Land Promotion Agreements
A land promotion agreement in the UK is a partnership in which a promoter funds and manages the planning process, then sells the land on the open market with the landowner. The promoter's costs and an agreed fee come out of the sale proceeds. Because both sides are paid from the same sale, both want the highest price.
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- Legal fees coveredReasonable fees, on options and promotion
- Nothing to pay upfrontOn promotion: we fund planning
- Direct purchaseSuitable sites, with or without planning
- UK-wideEngland, Wales, Scotland and NI
Land Promotion Agreements: how it works
A promotion agreement is designed for landowners who want an open-market sale but do not want to fund or manage planning themselves. The promoter pays for the technical studies, design and planning work, and promotes the land through the development plan or a planning application. Once permission is granted, the land is marketed to housebuilders and sold to an acceptable bidder, provided the offer meets the minimum price. The promoter recovers its costs and an agreed fee from the proceeds, and the rest goes to the landowner. Because the fee is linked to the price achieved, the promoter's interests line up with yours. With Land to Homes there is nothing to pay upfront: on promotion we fund the planning work, and costs are recovered from the sale proceeds only if the land sells with planning. We also pay your reasonable legal fees, with the amount agreed up front in the heads of terms.
Who is this for?
- Your land is large enough to interest housebuilders
- Your site needs a plan allocation or a major application
- You want an open-market sale rather than a formula price
- You cannot or would rather not fund planning yourself
- You want a say in which buyer the land is sold to
- You share ownership and need one clear process
What you get with Land to Homes
Interests aligned on price
The promoter's fee is linked to the sale price, so we only do well if you do. That is the main difference from an option, where the buyer benefits from a lower valuation.
Planning work funded by us
Nothing to pay upfront: on promotion we fund the planning work. Those costs are recovered from the sale proceeds only if the land sells with planning, and the heads of terms set out exactly how that works.
Minimum price agreed early
The agreement sets a floor below which you cannot be required to sell. Some agreements allow it to be reviewed by an independent surveyor if the market moves during the term.
Open-market sale
Once planning is secured, the land is marketed to housebuilders and other buyers, usually through an agent. The aim is genuine competition between bidders, rather than reliance on a single valuation figure.
Clear fee and cost rules
The heads of terms state the fee, which costs can be recovered and whether any cap applies, so you can see what will come out of the proceeds before you sign.
Reasonable legal fees covered
We pay your reasonable legal fees on promotion agreements, with the amount agreed up front in the heads of terms. You choose your own solicitor to act for you.
Strategic planning work
Larger sites often need representations to the development plan, studies on transport, drainage and ecology, and engagement with the local community. We manage that work and report progress to you.
Retained land protected
If you keep neighbouring land, the agreement can secure access and services to it, so the new scheme does not cut off the rest of your holding or limit its future use.
What happens next
Appraise the land
A free, no-obligation appraisal of planning prospects, constraints and the most realistic route to permission for your site.
Agree heads of terms
Term, minimum price, promoter's fee, recoverable costs, retained land rights and the agreed amount for your reasonable legal fees.
Promote through planning
We make representations to the development plan and prepare the planning application, funding the technical work ourselves.
Market the site
With permission granted, the land is marketed and each offer is compared against the minimum price, with you involved in the choice of buyer.
Sale and distribution
On completion, the agreed costs and fee are deducted from the proceeds and the balance is paid to you.
How it differs across the UK
ENGEngland
In England, promotion usually focuses on getting land allocated in a Local Plan, or permitted where the council cannot show enough land for housing. Larger schemes often go in as outline applications, and the heads of terms should explain how Section 106 obligations, the Community Infrastructure Levy and biodiversity net gain costs affect the net proceeds.
WLSWales
In Wales, the route for larger sites is usually allocation in a replacement Local Development Plan, starting with the candidate site process. The promotion budget should cover sustainable drainage approval from the SuDS approving body, Welsh language or phosphate assessments where relevant, and Section 106 obligations. The buyer pays Land Transaction Tax on the eventual purchase.
