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More than ever before there is a need for the layman to understand some of the terminology associated with commercial and residential development and Town Planning. Even the longstanding participants are playing catch up………
Abnormal Costs
These are the costs which a site has to incur to make it ‘oven’ ready for development over and above the normal on-site costs of developing a site and increasingly more off site costs to be incurred are rising as more items are thrown into the pot by local authorities. (see Developer's contribution)
Community Engagement
The development industry is getting its head around this culture change of actually consulting the community and communities are not fully aware yet that we have entered this new era. There is a science to it and best practices are posted on web sites. To our way of thinking it means not presenting a plan and saying ‘what do you think’ but actually getting input and involvement of communities in the formulation of a significant proposal. It works!
Community Infrastructure Levy
This is being introduced in England only and could be introduced in 2009/10....it will affect the value of land as a contribution will be payable for infrastructure provision for land with planning consent for development...........more to come on this.
Development Contribution
This is the contribution that the development will be required to make to the Local Authority for services / schooling / new road improvements/ open space/ recreational amongst others.
This is a source of much debate and controversy for several reasons…. one of which is that it affects land value as a developer buys land with a profit figure built in…….. He cannot then take on the chin all the extra payments which are not known till later in the process and therefore it must be reflected in land price. There is a currently underway a review (Dec 09) of such contributions by GVA Grimley in Scotland as this system is seen as unworkable with the dramatic fall in land prices.
LDP - Local Development Plan -
New terminology for the old 'Local Plan' - most local Plans in Scotland will be replaced in next 5 years and replaced with the new LDP - See SDP Below
LDF - Local Development Frameworks (England) -
In England each local planning authority is preparing a Local Development Framework. This is a folder of documents that sets out how your local area may change over the next few years.
Plan Lead System
The current planning regime whereby development allocations on land are fixed in the Structure Plans and RSSs and there after in Local Plan (Scotland) or LDF in England.
Any deviation from the land use shown in these Planning documents can be seen as contrary to the development Plan and planning permission refused.
Therefore, it is fundamental that representations are made to the Planning Authority at the start of the planning cycle in order that the principle of development can be established.
Unfortunately this is a long tiresome and expensive process! In our opinion the current politically lead plan lead system is a huge chain around the neck of the economy and the populace’s need for housing shopping and facilities as times change rapidly.
Promotion Agreements
Rather than an outright purchase our clients would promote land through the planning process and obtain all the relevant consents and achieve sale(s ) to builders. They would take in return for investing in the project a percentage of the price received from the builder. This is a model built around actual price achieved and the client has an incentive to reduce abnormal costs of developing the land release rather than a typical option agreement to buy at a %age of market value where the builder may not be inclined to work hard to minimise abnormal costs and hence to lower the land price in their favour.
Regional Spatial Strategies (RSS)
A spatial plan has a wider remit, allowing it to include policies relating to the character of spaces and the ways in which they are used – policies that are not necessarily put into effect directly through planning powers, though the Plan has to be able to demonstrate how they will be put into effect.
Each Regional Planning Body (such as the north-east of England) is preparing a Regional Spatial Strategy. This sets out things such as how many homes are needed to meet the future needs of people in the region, or whether the region needs a new major shopping centre or an airport.
The objective of the Regional Spatial Strategy (RSS) is to contribute to the achievement of sustainable development. The RSS, incorporating a Regional Transport Strategy (RTS), provides a broad development strategy for any region in England for a fifteen to twenty year period. The RSS also informs the preparation of Local Development Documents (LDDs), Local Transport Plans (LTPs) and regional and sub-regional strategies and programmes that have a bearing on land use activities.
Following the commencement of the Planning and Compulsory Purchase Act 2004, Regional Planning Guidance (RPG) became RSS in each region outside of London and now forms part of the statutory Development Plan.
Representation
A submission promoting site for development. Timing is crucial and if you miss out then you may have to wait 5-7 yrs for the next Planning cycle.
Land owners are often not aware of the timing on emerging plans.... Prime Land Consultants can assist
Structure Plans / SDP
This term Structure Plan is now becoming 'old hat' as new SDPs or Strategic Develoment Plans will replace Structure Plans. In Scotland, a Structure Plan (SP) take for example, the new draft Aberdeen (NEST) Structure Plan is essentially a geographical or spatial strategy for developing the North East Scotland area over the next circa twenty years. The Local planning issues are dealt with in the Local Development Plans which have to conform to the Structure Plan (SP) guidance. SPs are also being phased out with a new Plan called the SDP (Strategic Development Plan). We will be expanding on this shortly along with the other major changes to the planning system.
Spatial Plan
A spatial plan has a wider remit, allowing it to include policies relating to the character of spaces and the ways in which they are used – policies that are not necessarily put into effect directly through planning powers, though the Plan has to be able to demonstrate how they will be put into effect.
Two- Tier Plan System
The typical Structure Plan / Local Plan system in Scotland and the RSS / LDF system in England are in our opinion a major source of Planning delays. In Scotland this is being partly phased but the introduction of City Region Plans still maintains its existence. The City Region Plans appear to make life even more complicated as in some regions there is an even greater number of inputs from local Councils as in the Edinburgh City Plan.
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