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Development Agreements

Bringing land forward for development means choosing the right agreement, and that choice shapes everything that follows.
Our specialist team advises landowners on the right promotion, option or hybrid agreement, negotiating favourable terms with major housebuilders and land promoters. Offices covering Kent, Sussex and Surrey.

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Why the Right Development Agreement Matters

Opportunities like this may only come around once, so it is crucial for landowners to seek expert advice before committing to a development agreement. The right approach depends on a number of factors, including the nature and complexity of the development itself. Broadly, agreements fall into three types, promotion, option, and hybrid, each suited to different sites and circumstances.

Our specialist team has strong connections with major housebuilding companies and land promoters, and extensive experience running tender procedures to select the most suitable developer for your site. Given the complexity of these agreements, appointing an agent who can effectively represent your interests in negotiations is essential.

At Batcheller Monkhouse, we have extensive expertise in advising landowners on the most suitable development agreement for their site, and in negotiating favourable terms on their behalf.

KEY CONTACTS

Oliver Robinson
MRICS
Tunbridge Wells

01892 509286
Email Oliver

Scott Smith
MRICS MRTPI
Tunbridge Wells

01892 502848
Email Scott

Common questions about development agreements

A landowner and a promoter work together to secure planning permission on the site. The promoter doesn’t buy the land itself, once planning is granted, the site is marketed and sold to a housebuilder, and the promoter recoups their costs plus a pre-agreed share of the sale proceeds.

A legal contract between a landowner and typically a housebuilder, who must demonstrate their ability to secure planning permission. Once planning is granted, the housebuilder has the option to buy the site, at a price based on a pre-agreed valuation mechanism, usually discounted from full market value.

A combination of the two. The selected housebuilder secures planning permission, then the site is sold in phases, part to a third-party housebuilder, part retained and purchased by the original housebuilder at the same price per plot. This structure often suits larger sites that can be split.

It depends on your site’s size, your appetite for risk, and how involved you want to be in the process. Our development team can talk through which structure suits your specific circumstances.

No. In all three agreement types, the promoter or housebuilder covers the planning and promotion costs, so you’re not expected to fund the process yourself.

Timescales vary depending on site size and planning complexity, but agreements often run for several years from signing to sale, since achieving planning permission is rarely quick.