Financial Viability Assessments Role in Planning Applications

Delivering a property development project at the right cost is as important as its design, especially in the current high-pressure market. That’s why Financial Viability Assessments (FVAs) is a key service that we at Blackacre Surveyors provide to our clients, enabling them to make the right investment decisions for their future and return on investment. It supports local authorities, developers, and other stakeholders in making important decisions about viability, guiding their proper decisions regarding profitability and planning.

Financial Viability Assessment

A Financial Viability Assessment evaluates whether it is feasible for a scheme to satisfy all the criteria of planning policy, including the cost of acquiring the land, the cost of construction, market conditions, and any obligations, including affordable housing and infrastructure contributions, while at the same time providing a viable return on investment. An FVA from us at Blackacre Surveyors tells you straight what the financial implications of your project mean on the ground. We look at every detail that affects your critical path, and after dialogue with local councillors, your anticipated development costs will come into clear focus. You can negotiate from a position of transparency, knowing where you stand.

Why Are Financial Viability Assessments Crucial?

Ensuring Project Feasibility

Our Financial Viability Assessments ensure that your development is economically feasible. With attention to the real financial costs and the expected returns from its development, we remove your financial worries and minimise the risk of abandoning or not completing a project.

Balancing Planning Obligations and Profitability

Planning policies sometimes ask a developer to contribute towards affordable housing or public services within the community that will benefit from the housing project. While these obligations are welcome, they can have a bearing on the viability of a scheme. The flexibility provided by our FVAs will enable you to demonstrate to the local council the instances in which adjustments to obligations will be needed to maintain the financial viability of your development. At times, this will help retain or increase the public benefit of your project.

Transparency and Trust

Openness to independent scrutiny is one of the key hallmarks of Financial Viability Assessments. Here at Blackacre Surveyors, a full accounting of the finance structure behind a development project should be given at the beginning of a planning application. This creates trust between developers and local authorities, which leads to a better working relationship and a more timely approval process.

Addressing Challenges in Financial Viability Assessments

However, while FVAs are essential, they can be difficult. Information can be limited to what developers provide – and that data is sometimes open to interpretation. Our assessments at Blackacre Surveyors are independent, detailed, and backed up by robust data that developers and local councils can rely on unreservedly. Our accuracy makes it so you can trust what we say because you know it passes the truth test.

Furthermore, we also know that these appraisals’ technicalities can be complex. So, as well as presenting accessible, applicable recommendations – whether you are a developer, investor, or a counsellor – the financial realities of your project can be understood without using jargon.

How FVAs Influence Planning Outcomes

FVAs play a key role in negotiations – if an FVA shows us that the current requirements for putting in affordable housing preclude the project from being viable, then a course can be set that provides a compromise. In other words, your development can go forward while protecting the community and your bottom line from financial destitution.

Conversely, an FVA could also dogmatically protect local planners from approving only those schemes that make sense and are both residential and business-wise economically viable. Through its rigorous spatial financial-feasibility analysis, in which Blackacre has unparalleled expertise, a financially resilient Blackacre development should be financially stressed-tested from every conceivable angle, guaranteeing that only projects likely to make money for all the stakeholders make it through the development planning process.

Partner with us at Blackacre Surveyors for Your Financial Viability Assessments

Make sure that your development is financially viable: Use the Financial Viability Assessment that we at Blackacre Surveyors are here to provide. Our professionals work closely with our clients to ensure the development is economically feasible and complies with planning policies.

Frequently Asked Questions

What is a Financial Viability Assessment?

A Financial Viability Assessment (FVA) evaluates whether a proposed development is financially viable, ensuring it can meet planning obligations like affordable housing while remaining profitable.

When is an FVA required in a planning application?

An FVA is usually required when a developer seeks to reduce planning contributions, such as affordable housing, claiming that full compliance would make the project unviable.

Who prepares an FVA?

FVAs are typically prepared by financial consultants, surveyors, or planning experts who assess costs, revenues, and profitability in line with local policies. This is one of our top services that we provide here at Blackacre Surveyors

Can an FVA be challenged?

Yes, planning authorities or independent assessors can review and challenge an FVA if the assumptions seem unrealistic or inconsistent with market conditions.

How does an FVA impact planning decisions?

An FVA can influence planning approvals by justifying reduced obligations, but authorities must balance financial viability with community needs and policy requirements.