Financial Viability Assessments (FVA)
Independent, RICS-regulated viability advice that stands up to scrutiny — for developers challenging a planning obligation, landowners testing a scheme, or councils reviewing a submission. Clear, defensible assessments that move planning decisions forward, across London, Surrey and Sussex.
What is a Financial Viability Assessment?
A Financial Viability Assessment (FVA) is the technical report behind a planning application that shows what level of planning obligation a development can realistically support — most often the amount of affordable housing or the scale of Section 106 contributions.
In simple terms, it answers one question for the local planning authority: can this scheme bear the policy requirements being asked of it, and still be deliverable? Prepared to RICS standards, it is objective, evidence-based work — not a negotiating tactic. Because FVAs are normally made public, they must be robust enough to withstand independent review. Our complete guide to FVAs in planning explains the process in full.
When you might need an FVA
Affordable housing
A residential or mixed-use scheme where policy-level affordable housing would make it unviable.
Section 106
Negotiating or challenging Section 106 contributions or affordable housing requirements.
Appeals
Appealing a refusal where viability is in dispute, with evidence that holds up at a hearing or inquiry.
Site appraisal
A landowner or investor stress-testing a site before purchase or promotion — part of wider land & development advice.
Independent review
A local planning authority needing an independent review of an applicant’s FVA.
Review mechanisms
Revisiting an existing consent through a review mechanism or changed market conditions.
How a Financial Viability Assessment works
Viability is tested using the residual land value (RLV) approach. We take the Gross Development Value (GDV) — what the finished scheme is worth — and deduct every cost of delivering it: construction, professional fees, finance, and a reasonable developer’s profit. What remains is the residual land value.
That figure is compared against the Benchmark Land Value (BLV), set under the NPPF and Planning Practice Guidance using Existing Use Value plus a premium (EUV+) — not the price paid for the site. If the RLV meets or exceeds the benchmark, the scheme can support the obligations tested; if not, the FVA evidences why a different level is justified — transparently, with every assumption stated.
Developer’s profit is typically taken at 15–20% of GDV depending on risk. The Government’s draft NPPF reforms propose moving to standardised returns — currently proposed at around 17.5% of GDV for market housing and 6% for affordable (consultation closed March 2026; still a proposal). We apply the current, defensible position for your scheme and flag where reform may bite.
Our FVA process
A clear, well-managed path from first call to a resolved planning position.
1. Discuss
We understand your scheme, the planning position, and what’s at stake.
2. Gather
Scheme details, costs, values, planning history and policy context.
3. Appraise
We build and pressure-test the appraisal — GDV, costs, profit, RLV vs BLV.
4. Report
A clear, RICS-compliant FVA, ready to submit.
5. Negotiate
We engage the authority or their reviewer and defend it to a resolution.
Why choose Blackacre
- RICS-regulated chartered surveyors and valuers, working to the RICS standard on financial viability in planning.
- Independent and defensible — assessments built to withstand scrutiny from authorities and independent reviewers.
- Experienced negotiators — we stand behind the report and engage the LPA to a workable outcome.
- Clear communication — plain-English advice and responsive service.
- London, Surrey & Sussex focus, with the capacity to work nationwide.
What our clients say
“Blackacre completed a thorough pre-purchase survey of a listed property, highlighting several important issues that helped us in the offer negotiation process. An informative phone call on completion of the report was very helpful too.”
— Lee Dalton
“Excellent service and very reasonably priced. Even completed the requested survey report in less than a week despite being asked three days prior. Would highly recommend Blackacre!”
— Jonathan Barco
“We approached Blackacre with an urgent ask for help with a planning objection that required expertise in daylighting and sunlighting. Ben was extremely responsive and went above and beyond to help us out.”
— Tim Houghton
Your key contact
Simon Ly MRICS MNAEA MARLA MTPI
Director | Chartered Surveyor & RICS Registered Valuer
Simon leads Blackacre’s viability and valuation work. Speak to him directly about your scheme, the planning position and the level of obligation it can support — with the negotiation to see it through.
FVA: your questions answered
An FVA is a technical report supporting a planning application that demonstrates the level of planning obligation — such as affordable housing or Section 106 contributions — a development can reasonably support while remaining deliverable.
Typically when policy-level obligations would make a scheme unviable, when negotiating or challenging affordable housing or contributions, or when viability is disputed at appeal. Local authorities may also commission an independent review of an applicant’s FVA.
Through the residual land value method: Gross Development Value minus all development costs (including a reasonable developer’s profit) gives the residual land value, compared against the Benchmark Land Value. If it meets or exceeds the benchmark, the scheme is viable at the level tested.
Under the NPPF and Planning Practice Guidance it is based on Existing Use Value plus a premium to the landowner (EUV+), not the price paid for the site.
A reasonable return is typically around 15–20% of GDV depending on risk. The Government’s draft NPPF reforms propose moving toward standardised returns, currently proposed at about 17.5% of GDV for market housing and 6% for affordable — still a proposal at the time of writing.
Usually yes. Since 2018, FVAs are generally prepared on the basis they will be published, so they must be robust, transparent and defensible.
Yes. We prepare FVAs for developers and landowners, and provide independent review and rebuttal where viability is contested.
Yes. As RICS-regulated chartered surveyors we prepare FVAs in line with the RICS professional standard on financial viability in planning.
It depends on scale and information availability. We give a realistic timescale at the outset and keep you updated throughout.
We focus on London, Surrey and Sussex and work nationwide where needed.
What does an FVA cost?
Every scheme is different, so we price each FVA on its scale and complexity — not a one-size-fits-all figure. Tell us about your project and we’ll provide a clear, tailored quote, with no obligation.
Ready to move your scheme forward?
Talk to Blackacre’s RICS-regulated viability team for a clear, defensible FVA — and the negotiation support to see it through.
London: 107–111 Fleet Street, London EC4A 2AB · Sussex: Curtis House, 34 Third Avenue, Hove BN3 2PD