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Rossendale Local Plan Economic Viability Assessment

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Rossendale Local Plan Economic Viability Assessment ROSSENDALE LOCAL PLAN ECONOMIC VIABILITY ASSESSMENT ______________________________________________________________________ PREPARED ON BEHALF OF ROSSENDALE BOROUGH COUNCIL MARCH 2019 TABLE OF CONTENTS ________________________________________________________________________________________ 1.0 INTRODUCTION ................................................................................................... 1 2.0 PLANNING POLICY CONTEXT ................................................................................. 5 3.0 METHODOLOGY .................................................................................................. 14 4.0 OVERVIEW OF ROSSENDALE ................................................................................ 31 5.0 FINANCIAL APPRAISAL ASSUMPTIONS .................................................................. 56 6.0 VIABILITY TESTING RESULTS ............................................................................... 73 7.0 PLAN VIABILITY AND DELIVERY .......................................................................... 103 Appendices Appendix 1 – Planning Application Analysis Appendix 2 – New Build Sales Evidence Appendix 3 – Industrial Submarket Report Appendix 4 – Retail Submarket Report Appendix 5 – QS Report Appendix 6 – Allocations Assumptions and Results 1.0 INTRODUCTION 1.0 INTRODUCTION _____________________________________________________________________ 1.01 Rossendale Borough Council (‘the Council’) is preparing a new Local Plan. This plan seeks to promote sustainable housing and employment growth whilst at the same time protecting and enhancing the special valley and moorland setting of the Borough. The plan will provide the statutory planning framework for the Borough for the period 2019 to 2034 and will be used to guide decisions on planning applications and areas where investment should be prioritised. The Plan contains site allocations for new housing and employment together with the local policies containing requirements to guide the consideration of planning applications for new development. Once adopted the new Local Plan will replace the Adopted Core Strategy 2011. 1.02 A number of the Local Plan policies may impact on the viability of development and in accordance with the National Planning Policy Framework (NPPF) the Council needs to be satisfied that these policies do not undermine the delivery of the plan. Similarly the Council needs to be satisfied that the site allocations contained within the plan are deliverable and are not subject to such a scale of policy burdens that they are unable to be developed viably. 1.03 To inform the new Local Plan, Keppie Massie has been commissioned by the Council to provide an Economic Viability Assessment (EVA) relating to new development in Rossendale Borough which considers the viability of the site allocations and polices contained in the Plan. The EVA forms part of the evidence base to support the Local Plan and is intended to assist the Council in allocating sites within the Borough and to guide future policy. The aim is to ensure that the adopted Local Plan policies are realistic and can deliver sustainable development without putting the delivery of the Plan at risk. 1.04 The EVA has been prepared to satisfy the tests of viability and deliverability laid down in the NPPF and the National Planning Practice Guidance (PPG). Format of Report 1.05 For ease of reference the EVA Report is structured based in the following sections: Section 2 – Planning Policy Context 1.06 This section provides an overview of the Strategic Policies and the development management policies which could impact on viability and delivery. In addition a summary of the key strategic locations and site allocations is provided. Page | 1 1.0 INTRODUCTION Section 3 – Methodology 1.07 This section outlines the methodology that has been adopted for the study and the viability assessments, together with the rationale for the development scenarios tested. Section 4 – Overview of Rossendale 1.08 This section provides general information about the social and economic characteristics of Rossendale Borough, together with an overview of the residential and non-residential property markets. Section 5 – Financial Appraisal Assumptions 1.09 This section outlines the key assumptions that have been made in preparing the financial assessments including details of how specific Local Plan Policies have been addressed. Section 6 – Viability Results and Policy Impacts 1.10 This section provides an overview of the results of the viability testing together with a commentary on the results and also the impact of the Local Plan policies on viability. The viability of the proposed allocations is also considered. Section 7 - Plan Viability and Delivery 1.11 Within Section 7 conclusions are provided about the key policies that have implications for economic viability and the viability and deliverability of the Rossendale Local Plan. Keppie Massie 1.12 Keppie Massie is an established firm of Chartered Surveyors and Property Consultants with offices in Liverpool, Manchester, Glasgow and London and is at the forefront of development economics, regeneration and strategic development. It is regulated by the Royal Institution of Chartered Surveyors (RICS). In September 2004 Keppie Massie opened a Residential division called Keppie Massie Residential. 