sale of the land are divided according to the LPA, with the majority going to the Landowner. If planning is not obtained, the process has cost the Landowner nothing and they still retain the Title to their land plus any Promotion Fee that was negotiated.
There are many factors that can affect development potential, such as location, size and the nature of the surrounding area. The Local Council and Neighbourhood Development Plans and Environmental features such as Green Belt, AONB and Flood Zones can have a major impact on land values. Speak to us about your land, without cost or obligation, for a free consultation.
Land values can vary from £250,000 per acre to over £1.5m per acre depending on location, suitability and potential Development use. For any given site, space must be provided for amenities, infrastructure and open-spaces and these can affect the price of the site.
The Planning Application Process has many components. The site is assessed for its suitability for appropriate development - residential, retirement, affordable, local needs, commercial, or a mix of these. Ecological, highways, topographical, arboricultural and archaeological surveys may be required. Land Home Limited works with architects, masterplanners, planning consultants, local Parish Councils and District Councils to create the most suitable scheme, with the highest likelihood of success.
Planning is not a quick process and can take up to two years and in some cases considerably longer. A Planning Application takes a minimum of 3 months to prepare properly and, with many professionals to liaise with, it may take longer. Once an Application has been submitted, the Council has up to 13 weeks to reply and this process may be extended if revisions or an appeal are required. Once Planning has been obtained a sale usually takes at least a further 6 months to market and complete.
The costs of achieving Planning can vary greatly depending upon the location, size and complexity of the site and the scheme under consideration. The costs of Promotion and Planning are normally deducted by a Promoter from any subsequent sale proceeds.
Undoubtedly yes. In addition to the large Application Planning costs, it can cost several million pounds to build houses and the associated infrastructure (for example roads, utilities and drainage). In addition, there are Local Authority costs, such as Section 106 Payments, Community Infrastructure Levy (CIL), and Highway Improvements.
The UK desperately needs more new homes and there is a growing appetite by the large House Builders to secure land for future Residential developments. Emerging Local Plans are therefore looking more favourably on designating land for development. Local Councils are increasingly putting out "Calls for Sites", whereby Landowners are asked to express their willingness for their land to be developed as part of a Neighbourhood Development Plan.
The National Planning Policy Framework (NPPF) sets out the Government's Planning Policies and how they should be applied by Local Councils. It is a key part of Government reforms to make the Planning system less complex. The Framework acts as guidance for Local Planning Authorities and decision-takers, both in drawing up plans and making decisions about Planning Applications.
Every Local Authority in England is required to demonstrate that they have enough land for house building over the next 5 years. This requires them to work out how many new houses are required over the next 5 years and then to calculate how many houses will actually be built (based on houses currently being built and the Planning Applications granted). Failure to demonstrate a 5-year supply means that Planning Permission can be harder to refuse.
Communities can shape development in their areas through the production of a Neighbourhood Development Plan. The NDP can set out policies and plans like a Development Plan Document, but on a very local scale. Subject to conforming to National policies, as well as local plan policies for the area and gaining support through a referendum in the local area, this plan will be adopted as a formal part of the Development Plan. This means that Planning decisions have to be made in accordance with the Neighbourhood Plan (and other parts of the Development Plan) unless material considerations indicate otherwise.
Any agreement must be carefully structured to ensure the most advantageous tax treatment for both parties. With large sums involved, we always recommend that Landowners seek independent specialist tax advice.
We always recommend that Landowners seek independent specialist VAT advice.