Discover Your Development's Full Potential.

As expert S106 Viability Consultant we help you navigate planning obligations strategically, optimize profits, and secure project approval with confidence.

S106 Viability Assessments

What is an S106 Viability Assessment?

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Why are S106 Viability Assessments Important?

When to Get an S106 Viability Assessment?

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What is an S106 Viability Assessment?

An S106 Viability Assessment is a crucial step in ensuring your development project achieves its full potential.

It's essentially a comprehensive analysis of the project's financial health, considering both the potential profits and the costs associated with fulfilling planning obligations, particularly those related to affordable housing under Section 106 agreements.

Why are S106 Viability Assessments Important?

By understanding the project's financial viability, you can:

Navigate Planning Approvals Smoothly.

Knowing realistic contribution levels helps in discussions with Local Planning Authorities (LPAs), leading to a more efficient approval process.

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Optimize Profits.

A viability assessment helps identify areas where costs can be strategically reduced, maximizing your project's profitability.

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Make Informed Decisions.

It empowers you to make informed choices about the project's design, scale, and features, ensuring it remains commercially viable.

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When to Get a S106 Viability Appraisal?

Starting your planning application with the right financial insights can help you negotiate better terms right from the outset.

So, best practice suggests including a viability report with your application, although later submissions are also accepted.

Because of this, we aim to turn around your assessment within 10 working days, equipping you with the necessary documentation to advance through planning negotiations or appeals smoothly.

Free Consultation

You can begin with a no-cost discussion to evaluate your project's specifics and potential challenges with Section 106 contributions. We’ll outline possible savings and provide a fixed fee quote, helping you understand the financial landscape without any initial investment.

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How We Work:

Our viability appraisals are designed to meticulously calculate the residual value of your property, ensuring the maximum profitability of your investment. Here’s how we do it:

Determine Gross Development Value (GDV):

We harness cutting-edge industry resources to access the most current and relevant sales data, both present and historic. This allows us to accurately establish your project's GDV, providing a solid foundation for financial projections.

Rigorous Benchmarking:

We meticulously benchmark the residual land value, considering every cost element. This thorough analysis not only sets the stage but also benchmarks your project against current market conditions, ensuring a competitive edge.

Calculate Build Costs:

Utilizing the Building Cost Information Service (BCIS) data, we accurately estimate all construction expenses. This crucial step ensures no detail is overlooked, from materials and labor to indirect costs, solidifying your project’s financial framework.

Optimize Section 106 Contributions:

With our deep understanding of local planning requirements, we strategically calculate the optimal level of Section 106 contributions. Our goal is to balance compliance with maximizing your profitability, paving the way for a successful project approval.

Maximize Your Development's Profit.

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Client Case Studies

Chorley, Case Study

Development Overview:

Project Type: New residential build.
Scope: 24 apartments, consisting of 17 one-bedroom and 7 two-bedroom units.

Local Planning Policy:

Authority: Chorley Council.
Requirement: 30% affordable housing, totaling 8 units as per local policy.

Consultancy Report Findings:

Economic Viability: A financial viability assessment demonstrated that requiring affordable housing contributions would make the project unfeasible.

Outcome:

Council Response: The council accepted the assessment, granting planning permission for 24 open market units without any affordable housing contributions.

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Bingley, Case Study

Development Overview:

Project Type: Construction of a two-storey building.
Scope: 16 self-contained residential units with a living roof, car parking, and landscaping.

Local Planning Policy:

Authority: Bradford Council.
Requirement: Up to 20% of units as affordable housing, as per policy HO11 of the Core Strategy.

Consultancy Report Findings:

Economic Viability: Analysis based on 100% open market value indicated a significant deficit relative to the required profit margins.
Affordable Housing Contribution: The financial shortfall meant that the development could not viably offer any affordable housing contributions or units.

Outcome:

Council Response: Bradford Council concurred with the consultancy's findings, acknowledging the project's economic constraints.

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Rickmansworth, Case Study

Development Overview:

Project Type: New build development.

Local Planning Policy:

Authority: Three Rivers District Council.
Requested S106 contributions of £339,175.

Outcome:

Following the submission of a Viability Assessment and negotiations with the LPA’s appointed surveyor we agreed a contribution of just £58,093.
Total £281,082 saving

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Ealing

Development Overview:

Project Type: New residential build.
Scope: A five-storey building offering commercial space, 12 self-contained residential units, communal roof garden, and private amenity spaces.

Local Planning Policy:

Authority: Ealing Council.
Requirement: Initially required a proportion of the 12 units to be affordable housing.

Consultancy Report Findings:

Profit Expectations: Identified profit margins at 17.5% on GDV for private housing and 15% on GDV for commercial spaces.
Residual Land Value: Calculated at £472,313.
Deficit Noted: A deficit of £17,687 below the Benchmark Land Value indicated that affordable housing contributions were not feasible.

Outcome:

Council Agreement: Accepted the report's findings; no affordable housing contributions required.

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