Development Plan

Each local planning authority is required by the Town and Country Planning Act 1990 to prepare a development plan for its area. Although the structure and content of plans have been amended, the basic principle remains the same.

The plan should set out a strategic vision for the area and be subject to an environmental assessment.

Environmental assessment is a process that ensures significant environmental effects arising from policies, plans and programmes are:

• identified;
• assessed;
• reduced;
• communicated to decision-makers; and
• monitored.

It also gives you a chance to have your say.

The plan also contains local policies for land use. Certain areas are selected for future uses. These local policies consider how those uses should look, operate and interact with the environment are set out in the plan.

When a local planning authority receives an application, the first aspect it should consider is whether or not the development follows the development plan. If it would, then normally the application would be approved – although other considerations, such as representations from the public on planning issues, may lead the authority to decide otherwise.

You should be able to view your local planning authority’s development plan, on the authority’s website.

Check out the nidirect website for more information about how development plans set out how an area should look in the future by deciding the type and scale of development and where buildings should be allowed.

Land development is the process of altering a landscape so it can meet the residential, commercial, or industrial needs of a specific area or community. It requires collaboration between multidisciplinary fields to plan and design to meet development goals, while also working with the environment, surrounding communities, and pre-existing structures.

Like many other components of civil engineering, the land development process involves strict rules and regulations and requires the acquisition of government approvals before the physical development can begin.

On a smaller scale, land development can also refer to individual investors who may be in possession of a piece of land which they can choose to prepare for the development of property by applying for planning permission and once obtained, sell the piece of land, along with the pre-approved plans for development works.

Selling land that has been developed to raise its value is subject to taxation. A straightforward land or property sale would normally incur a Capital Gains Tax (CGT) charge. Gain is calculated as sale price, less purchase cost, and any qualifying expenditure, and less incidental costs of purchase or sale.

If the asset is held by an individual, the gain will then normally be taxable at 20% to the extent that it falls within the basic rate income tax threshold (between £12,571 and £50,270). The higher 28% CGT rate which applies to disposals of residential property will not apply to a disposal of bare land, even if it already has planning permission for residential property to be built, but would apply if what you are selling is already residential property.

Sometimes strategic land development is necessary. There is a shortage of homes in the UK and the government is increasing efforts to develop more affordable housing. To achieve this, plots of land need to be bought and prepared for development to ensure the development is accessible and meets planning requirements.

This may mean there may need to be roads built to connect the plot of land with public roads, water pipes may need to be laid or electricity posts added so that the future homes can be fully functional. Oftentimes the development requires work such as levelling out the surface, removing trees and preparing the soil for foundations. Strategic land engineers would survey the site and establish what needs to be done in order to prepare the land for development.

Land may be considered strategic for two primary reasons;

• The location of the land may form an access route upon development, subsequently opening up a larger area of land for potential development.
• The land may be within the boundaries of an existing developed area, meaning it will tend to gain value regardless of how much is invested in it, and that it may be developed over a short, medium, or long term. Brownfield sites are an excellent example of this.

The value of strategic land lies in the way it is processed through the planning application system, or through development, and subsequent sale. As mentioned above, the land may also be held as an investment.

The first step in sourcing land for development is conducting extensive research regarding the type of development to be undertaken, and the most suitable type of land for purchase in accordance with this. Any other relevant investigations should also be completed. Following this, interest should be registered with all relevant parties, including land agents, brokers, planning consultants, and real estate agents.

Property sections of publications such as both local and national newspapers and magazines should be frequently checked, alongside property sales websites. Setting email notifications for property uploads may assist with keeping track of properties new to the market online.

Land purchasing opportunities may also be found at specialist auctions, which may be accessed through both private inquiries, and government authorities.

An EIA is an Environment Impact Assessment. It assesses how the proposed development will impact both on the nearby environment and on the wider environment generally. It is required for some sorts of development under European legislation. You are advised to contact your LPA for further information.

See “Environmental Impact Assessment” on the government website which explains the requirements of the Town and Country Planning (Environmental Impact Assessment) Regulations 2017.