Highways Agreements may not be the most glamorous part of a property transaction, but they play a vital role in shaping how new developments connect to the wider world.
Whether it’s a new estate road, a pavement extension, or access improvements, these agreements sit quietly behind the scenes ensuring that new infrastructure is built properly and adopted safely.
Here’s a simple, five‑minute guide to help demystify what they are, why they matter, and what buyers and conveyancers need to know.
What are Highways Agreements?
Highways Agreements are legal contracts, usually between a developer and the local highway authority, that set out how new roads, pavements, junctions, or related infrastructure will be constructed, improved, or maintained. They’re essential whenever a development impacts public highways or creates new ones.
Broadly, these agreements ensure that:
- the work is designed and built to the authority’s standard,
- safety and accessibility are prioritised, and
- any new road can potentially become a publicly maintained highway in the future.
The key types of Highways Agreements
Although there are several forms, two commonly appear in conveyancing:
Section 38 Agreements (Highways Act 1980)
These cover new roads built by developers. Under a Section 38 agreement, a developer constructs a road to an agreed standard, and once completed, the highway authority will eventually ‘adopt’ it; meaning it becomes a publicly maintainable highway.
These agreements matter because adoption provides long‑term reassurance: the council, not the homeowners, will be responsible for upkeep.
Section 278 Agreements (Highways Act 1980)
These apply when a developer needs to make alterations to existing public highways, such as installing traffic lights, modifying junctions, adding pedestrian crossings, or widening a road.
It allows development to proceed while ensuring the wider road network remains safe and functional.
Why do Highways Agreements matter in property transactions?
For buyers and conveyancers, Highways Agreements can provide important clues about how the surrounding infrastructure will look and function – especially on new-build estates or expanding neighbourhoods.
They can highlight:
- Whether a road is adopted or private – Unadopted roads may require residents to pay for maintenance via management companies.
- Outstanding works – If a development is still under a Section 38 or Section 278 agreement, not all works may be complete – meaning temporary access routes, unfinished pavements, or incomplete lighting.
- Potential future disruption – Highway improvements often involve roadworks, traffic management, and construction noise.
- Long‑term responsibilities – Buyers may want to know if the estate roads will eventually be adopted, or if management fees will continue indefinitely.
Understanding these points can help manage expectations and avoid surprises down the line.
Where do Highways Agreements show up in searches?
Information about Section 38 and Section 278 agreements may appear in:
- Local Authority search responses
- Highways or transportation datasets
- Planning conditions
- Environmental or infrastructure reports
- Notes supplied by the developer or management company
Sometimes the agreement is in place but the adoption hasn’t yet occurred – a nuance worth flagging to clients.
What should conveyancers explain to clients?
A short conversation can go a long way. Key points to highlight include:
- Is the road adopted yet?
Adoption changes who maintains it and who pays for repairs. - Are works still outstanding?
Clients may experience short‑term disruption. - Is there a bond in place?
Developers often secure a bond (money set aside) so the authority can finish the work if the developer fails to. - Will the agreement affect access or parking?
Temporary or permanent restrictions may apply during or after construction.
By breaking down these points, clients feel more informed and confident.
Highways Agreements are a crucial part of the development process, ensuring that roads and essential infrastructure are delivered to the right standard and responsibly integrated into the public highway network. Whether a development adds a new road or modifies an existing one, these agreements help keep traffic flowing, pedestrians safe, and long‑term responsibilities clear.
