RICS issues fresh viability guidance

The RICS has issued new guidance for viability assessments in planning to ensure developers commit to adequate infrastructure and affordable housing levels, irrelevant of the cost of land. The guidance seeks to overcome arguments of high land prices to justify low developer contributions and low developer contributions fuelling higher land pricing. The RICS note replaces advice issued in 2012. It follows the 2018 updated government planning practice guidance, following concerns about the way viability assessments were being used. Developer contributions are a highly contentious topic, with many arguing that a requirement to provide affordable housing is stunting development potential. Earlier this month, Landsec chief Mark Allan fired a warning shot at property executives that complain about these costs. Allan said there was “something not quite right” about developers saying they were out of pocket while simultaneously receiving large bonuses. The RICS guidance was developed by a cross-sector working group including the Royal Town Planning Institute, Planning Officers Society and the Law Society. Simon Radford, chair of the working group, said: “We have learned the importance of high-quality built and natural environments during this pandemic. “Improving the conditions of existing communities and building new ones to a higher standard is a common objective for all involved in the development sector. This guidance will help to achieve this through the planning system in a balanced and transparent way.”   To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette