watford local plan 2 site allocations and development ... · 1.1 the study scope 1.1.1 peter brett...

On behalf of

Watford Borough Council

Project Ref: 37165 | Rev: D | Date: August 2016

Office Address: 10 Queen Square, Bristol, BS1 4NT T: +44 (0)117 332 7840 E: [email protected]

Watford Local Plan 2 Site Allocations and

Development Management Policies Viability

Assessment Final Report

Watford Local Plan 2 Viability Assessment

Final Report

ii

Document Control Sheet

Project Name: Watford Local Plan 2 Viability Assessment

Project Ref: 37165

Report Title: Watford Local Plan 2 Viability Site Allocations and Development Management Policies Assessment

Doc Ref: Final Report

Date: August 2016

Name Position Signature Date

Prepared by: Sharon Jefferies / Tom Marshall

Principal Planner / Consultant Economist

08 July 2016

Reviewed by: Russell Porter Senior Associate Economist

11 July 2016

Approved by: John Baker Partner

11 July 2016

For and on behalf of Peter Brett Associates LLP

Revision Date Description Prepared Reviewed Approved

A April 2016 Draft SJ/TM RP JB

B July 2016 Final Draft SJ/TM RP MW

C July 2016 Final SJ JB JB

D August 2016 Final SJ/TM RP JB

Peter Brett Associates LLP disclaims any responsibility to the Client and others in respect of any matters outside the scope of this report. This report has been prepared with reasonable skill, care and diligence within the terms of the Contract with the Client and generally in accordance with the appropriate ACE Agreement and taking account of the manpower, resources, investigations and testing devoted to it by agreement with the Client. This report is confidential to the Client and Peter Brett Associates LLP accepts no responsibility of whatsoever nature to third parties to whom this report or any part thereof is made known. Any such party relies upon the report at their own risk.

© Peter Brett Associates LLP 2016


Final Report

iii

Contents

1 Introduction ................................................................................................................................. 1

1.1 The Study Scope ........................................................................................................... 1

1.2 Defining Local Plan Level Viability ................................................................................ 1

1.3 Approach ....................................................................................................................... 2

1.4 Consultation ................................................................................................................... 3

1.5 Report Structure ............................................................................................................ 3

2 National Policy Context .............................................................................................................. 5

2.1 National Framework ...................................................................................................... 5

2.2 Policy and Other Requirements .................................................................................... 8

2.3 Summary ..................................................................................................................... 10

3 Local Plan Context and Potential Impact on Viability ........................................................... 12

3.1 Introduction .................................................................................................................. 12

3.2 Local Plan Policies ...................................................................................................... 12

3.3 Watford Community Infrastructure Levy (CIL) ............................................................. 19

3.4 Summary ..................................................................................................................... 19

4 Local Development Context ..................................................................................................... 20

4.1 Introduction .................................................................................................................. 20

4.2 Local Residential Development Context ..................................................................... 20

4.3 Residential Market Sales Values ................................................................................. 23

4.4 Feedback from the Development Industry .................................................................. 27

5 Viability Testing Assumptions ................................................................................................. 29

5.1 Introduction .................................................................................................................. 29

5.2 Residential Site typologies .......................................................................................... 29

5.3 Residential values and costs viability assumptions ..................................................... 31

5.4 Non Residential Typologies for Viability Testing ......................................................... 38

5.5 Non-Residential Values and Costs Viability Assumptions .......................................... 39

6 Development Viability Analysis ............................................................................................... 42

6.1 Residential Development Viability Analysis ................................................................ 42

6.2 Residential viability results .......................................................................................... 42

6.3 Non-residential Development Viability Analysis .......................................................... 45

6.4 Policy Layers ............................................................................................................... 45

7 Conclusions ............................................................................................................................... 47

7.1 Introduction .................................................................................................................. 47

7.2 Is the Local Plan deliverable? ..................................................................................... 48


