Before selling land for development, understand the route.
Development value is driven by planning potential, access, constraints, local housing demand, achievable density, affordable housing, Section 106 obligations and the strength of the buyer market. A single letter or offer may not reflect the full opportunity.
Routes to consider
- Direct sale: faster, but value depends heavily on competitive tension and planning status.
- Option agreement: a developer secures a right to buy, often after pursuing planning.
- Promotion agreement: a promoter funds and manages planning, then sells the consented site and shares proceeds under agreed terms.
- Conditional contract: sale is conditional on planning or other conditions being satisfied.
- Auction: can create speed and visibility, but may not be best for more complex strategic land.
Questions to ask before agreeing terms
- Has the site been assessed against local planning policy and settlement boundaries?
- Is the offer based on current use value, hope value or consented development value?
- Are there better buyers, promoters or housebuilders for this location?
- What happens if planning is refused, delayed or becomes more expensive?
- How are fees, planning costs, deductions and overage calculated?