. �a�2@��9���^gq�m�}Tdr5[�.\j01 Step 3: Calculate the Benchmark Land Value: The benchmark land value is the value of a site in its existing use (say, use as an office building) plus a margin which could be between 10-30% (the margins quoted in the SPG). 1.1 The aim of this Affordable Housing Viability Assessment (AHVA) is to inform Pembrokeshire County Council’s Local Development Plan (LDP), in accordance with the requirements of the Welsh Assembly Government’s Technical Advice Note 2 (TAN 2) which emphasises the importance of testing the viability of affordable housing policy targets. Specifically, affordable housing targets of 0% through to 50%, including 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45% and 50%. 0000002254 00000 n Sevenoaks District Council – Affordable Housing Viability Assessment housing needs, and information on the range of site sizes and types which are likely to come forward. There is a presumption that affordable housing … approach to local Affordable Housing policies. Step 2: Calculate the Residual Land Value: The next step is to work backwards from that hypothetical sales value to find out how much the developer could afford to pay for the site. Author: Catherine Howard, Partner, Planning, Real Estate, London, Your email address will not be published. Viability assessment should not compromise sustainable development but should be used to ensure that policies are realistic, and that the total cumulative cost of all relevant policies will not undermine deliverability of the plan. So the next step is to work out how much affordable housing the developer should be able to deliver on this site, while still making a fair profit. Our assessment of viability specifically focuses on current affordable housing requirements, CIL liabilities and other financial requirements specifically required under S106. 167 17 The assessment should: generate a residual land value, include a benchmark land value against which the viability of the development can be assessed, include evidence to support all values and costs included in the assessment, including the benchmark land value, identify and justify all the assumptions used in the viability assessment … NPTCBC – Affordable Housing Viability Assessment Procedures – March 2014 4 Number of Units This will also include the size of each unit in square metres (gross and net), number of beds and mix, car parking provision & number of storeys. %PDF-1.4 %���� ANALYSIS: A recent High Court judgment gives important guidance on valuation evidence for the purposes of viability assessments in planning applications and appeals. Step 1: Calculate the Gross Development Value: The first thing to do is to work out how much the total sales value of all the units in your development would be if they were sold with a fully policy compliant percentage of affordable housing. It is not peripheral, optional or cosmetic. The Viability Assessment conducted by Savills on behalf of LB Hackney assumes the land value to be zero and as such the deficit of the scheme overall means that 19.4% ‘is the maximum reasonable amount of affordable housing that can be xref 0000006657 00000 n The articles published on this website, current at the dates of publication set out above, are for reference purposes only. x�b```f``���$�x���Y862`�����k3��31Qg��#cޯ�5� The Council wished to test viability for a range of sites, and an appraisal approach was undertaken that would permit this reflecting a prescribed level of affordable housing and housing mix. Herbert Smith Freehills LLP is authorised and regulated by the Solicitors Regulation Authority. A viability assessment which supports the affordable housing requirements that will be set out as policy in the emerging Core Strategy/Local Plan and … It said that the developer must demonstrate that the maximum reasonable amount of affordable housing has been met when that amount is below the borough-wide affordable housing target. The Mayor wants to stop this by ’embedding’ delivery of policy compliant levels of affordable housing into land prices. This is part of our ‘back to basics’ affordable housing series. But for those developers who bought land before the SPG was published, what is viable for them to deliver in the real world and what the Mayor deems viable for them to deliver simply may not tally. report: ‘Stage 1 Assessment of the Viability of Affordable Housing, ommunity Infrastructure Levy and Local Plan.’ 2. Most frequently, VAs are used to seek a reduction in the amount of affordable housing which a LPA’s policy would otherwise require. 5Accessed at: http://shapingtheheartstroud.org/evidence/. This post is part of the following categories: In this blog post, we explain in simple terms how a developer is now expected to set the level of affordable housing which the Mayor of London deems viable for a particular site. The results indicate that a total of 761 883 new – dwellings per year are required in the District to 2026. These can include costs associated with unusual ground conditions, contamination, etc. Great Yarmouth BC - Affordable Housing Viability Assessment –October 2012Page 30. From: Homes and Communities Agency. 