Glossary of Land Investment Terms

Here are the meanings of some of the jargon used in the land investment industry:

Affordable Housing - This type of housing comprises low-cost or subsidised housing for people who are unable to meet their own housing needs.

Brownfield - a site that has previously been developed. Brownfield sites may have been used for a wide variety of former activities including, commercial buildings, housing, industry, airfields, parks and so on. These sites may even be still in use and are not necessarily ready for development.

Capital - The amount of money you invest is usually referred to as your capital.

Capital Gain - The amount your investment increases during the period of investment.

Clawback Covenant - A legal arrangement that allows a former owner to maintain a financial interest in a piece of land. It will entitle them to some of the proceeds of a subsequent sale.

Conservation Area - An area designated by the local planning authority as one that has special architectural or historic interest.

Contract for Sale - This is the name of the legal document that covers any land sale in the UK and you should always carefully check the terms in it.

Covenant - Covenant is another word for an obligation on the part of an individual which is defined in a legal document. In UK land, covenants often appear on title deeds and prohibit certain uses of that land.

Density - When refering to UK land, density describes the number of buildings (usually homes) per acre.

Development Brief - A document providing detailed guidance on the planning and development of a particular site.

DPP - Detailed planning permission

Deeds - These are the ownership documents issued by the Office of H.M. Land Registry.

Depreciation - The reduction in the value of an item over time.

Environmental Impact Assessment - A document that is required to accompany a planning application for developments that are likely to have an impact on their environment.

Floodplain - An area adjacent to a watercourse such as a river or stream, which water flows into during times of flood.

Freehold - The title deeds of your land can be subject to different terms, freehold means that you have absolute ownership of the land as opposed to Leasehold where you are in effect renting it for an extended period.

Green Belt - Areas of land usually around towns and cities that are currently protected from development, although the Government is currently reviewing this policy.

Greenfield - An undeveloped site that is ready for development.

H. M. Land Registry - The UK government body responsible for tracking ownership of the land.

Infill Sites - The development of land that is surrounded by other land used in a similar nature. Usually defined in terms of additional housing development within an existing residential area.

Landscape Character Assessment - A study of the landscape which identifies its distinctive physical, ecological, historical and agricultural characteristics and identifies the human, social and economic influences which have shaped it.

Large Sites - Housing sites of 10 or more dwellings and generally with an area of greater than 0.4 hectares, where the number of dwellings to be built is unknown. A term used in housing land supplying monitoring.

LDP - Local Development Plan. The local council's plan for its future building programme.

Local Centre - Small grouping of shops usually comprising a newsagent, a general store, a sub-post office and occaisionally a pharmacy, a hairdresser and other small shops for the local community.

Local Plan - The local planning authority's detailed policies and specific proposals for the development and use of land in an administrative area. This will guide its day-to-day planning decisions and forms part of the Statutory Development Plan. Local Plans are being superseded by Local Development Frameworks, although the practice of allocating the intended use of specific sites will remain.

Local Transport plan - How the local highway authority intends to deliver an integrated and sustainable transport system within a five year period. It also forms a bid to central government for funding to implement its proposals.

OPP - Outline planning permission.

Open Countryside - Open farmland and fields that doesn't have the infrastructure nearby that is needed for development.

Open Space - Land used for public or private recreational purposes.

Out of Centre - A location that is clearly separate from a town centre but not necessarily outside of the urban area.

Regional Spatial Strategies (RSS) - The objective of the Regional Spatial Strategy is to contribute to sustainable development. The RSS, incorporates a Regional Transport Strategy (RTS) and provides a broad development strategy for the region for a fifteen to twenty year period. The RSS also informs the preparation of local Development Documents (LDDs), Local Transport Plans (LTPs) and regional and sub-regional strategies that have a bearing on land use activities. Following the commencement of the Planning and Compulsory Purchase Act 2004 Regional Planning Guidance (RPG) became RSS in each region outside of London and now forms part of the statutory Development Plan.

Return on investment (ROI) - Similar to Capital Gain, this simply means how much money did you make over and above your original investment. Often described as a % so if you put in £10k and got back £50k you made a 400% return on your original investment.

SSSI - Site of special scientific interest. Land that is heavily protected against development for reasons such as the flora, fauna or archaeological value of the site.

Safeguarded Land - Safeguarded Land is land between the urban area and the Green Belt. Safeguarded Land ensures the protection of the Green Belt on a longer timescale by reserving land which may be required to meet long term development needs without the need to alter the Green-Belt boundaries.

Sequential Approach - A process by which the suitability of sites for development are assessed according to their location and other factors. Central to the allocation and assessment of proposed housing and retail sites.

Small Sites - Housing sites of less than 10 dwellings or with an area of less than 0.4 hectares where the number of dwellings to built is unknown. A term used in housing land supply monitoring.

Strategic Greenfield Land - A large greenfield site, which has been identified as important in terms of its contribution to delivering longer term development.

Supplementary Planning Guidance - Guidance documents such as development briefs or design guides, which supplement and clarify policies in the Development Plan. They must derive out of and be consistent with the Development Plan and should be prepared in the proper manner, including being subject to public consultation and adopted by the local planning authority.

Sustainability Appraisal - A process of identifying, quantifying, weighing up and reporting on the social, economic and environmental effects of policies and proposals in the Development Plan.

Sustainable Development - Development which meets the needs of the present without compromising the ability of future generations to meet their own needs.

Title - In UK law, the Crown ultimately owns all of the land but grants ownership by title to others.

UDP - Unitary Development Plan. See LDP as they essentially are the same thing.

Urban Capacity - A term used in housing policy to quantify the amount of new housing that an urban area can accommodate, having regard to a number of environmental and other factors. Local Planning authorities are required to undertake studies to identify the urban capacity.

Urban Extensions - Sites outside but closely associated with urban areas which provide the opportunity to meet housing needs in a comprehensive manner by co-ordinating the provision of housing with existing and planned new infrastructure.

Urban Sites - Sites located within defined town limits.

Windfall Allowances - An estimation of the number of houses which are likely to be developed during the plan period on previously developed land which has not been specifically allocated for housing in the local plan.