Viability Course Planning Inspectorate Perspective Introduction Perspective based
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
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 • So. S agrees with Inspector • High Court – Mr Justice Nichol dismisses challenge to the So. S 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
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