Blackburn

The development was to erect 14 detached and semi-detached houses on a greenfield site.

Blackburn Borough Council suggested the development provide 3 affordable housing units on-site, as well as c.£283k in S106 contributions.

The viability appraisal was run as a 100% open market scheme and created a profit of 9%, this being half of the targeted 18% developer return.

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Phase 1 Result:

The Council initially suggested that the sales values were optimistic and that build costs should be significantly reduced. They agreed to no affordable housing units on site, but still requested £105,000 in S106contributions.

Phase 2 Result

After a further robust evidence-based approach and extensive negotiations, a payment of £85,000 was agreed with no late review mechanism to be carried out.

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