In short
Yes. Neighbouring landowners can put adjoining land forward together, and national planning policy favours it, because one planned scheme across both fields makes better use of the land than two schemes that do not join up. Owners who sell together often sign a collaboration agreement, often with equalisation terms that share the outcome by area or by value so that nobody loses out because the road or the open space lands on their field, or they pool their land in a trust or a company. The simpler route is for each owner to sign their own option agreement with the same buyer, at a price agreed at the start. With us, we pay for and run the planning for the whole site, you both keep using your land until completion, and if planning fails you both keep it and owe nothing.
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Can Neighbouring Landowners Put Their Land Forward Together?
Yes, and it is very common. Field boundaries were drawn for farming, for inheritance and for old sales, not for housing. When a council looks at the edge of a village for a place where homes could go, the sensible shape of a site very often takes in more than one owner.
At HM Land Registry each separately registered piece of land has its own title, with its own number and its own named owners. A site of two fields can therefore be two titles in two families' names, and a larger site can be five or six. Planners talk about a site in multiple ownership, and the work of bringing the ownerships together is called land assembly.
The common shapes are easy to recognise:
- A field with the road and a field behind it. The field behind is bigger, but every route to it crosses the front field.
- Two halves of one farm. Divided between brothers and sisters a generation ago, and now owned by cousins.
- A paddock inside a larger site. A small parcel, sometimes with a house, in the middle of someone else's farmland.
- A narrow field that only works with its neighbour. Land too thin to take a road and homes on its own, which makes good sense as one side of a wider layout.
Four words come up in every conversation about it. When owners agree in writing how they will cooperate, the document is a collaboration agreement. When they agree to share the result fairly, whatever is built on whose land, that is equalisation. When they move the land into a single ownership first, usually a trust, that is land pooling. And when each owner signs their own agreement with the same buyer, nobody has to agree anything with the neighbour at all.
Why Do Councils Prefer One Scheme Across Both Fields?
Because national policy asks for land to be used well and laid out as a whole, and because a council is wary of counting land as available while the ownership is unresolved. A single scheme can also share one road, one drainage design and one set of surveys across the whole site.
The August 2026 National Planning Policy Framework, the government's planning rules for England, sets this out in its chapter on making effective use of land. For land a council has chosen for development in its local plan, which is called an allocation, the plan should contain policies and, where appropriate, masterplans to optimise the use of allocated sites, setting ambitious but deliverable expectations for the scale and density of development. A masterplan is a drawing, with supporting rules, that shows where the homes, roads, open space and drainage will go across the whole of a site, regardless of who owns which part. The same chapter says that development proposals should make efficient use of land.
The framework's chapter on design points the same way. Plans should identify where design guides, design codes and masterplans are necessary to deliver design and placemaking outcomes, such as for significant site allocations. When the design of a scheme is assessed, the framework says substantial weight should be given to compliance with relevant development plan policies, and it treats conflict with explicit design standards in the development plan, including those set out in masterplans, as a reason to refuse.
The council's own list of possible housing land works on the same principle. Government guidance on the housing and economic land availability assessment, the council's survey of land that could take homes or businesses, says a site can be considered available when there is confidence that there are no legal or ownership impediments to development. A later paragraph of the same guidance names unresolved multiple ownerships, ransom strips, tenancies and the operational requirements of landowners as examples of constraints that may affect whether a site is available. Owners who come forward together answer that question in advance.
What This Looks Like in a Real Plan
Rushcliffe Borough Council, near Nottingham, adopted a development framework for its large allocation east of Gamston and north of Tollerton in March 2026. The document plans for around 4,000 homes in total and records that the land is owned by different parties, with developers controlling parts of it. Because of the multiple ownerships, the council expects the site to come forward through a number of planning applications at different times, and it allows parts to be delivered separately. What it will not accept is fragmentation: the council will not support ad hoc or piecemeal development that is inconsistent with the masterplan for the allocation.
Smaller sites follow the same logic. What matters is that the homes, road, play area and drainage pond fit together, and that one owner's scheme does not strand the next field.
What Happens If My Neighbour Does Not Want to Join?
