2015 planning guidance - negotiating affordable housing contributions · the typical intermediate...

Harrogate Borough Council: Published November 2015

Planning Guidance: Negotiating Affordable Housing Contributions

Negotiating Affordable Housing Contributions

1. Introduction

1.1 This document provides planning guidance on how affordable housing policy should be appliedto proposals for residential development. The guidance expands upon that already provided inthe National Planning Policy Framework (NPPF) and the reasoned justification to saved PolicyH5 of the Harrogate District Local Plan (HDLP). The aim of this guidance is to provide aconsistent and clear approach to the delivery of affordable housing across the District. Thisguidance replaces the Affordable Housing Planning Guidance which was published by theCouncil in May 2007 and was approved for use by the council’s Cabinet Member for Planningand Sustainable Transport on 25 November 2015.

2. Policy Context

2.1 The Local Plan for Harrogate District currently consists of the Harrogate District Core Strategy(February 2009) and the Harrogate District Local Plan (HDLP 2001, Selective Alteration 2004,Saved Policies 2007).

2.2 With regard to local planning policies for affordable housing, the adopted Harrogate DistrictLocal Plan includes Policy H5 and the adopted Core Strategy includes Policy HLP3: affordablehousing on rural exception sites. The council is now working on a new Local Plan which whenadopted will replace both the adopted HDLP and the Core Strategy.

2.3 The 2015 Harrogate Borough Council Strategic Housing Market Assessment (SHMA) indicatesthere are high levels of need for affordable housing in Harrogate District.

2.4 Where such need is identified, the NPPF (paragraph 50) says that local planning authoritiesshould set policies requiring affordable housing to be provided on residential development sites,unless off-site provision or a financial contribution of broadly equivalent value can be fullyjustified. Such policies should be sufficiently flexible to take account of changing marketconditions over time. The council is in the process of preparing a new policy, but, in themeantime, the provisions of Policies H5 and HLP3, the NPPF and the SHMA will togethercomprise our approach.

3. Background

3.1 It is important that everyone living in Harrogate District has the opportunity of a decent andaffordable home. The council is committed to helping local people who cannot afford to buy orrent homes on the open market in the district. To this end, the affordable housing is a key issuefor the council as it impacts upon the retention of skills and talent and has a major influenceupon the local economy and quality of life.

3.2 Average house prices within the district are significantly higher than national and regionalaverages. The SHMA identifies a net deficit of 6,600 affordable homes in the period from 2014to 2035, equating to a requirement for 313 additional affordable homes per annum. The SHMAalso provides data to support the size, type and tenure of affordable homes required.

3.3 The council’s own stock of land that is available for affordable housing is virtually exhausted.Therefore, in line with national policy, the council is seeking to deliver the Corporate Priority byrequiring developers to provide affordable housing within new schemes across the district.

3.4 In light of this evidence, the council’s general approach will be to focus on:

Securing more small affordable homes for newly forming households;

Harrogate Borough Council: Published November 2015 Planning Guidance: Negotiating Affordable Housing Contributions2


Ensuring a number of larger affordable homes are also provided to meet the needs ofhouseholds as they grow; andAchieving an affordable housing mix of about 70% affordable rented and 30% intermediatehousing for sale.

3.5 The SHMA is published on the council’s website athttp://www.harrogate.gov.uk/plan/Pages/lp-evidencebase.aspx

4. Definition of Affordable Housing

4.1 Affordable housing is defined in the NPPF (page 50) as:

'Social rented, affordable rented and intermediate housing, provided to eligible householdswhose needs are not met by the market. Eligibility is determined with regard to local incomesand local house prices. Affordable housing should include provisions to remain at anaffordable price for future eligible households or for the subsidy to be recycled for alternativeaffordable housing provision.'

Social rented housing

4.2 Social rented housing is owned by local authorities and private registered providers (as definedin section 80 of the Housing and Regeneration Act 2008), for which guideline target rents aredetermined through the national rent regime. It may also be owned by other persons andprovided under equivalent rental arrangements to the above, as agreed with the local authorityor with the Homes and Communities Agency.

