Before you buy a development site: understanding the planning and legal risks
Property development opportunities are often assessed through the lens of planning potential, land value, and projected returns. However, the viability of a scheme can be shaped just as much by the planning and legal constraints attached to a site as by its development potential.
Planning associate Josepha Horne recently joined host of the Habitat Investments vodcast, Francesco Fasanella, to discuss the planning and legal issues that developers, investors, and landowners should understand before committing to a development site.
The discussion explores a range of considerations that can have a significant impact on project viability, timing, and overall value. These include section 106 obligations, affordable housing requirements, the Community Infrastructure Levy (CIL), biodiversity net gain (BNG), planning conditions, and the implications of acquiring sites with existing planning permissions.
One of the key themes is the importance of undertaking thorough due diligence at an early stage. A development site may appear attractive based on its planning status, but obligations attached to a consent can affect density, increase costs, delay delivery, or alter the commercial viability of a scheme. Understanding these issues before land values are agreed or contracts are exchanged can help investors and developers make more informed decisions and avoid unexpected risks.
The episode also considers how the planning landscape continues to evolve. With increasing focus on affordable housing delivery, infrastructure contributions, and environmental requirements such as biodiversity net gain, planning obligations are becoming an increasingly important part of development strategy and risk management.
Drawing on her experience of advising developers, landowners, and local authorities on planning law and development matters, Josepha provides practical insight into the issues that arise in real-world transactions and explains how early legal input can help identify and address potential obstacles before they become costly problems.
Watch the full episode here to hear Josepha’s insights on the planning and legal considerations that should be assessed before acquiring a development site.