Skill Profile
Development Viability Assessment
"The observable action of modelling the financial costs and revenues of a proposed development scheme in order to determine whether it can generate a competitive return while meeting planning obligations."
YOUR SKILLS
Problems This Skill Solves
- Planning obligations (affordable housing, infrastructure contributions) set at levels that make a development financially unviable, stalling delivery
- Local authorities accepting viability arguments without scrutiny, resulting in reduced affordable housing contributions
- Developers over-paying for land based on optimistic appraisals, leading to failed schemes and distressed assets
- Disputes between applicants and local authorities over what planning gain a scheme can support, causing costly delays
Tools Used
"Viability assessments are objective financial documents."
Viability assessments are professional judgements presented in financial model form. The key inputs — benchmark land value, developer's profit expectation, construction costs, and sales values — all involve assumptions that can be argued in multiple directions, and small changes to these assumptions can shift the conclusion from 'viable with 35% affordable housing' to 'not viable without zero affordable housing.' This is why independent review, published assumptions, and professional standards are essential to the integrity of the process.
Research & Outlook
Development viability assessment is gaining importance as planning reform agendas seek to increase housing delivery while maintaining planning gain for affordable housing and infrastructure. Independent scrutiny of developer viability claims is being strengthened in many local authorities and through national guidance updates. Automated appraisal tools and standardised assumption databases are improving transparency, but the professional judgement to interpret market evidence and negotiate robust outcomes remains in strong demand — particularly as development economics become more complex under higher build cost and finance cost environments.
See This Skill In Action
Watch a professional demonstrate Development Viability Assessment in a real working environment — what it looks like, how it's applied, and why it matters.
Analytical / Built Environment
Development Viability Assessment
Also Known As
Growth Path
Understands the structure of a development appraisal — GDV, construction costs, professional fees, finance costs, and developer profit. Can build a basic residential appraisal from a template and interpret the residual land value output. Familiar with the policy context: why viability assessments are required and how they affect planning obligations.
Prepares and reviews viability assessments for a range of development types — residential, mixed-use, and commercial. Sources and justifies market evidence for key assumptions. Identifies and tests sensitivity of conclusions to changes in key inputs. Represents a client position in negotiations with a local authority viability officer or independent assessor.
Leads viability strategy for complex, high-value, or politically sensitive development schemes. Designs bespoke appraisal models for non-standard structures (joint ventures, phased schemes, estate regeneration). Provides expert evidence at planning inquiries on viability matters. Advises local authorities on setting CIL rates or viability-testing their local plans. Mentors junior surveyors and consultants.
How to Practise
- 1.Build a simple residential development appraisal in Excel: model gross development value (GDV) from unit mix and comparable values, subtract construction costs, professional fees, finance costs, and developer profit to derive a residual land value.
- 2.Study a published viability assessment submitted with a planning application (many are public on council planning portals) and critically evaluate the key assumptions — benchmark rate of return, build costs, and sales values — against market evidence.
- 3.Model the effect of varying affordable housing percentages on residual land value in your appraisal to understand the sensitivity of viability conclusions to policy requirements.
- 4.Read the RICS guidance on financial viability in planning and the Planning Practice Guidance chapter on viability to understand the professional and policy framework.
How to Prove
- ·RICS Assessment of Professional Competence (APC) in Planning & Development pathway, demonstrating competency in development appraisal
- ·Portfolio of viability assessments prepared or reviewed for live planning applications, with evidence of outcomes achieved
- ·Evidence of successfully challenging or defending a viability position in negotiations with a local authority or applicant
- ·RICS Registered Valuer status, demonstrating recognised professional standing in property valuation