Development – Appraisals, Delivery Plans, Development Management, Partnerships and Regen Cos

Garden Communities, Urban Extensions and Strategic Land

Site Specific Viability Assessments (VAs) for S106

Valuation

Harworth Group

Overview

AspinallVerdi were instructed by Harworth Group to prepare a Financial Viability Assessment (FVA) in relation to an outline planning permission (Ref:2019/0931) for up to 300 residential units, 11.39 acres of employment land and a local centre on a strategic site in South Derbyshire.

Services

The FVA was prepared in accordance with the RICS Practice Statement on Financial Viability in Planning (2019). As part of the FVA, AspinallVerdi:
• Carried out a planning policy review to identify and quantify the impact of planning policies on viability
• Undertook a property market assessment to inform the assumptions used in the financial appraisal in terms of: residential sales values, commercial land values, local centre land values and Benchmark Land Value
• Engaged with the clients Quantity Surveyor on site remediation and build costs
• Prepared financial appraisals of the scheme on a policy compliant basis and reduced policy basis
• Undertook sensitivity analysis on profit, build costs and sales values in accordance with RICS guidance
• Prepared a written report setting out our recommendations on viability

Outcome

The subject site had been allocated for employment in the Woodville Regeneration Area with a requirement for 12 hectares of employment land and up to 150 dwellings. AspinallVerdi’s report recommended that up to 300 residential dwellings should be accepted on the site at 0% affordable housing, in order to subsidize the delivery of the employment land. AspinallVerdi’s report and conclusions were accepted by the District Valuer and the site secured outline planning permission with 0% affordable housing and a reduced level of non-affordable housing Section 106 obligations.

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