Policy GESP43: Viability
To ensure that developments provide the necessary, planned requirements to create and maintain sustainable settlements and neighbourhoods, deviation from policy requirements on grounds of viability will only be considered appropriate where one or more of the following have occurred to a significant degree since the adoption of the GESP and/or relevant local plan(s):
- Increases in infrastructure or abnormal development costs which could not reasonably have been foreseen at the time of the GESP’s and/or local plan’s adoption
- Adverse changes in building costs relative to sales values
- Worsening of local market conditions such as a prolonged recession or an extraordinary local event demonstrably affecting incomes and development values
A viability appraisal of the development proposal will need to be submitted by the applicants explaining the circumstances which have led to the changes in viability since the GESP and/or local plan adoption. Any variation from the proposed policy requirements, and deviation from the assumption that site-specific infrastructure will be funded by development, will need to be justified.
The Greater Exeter councils will recover from applicants their reasonable costs associated with an independent assessment of submitted viability appraisals where a deviation from policy requirements is sought. The submitted viability appraisal and the independent review will be published by the local planning authority with the planning application documentation.
Where policy requirements are not met due to an agreed viability reason the viability of the proposal will be reviewed every three years in accordance with the requirements of this policy to seek to achieve full policy compliance in later development phases.
10.22 In order to have an effective plan, it is important that its development proposals are viable. In this context, viable means that they can be constructed meeting the planning requirements and still allow a reasonable incentive to a landowner to sell, and a suitable return to a developer reflecting the risk of development.
10.23 Planning Practice Guidance identifies that viability appraisal for development proposals is an integral part of the plan-making process. Allocations for the GESP will be considered in the context of policy requirements from both the GESP and local plans to establish their viability. This exercise will increase the likelihood that policy compliant development will come forward delivering the infrastructure, affordable housing and build-quality required to provide great places.
10.24 The assumption contained in national policy is that viability assessment is undertaken primarily at plan-making stage, and that proposals should therefore come forward in accordance with the GESP and local policies. However, draft policy GESP43 recognises that after the adoption of the GESP circumstances could change so significantly that viability may be affected. The policy indicates two potential changes which could be relevant, either site-specific or the state of the local and national economy. Under these circumstances, a site developer might submit a new assessment of development viability which indicates that a revised approach to the development of the site may be warranted. This process will need to be carefully justified and comprehensive evidence of changes will need to be provided. The proposed viability review mechanism in draft policy GESP43 will help to deliver the policy requirements later in the plan period.
10.25 The policy content of the plan has not yet been viability tested and therefore policy requirements may need to be revised in future versions of the plan.