In this episode, Paul & David Van Der Lande delve into the complexities of compulsory purchase orders (CPO) and development viability, featuring insights from David, a compulsory purchase and viability expert. They discuss the historical context of CPOs, their application in urban regeneration, and the challenges faced by local authorities in utilising these powers effectively.
KEY TAKEAWAYS
Understanding Compulsory Purchase: Compulsory purchase powers are utilised by government entities to acquire land for public benefit, often for infrastructure projects or urban regeneration. Local authorities have specific powers, such as Section 226, to facilitate regeneration efforts.
Viability Challenges: Viability is a critical aspect of property development, particularly as it relates to the existing use value of land. Developers must ensure that the residual land value from a proposed development exceeds the benchmark land value, which is typically based on existing use value plus a potential premium.
Negotiation and Collaboration: Successful development often requires extensive negotiation with landowners and collaboration with local authorities. Developers should engage early with local authorities to align their proposals with public benefits and policy requirements.
Flexibility in Planning Obligations: Planning policies often allow for flexibility in affordable housing requirements. If a development proposal is not viable under full policy compliance, developers may negotiate to reduce affordable housing quotas to make the project financially feasible.
Importance of Evidence and Justification: Developers must provide robust evidence and justification for any deviations from planning policies, particularly regarding affordable housing. This includes demonstrating the financial viability of the project and undergoing scrutiny from independent experts on behalf of the local authority.
BEST MOMENTS
"Viability is a massive, massive, massive subject and becoming increasingly important as things become more and more unviable." - Paul
"If the public benefit outweighs the importance of protecting the private rights, then essentially you've got a prima facie case." - David
"It's not easy to get local authorities to do it. Unless it's pretty big and there's a pretty big benefit, they're probably not going to do it." - Paul
ABOUT THE HOST
Paul Higgs is a Chartered Planning and Development
Surveyor with 40+ years' experience in land, planning and development and a 100% success track record in winning planning consents.
Paul undertook his first refurb project when he was
just 17 and then worked his way up from labouring on building sites to becoming Head of Land for renowned plc housebuilder, Barratt Developments. He managed to escape the corporate world in 2002 to set up what is now a multimillion-pound award-winning property development company, Millbank Group.
In 2013 Paul founded the Millbank Land Academy, the UK’s first training company dedicated to property development; to teach
established and aspiring developers the insider secrets the big housebuilders don’t want you to know!
Paul is also a founding investor and former board
director of the industry-leading PropTech Co, LandTech, and has lectured on Advanced Development Valuations on the MSc Property Development at London South Bank University.
CONTACT METHOD
LinkedIn: https://www.linkedin.com/in/paul-higgs
Millbank Land Academy: https://www.millbanklandacademy.co.uk
Instagram - https://www.instagram.com/paulhiggsofficial
YouTube - https://www.youtube.com/@InsidePropertyDevelopment
This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/
This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/