Flaxby New Settlement

Report Flaxby New Settlement Viability and Delivery Report (Strictly Private and Confidential) September 2017 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report Prepared By: Dale Robinson, MRICS, Registered Valuer Status: Version 1 Draft Date: September 2017 September 2017 2 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report Contents Executive Summary 4 1. Introduction 8 2. Development Proposals 11 3. Land Ownership 14 4. Travel and Transport 16 5. Utilities 24 6. Drainage 33 7. Sustainable Energy 35 8. Education 37 9. Public Green Space, Cycling, Walking and Rights of Way Improvements 38 10. Delivery and Viability 40 11. Conclusions 47 Appendices Appendix 1 – Flaxby masterplan Appendix 2 – Fore Consulting highway drawings/plans Appendix 3 – Letters of support Appendix 4 – Technical note setting out the assumptions applied within the residual development appraisals Appendix 5 – Residual Development Appraisals September 2017 3 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report Executive Summary Within this report we examine the viability and deliverability of Flaxby new settlement. For planning purposes the NPPF provides the following definitions of ‘deliverability’. Footnote 11 states that to be considered deliverable, sites should be available now, offer a suitable location for development now, and be achievable with a realistic prospect that housing will be delivered on site within five years and in particular that development of the site is viable. (emphasis added) Footnote 12 states that to be considered developable, sites should be in a suitable location for housing development and there should be a reasonable prospect that the site is available and could be viably developed at the point envisaged (emphasis added). The Planning Practice Guidance (PPG) advises that an assessment of availability, suitability and achievability should be made in determining whether a site is deliverable over the plan period. Availability There are no legal or landowner constraints to the delivery of the Flaxby new settlement. All of the land is owned / controlled by our client; a single promoter (Flaxby Park Ltd). The entire site is, therefore, available for development now. This has been acknowledged by Harrogate Borough Council in their New Settlement Report (‘NSR’ July 2017). A contractual position has been agreed for the purchase of the former station house and east bound platform of the former Goldsborough station should that location be selected for the new rail halt and park and ride (train) facility. In our opinion this single ownership is a major advantage of the Flaxby new settlement, which provides the greatest certainty of early and appreciable delivery in the first 5 years of the plan and continuing thereafter. The site already benefits from the prior construction of a new roundabout on the A59, which serves the site (new settlement), the recently approved Flaxby Green Park capable of creating 2,840 new jobs and the draft employment allocation (FX5), which are both situated immediately to the south. This existing junction, which was constructed for the specific purpose of enabling major development at the former golf course, will form the principal vehicular access into the development. Whist it is considered that junction 47 of the A1 (M) has capacity to facilitate circa 400 units it is acknowledged that traffic associated with the completed new settlement will result in the junction exceeding capacity meaning additional improvements will be required. The additional mitigation works for Flaxby can be delivered on land owned or controlled by Flaxby Park Ltd and within adopted highway land. There is also capacity in the utility networks (electricity and gas) to facilitate an initial phase of development without major reinforcement works. This is confirmed within the ICS2 Report which states1 that Northern Powergrid has also indicated that the Flaxby site may be more suitable to the provision of temporary works and connections to supply the initial phases of development. Northern Gas Networks has also confirmed that capacity is available for an initial phase of development but the completed development will require off site reinforcement works. The ICS2 Report also confirms2 that there is an existing gas supply to the Flaxby site. 5 These are all key factors / issues for the Council, given the anticipated shortfall of housing in the first 5 years of the plan, and clearly demonstrates that the site is immediately available for development as soon as the planning process allows. Suitability In terms of physical and environmental suitability, a full and detailed suite of technical investigations and reports have been undertaken (up to outline planning application level of detail) covering highways; landscape; heritage; ecology; flood risk; drainage; ground conditions; noise and air quality. All of these 1 Refer to para 4.11 – Page 10 2 Refer to para 4.5 – Page 8 September 2017 4 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report reports conclude that there are no limitations to the delivery of the Flaxby new