Belfast·SPG002 Development Viability·Page 15·4.3.1
Benchmark land value definition and purpose
Benchmark land value is the estimated lowest price at which a landowner would release an unconstrained site for policy-compliant development, accounting for existing use value plus an incentive premium.
As outlined above, part of the approach used in development viability testing is to consider how the residual amount available to purchase land may compare to a benchmark land value, which is an estimate of the lowest value a landowner may release a reasonably unconstrained site for policy compliant development. This takes account of the existing use value of the site along with a premium to incentivise sale.
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