The site does not automatically fail, but it changes shape. Whether one field can go ahead without the other depends mostly on which field has the access, how big each field is, and whether the council has already drawn a single site around both.
| The position on the ground | What usually follows |
|---|---|
| Your field has the road frontage and is big enough for a scheme of its own | Your field may well work alone. A careful layout can leave a road link to the boundary so that the neighbouring field is not shut out if its owner changes their mind later. |
| Your neighbour's field has the only way onto the public road | Your field depends on a right of access over theirs, which puts the neighbour in a strong position to bargain for a share of the value. |
| The council has allocated both fields as one site | Expect the council to ask that any application fits a masterplan for the whole allocation, as the Rushcliffe framework does for its allocation. |
| Neither field is large enough to make sense alone | The site may struggle to count as available in the council's land assessment while the ownership question is open. |
| Your neighbour is willing, but not yet | Work can often begin on the field that is ready, designed so that the second field can join later without redesigning the first. |
The word that matters is piecemeal, as Rushcliffe's framework uses it: development that comes forward ownership by ownership without regard to the whole, a cul-de-sac that stops at the hedge, a road that leads nowhere, a play area too small because the rest of the open space was meant to go next door. Preventing that is what a masterplan is for.
Where the only way into a site crosses a neighbour's land, the strip in between can be worth a share of the development value, and our guide to access and ransom strips explains how that share is argued over.
How Do Neighbouring Landowners Work Together?
| Route | How it works | Who owns the land until the sale | Paperwork between the neighbours |
|---|---|---|---|
| Collaboration agreement, usually with equalisation | Each owner keeps their own land. The agreement sets out how decisions are made, how costs are met, and how the proceeds are shared when the land is sold. | Each owner, for their own field. | A collaboration agreement signed by every owner, with equalisation terms. |
| Land pooling trust | The owners transfer their land into a trust, and each holds a share of the whole site in proportion to what they put in. | The trustees, for all the owners together. | A trust deed and transfers of each title at HM Land Registry. |
| A company | The owners transfer their land into a company set up for the purpose and take shares in it. | The company. | Company formation, transfers, and a shareholders' agreement. |
| Separate agreements with the same buyer | Each owner signs their own option agreement with one buyer, who plans the whole site as one scheme. | Each owner, for their own field, until completion. | None. Each owner deals only with the buyer. |
The Collaboration Agreement
A collaboration agreement is the rulebook neighbours write for themselves. Savills calls collaboration agreements an essential tool, setting out the rules of engagement between the parties, and recommends that landowners sign up early to avoid discord later on. Wright Hassall, a firm of solicitors, says such an agreement should clearly prescribe how the parties will actually collaborate with each other.
In practice it covers who speaks to the council and to buyers, how decisions are taken, who pays for what while the planning work goes on, what happens if one owner sells or dies part way through, and how the money is divided when the land is sold. That last part is the equalisation.
This route is often used where neighbours work with a land promoter, who seeks planning permission and then has the land sold on the open market. Each owner signs the promotion agreement, the neighbours sign the collaboration agreement between themselves, and what each receives depends on the sale price, the promoter's costs and fee, and the equalisation terms. Our guide to promotion agreement fees and deductions shows how the deductions work.
What Is an Equalisation Agreement, and How Are the Shares Worked Out?
An equalisation agreement is a promise between neighbouring owners to share the value of a scheme fairly, whatever happens to be built on each of their fields. Wright Hassall describes equalisation as dividing up the sale proceeds so that each landowner receives a fair and reasonable proportion of the value of the whole of the development area.
The need for it comes from the masterplan. A good layout puts each part of the scheme where it works best, not where the ownership boundaries happen to fall. The road goes where the junction is safe, the pond at the lowest point, the open space along the brook. Savills gives the example of an owner whose land is best placed to take essential but lower value facilities, such as a school or play areas, which lets another owner's land take a greater share of the housing. Without equalisation, the owner whose field takes the pond is penalised for something that benefits everyone.
By Area or by Value
There are two basic ways to set the shares, and many agreements mix them.
- By area. Every hectare counts the same, wherever it sits and whatever the masterplan puts on it. An owner who brings 40% of the site receives 40% of the net proceeds. Its strength is that it needs no view on what each hectare is worth.
- By value. The hectares are weighted, because not all land brings the same thing to the scheme. For example, the field with the road frontage might count for more, and land that could never have been built on in any scheme, such as flood plain, might count for less. Setting the weights is a matter of judgement, usually for valuers.
- A mixture. Savills describes an approach in which each owner's payment takes account of the existing use value of their land, what it is worth today as farmland or paddock, and the remaining net proceeds are then divided by the area each owner contributed.
Whatever the basis, the shares have to be delivered somehow. Wright Hassall lists four ways: laying out the masterplan so that land uses are spread evenly across the ownerships, which it says can be very difficult to achieve in practice; sharing the net sale proceeds, which risks double taxation if it is not structured properly; putting the land into a land pool trust; or making compensatory land transfers or balancing payments between the owners, which it describes as complicated to work out, with time and professional costs of their own. Each has its own tax consequences, covered further down.