Affordable rented housing

4.3 Affordable rented housing is let by local authorities or private registered providers of socialhousing to households who are eligible for social rented housing. Affordable Rent is subject torent controls that require a rent of no more than 80% of the local market rent (including servicecharges, where applicable).

Intermediate housing

4.4 Intermediate housing is homes for sale and rent provided at a cost above social rent, but belowmarket levels subject to the criteria in the Affordable Housing definition above. These caninclude shared equity (shared ownership and equity loans), other low cost homes for sale andintermediate rent, but not affordable rented housing.

Homes that do not meet the above definition of affordable housing, such as ‘low cost markethousing’, may not be considered as affordable housing for planning purposes.

5. Approach to Calculating Affordable Housing

5.1 In line with Policy H5, the council will negotiate with developers on the basis that, fordevelopments of 15 dwellings or more or 0.5ha or more (irrespective of dwelling numbers) inHarrogate, Knaresborough, and Ripon, 40% of the homes to be built on-site should beaffordable. In all other areas, the threshold is 3 dwellings or more or 0.1ha or more, irrespectiveof dwelling numbers. Affordable housing should be delivered on site other than in exceptionalcircumstances.

5.2 The 40% affordable housing target applies to the gross number of dwellings proposed. Buildingsto be converted, redeveloped or replaced will therefore be included but existing dwellingsproposed to be retained, refurbished or extended will be excluded from the calculation.

3Planning Guidance: Negotiating Affordable Housing Contributions Harrogate Borough Council: Published November 2015


5.3 The council will calculate the affordable housing requirement based on the gross developablearea (in hectares) of the red-lined site boundary on a planning application. The gross developablearea will exclude major distributor roads and existing private driveways.

5.4 It will include access roads within the site, car parking areas serving the development, children’splay areas and other areas of open space and landscape areas. In mixed developmentsincorporating other non-residential uses the area will be measured around the housing site andits access roads.

5.5 The affordable housing target will be applied to the number of homes on the composite site ornaturally defined area. Planning applications for development which forms part of a moresubstantial proposed development, on the same or adjoining land will be treated as an applicationfor the whole development. This also applies if the development is proposed in phases, withlater phases having to fulfil affordable housing requirements from previous phases, if this hasnot been adequately provided for.

6. Delivering the Affordable Homes

6.1 The council expects developers to demonstrate how the affordable housing will be madeavailable to eligible occupiers in perpetuity. Registered Providers (RPs) are the preferredagencies to achieve this because RPs are regulated by the Homes and Communities Agency(HCA) and have satisfied the Government’s regulatory requirements for the provision andmanagement of affordable housing. The council is also satisfied that they will deliver theiraffordable housing management obligations efficiently and effectively and will work with thecouncil to meet shared objectives for sustainable communities. On occasion, the council maydeliver affordable homes itself.

6.2 The council works with preferred partner RPs for the delivery and management of new affordablehousing in the district and regularly engages with them and monitors their performance. Thecouncil will nominate an RP for the allocation of new affordable homes, having regard tomanagement base and capacity.

7. Affordable Housing Transfer Prices

7.1 Following consultation with its partner RPs and the HCA, the council has established localtransfer prices for affordable housing. These are the sums that RPs will pay to developers forthe affordable homes they provide.

7.2 Irrespective of tenure, a nominated RP (or on occasion, the council) will purchase completedhomes from the developer at transfer prices which are reviewed and agreed periodically inconsultation with RPs and the HCA. Transfer prices are set to ensure that the future homesare affordable to those in housing need and are derived from house price and affordability datacontained within the SHMA.

7.3 The SHMA demonstrates that that around a quarter of households in affordable need can affordan equity stake of up to £80,500. The figure of £80,500 has been calculated on the basis of theincome required to access market housing (£23,000) multiplied by 3.5 to reflect a typicalmortgage multiple. The lower quartile dwelling price in the district (averaged across all typesQ1-Q2 2014) is £162,500. Using this approach accords with the NPPF which states thataffordability should be relative to local incomes and house prices.

7.4 This equity stake represents an approximate 50% share in an average entry-level property.The typical intermediate sale property is currently a two-bedroom house of approximately70sqm. Consequently, the appropriate transfer price payable by a RP for a house of this typeand size is £77,000/£1100psm GIA.