1.13 The Practice deals with all major aspects of commercial and residential property consultancy including valuation, development, development economics, cost consultancy advice, investment, strategic land assembly, compulsory purchase, investment and development funding, S106 negotiations and affordable housing policy and provision, landlord and tenant advice, regeneration, building surveying, national and local taxation, insolvency advice, acquisition, disposal, agency and property management. Page | 2 1.0 INTRODUCTION 1.14 We have extensive experience in the preparation of Local Plan and CIL Viability Assessments, and have provided studies for many Local Planning Authorities including the following: Knowsley – Local Plan Viability Assessment Sefton – Local Plan and Site Allocations Viability Assessment High Peak – Local Plan Viability Study (including site allocations) Fylde – Local Plan and CIL Viability Study Hyndburn – Development Management DPD Viability Study Barrow – Local Plan Viability Study (including site allocations) Wyre – Local Plan Viability Study (including site allocations) Staffordshire Moorlands – Local Plan and CIL Viability Study (including site allocations) Cheshire West and Chester – CIL Viability Assessment and then subsequent Local Plan Part Two Viability Assessment Allerdale – Site Allocations DPD and CIL Viability Study Liverpool City Council – Local Plan Viability Study (including site allocations) St Helens – Local Plan Viability Study (including site allocations) Mansfield – Local Plan Viability Study Update (including site allocations) West Lancashire – CIL Viability Assessment Cheshire East – CIL Viability Assessment 1.15 Keppie Massie is also currently preparing Local Plan Viability Assessments for Hambleton, Wirral and West Lancashire Councils. 1.16 The Practice has extensive knowledge and experience in dealing with viability in relation to development management matters and provides advice to many Local Planning Authorities across the North and Midlands. We have also been appointed by Lancashire County Council to provide development viability advice to Lancashire Enterprise Partnership, Preston City Council, South Ribble Council and Lancashire City Deal. 1.17 Keppie Massie has been appointed by Rossendale Council as their Local Plan Economic Viability Consultants since the summer of 2014 and therefore has detailed knowledge of the local property market as well as practical experience of the costs associated with development in the Borough. Page | 3 1.0 INTRODUCTION Timeline 1.18 During 2014 the firm was instructed to prepare a Viability Assessment to inform the then emerging ‘Site Allocations and Development Management DPD’. This was intended to sit alongside the Adopted Core Strategy Local Plan and was known as the Local Plan Part 2. We prepared the evidence base for this assessment over the period from the autumn of 2014 to summer 2015. As part of the evidence base a consultation event was undertaken which was attended by Stakeholders including developers and registered providers who were active in the Borough. A draft report was issued to the Council in July 2015 and this contained the results of the viability testing. This Draft formed part of the evidence base for the consultation that took place in relation to the Part 2 Plan during the autumn of 2015. The final version of the report was published in February 2016 (‘2016 EVA’). At that time the Council decided to withdraw the Local Plan Part 2 and instead progress with the adoption of a new Local Plan. 1.19 Building on this earlier work Keppie Massie prepared an Updated Economic Viability Study in relation to Affordable Housing in June 2017. This alongside the previous study was used by the Council to inform the new draft Local Plan which was subject to consultation during July to October 2017. The current EVA study has regard to the Policies and Site Allocations contained in the Rossendale Draft Local Plan Pre-Submission Publication Version (August 2018). The evidence base for the study was updated during the Summer of 2018. Page | 4 2.0 PLANNING POLICY CONTEXT 2.0 PLANNING POLICY CONTEXT ______________________________________________________________________
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