167 0 obj <> endobj Financial Viability Assessments based on such a premise are unlikely to carry any weight. They paid more than the benchmark land value for their sites, yet the Mayor is using the benchmark value to calculate what he deems should be viable for them to provide. Step 4: Comparing the Residual Land Value and the Benchmark Land Value: When the benchmark land value is higher than the residual land value, the Mayor would accept that it’s not viable for the developer to deliver the Council’s target level of affordable housing in their required 70:30 tenure split. 0000003862 00000 n And once you have the gross development value, it will be a matter of negotiation between the developer, the Council and the Mayor as to how this is achieved: what split between social rented units, intermediate units and market units must the developer commit to in the section 106 agreement in order to reach this gross development value? Greylyn Bp Llc, How To Spot Fake Cerave, Jamaica Funeral Home, Maeve Character Fortnite, Population Of Nashville, Tn 2020, Long Term Goal For Acute Pain, Salon Space To Rent In Kempton Park, Wearing Apple Watch To Wedding, " />
. �a�2@��9���^gq�m�}Tdr5[�.\j01 Step 3: Calculate the Benchmark Land Value: The benchmark land value is the value of a site in its existing use (say, use as an office building) plus a margin which could be between 10-30% (the margins quoted in the SPG). 1.1 The aim of this Affordable Housing Viability Assessment (AHVA) is to inform Pembrokeshire County Council’s Local Development Plan (LDP), in accordance with the requirements of the Welsh Assembly Government’s Technical Advice Note 2 (TAN 2) which emphasises the importance of testing the viability of affordable housing policy targets. Specifically, affordable housing targets of 0% through to 50%, including 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45% and 50%. 0000002254 00000 n Sevenoaks District Council – Affordable Housing Viability Assessment housing needs, and information on the range of site sizes and types which are likely to come forward. There is a presumption that affordable housing … approach to local Affordable Housing policies. Step 2: Calculate the Residual Land Value: The next step is to work backwards from that hypothetical sales value to find out how much the developer could afford to pay for the site. Author: Catherine Howard, Partner, Planning, Real Estate, London, Your email address will not be published. Viability assessment should not compromise sustainable development but should be used to ensure that policies are realistic, and that the total cumulative cost of all relevant policies will not undermine deliverability of the plan. So the next step is to work out how much affordable housing the developer should be able to deliver on this site, while still making a fair profit. Our assessment of viability specifically focuses on current affordable housing requirements, CIL liabilities and other financial requirements specifically required under S106. 167 17 The assessment should: generate a residual land value, include a benchmark land value against which the viability of the development can be assessed, include evidence to support all values and costs included in the assessment, including the benchmark land value, identify and justify all the assumptions used in the viability assessment … NPTCBC – Affordable Housing Viability Assessment Procedures – March 2014 4 Number of Units This will also include the size of each unit in square metres (gross and net), number of beds and mix, car parking provision & number of storeys. %PDF-1.4 %���� ANALYSIS: A recent High Court judgment gives important guidance on valuation evidence for the purposes of viability assessments in planning applications and appeals. Step 1: Calculate the Gross Development Value: The first thing to do is to work out how much the total sales value of all the units in your development would be if they were sold with a fully policy compliant percentage of affordable housing. It is not peripheral, optional or cosmetic. The Viability Assessment conducted by Savills on behalf of LB Hackney assumes the land value to be zero and as such the deficit of the scheme overall means that 19.4% ‘is the maximum reasonable amount of affordable housing that can be xref 0000006657 00000 n The articles published on this website, current at the dates of publication set out above, are for reference purposes only. x�b```f``���$�x���Y862`�����k3��31Qg��#cޯ�5� The Council wished to test viability for a range of sites, and an appraisal approach was undertaken that would permit this reflecting a prescribed level of affordable housing and housing mix. Herbert Smith Freehills LLP is authorised and regulated by the Solicitors Regulation Authority. A viability assessment which supports the affordable housing requirements that will be set