7.5 The flat rate of £1100psm will apply to all other agreed property sizes up to a maximum of 90smfor a 3-bed property or 100sm for a 4-bed property. Where affordable flats are delivered, thetransfer price is £1050psm GIA (not including common parts). The lower price reflects thepurchaser’s liability for service charges.

7.6 Transfer prices are kept under review and are based on affordability within the district (derivedfrom local income and house price data) and on the assumption that affordable units will beprovided without public subsidy. Current prices were introduced on 1 April 2012 and remainedunchanged following review on publication of the SHMA 2015 and updated income and houseprice data. They apply to all affordable dwellings secured through the planning process,irrespective of tenure or the RP partner.

8.1 Proposals for agricultural/forestry worker’s housing, Service Family Accommodation andpermanent self-catering accommodation which are capable of normal residential use(1) will betreated as applications for dwellings and provision of affordable housing will therefore berequired.

9.1 Institutional care homes and nursing homes fall within Use Class C2 (Residential Institutions)of the Use Classes Order and are not subject to affordable housing provisions. However,sheltered and retirement housing, including self-contained apartments linked to care (e.g. ExtraCare or Assisted Living) fall within Use Class C3 (Dwelling houses) and as such will be expectedto provide 40% affordable housing (subject to viability).

9.2 In the case of self-contained apartments linked to Extra Care provision, the affordable housingtarget will generally be met by way of a financial contribution. In exceptional circumstancesthere may be instances where on-site provision would contribute to or meet the affordablehousing target.

10. Distribution of Affordable Housing Units

10.1 The nature and size of a proposed development will influence the distribution of affordable unitswithin the site. However, as a general rule, affordable homes should be spread throughoutdevelopments, rather than being concentrated into distinct areas, in order to avoid segregationand to promote integrated and sustainable communities.(2) Individual development proposalswill need to be supported by plans showing an acceptable distribution of affordable units.

11. Design Requirements

11.1 The council expects affordable housing to be built to a high standard of design. In the interestsof delivering sustainable, inclusive and mixed communities, the affordable homes should beindistinguishable from the open market housing in terms of style, quality of specification, finishand materials.

11.2 The council expects affordable housing to have regard to housing standards promoted by theHCA. Information about these and the nationally described housing standards is available fromthe HCA, via the GOV.UK website. In addition, partner RPs are able to provide details of theirown specifications, which form part of their contracts with developers.

11.3 Minimum space standards ensure that households have decent housing with sufficient roomto live, which is particularly important when every bedroom is expected to be used as such.The council’s approach to minimum space standards, which have been in practical use formany years, is as follows.

1 Normal residential use means that there are no physical reasons why the property cannot be occupied as a normalresidential dwelling

2 Large clusters of affordable units are best avoided, if possible, and should be kept as small as possible where they proveto be necessary. Cul-de-sacs entirely made-up of affordable or market housing should be avoided and affordable flatsshould be accompanied by market flats (although separate blocks may be a necessity).



Floorspace in square metresSize/type of dwelling

57sm1-bedroom flat/apartment(1)

60sm1-bedroom house

65sm2-bedroom flat/apartment(2)

70sm2-bedroom house

85sm3-bedroom house

100sm4-bedroom house

Table .1 Minimum space standards

1. Only acceptable where the market units include flats also; and then in the same proportions.2. Same as above.

11.4 For all planning applications, the location and number of affordable housing units/plots shouldbe specified on layout plans, together with parking provision. At Reserved Matters/Full stage,details of the size and number of bedrooms within each dwelling should also be clearly markedup and different colours used to identify the different affordable housing tenures (if relevant).

12 Local Affordable Need

12.1 Affordable housing should be provided in the following proportions:

15% - 1 bedroom units60% - 2 bedroom units25% - 3/4 bedroom units

12.2 This is broadly in line with the SHMA which recognises the need for smaller properties but alsoacknowledges the role which delivery of larger family homes can play in releasing a supply ofsmaller properties for other households. The mix will also have to have regard to the householdscurrently on the council’s Housing Register and other indicators of housing need.

12.3 Should an applicant believe that provision of affordable housing in line with the above is notviable, they should submit a development appraisal(3) to demonstrate this.