What remains for homes and gardens once roads, open space and drainage are taken out is called the net developable area, which our guide to how the price for land is worked out explains.
A Worked Example in Hectares
- The whole site
- 12.0 hectares
- Owner A's field
- 7.2 hectares, 60% of the site
- Owner B's field
- 4.8 hectares, 40% of the site, of which 1.2 hectares is flood plain along the brook
- Masterplan: homes and gardens
- 7.5 hectares across both fields
- Masterplan: spine road, open space, play area, drainage pond and the flood plain
- 4.5 hectares across both fields
- Homes and gardens on A's field
- 6.0 hectares
- Homes and gardens on B's field
- 1.5 hectares
- Owner B's share of the homes land
- 1.5 of 7.5 hectares, 20%
Made-up figures to show the method. The access comes in across A's frontage, so the layout puts most of the homes there and puts the pond and open space on B's lower ground by the brook.
If each field were valued only for what the masterplan puts on it, Owner B's share would roughly follow the homes land, about a fifth, though B brought two-fifths of the site. The three bases compare like this.
| Basis | How the share is counted | Owner A | Owner B |
|---|---|---|---|
| No equalisation | Each owner's share follows the homes land on their own field: 6.0 and 1.5 of 7.5 hectares | 80% | 20% |
| Equalisation by area | Every hectare counts the same: 7.2 and 4.8 of 12.0 hectares | 60% | 40% |
| Equalisation by value, one simple version | The 1.2 hectares of flood plain, which no scheme could build on, is left out: 7.2 and 3.6 of 10.8 hectares | Two-thirds, 66.7% | One-third, 33.3% |
Moving from no equalisation to equalisation by area doubles Owner B's share, and leaving the flood plain out moves part of it back. Neither owner is being unreasonable. Each basis is an honest answer to a hard question: what a hectare brings to a scheme before anyone knows what the scheme will be.
What Is Land Pooling, and How Does a Pooling Trust Work?
Land pooling means moving all the land into one ownership before it is sold, so that every owner holds a share of the whole site instead of a particular field. Savills describes a land pooling trust as one in which the landowners transfer their land into a trust, and all the landowners have shares in the trust in proportion to their original ownership. Because the pool sells as one, the question of who has the road on their land disappears: whatever is sold, every owner takes their share of it.
Gateley, a law firm, writing in May 2026 about multi-phase, multi-landowner sites, says that in its experience land pooling trusts are the more usual structure, and that they are bare trusts in which each landowner contributes their parcel. In a bare trust of this kind, Gateley explains, each landowner gives up its own parcel and in return holds an equitable interest in the whole site.
The idea has a long history in farming. HMRC's Capital Gains Manual records a case, Warrington (or Jenkins) v Brown, in which members of a family put various pieces of land into a trust, with the purpose of maintaining the continuity of the family farming unit. When a member later took back the same land, Knox J held that there was no disposal for Capital Gains Tax because one had to look at the interests in the mass, not at the individual field. HMRC adds a caution: the documentation needs to be carefully considered before it is accepted that the decision applies.
What Pooling Changes for the Owners
- The register changes. Each title is transferred to the trustees, who then appear as the registered owners.
- The number of trustees is limited. HM Land Registry's practice guide on private trusts of land says such a trust cannot have more than four trustees, so a pool of five or six families needs a smaller group to hold the title for everyone.
- Decisions become shared. The trustees sell and sign under the trust deed, rather than each owner for their own field.
- Getting out is harder. Julie Butler, writing in Tax Insider, flags the need to consider how to untangle the pool if the project is discontinued.
Pooling Through a Company
The other pooling vehicle is a company formed for the purpose. Each owner transfers their land to it and takes shares in return, and the company sells the site. The same Tax Insider article notes the multiple tax considerations around the disposal of the land to a company, and getting the money out to the shareholders afterwards is a further step with its own tax.
Is There a Simpler Way Than Pooling or Equalisation?
Yes. Each owner can sign their own option agreement with the same buyer, at a price agreed at the start, and the buyer plans the whole site as one scheme. There is then nothing to equalise between the neighbours, no trust to set up and no land to move: each owner is paid the figure written into their own agreement, whatever the masterplan later puts on their field.
Gateley notes that where the parcels are bought at the same time, each landowner is subject to Capital Gains Tax by reference to the price paid for their own parcel, less their allowable costs. Nobody shares anybody else's proceeds, so the double tax risk described further down does not arise.
This is how we deal with a site that spans two owners. The neighbours do not need to have agreed anything with each other, or to come to us together.
- A first conversation with each owner. Separately or together, as you prefer. Nothing said commits anyone to anything.
