If you're finding land for a community project, you might wonder how to negotiate with a landowner. It may seem daunting, but it's the same bargain and compromise skills we use everyday.
The scale of a discussion will reflect the scale of the project you are pursuing. A short lease for a small piece of ground on a low rent or involving a short-term project may only need a few terms agreed. Longer leases for larger areas of land may need more terms agreed.
Start with your best position. What would be your dream scenario? Then think about the points you may concede. What is not essential? What do you not need to begin with? For example, sometimes you do not need water as early on as you may think. Even if you have a greenhouse or polytunnel you can use water butts to rainwater harvest. Be innovative and think outside the box. If you're putting in lots of time, resources and funding bids, a long lease of at least 10 years is important.
Too often projects invest time and effort only to find out that they need to leave their site within six months. If you have a good relationship with the landowner, remember this can change. What if they become ill or die, what if their priorities change and they need to sell the land? Remember that even if your project is small, being able to access the land is critical. This is a business arrangement and you should always try to get as secure an arrangement as possible.
Negotiation ground rules
You'll need to establish:
- What you want - If part of a group, agree what you need from the deal to meet your group aims. Remember, nobody will get everything they want on the essentials list.
- What you can concede – there may be things you would like and things you must have. Don’t reveal potential concessions but proceed with offer followed by counter-offer.
- What ‘they’ want – this may be clear from the outset. Or, it may become clear as you discuss details or produce draft papers.
- What ‘they’ will concede – listen carefully to their counter-offers. See what they are unwilling to trade and what may be open for discussion.
- Middle ground where both sides win something – set a 'win-win' agreement from the start. This way, each party is happy with what they have achieved.
Preparation
It’s important to research who you will be negotiating with – find out what they do, why and how. Have they taken part in a similar deal before and, if so, how was that structured? If you are acting on behalf of a group, agree beforehand who has the authority to make final decisions. Decide whether you need a wider group consultation at any stage.
Business or management plans
Any landowner is likely to want to know as much as possible about you and your project. They need to know they can trust you and your ideas. Even if you're non-profit making, you need to show how you will sustain the operation financially. How will you raise funds? Will anyone take a salary? Is the project completely reliant on volunteers?
Many community led projects have great ideas but find it difficult to put them down on paper. To help, we have created an introduction form template. If you need support with the template, please contact us.
It is important to get your ideas down in some form of proposed management plan or business plan. This should show how you will be using the land and what the intentions are for your project over the next 5 to 10 years. A plan will help your group gain consensus and is an effective way to communicate to landowners.
Download template introduction form for your project > (Word doc)
Site resilience plans
Try to work out which aims or policies of the landowner your project could fulfil. Illustrate that with evidence. Showing the merits of your project or project idea will enhance your position.
We can help you with a site resilience plan to show your sustainability credentials. This shows how you comply with the wellbeing of existing and future generations. It's also useful for discussion with landowners and other decision-makers e.g. funders.
Clear communication
Remember to be concise in speaking and in writing. Listen more than you talk and take notes. When you are talking about your important terms are they taking notes? Think about the information that they need to hear. Try not to say less important things that may detract from your position. Show you have listened by repeating a summary of agreements or offers. Ask for them to confirm you have understood. Don’t make assumptions, confirm by asking.
Starting negotiation
Tackle the critical points first. Time with landowners can be precious as they are often busy people. If your main funder needs a ten-year lease to release funds, but the landowner will only offer a five year lease, it may be time to look elsewhere. Sometimes all you need is something in writing from the funder about this stipulation. Ask the landowner to take this information on board and come back to you with a considered response.
Heads of Terms
Use our Heads of Terms document to populate what terms your group would like to see. Share them with the landowner and see if they can agree. It may take a bit of back and forth communication but this will save a lot of time further down the line. If you can't agree, at least you have not wasted time and finances on getting a solicitor to draw up a full lease.
Download Heads of Terms template in Welsh > (Word doc)
Download Heads of Terms template in English > (Word doc)
Timetable
Remember that land negotiations can take several months. Some cases have even taken five to six years to get a lease signed, though that is extreme. Most land negotiations with local authorities take about 18 months. It is important to be patient but also to keep momentum going. Update group members and the community as a whole on how things are progressing. Also try to think of things people can do in the meantime so that enthusiasm does not fade. Reply to the landowner in good time and always be polite but firm that things need to keep moving.
A good example of a community-led project is Green Squirrel Railway Gardens. It took six years to get planning and permissions for the Cardiff-based project. By keeping the community informed and involved, enthusiasm and interest remained high.
Resolving conflict
If things have become heated during the negotiation, smooth out any problems. Assure the other party that you want to work together in the future. Apologise for any misunderstandings or difficulties. Remember that the aim is to find a compromise and build a future working relationship. Always be polite and patient. Always be professional and treat things as a business deal. Difference of opinion isn't always a barrier, but it highlights how important lease terms are. Getting our support is a sensible option. Advice from a conveyancing solicitor before signing an agreement is essential.
Closing a deal
It is important not to enter into an agreement if the terms do not allow your project to thrive as well as you need it to. It's unlikely that people will be willing to sign up if they feel upset or disadvantaged by an agreement. So, first make sure you have a win-win deal so each party is content. It's ok if the agreement on the table is not your best scenario but it does need to match the ambitions of the project. If you can’t get a funder to fund you because you have an early break clause or the length of the lease is not long enough, do not enter into the agreement. At the same time, you need to be willing to take the plunge and concede less important matters. Speak to our Community Land Advisory Service in Wales or Scotland if you need support with this.
Gaining planning permission
Permission of the landowner is separate from local planning authority permission. If you want to put up structures, always seek advice from a town planner or the local planning authority. You can also contact our Community Land Advisory Service in Wales or Scotland. Find out whether you need planning permission and whether it is likely to be granted. Do this before signing your land agreement.
This template was produced by our Community Land Advisory Service. The service offers one-to-one land and planning advice in Wales or Scotland. If you're working with the service, this form is really helpful for the team supporting you.