Viability Reviewed In Appeal Test Case

Sections 106BA and 106BC of the Growth and Infrastructure Act 2013 introduce an opportunity for developers to apply for viability reviews in relation to section 106 affordable housing obligations.
 
Owners may now apply, at any time, for modification of such obligations. Changes must be granted where proved necessary to ensure that the scheme is viable in current market conditions.

The first appeal decision under this measure, involving plans for 151 homes at the former Holsworthy Showground in Devon, has now been issued (DCS Number 200-001-292). Redrow Homes sought to reduce the 40 per cent affordable housing proportion, set out in a 2010 planning obligation, to 20.5 per cent. It argued that the shared ownership model envisaged was no longer suitable and sales values could not support its required 20 per cent profit margin.