How to demonstrate deliverability at examination?

Hi Matthew,
I would suggest carrying out some viability assessments, this would then allow the Council to be able to establish whether there is a realistic prospect that development will be deliverable.
If your talking about CS sites then these are likely to require considerable investment in both on and off-site infrastructure and will be delivered in a number of phases. As such I'd anticipate that the developer(s) would secure the investment for and delivery of the site over the development period to enable each phase of development to come forward to the market as serviced plots. This is a common approach for such strategic sites.
Each serviced plot/phase would then be developed as they become available. This approach makes it easier for the land owners to be recompended for their land and investment from the sale values to pay for the next phase of development.
Development viability will depend on the ability of the development to achieve a realistic plot value, and the ability for this to then generate a sufficient return to the investors on their initial investment in infrastructure compared to their estimated existing land value and other forms of investment that may be open to them. The return to the developer also needs to be taken into consideration becasue of the risks involved in progressing development and in particular the timescales in which a positive return on investment is achieved.
One further assumes that since the delivery of the sites are likely to be at an earily stage in the process, broad but reasonable assumptions as to value and costs need to be made and then tested for sensitivity against a range of scenarios. This then provides an overall range of potential values achieved and enables a viewof viability to be taken that does not simply reflect the current market conditions.
To carry out such assessments I'd suggest that a cash flow (CF) appraisal model be used as it allows viability to assessed over the whole development from start to finish.
I hope this helps.

If you are looking at viability issues you will find the handbook on our website useful - http://www.pas.gov.uk/pas/core/page.do?pageId=575110 .

There are also appraisal models on our website that may be of assistance. For strategic level it should not be necessary to do a vaibility appraisal for each site but look at types of sites and different scenarios - with different market conditions that will cover the plan period.

We are working with the HCA to prepare an Area Wide Viability Model for Milton Keynes. If you would like more information about this please contact me: bob.wilson@milton-keynes.gov.uk

Some of the PINS advisory visits and their Lessons Learnt document provide some useful pointers. Below are some links including the PINS advisory visit to Wigan which itself drew heavily from the West of Bewbush viability work that supported a strategic allocation in a Core Strategy. A key overall message is to be pragmatic in the approach - with more information likely to be available for those sites/infrastructure anticipated early in the programme than those due later on.

http://www.planningportal.gov.uk/uploads/pins/ldf_learning_experience_sept2009.pdf

http://www.wigan.gov.uk/NR/rdonlyres/05716095-ED9F-4165-A458-C03C6C8C1997/0/InspectorsNote63kb.pdf

http://www.westofcrawley.gov.uk/Assets/ExamStatements/HDCB_Issue6.pdf

Feel free to contact me, as we in ATLAS are working with several Authorities allocating strategic sites either as part of the CS or AAP .

Rob Smith - ATLAS
rob.smith@hca.gsx.gov.uk

www.atlasplanning.com

Matthew

Some good advice above on market viability detail. it will also depend on what stage you are at-CS/AAP/Directions of Growth/Strategic Site allocation etc etc and balance of evidence required.

On the infrastructure side it is important you can also demonstate a proactive process in assessing/rationalising requirements by advancing discussions with other agencies and utilities as well as the private sector interests and a process for review as part of your active monitoring. We've been working with Prospect Leicestershire (LDV) on such an approach with a number of Leics local authorities including HBBC next to you, with PL providing a role on assessment/delivery/viability.

Suggest you have a discussion with HBBC and/or PL . David Beale at PL can advise-0116 2488128. Also remember the "unofficial" 5 year infrastructure/housing delivery rule of thumb.

Good Luck.

Paul McKim
07512 903283

We've used the District Valuation Office and it has been a reasonably good approach to assessing viability for our Core Strategy broad locations. We've worked out key infrastructure costs, the costs of dealing with constraints and expected developer contributions in house and fed those into the DVs assessments.