What Is Land Promotion?
Land promotion (also called site promotion) is the process of taking a piece of land through the planning system to secure a planning permission or allocation that allows residential, commercial, or mixed-use development. The promoter invests the time, expertise, and capital required to navigate the planning process on behalf of the landowner.
The core principle is simple: land without planning permission is worth a fraction of land with it. Agricultural land in England might be worth around £20,000 per acre, but with residential planning permission that same acre could be worth £1,000,000 or more depending on location.
How Does Land Promotion Work?
The land promotion process typically follows these stages:
Site Assessment & Due Diligence
A thorough assessment of the site's planning history, constraints (flood risk, ecology, heritage, highways access), and the local plan context. This determines whether the land has genuine development potential.
Local Plan Representations
If the council is reviewing its Local Plan, the promoter submits representations to have the land allocated for development. This involves engaging with the council at every stage of the plan-making process, including Regulation 18 and Regulation 19 consultations, and potentially appearing at the Local Plan Examination in Public.
Technical Evidence Base
Commissioning the technical reports required to demonstrate the site is deliverable: transport assessments, ecology surveys, flood risk assessments, landscape visual impact assessments, heritage statements, and noise reports.
Planning Application
Submitting an outline or full planning application. For larger sites, outline permission with all matters reserved (except access) is common. This establishes the principle of development and sets the maximum number of dwellings.
Sale to Developer or Housebuilder
Once planning permission is secured, the land is sold (or the permission marketed) to a housebuilder or developer. The landowner receives the agreed share of the uplift in value, and the promoter takes their fee.
Promotion Agreement vs Option Agreement
Landowners are typically offered one of two legal agreements. Understanding the difference is critical:
Promotion Agreement
The promoter funds and manages the entire planning process at no upfront cost to the landowner. In return, the promoter takes a percentage of the land sale proceeds (typically 15-25%) once planning is granted and the land is sold.
Landowner retains ownership throughout the process and sells at market value.
Landowner benefits from competitive bidding from multiple developers at sale.
Option Agreement
A developer or promoter secures the right to purchase the land at a pre-agreed price (or formula) once planning is obtained. The price is typically fixed or capped, meaning the landowner may not benefit fully from any uplift above the agreed figure.
Fixed price risk: If land values rise significantly, the landowner may miss out on the full uplift.
Less transparency: The sale is typically to the option holder only, not on the open market.
Our Recommendation
For most landowners, a promotion agreement delivers a better outcome because it ensures competitive, open-market sale of the consented land. Always seek independent legal advice before signing any agreement.
Is Your Land Suitable for Promotion?
Not every piece of land is suitable for promotion. The following factors increase the likelihood of success:
Edge-of-Settlement Location
Land adjacent to existing built-up areas is far more likely to be allocated for development than isolated rural sites.
No Major Constraints
Avoid flood zone 3, designated Green Belt (unless there are exceptional circumstances), SSSIs, and Ancient Woodland. Minor constraints like ecology can usually be mitigated.
Accessible Highway Connection
A viable access point onto the public highway is essential. Without it, permission is extremely unlikely regardless of other merits.
Council Housing Shortfall
If the local council cannot demonstrate a 5-year housing land supply, the NPPF's “tilted balance” (Paragraph 11d) shifts heavily in favour of granting permission. This is a powerful lever for land promotion.
Site Size of 0.5 Acres or More
Promotion works best for sites that can accommodate multiple dwellings. Smaller sites are typically better suited to a direct planning application.
How Long Does Land Promotion Take?
Land promotion is a long-term strategy. Typical timelines are:
Important: The Government's December 2024 NPPF revisions introduced mandatory housing targets and the “grey belt” policy. Councils are now under increased pressure to allocate land. This is creating significant new opportunities for landowners to promote their sites.
What Does It Cost?
Under a promotion agreement, the landowner typically pays nothing upfront. The promoter funds all technical work, planning fees, and professional services. Costs are recouped from the land sale proceeds.
The promoter's fee is typically 15-25% of the net sale proceeds. For a site sold for £2 million, the landowner would retain £1.5 - £1.7 million. Given that the same land without permission might have been worth £50,000, this represents a transformative return.