Viability - a development economics survey
RTP report recommends improved training of planners and councillors to get better planning decisions
Roger Tym & Partners has completed a significant research report into planners’ and local councillors’ understanding of the economics surrounding the development process. Produced for a host of key bodies in the planning sector, co-ordinated by the BPF, the survey was commissioned as a result of industry concerns that skills to manage deliverable plans and viable planning applications are not sufficient to meet current challenges.
All those involved in the planning sector need a basic awareness of the development process. The report concluded that planners should receive better training to enable them to make more informed decisions both when preparing local plans and in considering new housing and commercial development projects. All planners need to understand the motivations for developing property as well as the commercial issues and criteria used by developers to assess projects. Better training in this area would speed up the planning system, make better use of resources and enable quicker delivery of new homes and other vital development.
The survey
RTP surveyed planners, councillors and others to determine the level of skills available and the issues being faced. The results showed strong support for additional training, at different levels, to help planners understand the development process better and to access the expert advice they need. There was overwhelming support for valuers and planning and development surveyors to remain the main source of expert advice, but with questions raised as to their availability. The report also noted the cumulative impact that demands by both internal and external consultees can have on the viability of development.
The survey received over 600 responses. Some 70% were local authority planners, roughly equally split between plan-makers and development managers. Most viability issues (63%) arose in relation to S106 negotiations; 53% in relation to the LDF evidence base; and 50% in relation to masterplanning and preparing implementation plans (there was considerable overlap). The majority of respondents (64%) considered that their knowledge and skills in relation to development viability require improvement, whilst 36% took the view that their skills were adequate or more than adequate.
In terms of their knowledge of development, viability and the delivery of new development, just over half believed they had adequate (or more than adequate) knowledge; the rest believed their knowledge required improvement. With regard to training in the planning system and its operation, a significant proportion had received no training at all (26%), whereas a slim majority had but felt it did not address development economics (59%). Only 15% had received training that also addressed the economics of development.
Recommendations
We recommended three levels of training: one to gain an understanding of appraisal techniques; another to equip planners to understand appraisals; and a third to equip certain groups to undertake them. This is relevant for planners concerned with deliverability issues in plan-making, and for development managers involved with complex applications, S106 and affordable housing negotiations. Our report recommended that the sponsoring bodies use a common approach that can be efficiently rolled out across the country by relevant training organisations.
John Parmiter said: “Most planners involved with deliverability and viability issues need to be able to commission the right advice and to understand and competently interrogate the results. The study team hope that our work will lead to a step change in skills across the planning sector in this whole area.”
To download the report, click here
The sponsoring bodies included:
Roger Tym & Partners has completed a significant research report into planners’ and local councillors’ understanding of the economics surrounding the development process. Produced for a host of key bodies in the planning sector, co-ordinated by the BPF, the survey was commissioned as a result of industry concerns that skills to manage deliverable plans and viable planning applications are not sufficient to meet current challenges.
All those involved in the planning sector need a basic awareness of the development process. The report concluded that planners should receive better training to enable them to make more informed decisions both when preparing local plans and in considering new housing and commercial development projects. All planners need to understand the motivations for developing property as well as the commercial issues and criteria used by developers to assess projects. Better training in this area would speed up the planning system, make better use of resources and enable quicker delivery of new homes and other vital development.
The survey
RTP surveyed planners, councillors and others to determine the level of skills available and the issues being faced. The results showed strong support for additional training, at different levels, to help planners understand the development process better and to access the expert advice they need. There was overwhelming support for valuers and planning and development surveyors to remain the main source of expert advice, but with questions raised as to their availability. The report also noted the cumulative impact that demands by both internal and external consultees can have on the viability of development.The survey received over 600 responses. Some 70% were local authority planners, roughly equally split between plan-makers and development managers. Most viability issues (63%) arose in relation to S106 negotiations; 53% in relation to the LDF evidence base; and 50% in relation to masterplanning and preparing implementation plans (there was considerable overlap). The majority of respondents (64%) considered that their knowledge and skills in relation to development viability require improvement, whilst 36% took the view that their skills were adequate or more than adequate.
In terms of their knowledge of development, viability and the delivery of new development, just over half believed they had adequate (or more than adequate) knowledge; the rest believed their knowledge required improvement. With regard to training in the planning system and its operation, a significant proportion had received no training at all (26%), whereas a slim majority had but felt it did not address development economics (59%). Only 15% had received training that also addressed the economics of development.
Recommendations
We recommended three levels of training: one to gain an understanding of appraisal techniques; another to equip planners to understand appraisals; and a third to equip certain groups to undertake them. This is relevant for planners concerned with deliverability issues in plan-making, and for development managers involved with complex applications, S106 and affordable housing negotiations. Our report recommended that the sponsoring bodies use a common approach that can be efficiently rolled out across the country by relevant training organisations.
John Parmiter said: “Most planners involved with deliverability and viability issues need to be able to commission the right advice and to understand and competently interrogate the results. The study team hope that our work will lead to a step change in skills across the planning sector in this whole area.”
To download the report, click here
The sponsoring bodies included:
- Communities and Local Government
- British Property Federation
- The British Urban Regeneration Association
- Devon County Council
- The Homes and Communities Agency
- The Planning Officers Society
- The Planning Advisory Service
- The Planning Inspectorate
- Royal Town Planning Institute
- Royal Institution of Chartered Surveyors
- Valuation Office Agency
Further information
