An objection is raised on the basis that the evidence that has been provided shows the proposed rate or rates would threaten delivery of the relevant Plan as a whole.
Charging authorities are required to consider relevant national planning policy when drafting their charging schedules, and in particular paragraph 173 of the Framework. This requires that in order to ensure viability, the costs of any requirements likely to be applied to development, such as requirements for affordable housing, standards, infrastructure contributions or other requirements should, when taking account of the normal cost of development and mitigation, provide competitive returns to a willing land owner and willing developer to enable the development to be deliverable.
Providing a competitive return to a willing landowner is critical to the delivery of the Plan as acknowledged within the evidence presented in the Community Infrastructure Levy: Viability Study 2016 Update (paragraph 4.34).
The Study Update adopts a benchmark land value for greenfield residential sites of between £247,000 to £371,000 per hectare based on a CLG Research Paper from 2011. These figures are very low, and if this assumption is carried forward will have a significant effect on the viability of development in the District.
As evidenced in the Strategic Housing Market Assessment for Coventry & Warwickshire, Warwick District shares many characteristics with its neighbouring authority, Stratford on Avon District. They form part of the same housing market, are both desirable areas to live, and experience significant demand for new housing. Both authorities development plans propose a significant increase in housing delivery over the next 10 to 15 years. Stratford on Avon District Council has published evidence to support its draft charging schedule (appended to these representations), and this is currently the subject of Examination. Their evidence has adopted a far more thorough analysis of benchmark land values (or threshold land values as they refer) as set out at paragraph 5.3.37 onwards on page 32. They conclude that for strategic and large greenfield sites a threshold land value of £640,000 per hectare is appropriate.
Given their proximity and similarities, it is not reasonable to conclude that the benchmark land value in Warwick District would be less than 50% of the same value in Stratford on Avon, and the evidence of Peter Brett Associates for Stratford on Avon District Council is more robust and preferred.
This is clearly a significant difference which will affect the viability assumptions and undermines the draft charging schedule.
In addition, the Study Update makes no allowance for the costs of promoting the land (i.e. the costs of securing an allocation within the Development Plan). The assumptions made in relation to professional fees solely relate to costs incurred post Plan adoption, i.e. the costs of securing planning permission and regulatory approvals. Promotion costs are additional and can be significant. By way of example, the preparation of the Warwick District Local Plan commenced in 2007, has involved at least nine separate consultations and two Examinations, with further stages of consultation to commence later this year. The costs involved in promoting sites in Warwick District has therefore been substantial, and this should be reflected when assessing the viability of development through an increase in the professional fees for strategic sites to 25%.
Accordingly, the draft charging schedule as proposed would threaten the delivery of the Plan.