Lead Forensics
Prettys Solicitors Ipswich

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Development Viability, Affordable Housing and Land Sale Prices – a valuable lesson in valuation

The recent judicial review case of Parkhurst Road Limited v Secretary of State for Housing CLG and London Borough of Islington 2018 is a salient reminder that the starting point in valuing a development site requires an assumption that account must be taken of the costs of complying with all relevant planning policies.

In this case a developer that had paid £13.25m for a site for the construction of 112 homes was refused planning permission for failing to comply with the Council's affordable housing planning policy and had to go to the High Court resulting in significant delays and costs.

In this important decision, the Court prioritised Islington’s 50% affordable housing planning target across the Borough against the price paid by the developer and the site viability assessment that had resulted in a reduced affordable housing offer of 10%, following that assessment.

The key points of note arising from this case are that developers should:

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