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Financial Viability Assessments

Local Planning application requirements

Guidance

On-site affordable housing is sought on all developments of 10 residential units or more. Validation of a planning application will be subject to supporting viability information which is to include:

  1. A fully working software model that can be tested (our preference is for Argus Developer) however, for larger and more complex schemes, bespoke financial models are often produced using alternative software. We will accept alternative appraisal models in these circumstances.
  2. An Executive Summary Report.

This should provide a full supporting narrative to substantiate the inputs and assumptions made in the appraisal. This is to be a simplified version of the assessment that may aggregate costs provided the full FVA explicitly breaks down the costs. It should summarise the key inputs, findings and conclusions for the lay reader;

       3. A full Financial Viability Assessment

This document will need to contain sufficient details to enable the council to consider, interrogate and understand the financial viability of the scheme. This document should be formed in accordance with this SPD and the Council’s Local Validation Requirements Checklist. More specifically, it should contain detailed information on the following:

  • Development value
  • Scheme details and development programme
  • Affordable housing values
  • Build and other costs
  • Developer profit
  • Benchmark land value
  • Planning contributions
  • Development finance
  • Working Appraisal Model (such as Argus Developer).

        4. An Appraisal Inputs Summary Sheet

This should set out the key inputs and conclusions of the FVA. This should be submitted in Excel format.

        5. A statement of objectivity, impartiality and reasonableness

This is to confirm parties have acted with objectivity, impartially and without interference

        6. A confirmation of instructions and confirmation of no conflicts of interest

        7. A no contingent fee statement

This is a statement confirming that in preparing a report, no performance related or contingent fees have been agreed. 

When required

Required for all applications where policy compliant planning obligations are not proposed. This includes level of affordable housing and affordable student accommodation (where applicable).

Policy/drivers