13. Local Connection Criteria

13.1 When determining planning applications, the council will negotiate affordable housing provisionto meet the overall needs for the district. However, with regard to occupancy, priority will begiven to those with a connection to the immediate sub area before moving out to the district asa whole (for a full list of sub areas, please see Appendix 1).

13.2 Local connection criteria help people with existing ties to an area—through residency (includingpast residency), close family residency or employment—to secure the affordable housing theyneed. When such criteria are imposed as a planning requirement, they affect the way RPsallocate affordable homes to prospective occupiers.

13.3 To qualify for an affordable home, a household must have an identified housing need and meetat least one of the local connection criteria that form part of the council’s Scheme of Allocation.The local connection criteria are:

3 Details of what should be included in a development appraisal and the scale of fees payable are at Appendices 2 and3.



Current residency and for the previous two years in the local area; orPrevious residency in the local area (for a continuous period of at least 10 years); orClose family ordinarily resident in the local area (for a minimum period of five yearspreviously); orEmployment in the local area (having been employed for a minimum of 12 months),minimum 16 hours per week.

13.4 A legal agreement between the landowner, council and RP will be used to ensure that thehomes are retained as affordable and only occupied by eligible households in housing need,upon every future re-sale or re-let. Alternatively, if restrictions are lifted (e.g. where a tenanthas a legal right to purchase the home), the legal agreement will ensure that securearrangements are in place to recycle any subsidy for alternative affordable housing provision.

14. Rural Exception Sites

14.1 Rural exception sites are small sites on the edge of rural settlements to be developed solelyfor the provision of affordable housing for local people. Historically exception sites have beendeveloped by RPs. This route remains an important way of supplying rural affordable housing.Alternatively, landowners and private developers may build affordable homes on exceptionsites subject to restrictions as set out below. The enhanced land value which may result isintended to incentivise landowners to bring sites forward for affordable housing. This is importantbecause opportunities for mixed market and affordable sites are limited in rural areas.

14.2 On privately developed exception sites, 50% of the homes may be retained by the developerfor affordable sale (or rent) to eligible households(4) nominated by the developer at a maximumof 80% of market value. The remainder will be allocated to eligible households nominated bythe council from its housing register. A restrictive covenant will ensure that this discount andeligibility criteria are retained in perpetuity. The remaining 50% of homes will be sold oncompletion to a nominated RP at the council’s approved affordable transfer prices.

14.3 For rural exception sites, priority is given to those households which have a local connectionto the parish in which the site is located before moving out to neighbouring parishes and thedistrict as a whole. A section 106 legal agreement will set out restrictive covenants on localconnection for all the affordable homes, whether these are provided by a private developer ora RP.

14.4 The size (floor area) of these homes is restricted, both to reflect their intended role as firsthomes for local households and to aid affordability. Typically they will be two-bedroomed homesof 70sm on larger schemes; some three-bedroomed houses may be included (up to 90 sqm).

14.5 No more than 12 dwellings will normally be permitted on an exception site. This is in the interestsof promoting mixed and sustainable communities and minimising the impact of developmentupon the village and its landscape setting.

14.6 Any proposals for exception sites should be discussed and agreed with the housing developmentteam prior to submission of a planning application. Consultation with the Parish Council andthe involvement of a nominated RP will be required from the outset as well as evidence of localhousing need.

15. Commuted Sums

15.1 Government guidance states that, in the interests of creating mixed and balanced communities,affordable housing should be provided on-site and integrated with the market housing whereverpossible. However, in exceptional circumstances where there are sound planning or housing

4 Eligible households may include employees and family members



reasons and it can be robustly justified, it may be acceptable to take off-site provision or acommuted sum of broadly equivalent value in lieu of part or all of the affordable housing provisionon a site.

15.2 The sum due will be based on the difference between the market value of dwellings being builton the site and the value of affordable housing (according to current transfer prices).Where acommuted sum is payable but the full amount of affordable housing is not viable, what surplusis available will be payable in its entirety as the affordable housing contribution.

15.3 Commuted sums will be used to deliver affordable housing on the subject site or within thewider district and improve or make more effective use of the existing housing stock for affordablehousing purposes.

