Scheme Viability Assessment Framework

Scheme viability is a material consideration in the determination of all planning applications where it can be demonstrated that the costs of meeting policy requirements in full may render a scheme economically unviable. In simple terms, a development is viable where, after taking account of all costs, the final scheme will provide a suitable return to the developer and provide a land value sufficient to persuade a landowner to sell the land for the development proposed. If these conditions are not met, a scheme is unlikely to be delivered. Where this is accepted, the Council will follow the Residual Land Value (RLV) method, which is an equation where a combination of inputs can be used to calculate the missing element. The four key inputs used as part of this method of determining development viability are: • Benchmark land value • Construction/development costs, • Developer return and • The costs of compliance with other policies.