- A free desktop review of the whole site. We look at both fields as one site and as separate fields: the access, the constraints, the likely layout and the council's position.
- A price in writing for each field. Each owner receives a price for their own land, agreed at the start and set above what it is worth today in its current use.
- An agreement for each owner. Each owner signs their own option agreement, with their own solicitor and land agent, and we contribute to those fees so that it costs you nothing to get it done properly.
- One planning effort for the whole site. We pay for and run all of the planning work, the surveys, the masterplan, and the application or the local plan route, for both fields together, at our own cost and risk.
- Both of you keep using your land. Farming, grazing and letting carry on as before until completion. The agreements continue while any planning application or appeal is being decided.
- If permission is granted, we complete. We buy each field, and each owner is paid their agreed price on completion, once planning permission has been secured. Each agreement sets out its own milestones.
- If planning fails, nothing is owed. Both owners keep their land and owe nothing, whatever has been spent.
Our how it works page sets out the same journey for a single owner.
What Does Each Owner Keep?
What differs between the routes is how much each owner keeps for themselves alone and how much they share with the neighbour.
| What the owner keeps | Collaboration and equalisation | Pooling trust | Own agreement with us |
|---|---|---|---|
| Legal ownership of their field until the sale | Yes | No, the trustees hold it for everyone | Yes, until completion |
| Use of the land and the income from it | Yes, as the agreement allows | As the trust deed allows | Yes, until completion |
| Their own solicitor | Yes | Yes | Yes, with a contribution from us to the fees |
| Decisions about their own field | Shared with the neighbours, as the agreement sets out | Taken by the trustees | Their own, within their agreement |
| When their figure is known | At the sale, after costs and the equalisation sums | At the sale, as a share of the whole | At the start, written into the agreement |
| Their own tax position | Yes, but with the risks set out below | Yes, as a share of the pool | Yes, on the sale of their own land |
Under our agreement, each owner knows their own figure on the day they sign, and it does not move when the masterplan decides where the road or the pond will go.
Which Tax Points Should Neighbours Raise With an Accountant?
The tax treatment of shared sites is specialist ground, and Savills is blunt that there are tax implications in each approach and specialist advice is essential. These are the points the published guidance identifies, set out so that you know what to raise, not as advice on what to do.
- Sharing proceeds after one owner sells. Gateley explains that where the selling landowner shares the proceeds with the others under a collaboration agreement, the seller is subject to Capital Gains Tax on the entire proceeds of their parcel, while the owners who receive a share have no base cost in it, the figure a gain is measured from. It adds that there is no court decision directly on the point. That risk of double taxation is what pushes owners towards other structures, such as cross options, partnerships or land pooling.
- Transferring land into a pooling trust. Gateley's view, relying on the Jenkins v Brown case, is that each owner's contribution to a bare land pooling trust should not be treated as a disposal for Capital Gains Tax, so that there is a single charge when the pool sells. Wright Hassall says pooling transfers will not trigger a charge provided the values are equal on a pro rata acreage basis. HMRC's manual, discussing the Warrington v Brown case, says the documents need careful consideration before the decision is accepted as applying.
- Swapping land to even things out. HMRC's manual says an exchange of jointly owned land constitutes a disposal by each owner for Capital Gains Tax, even when no money changes hands, with a form of roll-over relief in certain circumstances where jointly held land is rearranged. A compensatory land transfer between neighbours needs to be looked at with that in mind.
- Stamp Duty Land Tax on the pool. Stamp Duty Land Tax, the tax a buyer of land pays, treats an exchange of land as two separate transactions. Gateley says it is understood that the tax is not chargeable on contributions to a pooling trust, but that HMRC has not, as far as it is aware, ever publicly said it agrees.
- VAT where land has been opted to tax. Gateley notes that a contribution to a pooling trust is normally viewed as a barter for VAT, which HMRC seems to accept, but that it should not be taken for granted.
- Selling separately. Where each owner sells their own land, the ordinary Capital Gains Tax rules, reliefs and rates apply to each owner individually.
What If One Owner Is an Estate in Probate, or a Family With Several Names on the Title?
The principle does not change: everyone who owns a title signs for that title, and the register shows who they are.
Several Names on One Title
Where two or more people are registered as owners, HM Land Registry enters what is called a Form A restriction on the title, unless they are beneficial joint tenants or are registered as personal representatives. Its wording, set out in the Registry's practice guide on private trusts of land, is that no disposition by a sole proprietor of the registered estate under which capital money arises is to be registered unless authorised by an order of the court. In plain words, the Form A restriction tells a buyer that it must pay the sale money to at least two trustees, which the Law of Property Act 1925 requires, so that the shares of everyone with an interest come off the land and attach to the money instead. Lawyers call that overreaching.
