Developers in England and Wales may be required to disclose land option agreements and similar contracts under proposals being developed by Planning Minister Matthew Pennycook.
The initiative forms part of government plans to establish a public register of land designated for development, linked to ownership records held by HM Land Registry.
Transparency in land control
Land option agreements currently allow developers to secure rights over potential building sites before purchase, but these arrangements often remain invisible in existing public records.
According to Pennycook, this lack of transparency means SME developers are “wasting time and money assessing potential sites that are already under contract to larger developers”.
Land banking concerns
The register aims to address long-standing concerns about land banking, where developers secure control of numerous plots through contractual agreements rather than outright ownership, then fail to develop them.
Proponents of the changes suggest the register could clarify who controls development land, enabling smaller builders and landowners to identify genuinely available sites more easily.
However, critics contend that mandatory disclosure of contractual agreements could add bureaucracy to land transactions and slow deal-making processes.
Market implications
According to UK Estates, increased visibility of land option agreements could affect how development land is priced and valued. Agents and valuers are likely to incorporate these arrangements into due diligence procedures rather than relying solely on title records.
Officials have stated the register will be introduced using powers within recent planning legislation, though no formal implementation has occurred. The timing and specific requirements for the register remain to be confirmed.
