Farmland hits £1m/acre with planning permission

Land promotionAs we write this, there are 66 Councils with no Local Plan in place (Source: PINS). Whilst the seeming lack of urgency to formulate much needed housing and economic plans is concerning, it does represent a prime opportunity for landowners to unlock the potential of their sites through the development plan process.

If your land is included as a site allocation for a particular use then the principle of development will have already been secured, thereby increasing the likelihood for a successful planning application.

Whilst the site allocation process can be lengthy and sometimes complex, the financial rewards can be great.  Recent figures seen in Farming Weekly suggest that well positioned parcels of land with planning permission have sold for as much as £1m/acre in the South of England whilst further north, prices are roughly £600,000/acre.

Does your site have potential?

The National Planning Policy Framework (NPPF) has a core message to promote sustainable development.  Sustainable locations are generally those which enhance the economic, social and environmental needs of an area.

In practical terms, the best sites should be:

  • sites situated close to public transport,
  • sites within walking distance of shops and services
  • sites without any obviously difficult site designations to overcome (e.g. green belt or SSSI).

How do we add value?

Plainview Planning specialise in promoting land into emerging Local Plans or Site Allocation DPDs.  We add value by coordinating your promotion efforts to make sure that the Council is provided with persuasive documentation about your site, and that the right groups are lobbied at the right time to maximise chances of inclusion.

We monitor the status of Local Plans throughout the country and are well placed to guide you through the administrative and political process.

Our experience with land promotion projects is wide ranging and we have worked on many schemes including sites in Burnham, Dover, Tewkesbury, Wincanton and North Fambridge.

The benefits of a Land Promotion Agreement:   

Here at Plainview Planning we generally deal in Land Promotion Agreements and these are an increasingly popular alternative to the more traditional Option Agreements and Planning Conditional deals.

In basic terms:

  • A land promotion agreement sees the land promoter fund the planning and marketing costs of the site initially;
  • Once planning permission is obtained and the property sold, the promoter’s cost are reimbursed and the promoter receives a proportion of the net sales proceeds;
  • If planning permission is not obtained within an agreed timeframe, then the agreement terminates and the promoter’s costs are not reimbursed.

Generally, Promotion Agreements are more attractive than Option Agreements as the parties work together to maximise the value of the land.  In direct contrast an Option Agreement means that the developer is motivated to maximise its own profit by purchasing the land from the owner as cheaply as possible.

Here at Plainview Planning we can provide professional expertise and arrange funding to effectively promote your land. Our services can also be provided on a joint-venture basis.

If you have a site which you think may have development potential then contact a member of our land promotion team to discuss your options and how best we can assist: