ECONOMIC GROWTH

Court of Appeal Faraday Judgment: An amber light for unprocured development joint ventures

The Faraday judgment does not mean that councils cannot proceed with unprocured development schemes but it does mean that they should do so with robust legal justification, say Helen Randall and Kavita Roy of Trowers & Hamlins LLP

The Faraday case concerns a challenge to a development joint venture between West Berkshire Council and St Modwens by Faraday, a rival developer.

This case is particularly relevant in a world where councils are looking for ways to realise capital receipts from surplus assets through land disposals and property regeneration / development schemes. Mixed use developments also allow local authorities to maximise the business rates receipts.

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