Viability Assessment Methodology and Principles

Where the total cost of delivery, including a reasonable return for a developer, equals or is below the total development value, developments are considered viable. Where an element of 'headroom' exists, this would allow a developer to compete for land above the benchmark land value. When assessing viability on a site-specific basis, the Council will: • Assume a reasonable level of profit for the developer; • Assume a reasonable return for the landowner; • Understand and allow for consideration of risk; • Build contingency into costs; • Take account of all construction, development and financing costs; • Take account of the delivery method and delivery timescales, and • Reflect local circumstances.