Whilst the English, Welsh and Scottish planning systems have their differences, this article from the on line planning newsletter makes fascinating reading:
"Development viability has increasingly become a planning issue in recent years. This is in no small measure due to paragraph 29 of PPS3, which urges local authorities to ensure that affordable housing policies do not make development unviable."
"...developer profit is a key consideration. In normal market conditions, this figure settled at around 15 per cent of gross development value (GDV). In the credit crunch, lenders have been more demanding, with developers needing to show profits of between 20 and 25 per cent."
"In practice, greenfield sites will deliver substantially higher uplifts even with very significant levels of affordable housing and other forms of section 106 benefits. But the precise figure at which landowners will choose to release land will be down to the individual."
For full insight I recommend reading the full item which can be found here
There is also a short item from Huw Morris
"With just 1.1 per cent of the country taken up by homes, it is little wonder that land prices have gone through the roof and affordability is a distant memory."
Click here
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