49. Viability Assessment
What is it?
A scheme is viable where, after taking account of all costs, the proposal provides a competitive return to the developer to ensure that development takes pace and generates a land value sufficient to persuade a land owner to sell the land for the development proposed. If these conditions are not met, a scheme will not be delivered.
The Plan Strategy recognises that certain planning policy requirements may raise the issue of viability, such as the requirement to provide affordable housing under Policy HOU5, demolition of a building under Policy BH2 or loss of tourism leisure and cultural facilities and assets under Policy TLC2.
The financial viability of proposals may therefore in some circumstances be a material planning consideration.
A Viability Assessment assesses whether a development proposal is viable.
When is it required?
A Viability Assessment should be provided with applications where the normal planning policy requirement cannot be achieved on grounds of viability, such as:
- the provision of affordable housing in accordance with Policy HOU5 of the Plan Strategy
- demolition of a building that makes a material contribution to the character and appearance of a Conservation Area, having regard to Policy BH2 of the Plan Strategy
- loss of existing tourism or cultural facilities in the context of Policy TLC2 of the Plan Strategy
What should be included?
The Viability Assessment should be based on the factors set out at paragraph 6.2.2 of the Development Viability Supplementary Planning Guidance.
It should include an “Executive Summary” based on the template at Appendix 2 of the Supplementary Planning Guidance (Please note that the Executive Summary will be published on the NI Planning Portal alongside the other main application documents).
Guidance
A Viability Assessment should be carried out by a suitably qualified professional such as a quantity surveyor.
The Council may choose to commission an independent review of the Viability Assessment the cost of which will be met by the applicant.
The Viability Assessment will often contain sensitive commercial information and will not be published on the NI Planning Portal. However, the Executive Summary provided as part of the Viability Assessment will be published.
Further guidance is provided by the Council’s Development Viability Supplementary Planning Guidance.
