Viability testing the new London Plan
Three Dragons viability tested the new London Plan on behalf of the Greater London Authority (GLA) and supported the GLA through the Examination in Public in 2019. The viability testing included residential and non-residential uses and included the range of development policies required by the GLA. Of these, the main policies affecting viability related to the provision of affordable housing through s106, where the London Plan required 35% affordable housing generally and 50% on publicly owned and former industrial land. A number of affordable housing tenure permutations were tested, based around the London-specific affordable housing types. Other policies with viability implications included higher fire safety standards for taller buildings as well as urban greening and carbon reduction.
In order to undertake the testing, value areas were identified across the capital and these informed sales values as well as the types of typologies used and the associated costs. This took into account that taller and higher density development is most likely to take place in areas with stronger values, while lower density development is most likely in outer London locations where values are not so high. Three Dragons was supported by Turner & Townsend, who provided cost information for base build costs as well as the costs for different development polices.
In addition to the support during the Examination of the London Plan, Three Dragons was able to assist the GLA in responding to numerous queries and representations made by the development industry as part of the consultation processes.
Our report can be accessed here.