Viability factors: land value, costs, and developer return

As the diagram indicates, if land is overvalued or costs too high, it will reduce the amount available to ensure compliance with all policy requirements and/or the developer's return. Accordingly, correctly valuing the land ensures that the land is released for development, and that an appropriate developer return can be realised whilst meeting planning obligations in full. Therefore, by definition, reducing costs and or increasing final sale values will improve the viability of a particular scheme.