Guides

Land and Planning Glossary

The terms you are likely to meet when selling land for development, explained in plain English, with links to the guides that go into more depth.

Terms From a to Z

Adopted highway: A road, footway or verge that the council as highway authority maintains at public expense. Where your land meets the adopted highway directly, access is usually straightforward. The council can confirm where the highway boundary runs. Access and ransom strips
Affordable housing: Homes for sale or rent below market prices for people whose needs are not met by the market. Councils require a share of homes on larger sites to be affordable, which affects what a housebuilder can pay for land.
Agricultural Holdings Act tenancy: A farm tenancy granted before 1 September 1995 under the Agricultural Holdings Act 1986. These tenancies give the tenant strong security, sometimes with rights for family members to succeed, so getting vacant possession for development needs careful planning. Tenancies guide
Agricultural Property Relief (APR): Inheritance tax relief on the agricultural value of farmland. It does not cover the extra value land has because of its development potential. From 6 April 2026 full relief is capped at £2.5 million per person, with 50% relief above that. Tax guide
Allocation: Land identified in an adopted local plan as suitable for a particular use, such as housing. Allocation does not grant planning permission but makes it much more likely. Call for sites and local plans
Appeal: A challenge to a refusal of planning permission, decided by an inspector from the Planning Inspectorate rather than the council. How long planning takes
Base cost: The starting figure used to work out a capital gain. For land you bought it is what you paid plus costs; for land you inherited it is usually the value at the date of death. Tax guide
Biodiversity Net Gain (BNG): The legal requirement in England for most new development to leave habitats at least 10% better than before, measured with the statutory biodiversity metric and secured for 30 years. BNG guide
Brownfield land register: A public list each council keeps of previously developed sites it considers suitable for housing. Being on it does not grant planning permission, but it shows the council sees potential.
Business Asset Disposal Relief (BADR): A Capital Gains Tax relief that can reduce the rate on qualifying business disposals to 18% from 6 April 2026, up to a lifetime limit of £1 million of gains. Selling a field on its own rarely qualifies.
Business Property Relief (BPR): Inheritance tax relief on business assets, which can sometimes cover land used in a trading business. It shares the £2.5 million cap on full relief with Agricultural Property Relief.
Call for sites: A council invitation for landowners, promoters and developers to put forward land that could be developed, as part of preparing a local plan. Call for sites guide
Capital Gains Tax (CGT): Tax on the gain made when you sell an asset such as land for more than its base cost. In 2026/27 individuals pay 18% or 24% after a £3,000 annual exempt amount. Tax guide
Class MA: A permitted development right that allows some commercial, business and service buildings to be converted to homes through prior approval rather than a full planning application. Brownfield sites
Class Q: A permitted development right that allows some agricultural buildings to be converted to homes through prior approval, within limits on the number of homes and floorspace. It does not apply in some protected areas. Class Q guide
Community Infrastructure Levy (CIL): A charge some councils set on new floorspace to fund local infrastructure. It is paid by the developer and is one of the costs reflected in land value. Section 106 and CIL
Conditional contract: A contract to buy land that only becomes binding if a condition, usually planning permission, is met by a set date.
Conservation area: An area of special architectural or historic interest designated by the council. Development is still possible, but it must preserve or enhance the character of the area.
Deductions: Costs taken off the market value of land before a landowner's share is calculated under a percentage-based option or a promotion agreement. They should be listed and capped. Promotion fees and deductions
Density: The number of homes per hectare of land. Edge-of-village schemes are often around 30 to 35 homes per net hectare, and national policy sets minimum densities near well-connected stations.
Easement: A legal right over someone else's land, such as a right of way. An existing right of way for farm use may not be wide enough, in law, to serve a housing estate. Access and ransom strips
Exception test: A second flood risk test that some developments must pass after the sequential test, showing the scheme brings wider benefits and will be safe for its lifetime without increasing flood risk elsewhere. Flood risk guide
Executor: The person named in a will to deal with the estate. Executors, and administrators where there is no will, are together called personal representatives, and they are the people who can sell or option land owned by someone who has died. Probate guide
Existing use value (EUV): What land is worth in its current use, for example as farmland, with no expectation of planning permission.
Farm Business Tenancy (FBT): The type of farm tenancy granted on or after 1 September 1995 under the Agricultural Tenancies Act 1995. Its terms are largely what the parties agreed, which usually makes it simpler to end for development than an older tenancy. Tenancies guide
Five-year housing land supply (5YHLS): Whether a council can show enough deliverable housing sites to meet five years of its housing requirement. A shortfall can be evidence of unmet housing need, one of the routes to approving homes outside settlement boundaries under policy S5 of the NPPF. NPPF 2026 guide
Flood risk assessment (FRA): A report prepared for a planning application that looks at every source of flooding affecting a site and shows how the development will be kept safe. Flood risk guide
Flood zone: The Environment Agency's classification of land by the chance of flooding from rivers and the sea. Flood Zone 1 is the lowest risk and Flood Zone 3 the highest. Flood risk guide
Golden Rules: The public benefits (extra affordable housing, infrastructure and accessible green space) that major housing schemes on released Green Belt or grey belt land must provide. Grey belt guide
Grant of probate: The court document that confirms an executor's authority to deal with a person's estate. Where there is no will, the equivalent is called letters of administration. Probate guide
Green Belt: A planning designation around many towns and cities that restricts development in order to prevent sprawl and keep towns apart. It is not a description of landscape quality.
Grey belt: Green Belt land, whether previously developed or not, that does not strongly contribute to key Green Belt purposes. Housing on it can be approved where the policy tests and Golden Rules are met. Grey belt guide
Heads of terms: A short, usually non-binding summary of the main terms of a deal, agreed before solicitors draft the full agreement.
