1. Viability Course Planning Inspectorate Perspective

2. Introduction Perspective based on –Appeal decisions –Development Plan Reports –Court Decisions

3. Why important

4. Development Planning Message from Blyth Valley –Targets – basis for –Get real –Justify assumptions

5. Development Plan Reports Stockton-on-Tees Sample of 14 sites Residual method Importance of variables Infinity Bridge

6. Barking and Dagenham Viability benchmark issue - 15% not accepted Grant situation Policy evidence lacking

7. Wandsworth Viability benchmark issue Borough wide approach using differing variables 72,576 individual residual valuations 15% viability benchmark accepted

8. Economic situation Wakefield Core Strategy Challenge based on Blyth Valley and PPS 3 Inspector view – property cycle High Court – “no evidence that former strong market conditions would not return at some time during the life of the plan”

9. Appeals Forest of Dean Appellant – current market conditions LPA favoured use of forward projections Scale and timing of development critical Contrast with Godalming

10. Forest of Dean continued Inspector conclusions SoS agrees with Inspector High Court – Mr Justice Nichol dismisses challenge to the SoS decision

11. Clay Farm Appeal Appellant argument – developments unable to sustain affordable homes at 40% Appellant wanted a phased viability scheme Requirement of 40% affordable housing not viable in current circumstances

12. Appeals – Clay Farm Essence of dispute Council - Affordable element immutable - use residential land value Appellant – land price fixed development cost - affordable housing a variable residual figure

13. Clay Farm RLV approach favoured Appellants approach – protects developers from falls in land prices 20 % profit level because of risk like falls in land values Appellants approach at expense of affordable housing

14. Clay Farm Secretary of State Agreed with Inspector Appellants approach – “insulating the developer against a risk for which he is already indemnified by profit margins..”

15. Conclusions Guidance and experience building up Must look at circumstances and longer term Understanding of basic principles important Remember not just about housing DELIVERY is the name of the game