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Viability Course. Planning Inspectorate Perspective. Introduction. Perspective based on Appeal decisions Development Plan Reports Court Decisions. Why important. Development Planning. Message from Blyth Valley Targets – basis for Get real Justify assumptions.
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Viability Course Planning Inspectorate Perspective
Introduction • Perspective based on • Appeal decisions • Development Plan Reports • Court Decisions
Development Planning • Message from Blyth Valley • Targets – basis for • Get real • Justify assumptions
Development Plan Reports • Stockton-on-Tees • Sample of 14 sites • Residual method • Importance of variables Infinity Bridge
Barking and Dagenham • Viability benchmark issue - 15% not accepted • Grant situation • Policy evidence lacking
Wandsworth • Viability benchmark issue • Borough wide approach using differing variables • 72,576 individual residual valuations • 15% viability benchmark accepted
Economic situation • Wakefield Core Strategy • Challenge based on Blyth Valley and PPS 3 • Inspector view – property cycle • High Court – “no evidence that former strong market conditions would not return at some time during the life of the plan”
Appeals • Forest of Dean • Appellant – current market conditions • LPA favoured use of forward projections • Scale and timing of development critical • Contrast with Godalming
Forest of Dean continued • Inspector conclusions • SoS agrees with Inspector • High Court – Mr Justice Nichol dismisses challenge to the SoS decision
Clay Farm Appeal • Appellant argument – developments unable to sustain affordable homes at 40% • Appellant wanted a phased viability scheme • Requirement of 40% affordable housing not viable in current circumstances
Appeals – Clay Farm • Essence of dispute • Council - Affordable element immutable - use residential land value • Appellant – land price fixed development cost - affordable housing a variable residual figure
Clay Farm • RLV approach favoured • Appellants approach – protects developers from falls in land prices • 20 % profit level because of risk like falls in land values • Appellants approach at expense of affordable housing
Clay Farm • Secretary of State • Agreed with Inspector • Appellants approach – “insulating the developer against a risk for which he is already indemnified by profit margins..”
Conclusions • Guidance and experience building up • Must look at circumstances and longer term • Understanding of basic principles important • Remember not just about housing • DELIVERY is the name of the game