2 September 2024
Lightwood successfully challenges Three Rivers Affordable Housing Viability
The appeal decision was issued by the Planning Inspectorate on 2nd September, and whilst the application was refused on grounds of its impact on the character and appearance of the area (which we do not agree with obviously), the Inspector did agree with Lightwood in the determination of the reason to refuse on the grounds of the lack of provision of an affordable housing contribution.
A financial viability assessment was submitted with the application which demonstrated that no affordable contribution could be made. This was subsequently independently reviewed by Adams Integra, on behalf of the council who disagreed with the methodology used and sought a contribution of £96,201.
The matters in dispute were focussed on the Benchmark Land Value (BLV) used in the modelling. The Council’s conclusions were based on a figure derived from subtracting the Post Development Value (PDV) of the property from the Current Market Value (CMV) of the property to generate an Existing Use Value (EUV) for the development plot only. A 20% premium was then applied. The resultant figure equated to a land value of 14.3% of the Gross Development Value (GDV) which is significantly below accepted industry standards.
In contrast, Lightwood conclusion was based on the (CMV + 20% Premium) – PDV = BLV. This resulted in a land value of 35.7% of the GDV which is reflective of expected return. Subsequently, the Inspector was persuaded that this was the correct methodology to employ and therefore found no conflict with the requirements of Policy CP4 of the CS, the Affordable Housing Supplementary Planning Document (2011), or the Framework.
