Object

Representation ID: 1725

Received: 30/01/2015

Respondent: Cogent Land LLP (Cogent)

Developer's Profit
The minimum acceptable profit margin for the lending institutions and national house builders is a minimum of 20% on GDV blended across both the private and affordable dwellings. At present, the viability appraisals assume 20% on GDV for the private housing and 6% on cost for the affordable, which equates to a blended rate of approximately 17.5% on GDV.
We would therefore ask that an allowance of 20% on GDV is included in the viability testing. This profit level was endorsed via the Manor appeal decision in Shinfield. It has also been included in Maldon District Council's supporting viability work produced by HDH Planning & Development who are currently preparing supporting viability evidence for 24 Local Authorities.14