Development Receipts (GDV)
Development receipts are the money generated from a completed scheme. Usually this will be the sum of anticipated sales of the completed units. These should be provided on a per unit basis. Development Costs Development costs are the costs required to bring the site forward. This includes build costs, land costs, professional fees and developer's profit. Costs should be broken down into their constituent parts. Build costs should be provided per square metre per unit, with the floor space of each unit clearly specified. Be sure to include other site costs and professional fees as well as the land value and developer's profit.
Residual Land Valuation (RLV)
An RLV is a process for valuing land with development potential. A RLV viability appraisal is therefore a calculation of values minus costs. As such, changes which reduce costs and/or increase values, will improve viability. Likewise, changes which increase costs and/or reduce values will decrease viability. Viability assessments are essentially calculations, and as such are only as good as the information that is fed into them. Therefore, supporting information is required that sets out the sources of information used, for example, information from estate agents or property websites, https://www.southribble.gov.uk/sites/default/files/Viability Guidance.docx quantity surveyor's costings, local knowledge. This explanation is as important as the figures themselves in terms of informing viability discussions.
RLV and Confidentiality
Information provided to support planning applications is normally uploaded to the Council's website. RLVs can be submitted on a confidential basis, but in such cases it is recommended that a non-sensitive summary is produced which would be viewable by members of the public. You should however note that viability assessments can be the subject of requests for information under the Environmental Information Regulations and/or the Freedom of Information Act. Guidance and case law would suggest that the majority of any such report would have to be released although we would discuss any release of sensitive information with you first.
The national Planning Practice Guidance states that "a site is viable if the value generated by its development exceeds the costs of developing it and also provides sufficient incentive for the land to come forward and the development to be undertaken."