Sibbett Gregory

THE VALUE OF A PLANNING CONSENT

Financial appraisals are now the key for planning. The outcome of planning applications will now, more than ever, be influenced by financial considerations.
With so many financial demands now being made on development sites, it is becoming increasingly important that developers take these demands into account in bidding to buy sites.

As an essential part of the development process, developers will need to provide financial appraisals with their planning applications, to demonstrate the maximum level of ‘planning gain’ contributions which individual schemes can afford.

This is particularly the case where local planning authorities are seeking to maximise the provision of affordable housing by lowering or removing altogether the threshold at which contributions are required. Until now, affordable housing provisions have generally only applied to development of more than 14 units.

In the meantime, the Government is still pressing ahead with plans to introduce a Community Infrastructure Levy which will be managed by local authorities and which will relate to infrastructure within the immediate locality of the application site and across a wider area.

Developers are already frequently making contributions for open space, recreational facilities, transportation improvements and charges to improve and manage Dorset Heathland. The danger is that the changing planning requirements can easily render a development unviable when land is held for any time, prior to submission of an application.

Malcolm Brown, Planning Director at Sibbett Gregory recommends developers of both housing and commercial sites to formulate a detailed financial appraisal which can accompany a planning application, prior to committing to purchase a site. A convincing development appraisal will assist in minimising contributions towards affordable housing and other planning contributions in order to maintain the overall viability of the proposed development.

Sibbett Gregory has considerable experience and expertise in assisting developers through the entire planning process including detailed advice relating to financial appraisals. For further assistance, contact Malcolm Brown 01202 661177 or malcolm@sibbettgregory.com