Option agreement for land in County Durham
You grant us the right to buy within a set period, usually for an option premium, while we pursue planning.
An option agreement gives us the right, but not the obligation, to buy land within an agreed period, usually once planning is secured. The landowner is usually paid an option premium on signing and keeps the land meanwhile. On option agreements we pay the landowner's reasonable legal costs, with a cap agreed in the heads of terms.
Option agreement for land in County Durham
Option agreement is one of four ways we buy land in County Durham. County Durham here includes the Tees Valley towns of Darlington, Stockton-on-Tees and Hartlepool as well as Durham, Chester-le-Street, Consett, Bishop Auckland and the former coalfield villages. Green Belt protects land around Durham and between the Tyne and Wear conurbation and nearby towns, while the North Pennines National Landscape covers the west. Former colliery land, edge-of-village fields and older industrial sites are common sources of housing land.
The East Coast Main Line and A1(M) run north to south through the area, linking Darlington and Durham with Newcastle. Much of the county is former coalfield, so mining risk checks are routine, and nutrient neutrality advice has applied in parts of the Tees catchment draining to Teesmouth.
Where an English council cannot show a five-year supply of housing land, or its Housing Delivery Test result falls below 75%, the August 2026 NPPF can give policy support to suitable housing outside settlement boundaries.
National policy in England now recognises "medium development" of 10 to 49 homes on sites up to 2.5 hectares, and asks councils to allocate at least 10% of their housing on sites of one hectare or less and a further 10% on sites of one to 2.5 hectares.
Some land in County Durham is designated Green Belt. If your land is within it, it may still qualify as grey belt or previously developed land under national policy, subject to the Golden Rules.
Parts of County Durham fall within North Pennines National Landscape. Protected landscapes carry strong policy protection, so land in or next to them needs particularly careful assessment.
In short: you grant us the right to buy within a set period, usually for an option premium, while we pursue planning. It usually suits farmland and larger edge-of-settlement sites; strategic land needing local plan promotion; owners happy to wait for a better price. See how an option agreement works for the full process, pros and cons.
Land in County Durham that often suits an option agreement
WantedResidential development land
Sites on the edge of Durham or the villages nearby can be worth a conversation, especially where they are well connected by road and bus or rail. Suits larger or longer-term land where planning may take several years.
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WantedLand without planning permission
Near Durham, land without planning is worth discussing where it adjoins existing homes or has been put forward to the council's plan. Suits bigger sites or longer timescales; you are paid a premium and keep the land meanwhile.
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WantedGarden and backland plots
Around Durham, garden land is most promising where a lane already runs behind the houses or two or three neighbours can sell together. Helpful where several gardens are being combined over time.
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WantedFarmland and paddocks
Fields that wrap around the edges of Durham and its neighbouring villages are the farmland we most want to talk about. The usual route for larger farmland: you keep farming and we promote the land.
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WantedGreen Belt and grey belt land
Green Belt edges in County Durham vary a great deal, so we assess each parcel against the national tests before suggesting a deal. The common route: promoting Green Belt land can take time.
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WantedStrategic land
Larger landholdings on the approaches to Durham are where strategic land usually comes from, particularly near transport links. The standard route: we fund promotion and you are paid on sale.
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WantedCommercial and industrial sites
We look at yards and units across Durham where the business use has run its course or the site sits awkwardly among houses. Possible for larger estates being phased out.
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WantedAllocated and promoted land
If your land near Durham appears in the council's plan or its site assessments, send us the reference; it changes the conversation. Suits land at earlier plan stages.
Learn moreTowns we cover in County Durham
Option agreement: questions
How long do options last?
It varies with the site and the planning route, from a few years for smaller sites to longer for strategic land. Extension terms are often included.
How is the price worked out?
Commonly as market value with planning, less an agreed discount and allowable costs, often with a minimum price. Take independent advice on the mechanism.
What if you never exercise the option?
At the end of the option period the land is released, you normally keep the premium, and we remove our notice from your title.
Do you use option agreements for land in County Durham?
Yes. We use option agreements across County Durham and the rest of England, where the structure suits the site and the owner.