The same guide explains the difference between the two kinds of joint ownership. Joint tenants have no separate shares and a right of survivorship, so when one dies their interest passes automatically to the others. Tenants in common each have a separate share, which is inherited as part of their estate when they die. Since 1925 the legal title itself has always been held as joint tenants, so the personal representatives of an owner who has died have no power to deal with it unless they are formally appointed as trustees. Where only one owner survives, one or more additional trustees must be appointed so that a buyer's money can overreach the shares.
An Estate in Probate
Where one of the fields belongs to someone who has died, the people who deal with it are the personal representatives, the executors named in the will or the administrators appointed where there is none. Our guide to probate and selling land sets out when executors can sign and how families who disagree can move forward.
For a two-owner site, the practical point is that a probate on one side does not have to hold up a conversation on the other. Under separate agreements, each title is signed for by whoever has the power to sign it, when they have it.
- Look at the names on your own title register, and whether each of them is still living.
- Look for a Form A restriction, which tells you the owners hold as tenants in common or under a trust.
- Find out whether your neighbour's land is one title or several, and in whose names, from a copy of their title register at HM Land Registry.
- If only one of the registered owners is still living, expect a second trustee to be appointed before either field can be sold.
Questions Landowners Ask
Is a collaboration agreement the same as an equalisation agreement?
Not quite. A collaboration agreement is the whole rulebook between neighbouring landowners: how they make decisions, meet costs and deal with buyers. Equalisation is the part of it that says how the money is shared, by area, by value or a mix, and it is often a set of clauses inside the collaboration agreement rather than a separate document.
Does the council make neighbouring landowners apply for planning together?
No. Large allocations with several owners are often built out through separate applications at different times, as Rushcliffe's March 2026 framework for land east of Gamston expects. What that framework asks is that each application fits the masterplan for the whole allocation, and it will not support piecemeal development that does not.
My neighbour has already signed with someone else. Can my field still come forward?
Often, yes. It depends on whether your field has its own access, whether it is large enough to make sense alone, and how the council sees the two fields, which is what a desktop review of your land looks at.
My sister and I inherited the farm and are both on the title. Is that a multiple ownership site?
Not in the sense this guide means. One title with two names is a single ownership held by two people, and you both sign for it. A multiple ownership site is one that takes in two or more titles held by different owners. A Form A restriction on your register usually means you hold as tenants in common.
Will we pay tax twice if one of us sells and shares the money with the other?
There is a real risk of it. Published guidance from Gateley explains that the seller can be taxed on the whole proceeds while the neighbour who receives a share has no base cost in it. Gateley names cross options, partnerships and land pooling as the structures owners turn to instead, and the risk does not arise where each owner sells their own land.
Do we need an equalisation agreement if we each sign our own option with you?
No. Each of you has your own agreement at a price agreed at the start, so there is nothing to divide. We pay for and run the planning for the whole site, and if it fails you both keep your land and owe nothing.
If you and a neighbour own adjoining fields and want to know whether they would make a site, together or apart, a free desktop review is the simplest way to get a straight answer. It covers both fields, it costs nothing, and it commits neither of you to anything.
How This Works in Your Area
The rules are national, but each council's housing numbers and local plan decide how strong the case for a site is. Choose your county to see where each of its councils stands.
This guide is general information, not legal advice. Always have a solicitor review any agreement before you sign it.
Sources
- MHCLG: National Planning Policy Framework, chapter 12, making effective use of land, policies L1 to L3 (August 2026)
- MHCLG: National Planning Policy Framework, chapter 14, achieving well-designed places, policies DP1 to DP4 (August 2026)
- MHCLG: Planning Practice Guidance, Housing and economic land availability assessment (November 2025)
- Rushcliffe Borough Council: East of Gamston/North of Tollerton Development Framework Supplementary Planning Document (March 2026)
- Savills: In plain English, landowner equalisation and pooling (October 2020)
- Gateley: Multi-phase, multi-landowner property development (May 2026)
- Wright Hassall: Equalisation in strategic land development (undated, read October 2026)
- Tax Insider: Development land, how can an equalisation agreement help? (May 2015)
- HMRC: Capital Gains Manual CG34411, bare trusts, asset pooling, land, Warrington v Brown (October 2026)
- HMRC: Capital Gains Manual CG73000, land, exchange of joint interests (August 2026)
- HMRC: Stamp Duty Land Tax Manual SDLTM01410, exchanges (September 2026)
- HM Land Registry: Practice guide 24, private trusts of land (June 2026)