out as policy in the emerging Core Strategy/Local Plan and … It said that the developer must demonstrate that the maximum reasonable amount of affordable housing has been met when that amount is below the borough-wide affordable housing target. The Mayor wants to stop this by ’embedding’ delivery of policy compliant levels of affordable housing into land prices. This is part of our ‘back to basics’ affordable housing series. But for those developers who bought land before the SPG was published, what is viable for them to deliver in the real world and what the Mayor deems viable for them to deliver simply may not tally. report: ‘Stage 1 Assessment of the Viability of Affordable Housing, ommunity Infrastructure Levy and Local Plan.’ 2. Most frequently, VAs are used to seek a reduction in the amount of affordable housing which a LPA’s policy would otherwise require. 5Accessed at: http://shapingtheheartstroud.org/evidence/. This post is part of the following categories: In this blog post, we explain in simple terms how a developer is now expected to set the level of affordable housing which the Mayor of London deems viable for a particular site. The results indicate that a total of 761 883 new – dwellings per year are required in the District to 2026. These can include costs associated with unusual ground conditions, contamination, etc. Great Yarmouth BC - Affordable Housing Viability Assessment –October 2012Page 30. From: Homes and Communities Agency. 167 0 obj <> endobj Financial Viability Assessments based on such a premise are unlikely to carry any weight. They paid more than the benchmark land value for their sites, yet the Mayor is using the benchmark value to calculate what he deems should be viable for them to provide. Step 4: Comparing the Residual Land Value and the Benchmark Land Value: When the benchmark land value is higher than the residual land value, the Mayor would accept that it’s not viable for the developer to deliver the Council’s target level of affordable housing in their required 70:30 tenure split. 0000003862 00000 n And once you have the gross development value, it will be a matter of negotiation between the developer, the Council and the Mayor as to how this is achieved: what split between social rented units, intermediate units and market units must the developer commit to in the section 106 agreement in order to reach this gross development value? Greylyn Bp Llc, How To Spot Fake Cerave, Jamaica Funeral Home, Maeve Character Fortnite, Population Of Nashville, Tn 2020, Long Term Goal For Acute Pain, Salon Space To Rent In Kempton Park, Wearing Apple Watch To Wedding, " />
. �a�2@��9���^gq�m�}Tdr5[�.\j01 Step 3: Calculate the Benchmark Land Value: The benchmark land value is the value of a site in its existing use (say, use as an office building) plus a margin which could be between 10-30% (the margins quoted in the SPG). 1.1 The aim of this Affordable Housing Viability Assessment (AHVA) is to inform Pembrokeshire County Council’s Local Development Plan (LDP), in accordance with the requirements of the Welsh Assembly Government’s Technical Advice Note 2 (TAN 2) which emphasises the importance of testing the viability of affordable housing policy targets. Specifically, affordable housing targets of 0% through to 50%, including 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45% and 50%. 0000002254 00000 n Sevenoaks District Council – Affordable Housing Viability Assessment housing needs, and information on the range of site sizes and types which are likely to come forward. There is a presumption that affordable housing … approach to local Affordable Housing policies. Step 2: Calculate the Residual Land Value: The next step is to work backwards from that hypothetical sales value to find out how much the developer could afford to pay for the site. Author: Catherine Howard, Partner, Planning, Real Estate, London, Your email address will not be published. Viability assessment should not compromise sustainable development but should be used to ensure that policies are realistic, and that the total cumulative cost of all relevant policies will not undermine deliverability of the plan. So the next step is to work out how much affordable housing the developer should be able to deliver on this site, while still making a fair profit. Our assessment of viability specifically focuses on current affordable housing requirements, CIL liabilities and other financial requirements specifically required under S106. 