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Appeal court outlines need for viability assessments
12th September 2008

A Court of Appeal ruling in late July has upheld a High Court Judgement quashing the affordable housing policy in the Blyth Valley Core Strategy. The Appeal Court's ruling rested on the lack of a specific assessment of the economic viability of the proposed affordable housing policy and has far reaching consequences for all those involved in the planning and delivery of housing and affordable housing. Key issues raised by the ruling include:
  • The need for affordable housing policy to be supported by an up to date affordable housing viability study, in line with the requirements of PPS3. The ruling indicates that such a study "is not peripheral, optional or cosmetic. It is patently a crucial requirement of the policy". Policy that is not supported by such a study will therefore be unsound.
  • Any viability study, indeed any assessment of the housing market and affordable housing need, undertaken before the publication of PPS3 in November 2006, is unlikely to be robust or credible since it will have been based on a different definition of what constitutes affordable housing. The evidence base supporting planning policy must therefore be kept up to date and revisited on a regular basis, specifically following any change in Government policy or guidance.
  • The 2004 version of PPS12 was flawed in its assumption that a DPD should be considered to be sound unless it is shown otherwise at the examination. The 2008 version of PPS12 now indicates that the local authority itself should consider policy to be sound before submitting it to examination, but the Appeal Court has highlighted that there can be no assumption of soundness and that a policy can be found to be unsound by an inspector even if there has been no objection to that policy.

It is critical therefore that emerging policy is supported by a robust, credible and up to date evidence base. With many years experience in the planning and delivery of housing and affordable housing, Levvel is able to help both local authorities in preparing evidence and developers in assessing its robustness.

For further information, contact Peter Shadbolt on 020 7978 0130.

 
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