Land acquisition price and planning policy compliance

An important principle in considering development viability is therefore that land should be acquired at a price that takes into account all known costs, including the costs of complying with all planning policy requirements. The price paid for land will therefore not be considered justification for failing to accord with relevant policies in the plan. In other words, overpaying for land/falls in land value should have been accounted for in the required developer's return and should not result in non-compliance with planning requirements. It is therefore important that all planning policy obligations, including the provision of affordable housing, should be factored in when considering how much to pay for land.