16. Financial Viability

16.1 In 2009, the council commissioned Adams Integra to carry out an Economic Viability Assessmentto consider the impact that various levels of affordable housing would have on the deliverabilityof residential developments in different parts of the district. This work was published in 2010and has informed the setting of affordable housing targets and thresholds. The Adams Integrastudy indicates that schemes would be viable and deliverable including 40% affordable housingunder most market conditions. This work was updated in 2014 and confirms that viability overallhas improved since publication in 2010. Nevertheless, the council recognises that there maybe instances where scheme-specific viability is affected by factors such as unforeseen highabnormal costs or a downturn in the property market.

16.2 Where an applicant considers that the viability of a scheme is compromised, they must submita Development Appraisal to the council. The Appraisal should include all known costs, currentsite value and projected valuations of the scheme (guidance on development appraisals is setout at Appendix 3). Appraisals will be considered by the council’s Valuation Surveyor and treatedin the strictest confidence. There will be a fee for this work and the current scale of fees is setout at Appendix 2. Where it can be demonstrated that viability is affected such that itcompromises the delivery of the scheme, the council will reduce the amount of affordablehousing so as to make the scheme viable.

17. Planning Applications

17.1 For all planning applications, the location and number of affordable homes/plots should bespecified on layout plans, together with parking provision. At Reserved Matters/Full stage,details of the size and number of bedrooms within each dwelling should also be clearly markedup and different colours used to identify the different house types. Individual unit layout plansmust also be supplied.

17.2 Applicants should contact the Housing Development team at the pre-application stage to discussand agree the type, size, mix, tenure and integration of affordable housing on the proposeddevelopment. This is important, because, once the statutory period for deciding the applicationhas started, there is unlikely to be sufficient time to negotiate affordable housing requirements.

17.3 Applicants are urged to take the opportunities offered to engage in pre-application discussions,as insufficient attention to affordable housing requirements is likely to result in a refusal ofplanning permission. This is a necessary part of the pre-application process.

17.4 If an applicant believes that affordable housing requirements are not financially viable, he/sheshould submit a Development Appraisal before submitting a Full or Reserved Matters application.



17.5 Affordable housing contributions will be secured by means of a condition attached to the relevantplanning permission. The condition will be based on the Planning Inspectorate model and willfollow the general format set out below (although the exact wording of the condition may needto be adjusted in order to reflect the particular circumstances of individual cases).

18. Planning Condition for Affordable Housing Contributions

18.1 As it may often not be clear from an outline application how many dwellings will be built on site(or the proposed sizes of those dwellings) a standard condition will be applied to all applicationswhere affordable housing may be required, allowing the issue to be addressed at the ReservedMatters stage. The condition will be as follows:

‘The development shall not begin until a scheme for the provision of affordable housing has beensubmitted to and approved in writing by the local planning authority. The development shall becarried out in accordance with the approved scheme. Affordable housing shall meet the definitionof affordable housing in the NPPF or any future guidance that replaces it. The scheme shall include:

I. the numbers, type, tenure and location on the site of the affordable housingprovision to be made which shall consist of not less than 40% of housing units;

II. the timing of the construction of the affordable housing and its phasing inrelation to the occupancy of the market housing;

III. the arrangements for the transfer of the affordable housing to an affordablehousing provider (or the management of the affordable housing if no RegisteredProvider involved) or details of an equivalent affordable housing contributionto be provided in lieu of affordable housing on site and the means by whichsuch a contribution shall be provided (this will be of broadly equivalent valueand split into part contribution and part on site. It will only be wholly bycontribution where robustly justified);

IV. the arrangements to ensure that such provision is affordable for both first andsubsequent occupiers of the affordable housing; and

V. the occupancy criteria to be used for determining the identity of occupiers ofthe affordable housing and the means by which such occupancy criteria shallbe enforced;'

19. Contacts and Publications

19.1 If you need any advice or information on affordable housing policy and practice, please contactthe Housing Development team. If your query relates to a planning application, please contactDevelopment Control on: 01423 500 600.