settlement which cannot be overcome following appropriate mitigation, which has already been incorporated into the masterplan. A number of these matters have already been agreed in writing with the council and other consultees through a formal pre-application process. Achievability Our client (Flaxby Park Ltd) is not a residential developer. Instead, their approach will be to invest in the strategic infrastructure and then sell serviced development plots to the market. Our client has a strong track record of successfully delivering major strategic development on large complex sites such as Flaxby. One such example is Wynyard Park (www.wynyardpark.com) which is a large scale new settlement in Hartlepool and Stockton. Critically, this site is now positively delivering a significant amount of new development on the ground at an early date following the grant of planning permission and illustrates our client’s commitment and ability to deliver new settlement scale development quickly. Since 2012, 154 homes have been built, a further 903 have secured planning permission/minded to grant and 1,832 houses have draft allocations in Publication Local Plans. In terms of market attractiveness, it is GVA’s view that there will be strong demand for the development proposed; if the site is allocated and planning permission subsequently granted, then there can be a high degree of confidence in delivery by the market at an early date. This is supported by the Leeds office of Jones Lang Lasalle (JLL) who confirm that they have held detailed discussions regarding our client’s land with the majority of PLC and national house builders who operate in the region and other regional housebuilders. Without exception, JLL’s approaches have resulted in extremely positive responses and offers, and it is clear that, were the site to be allocated as a new settlement, it would be the premier location to develop within the region. The interest that JLL has received indicates that the delivery of 2,750 houses in this location would be easily achievable. JLL’s professional view is that interest in our client’s land, should it be marketed with a residential allocation, would be extremely strong. GVA agree with that view. National (Bellway Homes) and regional (Harron Homes) house builders have also confirmed their commitment in writing to delivering homes within a first phase. Additional housing will be provided at Flaxby on a phased basis, alongside additional infrastructure. JLL (supported by GVA) envisage that the site could accommodate at least three national house builders, a regional house builder and self- builders/custom builders all providing homes simultaneously and across multiple outlets. In this respect an assumed delivery rate of 150 dwellings per annum is considered easily achievable in terms of market demand/developer appetite. Our client has confirmed that formal offers have been received from all the developers listed below. Barratt Homes Persimmon Taylor Wimpey Avant Homes Linden Redrow Miller Kier In addition there is also clear evidence of delivery5 with respect to each element of the community / social infrastructure within Flaxby new settlement. In particular confirmation has been received from the following parties: Letter from Eastgate Medical Group confirming interest in providing medical facilities to Flaxby New Settlement Email from team rector of Knaresborough confirming their interest in providing a place of worship Letter from Village confirming their interest in providing a hotel with community uses (coffee shop public house, community restaurant, swimming pool, spa and gymnasium) in the village centre Letter from Places for People (care home operator) confirming their interest in the ‘retirement village’ September 2017 4 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report The Diocese of Leeds has provided confirmation to our client of their willingness to develop primary schools at Flaxby. In terms of the self-build/custom-build plots our client has a proven track record of delivering high quality self build plots at its exemplary new settlement site at Wynyard Park in Hartlepool and Stockton Borough Council and is keen to proactively deliver the same at Flaxby new settlement. At Wynyard Park, planning permission has been granted for 72 self-build plots and a significant number are now under construction. Further plots are currently going through the planning process. In view of the above it is clear that our client’s new settlement proposal will be delivered as soon as the planning process allows. Viability We have undertaken an appraisal of the Flaxby proposals, which demonstrate that the residual value of serviced development plots at Flaxby is circa £810,000 per acre (or £23,000 per plot)3. The total value expected from Flaxby having also taken in account the revenue from the sale of self build plots is estimated to be circa £80m. The total infrastructure costs for Flaxby are currently thought to be in the region of £46m, thereby generating positive viability headroom of c£34m, as highlighted in Table 1.

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