Many developers are surprised to learn that the National Planning guidance states ‘The price paid for land is not a relevant justification for failing to accord with relevant policies in the plan’.
Planning Guidance (https://www.gov.uk/guidance/viability) instead looks to assess the value of land by reference to Existing Use Value + a variable landowner premium, or an Alternate Use Value, which may or may not correlate with the purchase price.
Existing Use Value may sometimes be ascertained quickly and easily; however, on many occasions it requires specialist assessment. It can also be useful to consider and ‘bank’ any Permitted Development Rights or sub-threshold planning consents that may be available before submitting your optimum planning application, as this can improve valuation of more complex sites, supporting subsequent applications.
S106 Management will be pleased to provide an overview on optimising your site’s Existing Use Value, or Alternate Use Value.