Scheme viability

Affordable housing and s106 contributions are usually the highest cost liability for most development projects and  will have a considerable impact upon overall project viability.

The economic viability of land for housing is affected by a wide range of factors:

• Abnormal site development costs
• Grant availability
• The amount of affordable housing required
• The tenure of the affordable housing
• Contributions to education, highways, transport, community facilities and open space

The cost of these factors can be significant and, although often factored into the cost of the land, variations in any of them can have an impact on residual value and therefore the viability of a scheme.

Pendimo can provide an economic appraisal of the costs of development and of the returns that will be necessary to demonstrate the level of planning obligations that can be generated from the development.

Appraisals should be presented on a residual land value basis and include a reasonable profit margin, valuation on current (or last) use and details of any abnormal development costs associated with the site.

Pendimo Land + Property Consultants are well placed to provide up to date relevant advice that assists the landowner in reducing their s106 contributions thus making the development financially viable.

For more information on these services please contact us on 01858 810000 or email info@pendimo.co.uk