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Alistair Smith, Head of Planning and Design, comments:
Anyone in the development industry, or looking to sell consented land for housing, will know that the viability of many sites is currently finely balanced. This is driven by continued pressure on construction costs and, in some areas, a slower sales market, despite national forecasts predicting more transactions in 2025 than in 2024.
For sites already under construction, the impact of slower sales may be mitigated through focused, intelligent marketing. In other cases, it may simply be a matter of weathering the storm. However, for sites further along the pipeline, or those now seeking developer interest, this could be the ideal time to revisit factors that might affect the scheme’s viability.
Across the South West, almost all planning authorities are unable to demonstrate a sufficient supply of land. This creates tangible pressure on them to ensure that consented sites are deliverable. In the past, when councils were in a stronger position, planning consent may have been granted on the basis of elevated affordable housing requirements or other financial contributions that are now harder to meet.
One example of how current land supply pressures can create opportunities is where a site previously progressed as an Exception Site could now be reconsidered with a ‘standard’ policy-compliant affordable housing provision. In other cases, it may be possible to retain affordable housing provision while reducing other contributions through a viability assessment. Local Planning Authorities (LPAs) increasingly have to recognise that if they want housing delivered, they must take a realistic approach, or risk losing at appeal.
Ideally, these discussions should take place before a scheme is approved. Revisiting approved consents is not a step to be taken lightly given the potential costs and delays, but it can deliver significant benefits.
Stags are well placed to advise, combining extensive market experience with a skilled planning team, to present a robust case for development that can be successfully delivered.
