CIL Viability Update March 2016 Stroud District Council CIL Viability Update – March 2016 Important Notice HDH Planning & Development Ltd has prepared this report for the sole use of the Stroud District Council in accordance with the instructions under which our services were performed. No other warranty, expressed or implied, is made as to the professional advice included in this report or any other services provided by us. This report may not be relied upon by any other party without the prior and express written agreement of HDH Planning & Development Ltd. Some of the conclusions and recommendations contained in this report are based upon information provided by others (including the Council and consultees) and upon the assumption that all relevant information has been provided by those parties from whom it has been requested. Information obtained from third parties has not been independently verified by HDH Planning & Development Ltd, unless otherwise stated in the report. The conclusions and recommendations contained in this report are concerned with policy requirement, guidance and regulations which may be subject to change. They reflect a Chartered Surveyor’s perspective and do not reflect or constitute legal advice and the Council should seek legal advice before implementing any of the recommendations. No part of this report constitutes a valuation and the report should not be relied on in that regard. Certain statements made in the report may constitute estimates, projections or other forward-looking statements and even though they are based on reasonable assumptions as of the date of the report, such forward-looking statements by their nature involve risks and uncertainties that could cause actual results to differ materially from the results predicted. HDH Planning & Development Ltd specifically does not guarantee or warrant any estimate or projections contained in this report. RS Drummond-Hay MRICS ACIH HDH Planning & Development Ltd Clapham Woods Farm Keasden, Nr. Clapham Lancaster. LA2 8ET [email protected] 015242 51831 / 07989 975 977 Registered in England Company Number 08555548 Issued 29th March 2016 THIS DOCUMENT HAS BEEN FORMATTED FOR DOUBLE SIDED PRINTING COPYRIGHT © This report is the copyright of HDH Planning & Development Ltd. Any unauthorised reproduction or usage by any person other than the addressee is strictly prohibited. Stroud District Council CIL Viability Update – March 2016 Table of Contents 1. Introduction ................................................................................................................ 5 PDCS Consultation Responses ........................................................................................ 6 Report Structure ............................................................................................................... 7 2. Changes to the CIL Regulations, the CIL Guidance and to the Local Plan ............ 9 CIL Regulations ................................................................................................................ 9 CIL Guidance and PPG .................................................................................................... 9 Other PPG matters ........................................................................................................... 9 Summer 2015 Budget ..................................................................................................... 11 Affordable Housing .................................................................................................... 11 Starter Homes ............................................................................................................ 11 Environmental Standards ........................................................................................... 13 Local Plan Policy Changes ............................................................................................. 14 Strategic Sites ............................................................................................................ 14 Core Policy CP6 Infrastructure and developer contributions ...................................... 14 Core Policy CP9 Affordable housing .......................................................................... 14 Delivery Policy ES1 .................................................................................................... 15 3. Consideration of the income assumptions ............................................................ 17 Market Housing .............................................................................................................. 17 Land Registry ............................................................................................................. 20 Price Survey .............................................................................................................. 24 Affordable Housing ......................................................................................................... 24 Intermediate Housing (to buy) .................................................................................... 29 Older People’s Housing ............................................................................................. 30 Non-Residential Development ........................................................................................ 31 4. Consideration of the cost assumptions ................................................................. 35 5. Threshold Land Values ............................................................................................ 43 Land Values Used .......................................................................................................... 43 6. Revised Modelling ................................................................................................... 47 West of Stonehouse ....................................................................................................... 47 Typologies ...................................................................................................................... 48 Retail .............................................................................................................................. 50 7. Changes that relate to the residential development .............................................. 51 Appraisal Results ........................................................................................................... 51 Additional Profit .............................................................................................................. 54 CIL as a proportion of Land Value and Gross Development Value ................................. 55 Older People’s Housing .................................................................................................. 58 8. Changes that relate to non-residential development ............................................ 61 Summary ........................................................................................................................ 64 9. Conclusions and revisions to rates of CIL ............................................................. 65 Infrastructure Delivery and CIL v s106 ............................................................................ 66 Neighbouring Authorities ................................................................................................ 66 S106 History ................................................................................................................... 68 Instalment Policy ............................................................................................................ 68 3 Stroud District Council CIL Viability Update – March 2016 Viability Evidence ........................................................................................................... 70 Residential Development – Strategic Sites................................................................. 70 Residential Development – Non-strategic Sites ......................................................... 70 Older people’s housing .............................................................................................. 71 Non-Residential Development.................................................................................... 71 Summary of Recommended Rates of CIL ...................................................................... 71 Appendix 1 – Land Registry Price Paid Data .................................................................. 73 Appendix 2 – Newbuild Asking Prices ............................................................................. 79 Appendix 3 – Non-Residential property information ...................................................... 81 Appendix 4 – Site Specific Strategic Infrastructure and Mitigation Costs .................... 83 Appendix 5 – Strategic Sites, Planning Update .............................................................. 89 SA1 Stroud Valleys......................................................................................................... 89 SA2 West of Stonehouse................................................................................................ 90 SA3 North east of Cam ................................................................................................... 90 SA4 Hunts Grove Extension ........................................................................................... 90 SA4A Quedgeley East ...................................................................................................