Saturday, 19 October 2019 10:19

UDC WoB:Viability

UDC Local Plan Viability study does not take into account Interest on Land Acquired (contrary to Harman guidance and as found unsound by Inspector Clews in the NEA examination):

If the finance costs on land acquisition are not included, the viability analysis is unsound.

They are categorically not included as land being paid for throughout the development is not a mitigating factor as this approach still incurs huge interest - see the now correct Hyas analysis for NEA examination for the same WOB site which also acquires land over time - the interest cost is many multiples that shown in the UDC viability analysis.

If viability analysis which does not include Interest on Land Acquisition is found sound despite this being directly contrary to guidance and having a large impact, it would clearly be a matter for Judicial Review, but of course this should be avoided.