Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment her Department has made of the adequacy of the accuracy of financial viability assessments used in the planning process.

The government is committed to strengthening the system of developer contributions to ensure new developments provide necessary affordable homes and infrastructure. As part of this commitment, we are reviewing Planning Practice Guidance (PPG) on viability, and expect to provide a further update by the end of spring.

It is already the case, as set out in the viability PPG, that any viability assessment should be prepared with professional integrity by a suitably qualified practitioner and be presented in accordance with the guidance. The inputs and findings of any viability assessment should be set out in a way that aids clear interpretation and interrogation by decision makers.

Reports and findings should clearly state what assumptions have been made about costs and values (including gross development value, benchmark land value including the landowner premium, developer’s return and costs).

Any viability assessment should be prepared on the basis that it will be made publicly available other than in exceptional circumstances.