Contact Details

Principal Development Officer (Housing)

Jenny Wood: email: [email protected]

Senior Planning Policy Officer(Planning Policy Team)

Janet Entwistle: email: [email protected]

Valuation Surveyor (Housing)

Jenny Jacobs: email: [email protected]

Useful publications include:

Planning Practice Guidancehttp://planningguidance.planningportal.gov.uk/blog/guidance/planning-obligations/planning-obligations-guidance/



Harrogate District Affordable Housing Economic Viability Assessment (Adams Integra,September 2010, updated 2014)http://www.harrogate.gov.uk/plan/Pages/lp-evidencebase.aspxNational Planning Policy Framework, DCLG, April 2012 www.communities.gov.ukRegulatory Framework for Social Housing in England from April 2012 published by theHCA www.homesandcommunities.co.ukHousing and Regeneration Act 2008Harrogate Borough Council Strategic Housing Market Assessment, September 2015http://www.harrogate.gov.uk/plan/Pages/lp-evidencebase.aspx



Appendix 1 Sub-Areas and Parishes

The table below provides a breakdown on the composite parishes/wards contained within each of the16 sub-areas

Parish / WardSub-Area Number & Name

Harrogate(5)1. Harrogate

Knaresborough, Scriven2. Knaresborough andScriven

Ripon3. Ripon

Boroughbridge, Cundall w Leckby, Ellenthorpe, Humberton, Kirby Hill,Langthorpe, Milby, Newby w Mulwith, Norton-le-Clay, Roecliffe, Skeltonon Ure, Thornton Bridge, Westwick

4. Boroughbridge

Arkendale, Brearton, Coneythorpe and Clareton, Copgrove, Farnham,Ferrensby, Flaxby, Goldsborough, Scotton, Staveley, Walkingham Hillw Occaney

5. Knaresborough Villages

Allerton Maul. w Hopperton, Cattal, Dunsforth, Great Ouseburn, GreenHammerton, Hunsingore, Kirby Hall, Kirk Hammerton, Little Ouseburn,Marton cum Grafton, Nun Monkton, Thornville, Thorpe Underwood,Whixley

6. Vale of York

Follifoot, Great Ribston w Walshford, Kearby w Netherby, Kirk Deighton,Kirkby Overblow, Little Ribston, North Deighton, Plompton, Sicklinghall,Spofforth w Stockeld

7. Lower Wharfedale

Askwith, Blubberhouses, Castley, Denton, Farnley, Fewston, GreatTimble, Leathley, Lindley, Little Timble, Middleton, Nesfield w Langbar,Newall w Clifton, Norwood, Weston

8. Upper Wharfedale

Birstwith, Bishop Thornton, Clint cum Hamlets, Felliscliffe,Hampsthwaite, Killinghall, Nidd Part of Saltergate Ward, Ripley

9. Lower Nidderdale Villages

Bewerley, Dacre, Fountains Earth, Hartwith cum Winsley, High & LowBishopside, Menwith w Darley, Stonebeck Down, Stonebeck Up,Thornthwaite w Padside, Thruscross, Warsill

10. Upper Nidderdale

Burton-on-Yore, Colsterdale, Ellingstring, Ellington High and Low,Fearby, Healey, Ilton-cum-Pott, Masham, Swinton w Warthermarske

11. Masham Area

5 Harrogate Sub-Area includes the village of Pannal/Burn Bridge/Spacey Houses


Sub-Areas and Parishes 1

Parish / WardSub-Area Number & Name

Beckwithshaw, Haverah Park, North Rigton, Stainburn, Weeton, Huby12. South Harrogate Villages

Bilton-in-Ainsty w Bickerton, Long Marston, Moor Monkton, Tockwith,Wighill, Wilstrop

13. Marston Villages

Asenby, Baldersby, Bridge Hewick, Copt Hewick, Dishforth, Givendale,Hutton Conyers, Marton-le-Moor, Melmerby, Middleton Quernhow,Norton Conyers, Rainton w Newby, Sharow, Wath (Ripon)

14. Northern Villages

Bishop Monkton, Burton Leonard, Markingfield Hall, Markington wWallerthwaite, South Stainley w Cayton

15. Ripon South Villages

Aldfield, Azerley, Eavestone, Grantley, Grewelthorpe, Kirkby Malzeard,Laverton, Lindrick w Studley R and Fountains, Littlethorpe, NorthStainley w Sleningford, Sawley, Skelding, Studley Roger, Winksley

16. Ripon West Villages

Table 1.1 Sub-Areas and Parishes


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Sub-Areas and Parishes 1

Appendix 2 Development Appraisal Fees, Terms & Conditions

An appraisal will not be considered unless the applicant has printed, signed and submitted acopy of this form, with their development appraisal paperwork.

