Definition
Promotion agreement
A promoter pays for the planning, you stay the owner, the site is sold on the open market and the proceeds are split — most often 75/25 in your favour after costs.
In one sentence
A promotion agreement is a deal where a specialist promoter funds and runs the planning process, the site is sold once permission lands, and the proceeds are split — typically 15–25% to the promoter, 75–85% to you, after their costs are recovered.
How a promotion deal works
- 1Heads of terms. You and the promoter agree the deal outline — site, period, fee, who pays what — before lawyers get involved.
- 2Promotion agreement signed. A legal charge is registered against the title. The promoter starts work at their cost.
- 3Planning is pursued. Surveys, consultation, design, application, appeals if necessary — anywhere from 12 months to 5 years depending on the site and Local Plan.
- 4Site is marketed. Once permission lands, the promoter takes the site to market — often via a formal tender or via pre-agreed buyer lists.
- 5Sale and split. The land is sold. The promoter takes back their costs plus the agreed percentage; the rest is yours.
Typical commercial terms
- Promoter fee
- 15–25% of net sale proceeds (after costs). 20% is the most common midpoint.
- Cost recovery
- The promoter recovers their planning, survey, legal and marketing costs off the top before the split. Sometimes capped.
- Term
- 5–10 years. Long enough to take a site through a Local Plan review if needed.
- Minimum price
- Most agreements include a floor below which the site won't be sold — this prevents a promoter dumping the site to crystallise their fee.
- Restrictions on you
- A title restriction — you can't sell, develop or grant rights during the term without the promoter's consent.
Why interests are more aligned than under an option
Under a promotion deal, the promoter's payout is a percentage of the eventual sale. The bigger the sale, the more they earn. That means:
- They want the maximum unit count the council will accept.
- They want the strongest possible design and policy case.
- They want the open-market price, not a tied developer price.
- They don't want abnormal costs — they want a clean, easy site to sell.
Compare with an option, where the developer's payout is fixed (or capped) and every cost they can pin on you raises their margin.
Pros and cons for landowners
Pros
- Aligned incentives — promoter wins when you win
- No planning costs or risk on you
- Site sold on the open market, not tied to one buyer
- You stay the legal owner until completion
- Typically 25–35% of GDV vs 15–30% under an option
Cons
- Promoter takes 15–25% off the top
- You're locked in for the term
- Cost recovery can balloon on difficult sites
- Final buyer is still typically a volume housebuilder
- Often beaten by a serviced-plot route
Who land promoters are
Land promoters are specialist firms (the largest being Catesby, Gladman, Richborough, Hallam Land, Bloor, Vistry Partnerships) that focus on securing planning permission rather than building houses. They make their money by:
- Signing options or promotion deals on candidate sites
- Investing in planning effort
- Selling the resulting permission to housebuilders
Don't confuse promoters with developers (who build) or estate agents (who sell). Promoters are an in-between specialist — and a good one can be a big asset to a difficult site.
Clauses to negotiate carefully
- Cap on recoverable costs — stop the promoter eroding your share by running up large bills.
- Minimum sale price floor — protect against a forced sale at the bottom of a market cycle.
- Long-stop date — define when, if no permission, the agreement ends and the land is yours again.
- Sale process — open-market tender vs. private treaty; landowner approval rights.
- Promoter's track record — do they actually win permissions in this LPA? Ask for references.
- Right to a different exit — can you push a serviced-plot or self-build route if it would deliver more?
Related terms
- Option agreement — the alternative structure, less aligned.
- Hope value — what a promoter is paid to crystallise.
- Gross Development Value (GDV) — the headline figure that drives the eventual sale price.
- Serviced plots — often the highest-value alternative exit.
Comparing a promotion offer?
We'll run the numbers against an option and a serviced-plot route so you can see all three side by side before you sign.