167 17 The assessment should: generate a residual land value, include a benchmark land value against which the viability of the development can be assessed, include evidence to support all values and costs included in the assessment, including the benchmark land value, identify and justify all the assumptions used in the viability assessment … NPTCBC – Affordable Housing Viability Assessment Procedures – March 2014 4 Number of Units This will also include the size of each unit in square metres (gross and net), number of beds and mix, car parking provision & number of storeys. %PDF-1.4 %���� ANALYSIS: A recent High Court judgment gives important guidance on valuation evidence for the purposes of viability assessments in planning applications and appeals. Step 1: Calculate the Gross Development Value: The first thing to do is to work out how much the total sales value of all the units in your development would be if they were sold with a fully policy compliant percentage of affordable housing. It is not peripheral, optional or cosmetic. The Viability Assessment conducted by Savills on behalf of LB Hackney assumes the land value to be zero and as such the deficit of the scheme overall means that 19.4% ‘is the maximum reasonable amount of affordable housing that can be xref 0000006657 00000 n The articles published on this website, current at the dates of publication set out above, are for reference purposes only. x�b```f``���$�x���Y862`�����k3��31Qg��#cޯ�5� The Council wished to test viability for a range of sites, and an appraisal approach was undertaken that would permit this reflecting a prescribed level of affordable housing and housing mix. Herbert Smith Freehills LLP is authorised and regulated by the Solicitors Regulation Authority. A viability assessment which supports the affordable housing requirements that will be set out as policy in the emerging Core Strategy/Local Plan and … It said that the developer must demonstrate that the maximum reasonable amount of affordable housing has been met when that amount is below the borough-wide affordable housing target. The Mayor wants to stop this by ’embedding’ delivery of policy compliant levels of affordable housing into land prices. This is part of our ‘back to basics’ affordable housing series. But for those developers who bought land before the SPG was published, what is viable for them to deliver in the real world and what the Mayor deems viable for them to deliver simply may not tally. report: ‘Stage 1 Assessment of the Viability of Affordable Housing, ommunity Infrastructure Levy and Local Plan.’ 2. Most frequently, VAs are used to seek a reduction in the amount of affordable housing which a LPA’s policy would otherwise require. 5Accessed at: http://shapingtheheartstroud.org/evidence/. This post is part of the following categories: In this blog post, we explain in simple terms how a developer is now expected to set the level of affordable housing which the Mayor of London deems viable for a particular site. The results indicate that a total of 761 883 new – dwellings per year are required in the District to 2026. These can include costs associated with unusual ground conditions, contamination, etc. Great Yarmouth BC - Affordable Housing Viability Assessment –October 2012Page 30. From: Homes and Communities Agency. 167 0 obj <> endobj Financial Viability Assessments based on such a premise are unlikely to carry any weight. They paid more than the benchmark land value for their sites, yet the Mayor is using the benchmark value to calculate what he deems should be viable for them to provide. Step 4: Comparing the Residual Land Value and the Benchmark Land Value: When the benchmark land value is higher than the residual land value, the Mayor would accept that it’s not viable for the developer to deliver the Council’s target level of affordable housing in their required 70:30 tenure split. 0000003862 00000 n And once you have the gross development value, it will be a matter of negotiation between the developer, the Council and the Mayor as to how this is achieved: what split between social rented units, intermediate units and market units must the developer commit to in the section 106 agreement in order to reach this gross development value? Greylyn Bp Llc, How To Spot Fake Cerave, Jamaica Funeral Home, Maeve Character Fortnite, Population Of Nashville, Tn 2020, Long Term Goal For Acute Pain, Salon Space To Rent In Kempton Park, Wearing Apple Watch To Wedding, "/>
. �a�2@��9���^gq�m�}Tdr5[�.\j01 Step 3: Calculate the Benchmark Land Value: The benchmark land value is the value of a site in its existing use (say, use as an office building) plus a margin which could be between 10-30% (the margins quoted in the SPG). 1.1 The aim of this Affordable Housing Viability Assessment (AHVA) is to inform Pembrokeshire County Council’s Local Development Plan (LDP), in accordance with the requirements of the Welsh Assembly Government’s Technical Advice Note 2 (TAN 2) which emphasises the importance of testing the viability of affordable housing policy targets. Specifically, affordable housing targets of 0% through to 50%, including 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45% and 50%. 