Page 311 - All files for Planning Inspectorate

5.2.2 Abnormal costs

As set out in both the Melanie Dwyer report, and the D and S report, an
allowance of £150,000 for demolition of existing structures appears to be
agreed.

There will also be site clearance costs (see HCA Guidance on Dereliction,
Remediation and Demolition Costs, 2015) which could amount to an
additional £100,000 for this site, looking at the benchmarks.

5.2.3 Other development costs

Added to these costs will need to be other development costs. These are
set out in the screenshot below:

I have taken variables at standard Toolkit defaults in most instances:

I note that Dixon and Searle consider a margin at 17.5% on GDV is
appropriate. I would respond by stating that the current Toolkits operating
across the UK are set up at 20% as standard. It is correct to say that these
have in the past had lower margins as a default, but this happened at times
where the market cycle was much more favourable than it is currently.

The purpose of the margin is in some measure, to reflect the degree of risk.

It is also to reflect realistic lending criteria and I understand, in this respect,
that the applicants will not get support from a bank at a return on the
scheme of less than 20% on GDV.

W e a l d e n H o u s e , A s h u r s t W o o d V i a b i l i t y R e p o r t P a g e 10 | 36

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