RICS publish new draft guidance on Financial Viability in Planning
Following revisions to the National Planning Policy Framework and Planning Practice Guidance, during 2018-2019, as well as landmark High Court Rulings on market valuations, the Royal Institute of Chartered Surveyors have updated their guidance on viability in planning. Viability Assessments are a well-established process in planning applications and examine whether a development is capable of providing affordable housing and other planning contributions in line with policy requirements.
The draft RICS guidance focuses on the Financial Viability Appraisal, used in plan making and decision taking. In particular, the guidance focuses on confirming the standard inputs used when preparing a viability report, which include Existing Use Value (EUV) and landowner premium. On the face of it, the RICS guidance now bears a closer resemblance to national guidance, providing clarity for both specialist viability consultants and planning authorities, which is most relevant when dealing with large and complex brownfield sites.
Consultation on the RICS guidance ended on the 9th February 2020, with the revised guidance due to be published later this year.
Optmis is able to offer a service to negotiate planning obligations with Councils on viability grounds. We have prepared viability assessments on behalf of our clients and have consistently delivered a reduction in the level of financial contributions required. We are experts at ensuring that S106 agreements and unilateral undertakings are appropriate , and the sums contained within are reasonable for the development in question. We negotiate with the Council on behalf of the client, and have a good record of reducing excessive planning obligations.
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