RICS defines “financial viability” for planners and developers
Planners and house builders baffled by the requirement to build “financially viable” developments can now obtain guidance from the Royal Institution of Chartered Surveyors (RICS).
Since the adoption of the Government’s National Planning Policy Framework, developers and local authorities can be required to demonstrate that developments are both financially viable and meet the needs of the local community.
However, until now, no universally accepted definition of “financial viability” has existed, meaning that many potential projects have either been delayed or scrapped.
According to the RICS, its new guidance provides an objective and transparent definition of “financial viability” in a planning context and will help town planners, developers and councillors deliver new, sustainably funded communities, in places where people actually want to live.
RICS spokesperson, Simon Radford, comments: “Since the onset of the financial crisis, many planners and developers have been seriously challenged as to how best to promote growth and develop local communities in a cost effective way.”
He adds: “We hope this guidance will help all involved in delivering sustainable developments across the country to meet community needs as well as providing an appropriate return for carrying out these developments.”