SCTScotland
In Scotland, promotion usually targets allocation in the Local Development Plan, followed by an application for planning permission in principle. Any Section 75 agreement is registered against the title. Because Scots law treats the agreement as a personal contract, the promoter's interest may be secured by a standard security, and the eventual sale is concluded by missives.
NIRNorthern Ireland
In Northern Ireland, larger sites generally need zoning for housing in the council's local policies plan, which follows its adopted plan strategy. Regionally significant proposals are decided by the Department for Infrastructure. Promotion work should allow for Section 76 obligations, DfI Roads requirements and wastewater capacity, which can be a constraint in parts of Northern Ireland.
Frequently asked questions
How does a land promotion agreement work?
The landowner and promoter sign an agreement for a set term. The promoter funds and runs the planning process. If permission is granted, the land is sold on the open market, provided offers meet an agreed minimum price. From the proceeds, the promoter recovers its costs and takes an agreed fee, and the landowner receives the balance.
What fee does a land promoter take?
The fee is usually a share of the sale proceeds, sometimes calculated after costs are deducted and sometimes capped. There is no standard rate: it depends on the size of the site, the planning risk and the costs involved. Ask for the fee and the cost rules to be set out clearly in the heads of terms.
What is a minimum price in a promotion agreement?
It is the lowest figure at which the landowner can be required to sell once planning is granted. It protects you from a sale in a weak market. Set it too high and the land may not sell; set it too low and it gives little protection. Some agreements allow review by an independent surveyor.
Who pays if the planning application fails?
On a Land to Homes promotion agreement there is nothing to pay upfront. We fund the planning work, and our costs are recovered from the sale proceeds only if the land sells with planning. How costs are treated in every scenario is written into the heads of terms before you sign anything.
Is a promotion agreement better than an option?
Neither is better in every case. Promotion often suits larger sites where open-market competition is likely to drive the price and the landowner wants transparency. An option can suit smaller or more complex sites where one committed buyer matters more. Our guide to option and promotion agreements compares the two.
Can I end a promotion agreement early?
Usually only in limited circumstances set out in the agreement, such as the promoter failing to meet its obligations or the term expiring. Because the promoter is investing in planning, early termination by the landowner is normally restricted. Check the termination clauses with your solicitor before you sign.
Will I have a say over who buys the land?
Usually, yes. Promotion agreements typically involve the landowner in agreeing the marketing approach and the choice of buyer, subject to the minimum price. Where several bids meet the minimum, the agreement sets out how the preferred bid is chosen and what happens if the parties disagree.
Can a promotion agreement cover land owned by several people?
Yes. Neighbours, family members or trustees can sign one agreement, or linked agreements, often with a separate arrangement for sharing proceeds between them. This makes it easier to bring forward a larger site with a single planning strategy. Our land assembly page explains how sharing usually works.
Land Promotion Agreements by area
Local guidance for every county and area we cover, with the planning and land rules that apply there.
ENGEngland
- Bedfordshire
- Berkshire
- Bristol
- Buckinghamshire
- Cambridgeshire
- Cheshire
- Cornwall
- Cumbria
- Derbyshire
- Devon
- Dorset
- County Durham
- East Riding of Yorkshire
- East Sussex
- Essex
- Gloucestershire
- Greater London
- Greater Manchester
- Hampshire
- Herefordshire
- Hertfordshire
- Isle of Wight
- Kent
- Lancashire
- Leicestershire
- Lincolnshire
- Merseyside
- Norfolk
- North Yorkshire
- Northamptonshire
- Northumberland
- Nottinghamshire
- Oxfordshire
- Rutland
- Shropshire
- Somerset
- South Yorkshire
- Staffordshire
- Suffolk
- Surrey
- Tyne and Wear
- Warwickshire
- West Midlands
- West Sussex
- West Yorkshire
- Wiltshire
- Worcestershire