Hectare: A metric unit of area equal to 10,000 square metres, or about 2.47 acres. Planning policy and housing densities are usually expressed in hectares.
HELAA: Housing and Economic Land Availability Assessment. The council's assessment of land put forward for development, scoring each site on suitability, availability and achievability.
Hope value: The extra value land has because of a realistic prospect of getting planning permission in the future, above its existing use value.
Housing Delivery Test (HDT): An annual government measure of how many homes a council has delivered against its requirement. A score below 75% is treated as evidence of unmet need under the NPPF.
Listed building: A building of special architectural or historic interest on the national list. Development that affects a listed building or its setting is judged on the effect on its significance.
Local plan: The council's statutory plan setting how much development is needed, where it should go and the policies used to decide applications.
Lock-out agreement: An agreement not to negotiate with anyone else for a set period, often signed with heads of terms. It should be short, and it should be clear what happens if the buyer does not proceed. Received a letter?
Longstop date: The final date by which something must happen under an agreement, for example the last date by which planning must be achieved before an option ends.
Major development: For housing, a scheme of 10 or more homes or on a site of 0.5 hectares or more. Major schemes face stricter requirements, including affordable housing.
Minimum price: A floor in an option or promotion agreement below which the landowner's price cannot fall, whatever the market value.
National Landscape: The name since November 2023 for an Area of Outstanding Natural Beauty (AONB). Development affecting them is subject to strict national policy.
Neighbourhood plan: A plan prepared by a parish or town council or neighbourhood forum, approved at a local referendum. Many allocate small housing sites, and once made they form part of the development plan.
Net developable area: The part of a site left for homes and gardens after taking out land for main roads, open space, drainage, habitat and any areas that cannot be built on. It is often well under the total site area.
NPPF: The National Planning Policy Framework, the government's planning policies for England. It was completely rewritten in August 2026. NPPF 2026 guide
Option agreement: A contract giving a buyer the right, but not the obligation, to buy land within a set period, usually once planning permission is granted, at an agreed price or price formula. Option agreements explained
Option fee: A payment to the landowner on signing an option agreement, in return for granting the option.
Option period: The length of time the option holder has to obtain planning permission and exercise the option.
Outline planning permission: Permission that establishes the principle of development, with details such as design and layout left for later approval as reserved matters. How long planning takes
Overage: An extra payment to the seller if the land later gains a more valuable planning permission or is sold on for more. Overage guide
Permitted development: Building work or changes of use allowed nationally without a full planning application, subject to limits and conditions. Some rights need the council's prior approval on specific matters.
Planning Inspectorate: The government agency whose inspectors decide planning appeals and examine local plans.
Previously developed land (PDL): Land that is or was lawfully occupied by a permanent structure, often called brownfield. It excludes land last occupied by agricultural or forestry buildings. Brownfield sites
Prior approval: A lighter-touch process in which the council checks specific matters, such as transport, flooding or design, for a development allowed under permitted development rights.
Promotion agreement: An agreement where a promoter pays for planning, then sells the land on the open market and takes a fee (commonly a percentage of the net proceeds) plus its costs, with the landowner receiving the balance. Option vs promotion
Ransom strip: A piece of land, sometimes very narrow, that controls access between a development site and a road. Its owner can often ask for a share of the development value in return for access. Access and ransom strips
Reserved matters: The details (appearance, landscaping, layout, scale, access) approved after outline planning permission. How long planning takes
Residual valuation: The usual way to value development land: the value of the finished homes, less all the costs of building them, the planning obligations and the developer's profit. What is left is what can be paid for the land. Land value
Restriction: An entry on the HM Land Registry title that stops the land being sold or charged without meeting a condition, often used to protect an option or overage.
Section 106 agreement: A legal agreement tied to a planning permission that secures obligations such as affordable housing, school contributions or open space. Section 106 and CIL
Sequential test: A flood risk test that steers new development to land at the lowest risk of flooding first, before land at higher risk is considered. Flood risk guide
Settlement boundary: A line drawn in a local plan around a town or village, inside which development is generally supported.
Site of Special Scientific Interest (SSSI): Land protected by law for its wildlife, plants or geology. Development on or near an SSSI faces strong protection.
Standard method: The government's formula for working out the minimum number of homes each council should plan for.
Statutory biodiversity credits: Credits sold by the government as a last resort for developers who cannot meet Biodiversity Net Gain on site or through off-site units. They are priced deliberately high. BNG guide
Strategic land: Land without planning permission that is being brought forward for development over the longer term, usually through the local plan.
Sustainable drainage (SuDS): Ways of managing rainwater on a development, such as ponds, swales and permeable paving, so that water runs off no faster than it did before the homes were built. Flood risk guide
Title plan: The HM Land Registry map showing the extent of a registered property, usually edged in red.
Unmet housing need: Housing need that a council is not meeting. Under policy S5 of the August 2026 NPPF, a council scoring below 75% in the Housing Delivery Test is treated as having evidenced unmet need. NPPF 2026 guide
Vacant possession: Handing over land free of occupiers and tenancies on completion. Tenancies guide
Viability assessment: An appraisal testing whether a scheme can afford all the policy requirements, such as affordable housing, while still giving a reasonable return to the landowner and developer. Section 106 and CIL
Visibility splay: The triangle of land at a junction that must be kept clear so drivers can see approaching traffic. Its size depends on road speeds, and it must be on land the developer controls or on highway land. Access and ransom strips

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