Since 2021, six Local Authorities in England have been declared bankrupt and, with one in four councils expected to apply for bailout agreements to stave off bankruptcy in the next two financial years, Local Authority purse strings have never been tighter.
No wonder then, that with approximately 1.3 million acres of land under local authority ownership, many are under increasing pressure to sell off their land for development – not just to generate vital revenue, but to help meet housing and development goals.
There are two types of land disposal used by local authorities – those that are ‘subject to planning’ (STP) sales and transactions under the Public Contract Regulations (PCR).
In this article, Head of Residential Property, Gary Jeffries, explores these commonly used methods of land disposal, comparing the pros and cons of each for local authorities.
What is a ‘Subject to Planning’ or STP sale?
A ‘subject to planning’ (STP) sale allows the buyer to acquire land contingent on securing planning permission for a proposed development. This approach has its benefits for local authorities, helping to maximise land value and providing an element of flexibility too.