Promotion agreements explained for landowners

By Iain Forster, The Land Buyer. Last reviewed 2026-10-05.

In shortUnder a promotion agreement a promoter wins planning permission on your land at their cost, then the land is sold on the open market and the proceeds are split after costs. You stay the owner until the sale. It suits larger sites where several housebuilders would compete. It runs longer than an option, often five to ten years.

A promotion agreement makes the developer your partner rather than your buyer. They carry the cost and work of the planning application, the surveys, the consultants and any appeal. When permission is granted the land is marketed and sold to the highest bidder, usually a housebuilder. From the sale price the promoter's costs come back first, then the balance is split in the shares the agreement sets.

The split

The landowner's share is the larger one, commonly between seventy and ninety per cent of the net proceeds depending on the size of the site and the risk. The promoter's share pays for the years of work and the risk of refusal. The agreement should say exactly which costs are recovered before the split and should cap them.

When it suits you

Sites large enough that several housebuilders would bid, so that an open sale beats a fixed price. Owners who want to remain the seller rather than contract to one buyer. Land where the planning route is long, because the agreement gives the promoter time.

When an option suits you better

Smaller sites where one buyer is already known, where speed matters and where you want to know the number before you start. How to choose between them.

Straight answers

What is a land promotion agreement?

An agreement under which a promoter wins planning on your land at their own cost, the land is then sold on the open market and the proceeds are split after costs. You remain the owner until the sale.

What share does the landowner get under a promotion agreement?

Commonly seventy to ninety per cent of net proceeds after the promoter's costs are recovered. The exact figure depends on the site and is set in the agreement.

How long does a promotion agreement last?

Longer than an option, often five to ten years, because the planning route for larger sites can involve the local plan as well as an application.

Who chooses the buyer under a promotion agreement?

The market does. The land is sold to the highest acceptable bidder, with both sides able to see the bids.

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