The Golden Rule for Viability

Whilst the NPPF has carried forward many of the changes proposed from the consultation back in the Summer, we were glad to see that that the proposals for the implementation of an indicative benchmark land value for development in the Green Belt didn’t make the cut and Annex 4 of the draft has been omitted. Although more may follow on this in 2025…

 

Paragraphs 156 - 157 of the new NPPF requires all development in the Green Belt to adhere to the new ‘golden rules’ which are listed as follows:

 

• Provide an affordable housing contribution of 15% above the existing affordable requirement subject to a cap of 50%. In the absence of a pre-existing requirement for affordable, a 50% affordable housing contribution would apply by default.

 

• Necessary improvements to local or national infrastructure; and

 

• New, or improvements to existing green spaces.

 

Contrary to the position stated at paragraph 67(b) of the NPPF, the updated Viability commentary in the Planning Practice Guidance advises that for development that takes place on land situated in the Green Belt which is subject to the ‘Golden Rules’, site specific viability assessments should not be undertaken for the purpose of reducing development contributions, including affordable housing.

 

We understand that this is a temporary position, whilst the Government undertake a review of the viability Planning Practice Guidance in the new year and that this position applies only to Green Belt sites. The Government's review will consider circumstances in which site-specific viability assessments are allowed, including on large sites and previously developed land.

 

As part of the Government’s response to the consultation, it was also confirmed that the application of benchmark land values for land released in the Green Belt has not been muted yet and would still be considered as part of the review undertaken next year. As set out within our response to the consultation, the application of a benchmark land value needs to be carefully considered to reflect locational disparities and differing site circumstances, so as not to prohibit sites from coming forward. It is our view that benchmark land values should continue to be carried out based on the approach set out in the current Planning Practice Guidance, which is tested at the plan-making stage at a local level.

 

We are closely monitoring the situation and will provide further updates as they become available but please do not hesitate to contact Danielle Lawrence if you have any queries in the meantime.