0000002254 00000 n Sevenoaks District Council – Affordable Housing Viability Assessment housing needs, and information on the range of site sizes and types which are likely to come forward. There is a presumption that affordable housing … approach to local Affordable Housing policies. Step 2: Calculate the Residual Land Value: The next step is to work backwards from that hypothetical sales value to find out how much the developer could afford to pay for the site. Author: Catherine Howard, Partner, Planning, Real Estate, London, Your email address will not be published. Viability assessment should not compromise sustainable development but should be used to ensure that policies are realistic, and that the total cumulative cost of all relevant policies will not undermine deliverability of the plan. So the next step is to work out how much affordable housing the developer should be able to deliver on this site, while still making a fair profit. Our assessment of viability specifically focuses on current affordable housing requirements, CIL liabilities and other financial requirements specifically required under S106. 167 17 The assessment should: generate a residual land value, include a benchmark land value against which the viability of the development can be assessed, include evidence to support all values and costs included in the assessment, including the benchmark land value, identify and justify all the assumptions used in the viability assessment … NPTCBC – Affordable Housing Viability Assessment Procedures – March 2014 4 Number of Units This will also include the size of each unit in square metres (gross and net), number of beds and mix, car parking provision & number of storeys. %PDF-1.4 %���� ANALYSIS: A recent High Court judgment gives important guidance on valuation evidence for the purposes of viability assessments in planning applications and appeals. Step 1: Calculate the Gross Development Value: The first thing to do is to work out how much the total sales value of all the units in your development would be if they were sold with a fully policy compliant percentage of affordable housing. It is not peripheral, optional or cosmetic. The Viability Assessment conducted by Savills on behalf of LB Hackney assumes the land value to be zero and as such the deficit of the scheme overall means that 19.4% ‘is the maximum reasonable amount of affordable housing that can be xref 0000006657 00000 n The articles published on this website, current at the dates of publication set out above, are for reference purposes only. x�b```f``���$�x���Y862`�����k3��31Qg��#cޯ�5� The Council wished to test viability for a range of sites, and an appraisal approach was undertaken that would permit this reflecting a prescribed level of affordable housing and housing mix. Herbert Smith Freehills LLP is authorised and regulated by the Solicitors Regulation Authority. A viability assessment which supports the affordable housing requirements that will be set out as policy in the emerging Core Strategy/Local Plan and … It said that the developer must demonstrate that the maximum reasonable amount of affordable housing has been met when that amount is below the borough-wide affordable housing target. The Mayor wants to stop this by ’embedding’ delivery of policy compliant levels of affordable housing into land prices. This is part of our ‘back to basics’ affordable housing series. But for those developers who bought land before the SPG was published, what is viable for them to deliver in the real world and what the Mayor deems viable for them to deliver simply may not tally. report: ‘Stage 1 Assessment of the Viability of Affordable Housing, ommunity Infrastructure Levy and Local Plan.’ 2. Most frequently, VAs are used to seek a reduction in the amount of affordable housing which a LPA’s policy would otherwise require. 5Accessed at: http://shapingtheheartstroud.org/evidence/. This post is part of the following categories: In this blog post, we explain in simple terms how a developer is now expected to set the level of affordable housing which the Mayor of London deems viable for a particular site. The results indicate that a total of 761 883 new – dwellings per year are required in the District to 2026. These can include costs associated with unusual ground conditions, contamination, etc. Great Yarmouth BC - Affordable Housing Viability Assessment –October 2012Page 30. From: Homes and Communities Agency. 167 0 obj <> endobj Financial Viability Assessments based on such a premise are unlikely to carry any weight. They paid more than the benchmark land value for their sites, yet the Mayor is using the benchmark value to calculate what he deems should be viable for them to provide. Step 4: Comparing the Residual Land Value and the Benchmark Land Value: When the benchmark land value is higher than the residual land value, the Mayor would accept that it’s not viable for the developer to deliver the Council’s target level of affordable housing in their required 70:30 tenure split. 0000003862 00000 n And once you have the gross development value, it will be a matter of negotiation between the developer, the Council and the Mayor as to how this is achieved: what split between social rented units, intermediate units and market units must the developer commit to in the section 106 agreement in order to reach this gross development value? Greylyn Bp Llc, How To Spot Fake Cerave, Jamaica Funeral Home, Maeve Character Fortnite, Population Of Nashville, Tn 2020, Long Term Goal For Acute Pain, Salon Space To Rent In Kempton Park, Wearing Apple Watch To Wedding, "/>
