Viability Appraisals

We provide and produce viability appraisals for all types of developments.  Viability Appraisals are sometimes required for the following things:

  • To demonstrate that a development is viable
  • To negotiate down the planning obligations and affordable housing requirements.

Demonstrating a development is viable

The National Planning Policy Framework states that developments should be deliverable.  Some Councils will require the provision of a viability appraisal report which demonstrates that the proposal is likely to be viable, whilst taking into account a number of considerations such as Gross Development Value (GDV), Developers reasonable profit margin (typically 15% to 22%) and the costs associated with the delivery of the development as well as the sales costs.

Negotiating Down Planning Obligations and Affordable Housing Requirements

In some cases we have successfully argued that no planning obligations or affordable housing can be provided for the development.  Councils will have standard requirements for certain developments to provide planning contributions and affordable housing.  If it can be demonstrated that by providing these things the development would not be viable, then the requirements can be negotiated down or even removed entirely.   In normal circumstances where planning obligations and affordable housing requirements are negotiated down there will be some abnormal costs associated with a development, such as contamination, demolition, archaeology or other types of works which have a high cost.  Or in some circumstances the sales value of the properties against the build cost means that the affordable housing and planning obligations are not reasonably achievable.

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