Most of you will be familiar with requests from planning officers for a Late Review Mechanism if your development is providing a reduced level of Affordable Housing.
What is less well known is that the LPA needs to have a planning policy to support its request.
This follows through from the NPPF Viability Guidance set out below:
How should viability be reviewed during the lifetime of a project?
Plans should set out circumstances where review mechanisms may be appropriate, as well as clear process and terms of engagement regarding how and when viability will be reassessed over the lifetime of the development to ensure policy compliance and optimal public benefits through economic cycles. Policy compliant means development which fully complies with up to date plan policies. A decision maker can give appropriate weight to emerging policies.
Local Planning Authorities tend rely on a rather benevolent interpretation of these rules and we have been able to persuade LPA’s of the weakness of their position by referring to the above guidance, and appropriate planning appeal decisions.
This is important as LRM mechanisms are a significant negative factor in property trading and financial gearing. It is better to get the position right first time round – rather than seeking to renegotiate later.
You may find this information useful in dialogue with your planning officer.
This advice could well save you hundreds of thousands of pounds in the future – so remember it well!
Do get in contact with us today if you need help.
