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Viability Course

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

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  1. Viability Course Planning Inspectorate Perspective

  2. Introduction • Perspective based on • Appeal decisions • Development Plan Reports • Court Decisions

  3. Why important

  4. Development Planning • Message from Blyth Valley • Targets – basis for • Get real • Justify assumptions

  5. Development Plan Reports • Stockton-on-Tees • Sample of 14 sites • Residual method • Importance of variables Infinity Bridge

  6. Barking and Dagenham • Viability benchmark issue - 15% not accepted • Grant situation • Policy evidence lacking

  7. Wandsworth • Viability benchmark issue • Borough wide approach using differing variables • 72,576 individual residual valuations • 15% viability benchmark accepted

  8. 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”

  9. Appeals • Forest of Dean • Appellant – current market conditions • LPA favoured use of forward projections • Scale and timing of development critical • Contrast with Godalming

  10. Forest of Dean continued • Inspector conclusions • SoS agrees with Inspector • High Court – Mr Justice Nichol dismisses challenge to the SoS decision

  11. 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

  12. 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

  13. 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

  14. 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..”

  15. 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

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