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affordable housing viability assessment example

The LPA’s policy might, for example, dictate that 40% of the residential units created by a new development are sold at below market rates to support the provision of affordable housing. It is patently a crucial requirement of the policy”. A district-wide affordable housing viability assessment for housing delivery over the lifetime of the Core Strategy/Local Plan. trailer � � Lambeth Council’s planning officer obtained a third party review and summarised both documents in his report to the planning committee, which resolved to grant permission. startxref While the Mayor expressly will not take account of what the developer actually paid for a site, he will allow the “benchmark land value” to be factored in to viability calculations if this is higher than the residual land value. Demonstrate the level of affordable housing that can be supported by a scheme; Produce a report confirming our findings; Negotiate directly with the Council or their representatives; Represent you in planning appeals – informal and formal appeal process; Act as an Expert Witness in support of the viability of the scheme So if the planning authority has a target of 35% affordable housing (to be delivered in a ratio of 70:30 – intermediate: social rent), then the developer needs to work out how much those affordable units would sell for to a registered provider of affordable housing, and how much the remaining 65% of market units would sell for. 1.3 The Council is building an evidence base alongside the viability work. DSP is a consultancy highly experienced in the preparation of viability assessments for local authority policy development - including whole plan viability, affordable housing and CIL economic viability. Sale Prices The viability appraisal should be supported by evidence from comparable development The role for viability assessment is primarily at the plan making stage. Affordable Housing Viability Assessments Affordable Housing can be a significant cost to Residential and Mixed Use development schemes and providing Affordable Housing in compliance with the Local Authority’s target can render some development schemes unviable. So the next step is to calculate this value. The report will determine whether or not the levels of affordable housing and CIL should be amended from current quantities. The maximum he will let developers factor in to viability calculations is the value a site has in its existing use plus a margin of 10-30% where appropriate (what he refers to as the “benchmark land value”). Published: 13 November 2014. Modern slavery and Human Trafficking Statement. 0000003939 00000 n Developers should not expect affordable housing provision or other planning obligations to be waived simply because the associated costs were not taken into account when the land was purchased. Plan. the affordable housing provision is minimised. Affordable Housing and Viability Assessment Process Information regarding the process for assessing affordable housing and viability can be found below. 0000007186 00000 n The viability assessment of recommended affordable housing contribution rates was premised on the equivalent monetary contribution of affordable housing. Sorry, your blog cannot share posts by email. 0000000016 00000 n affordable housing targets of 0% through to 50%, including 10%, 20%, 30%, 40% and 50%. When is an affordable housing financial viability assessment required? Required fields are marked *, You may use these HTML tags and attributes:

. �a�2@��9���^gq�m�}Tdr5[�.\j01 Step 3: Calculate the Benchmark Land Value: The benchmark land value is the value of a site in its existing use (say, use as an office building) plus a margin which could be between 10-30% (the margins quoted in the SPG). 1.1 The aim of this Affordable Housing Viability Assessment (AHVA) is to inform Pembrokeshire County Council’s Local Development Plan (LDP), in accordance with the requirements of the Welsh Assembly Government’s Technical Advice Note 2 (TAN 2) which emphasises the importance of testing the viability of affordable housing policy targets. Specifically, affordable housing targets of 0% through to 50%, including 10%, 15%, 20%, 25%, 30%, 35%, 40%, 45% and 50%. 