Watch Out - Planning Changes May Impact Strategic Land Agreements

The Government's Planning White Paper could present some challenges for holders of long term option and promotion agreements if one of the main proposals is implemented.

Many such agreements have been put in place based on the current system, whereby sites are promoted for allocation as part of the local plan process, then are subject to planning applications (sometimes before formal adoption of the allocation, but often when a relevant draft policy has been published). The allocation process often triggers obligations to pay further sums to landowners or extensions to option and promotion periods, while an outline planning permission will usually trigger an obligation to sell site or serve a valuation notice as the first step in exercising  a market value option.