The government wants private housebuilders, housing associations and councils to increase annual construction to 300,000 a year by 2025. Nicholas Davies, Partner and Commercial Property Solicitor at HRJ Foreman Laws Solicitors, looks at the latest statistics and highlights some key considerations for landowners and developers.

The government’s ambitious housebuilding targets have raised concern, as many fear a saturation of developments on greenfield sites, particularly in the southern region of the United Kingdom. It is therefore worth noting, that there is a fast-track planning process for brownfield regeneration. The government says that “owners of vacant and redundant freestanding buildings of a footprint of up to 1000 square metres will be able to fast-track the planning process for demolishing and rebuilding them as new residential developments.” (read more).

Latest statistics show that property development is on the rise following a slump during the lockdowns. The NHBC has reported an increase in new build home registrations, and states they were up “10% in Q1 2021 compared to the same period in 2020.” In the East of England registrations have increased by 42% from 4063 in Q1 2020 to 5755 in Q1 2022. The NHBC also says that “The desire for longer-term working from home has been accelerated by the pandemic, with increased registrations for detached and semi-detached houses, up to 18% and 30% respectively compared to Q1 2020, whilst 21% fewer apartments were registered.”

As a landowner or property developer you will need a team of professionals to help you. This may include, a solicitor, accountant, various specialist surveyors, architect, designer and funders.

Typically, the purchase of a property development site will require at least one of the following:

Conditional contract: A contract of sale of land where the sale is conditional on the buyer successfully obtaining planning permission, at their own cost.

Option agreement: An option agreement secures a property for a developer while they seek planning permission. It enables the developer to buy the property for an agreed price (or share of the market value after the grant of planning permission).

Promotion agreement: A promotion agreement means you will work with an experienced developer, or ‘promoter’, who will usually fund the cost of obtaining planning permission in return for a fee or profit share when the land is sold.

Such transactions are usually complex, long term arrangements and will require experienced advisors who understand the process and can predict and manage any challenges along the way.

HRJ Foreman Laws Solicitors has an experienced team of commercial property solicitors in our offices in Hitchin, Welwyn Garden City and Letchworth Garden City. The team works with landowners and property developers, in the East of England and nationwide. Read more about us here: https://www.hrjforemanlaws.co.uk/legal-services/commercial-property-law

For legal advice email info@hrjforemanlaws.co.uk or call Hitchin 01462 458711, Welwyn Garden City 01707 887701.

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