To justify the provision of less than the target affordable housing, the council requires a DevelopmentAppraisal to be submitted prior to submission of the planning application. The information contained inthe Development Appraisal will only be made available to the Planning Officer and relevant advisors,such as the council’s Valuation Surveyor and Principal Development Officer. It will not be placed on thepublic file nor made available to any third party.

The council charges a fee for this work, which is banded according to the time taken to complete theDevelopment Appraisal. Applicants are required to pay an initial advance fee (“the Initial Fee”) of £500.If the work to be undertaken takes longer than 5 hours, an additional payment will be payable (“theAdditional Fees”).

The Scale of Fees is as follows:

Cases taking up to five hours will be charged at £500Cases taking five hours and up to ten hours will be charged at £1000Cases taking ten hours and up to fifteen hours will be charged at £1500Cases taking fifteen hours and up to twenty hours will be charged at £2000Cases taking twenty hours or more will be charged at £2500

In order for your Development Appraisal to be considered, you are required to pay the Initial Fees onlinevia this link: http://www.harrogate.gov.uk/plan/Pages/New%20Plan/Planning-Pay-For-It.aspx. Fees mayalso be paid via BACS or by cheque (although online payment is preferred). The online receipt shouldbe submitted with the Development Appraisal papers.

Reconsiderations of viability at a later date will be the subject of additional fees.

I, the Applicant/Agent…...................................................................................(print name) confirm that Ihave read the above Terms and Conditions and undertake to pay the Initial Fees in line with the aboveScale of Fees.

My Payment Reference is: ………………………………………………………………………..

I confirm that if any Additional Fees are due, I undertake to pay these Additional Fees in line with theabove Scale of Fees.

Signed: ………………………………………………………………………………………………

Date: …………………………………………………………………………………………………


2 Development Appraisal Fees, Terms & Conditions

Appendix 3 Development Appraisals

The information to be supplied should include the value of the completed development proposed by thisapplication, and all costs incurred or expected to be incurred in order to achieve this value. The informationshould ideally include the following as a minimum guide, but may also cover other items specific to theproposed development.

Value:

Gross internal area of houses excluding garages and conservatories. Habitable roof-space shouldbe listed separately. For industrial buildings, supply gross internal area; for any shops or officessupply net internal area.The value used per unit of area. Alternatively, valuations of the completed buildings.The cost of sales or lettings, broken down into marketing/estate agents’ fees and legal fees.Affordable housing should be shown at the transfer value to be paid by a Registered Provider (seeparagraph 6.4).Current Use Value of the property. This means the value reflecting the existing physical state anduse, which are authorised and require no consent to continue.

It may be useful to show more than one scenario.

Costs:

Build costs. Give the gross external area multiplied by the unit cost per square metre or squarefoot. State whether this is a tendered sum or an estimate.Preliminaries allowed for. State what is included.External works where applicable. Broken down, e.g. X ms of road @ £Y per m. Include boundarytreatment, landscaping, demolition and site preparation costs as appropriate.Standard Planning Costs – Planning and Building Regulation fees, commuted sums.Professional fees – Architects, QS, CDM supervisor etc.Contingency allowance.Cost of finance. Indicate the period and interest rate.Community Benefits. If the scheme includes any exceptional benefits such as the restoration of alisted building or the provision of public open space above what is required, please state the costof providing this.Abnormal costs if any. What are these (e.g. contaminated land remediation) and when you becameaware that there were potentially abnormal costs and what the costs are anticipated to be?Developers Profit – the amount or percentage included.Acquisition price as appropriate

Any other relevant items should be clearly defined and costed.


Development Appraisals 3

Planning Guidance: Negotiating Affordable Housing Contributions Harrogate Borough Council: Published November 2015

2015 planning guidance - negotiating affordable housing contributions · the typical intermediate...

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