Object

Representation ID: 1726

Received: 30/01/2015

Respondent: Cogent Land LLP (Cogent)

We have reviewed the Viability Study supporting the PDCS, in particular the results of the viability appraisals run by BNP. Our client's particular concern relates to the "nominal" rate of £20 per sq m proposed by BNP, which has been applied to Market Areas 1-3.
We have reproduced the viability appraisal results for Typologies 7-9, which are based on policy compliant affordable housing (30%) provision and a residual Section 106 allowance of £1,012 per unit:
All of these results show that the Market Area 1-3 sites cannot support a CIL rate, even with varying BLVs. A point acknowledged by BNP, who commented "the results indicate that viability of residential development is currently challenging in certain locations". Even with reductions in affordable housing levels, BNP acknowledges that "the results indicate that viability of residential development is currently challenging in certain locations". These certain locations refer to Market Areas 1-3, with Areas 2-3 remaining widely unviable and Area 1 completely unviable.