Land Promotion, Value Building, and More

Land Use Viability

Local plans often have policies regarding employment land. This can include things such as public houses, and leisure use. This can impact on your development if you are proposing a change of use that the local plan disagrees with. We can help you to navigate this area by providing viability reporting to illustrate whether the current uses are financially viable.

This can help to justify the loss of employment land in favour of residential development and enable different uses within a priority employment land.

If you’re taking on a change of use project, get in touch today for a free consultation.

 

Land Promotion Support

Land promotion can be a complex process, but it doesn’t need to be. There are a number of things to consider when entering into a land promotion agreement.

The first is that typically, the costs of affordable housing or other planning obligations and requirements will be borne by the land owner. The developer will do the work in terms of securing planning permission – and often this means overlooking or accepting any requested payments or affordable housing units. If you’re a landowner in this situation, you should be insisting that your developer submit a viability report as part of their planning application.

Many landowners enter into promotion agreements, or option agreements, with developers. While such arrangements can be mutually beneficial, it can mean that the costs of Affordable Housing or other planning obligations are placed with the landowner. This extends to requirements such as schools, roads, other infrastructure, and more.

Our Land Promotion Support service helps to put the power back in your hands. We can provide advice and support, empowering you to tackle the viability of the development with your developer. This will mean you don’t pay any more than is necessary and viable.

We can provide the necessary report. Get in touch for a free initial consultation.

 

Rural Exception Site Modelling

Rural Exception Sites are slightly different in that these are ares where development would not usually be allowed, however sites are permitted for providing Affordable Housing in perpetuity.

Market rate housing is sometimes permitted on these sites alongside the Affordable Housing units. This tends to be allowed in cases where the open market housing iscrucial to being able to take the site forward; the value of open market housing can be used to enable affordable units where grant funding is not being used.

This is where our expertise comes in to play. We will discuss the site with you and identify where it may be possible to negotiate for providing a number of open market housing on a Rural Exception Site, alongside the planned Affordable Housing.

Get in touch today for a free no-obligation chat with one ofour consultants.

 

Renegotiations

Already have planning permission? We can liaise with the relevant Local Planning Authority on your behalf in order to renegotiate the terms. It should be noted that this is a cooperative, not adversarial, process in which both sides come to a mutually beneficial agreement.

Section 106 Agreements and Unilateral Undertakings are contracts, and therefore they are only renegotiable if both sides agree.Typically, LPAs are reluctant to forego the already agreed benefits. Therefore, renegotiation is usually best achieved by obtaining a new planning consent.This enables the section 106 agreement to be replaced, rather than renegotiating the existing agreement.

There are two ways of doing this: submitting a duplicate planning application, or, in some cases, a Section 73 application. Both of these methods create new planning consents, requiring a fresh Section 106 Agreement.

However it should be noted that this will not be effective if there is a pre-existing breach of the existing agreement. If you are in a situation where you are looking to renegotiate your Section 106 obligations, get in touch with us today.

Early and Late Review Viability Reporting

Early and Late Review Mechanisms are put in place to require a developer to provide a new development viability report after a certain number of units are built on site. This will provide a more accurate financial picture, and can either demonstrate ability or inability to provide required financial obligations or an agreed number of units.

London Boroughs were early to adopt early and late review mechanisms, and therefore many sites are now at the stage where these review mechanisms are coming in to play.

If you have signed an early or late review mechanism, or find yourself in need of an updated viability report, get in touch with us today.

Find out more about review mechanisms in this article.

Value Building

All of the relevant benefits associated with site viability, including provision of affordable housing units and payments in lieu, are paid for by the perceived uplift in land value generated by a grant of planning permission.

Therefore, if your land is of low value – such as having no existing use – and you bring forward a development exceeding the Local Planning Authority’s threshold for Affordable Housing, it will be difficult to argue that provision of such units are unviable. Typically this threshold is 10 units. As such, it may be advantageous to bring forward a development of 9 units, establishing a land value without triggering affordable housing requirements. This can then be used as an interim step to establish a land value, before moving to your full plans.

If this sounds like a situation you are in, get in touchwith us today to find out how we can help.

Local Plan Viability Studies

S106 Management bring over a decade's experience insite-specific viability appraisals to the production of local plan viabilitystudies. Our comprehensive experience, along with an extensive catalogue of site-specific appraisals countrywide, gives us a unique approach.

Find out more about our Local Plan Viability Studies service and how we can help.

High Section 106 costs are avoidable

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

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