MIGHT your land promoter or housebuilder BE SEEKING TO change your deal ?

Landsite has been receiving a growing number of calls from concerned landowners who have found themselves signing into a promotion agreement with a land promoter and several years (sometimes months!) into the term of the agreement are now being approached to either change it or 'run' with a particular developer, suggested by the promoter.

This causes alarm for landowners as they will have been persuaded of the benefits of a promotion deal, only to find that a different or watered-down solution is now being offered. 

The reason(s) behind this appear twofold - firstly, the promoter has decided that they do not after all have the risk appetite or indeed in some cases the actual funds to obtain planning permission and progress the deal and would prefer to leave this to a well-heeled plc housebuilder and / or, secondly they have found the planning process is taking much much longer than they anticipated and perhaps they do not have the necessary experience or funds so they want to get back some of the money invested to date and take an easier route (potentially at the expense of the landowner !)

Whilst Landsite has not witnessed this happening with the major land promoters (e.g. companies who are part of the LPDF (Land Promoters & Developers Federation), nevertheless, it appears to be a growing problem. Also, some land promoters have begun selling their business to plc housebuilders in recent years and it is difficult to properly establish whether these companies will now ask landowners to enter into an Option Agreement or even where the Promotion Agreement remains, whether there is genuine clarity about the site being properly and fully market-tested and thus sold to the highest bidder.

The attitude I have found at most Land Promoters is one where they are 100% honed to getting planning permissions delivered and of course all they do is land. Their structures are also very 'team' like and flat which helps for a good work ethic and they seem to employ more women - who are universally better at this business than the men as they have the right approach, insight and tenacity.

With a probable Labour Government in place by early 2025 and 6 months later Lisa Nandy (Shadow Secretary for the Department for Levelling Up, Housing and Communities) may possibly seek to 'punish the tory shires' and take the lid off development restricted greenbelt and land around urban areas. Or perhaps not - if we are to believe that Sir Kier Starmer will embrace middle England as well as appealing to traditional Labour voters.

For landowners, the very slow and complex planning system together with the awful parish, district, county and national politics are the main enemies to successful development of their land.

Best to do deals with well-funded land promoters with a good track record and who can demonstrate they can and will deliver.