Dwellings and non-residential floor space includes both new build and changes of use / conversions.
All applications that meet the above triggers must be accompanied by a fully completed ‘Planning obligations pro forma statement’ which is available for download on the council’s website.
Where a developer considers that it is not financially viable to enter into an agreement, or that they can only make reduced payments from that sought by the city council, then a clear and robust unredacted financial viability assessment, to include an executive summary, will be required. An application will not be considered as ‘valid’ unless a financial viability assessment has been submitted.
Further details of what should be included within the viability assessment are detailed within the Planning obligations pro forma statement. (Available via the link above.)
In line with paragraph 058 of the NPPF and paragraph 021 of the planning practice guidance on viability, applicants should be aware that viability assessments will be made publicly available in the same manner as other documents that form part of the planning application submission. An executive summary should also be submitted. In line with paragraph 021 of the practice guidance as a minimum, the government recommends that the executive summary sets out the gross development value, benchmark land value including landowner premium, costs, and return to developer.
An applicant may claim an exemption from publication of their viability assessment on the grounds of commercial sensitivity. Such claims must be supported by robust and proper justification prior to the submission of a planning application.
In these circumstances the applicant will need to identify specifically what information they consider to be sensitive and why. Only in exceptional circumstances will an applicant’s financial viability assessment not be published in full. If a claim for an exemption is submitted, the council will not validate the associated planning application until agreement has been reached about the level of information to be published. In order to avoid unnecessary delays in the validation of an application, applicants are advised to discuss this with the council at pre-application stage.
If, following an appraisal of an applicant’s financial viability assessment, the council does not agree with the applicant’s position, discussions will often take place to reach an agreed position. In these cases, the financial viability assessment finally agreed between the applicant and the council will also be published on the council’s website. Both published assessments must be submitted in the same format so that changes can be easily understood.
Regard will need to be had to the RICS professional standards and guidance ‘Financial viability in planning: conduct and reporting’ when producing a viability assessment at the planning application stage. (see link below)
Further guidance on viability can be found on GOV.UK and within the RICS professional standards and guidance ‘Financial viability in planning: conduct and reporting’.