0000002254 00000 n Sevenoaks District Council – Affordable Housing Viability Assessment housing needs, and information on the range of site sizes and types which are likely to come forward. There is a presumption that affordable housing … approach to local Affordable Housing policies. Step 2: Calculate the Residual Land Value: The next step is to work backwards from that hypothetical sales value to find out how much the developer could afford to pay for the site. Author: Catherine Howard, Partner, Planning, Real Estate, London, Your email address will not be published. Viability assessment should not compromise sustainable development but should be used to ensure that policies are realistic, and that the total cumulative cost of all relevant policies will not undermine deliverability of the plan. So the next step is to work out how much affordable housing the developer should be able to deliver on this site, while still making a fair profit. Our assessment of viability specifically focuses on current affordable housing requirements, CIL liabilities and other financial requirements specifically required under S106. 167 17 The assessment should: generate a residual land value, include a benchmark land value against which the viability of the development can be assessed, include evidence to support all values and costs included in the assessment, including the benchmark land value, identify and justify all the assumptions used in the viability assessment … NPTCBC – Affordable Housing Viability Assessment Procedures – March 2014 4 Number of Units This will also include the size of each unit in square metres (gross and net), number of beds and mix, car parking provision & number of storeys. %PDF-1.4 %���� ANALYSIS: A recent High Court judgment gives important guidance on valuation evidence for the purposes of viability assessments in planning applications and appeals. Step 1: Calculate the Gross Development Value: The first thing to do is to work out how much the total sales value of all the units in your development would be if they were sold with a fully policy compliant percentage of affordable housing. It is not peripheral, optional or cosmetic. The Viability Assessment conducted by Savills on behalf of LB Hackney assumes the land value to be zero and as such the deficit of the scheme overall means that 19.4% ‘is the maximum reasonable amount of affordable housing that can be xref 0000006657 00000 n The articles published on this website, current at the dates of publication set out above, are for reference purposes only. x�b```f``���$�x���Y862`�����k3��31Qg��#cޯ�5� The Council wished to test viability for a range of sites, and an appraisal approach was undertaken that would permit this reflecting a prescribed level of affordable housing and housing mix. Herbert Smith Freehills LLP is authorised and regulated by the Solicitors Regulation Authority. A viability assessment which supports the affordable housing requirements that will be set out as policy in the emerging Core Strategy/Local Plan and … It said that the developer must demonstrate that the maximum reasonable amount of affordable housing has been met when that amount is below the borough-wide affordable housing target. The Mayor wants to stop this by ’embedding’ delivery of policy compliant levels of affordable housing into land prices. This is part of our ‘back to basics’ affordable housing series. But for those developers who bought land before the SPG was published, what is viable for them to deliver in the real world and what the Mayor deems viable for them to deliver simply may not tally. report: ‘Stage 1 Assessment of the Viability of Affordable Housing, ommunity Infrastructure Levy and Local Plan.’ 2. Most frequently, VAs are used to seek a reduction in the amount of affordable housing which a LPA’s policy would otherwise require. 5Accessed at: http://shapingtheheartstroud.org/evidence/. This post is part of the following categories: In this blog post, we explain in simple terms how a developer is now expected to set the level of affordable housing which the Mayor of London deems viable for a particular site. The results indicate that a total of 761 883 new – dwellings per year are required in the District to 2026. These can include costs associated with unusual ground conditions, contamination, etc. Great Yarmouth BC - Affordable Housing Viability Assessment –October 2012Page 30. From: Homes and Communities Agency. 167 0 obj <> endobj Financial Viability Assessments based on such a premise are unlikely to carry any weight. They paid more than the benchmark land value for their sites, yet the Mayor is using the benchmark value to calculate what he deems should be viable for them to provide. Step 4: Comparing the Residual Land Value and the Benchmark Land Value: When the benchmark land value is higher than the residual land value, the Mayor would accept that it’s not viable for the developer to deliver the Council’s target level of affordable housing in their required 70:30 tenure split. 0000003862 00000 n And once you have the gross development value, it will be a matter of negotiation between the developer, the Council and the Mayor as to how this is achieved: what split between social rented units, intermediate units and market units must the developer commit to in the section 106 agreement in order to reach this gross development value?

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March 12, 2021

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