‘Section 106’ Requirements and Development Viability Assessment

The Government has recently strengthened its guidance on viability, introducing strict requirements setting out how, when, and by whom, the viability of development projects should be assessed for planning purposes. Belvedere Vantage specialises in this area and provides a wide range of independent viability advice, at both a strategic level, and on a site-specific basis. 

Government guidance now requires that the deliverability of sites is evidenced with reference to appropriate viability evidence. Where sites are not viable, this should be identified and addressed as early as possible in the site identification and allocation process, to avoid ‘surprises’ at the planning application stage. 

We can help you to approach a viability assessment in the right way, and at the right time. We can also provide advice and evidence to inform consultation with local authorities, over issues such as developer contributions and affordable housing targets. 

We are appointed by a wide range of parties, including landowners, land promoters, developers, housebuilders, local authorities and others. In some cases, we are appointed jointly by applicants and local planning authorities, particularly where the matter is complex or sensitive. Our independence helps to provide a robust viability position, particularly in the event of an appeal. 

We provide specialist advice relating to the terms of Section 106 Agreements for affordable housing and S106 provision, and any viability reviews/overage that may be sought within an associated ‘Section 106’ Agreement.

We can provide advice where previously agreed S106 terms need to be varied. 

We undertake large scale, sensitive and complex viability assessments for strategic Greenfield and urban regeneration sites, as well as for small sites.

We also provide advice relating to elderly and specialist accommodation, where affordable housing is generally sought, subject to viability.

Government guidance on viability is updated on a regular basis. We can provide briefings that analyse the very latest guidance, and its implications for your development programme. 

Examples of Work Undertaken

• A joint commission from Bovis Homes and Cavanna Homes for an independent viability assessment relating to a combined development of circa 300 units in Dawlish, along with an independent viability report to inform a subsequent appeal.
• A commission from Bovis Homes to review the viability of a ‘stalled’ strategic development of circa 400 dwellings in East Devon, together with modelling of options to reduce the agreed affordable housing and S106 provision, and advice relating to a Deed of Variation for the existing S106 Agreement, including the terms of viability reviews, and overage clauses etc.
• Numerous commissions from Cavanna Homes to undertake independent viability assessments for schemes throughout Devon, including regeneration schemes and mixed-use developments.
• A commission from Bovis Homes to review the viability of an ongoing major regeneration scheme of circa 50 acres near Bath, to include residential, industrial, retail and community uses. Advice relating to a Deed of Variation to incorporate reductions to the S106 provision to restore the site to viability.
• A commission from Bovis Homes to undertake an independent viability assessment for a strategic site of up to 1500 dwellings, a school, community building and significant infrastructure provision in the Exeter Area. Working with Bovis and Teignbridge District Council to identify a viable package of affordable housing and S106 developer contributions.
• A commission from Barratt David Wilson Homes to undertake an independent viability assessment for a consortium development site of 850 dwellings in Yeovil. Belvedere Vantage was also awarded a subsequent commission to undertake a Final Viability Review following completion of the development.
• Advice to Taylor Wimpey relating to infrastructure-related viability issues for a major consortium development near Newton Abbot.
• A commission from Baker Estates to provide an independent viability assessment for an allocated site of more than 100 units, in the North Devon area.
• A commission from the Hawkins Trust to review strategic viability options for a large mixed-use site being progressed in conjunction with Plymouth City Council.
• A commission from the Abbey Manor Group to undertake an independent viability assessment for a strategic development site of circa 700 dwellings, a local neighbourhood centre and retail/office space, in the South Somerset Area.
• A commission from a land promoter and landowner, to provide strategic viability advice and liaise with Plymouth City Council, in relation to a former industrial site, with contamination issues, in the Plymouth area.
• A commission from the owner of a dilapidated building in Hayle, Cornwall to review viability, and liaise with Cornwall Council over a viable S106 package that would allow this marginal site to be brought forward for development.
• A commission from Hartwell (Ford) PLC to review the viability of development proposals for a town centre redevelopment site in Dunstable, and advise on a Section 106 Agreement with South Bedfordshire Council. 
• A commission on behalf of Sibelco UK to provide viability advice in relation to residential development proposals for large former industrial sites, near Newton Abbot.
• Advice to a landowner/developer to structure and agree the first general needs Section 106 agreement with Exeter City Council where the affordable housing was owned, managed and maintained by the landowner, rather than a Registered Housing Provider.
• A commission from Chantry Estates Ltd to prepare a report re affordable housing and viability for a redevelopment site in Greater London. Subsequent attendance at a Public Local Inquiry as an Expert Witness on viability and affordable housing issues.
• Advice to Westbury Homes Ltd in connection with viability issues and affordable housing for brownfield regeneration sites in Bristol.
• Advice to Aldi Stores limited in connection with the affordable housing element of a mixed-use retail and residential scheme in Greater London.
• Affordable housing and viability advice relating to specialist elderly housing for Blue Cedar Homes.
• Specialist advice to Chartered Surveyors Strutt and Parker, on affordable housing and associated viability issues.