The Difference between an Affordable Housing Statement and a Financial Viability Appraisal

An Affordable Housing Statement and a Financial Viability Appraisal are both planning documents used in development proposals, but they serve different roles.

An Affordable Housing Statement is about policy compliance. It explains how a development meets the local authority's affordable housing requirements. This typically includes the proportion of affordable homes, the mix of tenures (such as social rent or shared ownership), the size and type of units. In simple terms, it answers: 'What affordable housing are we providing, and how does it comply with policy?'. It is usually required for most planing applications involving residential development.

A Financial Viability Appraisal on the other hand, is about financial justification. It assesses whether a development can realistically afford to meet those policy requirements. It can look at costs (like construction, finance and fees), expected revenues (sales values or rental income) and developer profit. If a developer claims they cannot meet the full affordable housing requirement, the FVA provides the evidence to support the claim. Essentially, it answers: 'Why can't we deliver the full policy requirements?'.

The key difference is:

  • The AHS sets out what is being delivered in terms of affordable housing.
  • The FVA explains why delivery may fall short of policy expectations.

In practice, if a scheme fully complies with affordable housing policy, only an AHS may be needed. If it does not, an FVA is typically submitted to justify the shortfall.

Viability Assessments: A Standard Viability Challenge
January 19, 2023

Viability Assessments: A Standard Viability Challenge

Applicants often have questions with the need for viability assessment and affordable housing. We hope the following will be of help.
Appeal win: Strategic 86 unit housing site appeal allowed with zero s106 contributions
February 11, 2022

Appeal win: Strategic 86 unit housing site appeal allowed with zero s106 contributions

Appeal win reducing 17 affordable houses to zero on the basis of high infrastructure costs. S106M provided viability reporting, extensive negotiations with the council and appeal statement of case and further affordable housing statements to support this recent Appeal in North East Lincolnshire for 68 houses and 18 apartments on part of a large strategic site adopted in the local plan and previously consented.
Section 73 Affordable Housing Renegotiation Post-Finney, Norfolk Homes and Armstrong
March 14, 2023

Section 73 Affordable Housing Renegotiation Post-Finney, Norfolk Homes and Armstrong

There has been much consideration over the usage of section 73 applications. In recent case law, three particular cases stand out.
High Section 106 costs are avoidable

Call us today for a free consultation. Market leader in viability assessment and Section 106 negotiation.

Call us now on
01392 840002
or
Request a call