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A good enough approach to setting planning obligations

McAllister, P. and Wyatt, P., (2013) A good enough approach to setting planning obligations. Working Papers in Real Estate & Planning. 08/13. Working Paper. University of Reading, Reading. pp25.

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In this paper we propose an alternative model of, what is often called, land value capture in the planning system. Based on development viability models, negotiations and policy formation regarding the level of planning obligations have taken place at the local level with little clear guidance on technique, approach and method. It is argued that current approaches are regressive and fail to reflect how the ability of sites to generate planning gain can vary over time and between sites. The alternative approach suggested here attempts to rationalise rather than replace the existing practice of development viability appraisal. It is based upon the assumption that schemes with similar development values should produce similar levels of return to the landowner, developer and other stakeholders in the development as well as similar levels of planning obligations in all parts of the country. Given the high level of input uncertainty in viability modelling, a simple viability model is ‘good enough’ to quantify the maximum level of planning obligations for a given level of development value. We have argued that such an approach can deliver a more durable, equitable, simpler, consistent and cheaper method for policy formation regarding planning obligations.

Item Type:Report (Working Paper)
Divisions:Henley Business School > Real Estate and Planning
ID Code:32596
Publisher:University of Reading
Publisher Statement:The copyright of each Working Paper remains with the author. If you wish to quote from or cite any Paper please contact the appropriate author. In some cases a more recent version of the paper may have been published elsewhere.

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