Final Report

iv

Figures

Figure 1.1 Approach to residual land value assessment for whole plan viability .................................... 3 Figure 4.1 Residential net annual completions in Watford .................................................................... 20 Figure 4.2 Spread of average prices of new and secondhand houses in Watford, 2013 to 2015 ........ 24 Figure 4.3 Spread of average prices of new and secondhand flats in Watford, 2013 to 2015 ............. 25 Figure 4.4 Sales values of residential units in SW Herts local authority areas ..................................... 26 Figure 4.5 Trends in median house sale values by SW Herts local authority area............................... 27

Tables

Table 2.1 Reported minimum gross internal floor areas and storage (sqm) ........................................... 9 Table 3.1 Viability Policy Matrix for Local Plan policies ........................................................................ 12 Table 3.2 Watford CIL Charging Schedule 2015 .................................................................................. 19 Table 4.1 Number of units to each type of housing allocation .............................................................. 21 Table 4.2 Dwelling requirement by market sector in SW Hertfordshire ................................................ 22 Table 4.3 Estimated dwelling requirement by affordable sector in SW Hertfordshire ........................... 22 Table 4.4 Delivery of affordable housing in Watford ............................................................................. 23 Table 4.5 Mainstream Markets Five Year forecast values (2015-2019) ............................................... 27 Table 4.6 Typical Estate Agent values for new build properties ........................................................... 28 Table 5.1 Residential Typologies Tested .............................................................................................. 31 Table 5.2 Gross and net areas for each typology ................................................................................. 32 Table 5.3 Average saleable floorspace by unit type and location ......................................................... 32 Table 5.4 Modelled average Open Market residential sales value, per sqm ........................................ 33 Table 5.5 Median build costs in Watford at Q1 2015 tender prices ...................................................... 33 Table 5.6 Site abnormal costs on Brownfield sites ............................................................................... 34 Table 5.7 Land purchase costs ............................................................................................................. 34 Table 5.8 Assumed transfer values by Affordable Housing tenure ....................................................... 36 Table 5.9 Minimum national space standards tested ............................................................................ 37 Table 5.10 Benchmark land values for sites without planning .............................................................. 38 Table 5.11 Non-residential use typologies ............................................................................................ 38 Table 5.12 Non-residential uses – site coverage ratios ........................................................................ 39 Table 5.13 Non-residential uses – rent and yields ................................................................................ 39 Table 5.14 Non-residential uses – build costs in Watford at Q1 2015 .................................................. 40 Table 5.15 Non-residential uses – land values ..................................................................................... 41 Table 6.1 Residential site financial headroom summary ....................................................................... 44 Table 6.2 Viability of Non-residential uses in Watford borough ............................................................ 46

Appendices

Appendix A Example Appraisals

Appendix B Notes from the Developer Workshop

Appendix C Glossary

Appendix D New Build Residential Properties on the Market at February 2016

Appendix E Research on Non-Residential Units Values


Final Report

v

Watford Local Plan 2 Viability Assessment Final Report

1

1 Introduction

1.1 The Study Scope

1.1.1 Peter Brett Associates LLP (PBA) was commissioned by Watford Borough Council (WBC) to undertake a viability assessment at a strategic plan level, including a plan viability assessment of the Watford Local Plan 2 Site Allocations and Development Management Policies.

1.1.2 The main purpose of a plan viability (or PV) assessment is to provide evidence that the requirements of the National Planning Policy Framework (NPPF) are met. That is, the policy requirements in the Plan should not threaten the development viability of the plan as a whole. In assessing the Plan, this study will inform policy decisions based on the policy aspirations of achieving sustainable development and the realities of economic viability.

1.1.3 The report and the accompanying appraisals have been prepared in line with the Royal Institute of Chartered Surveyors (RICS) valuation guidance. However, it is first and foremost a supporting document to inform the Local Plan evidence base and planning policy, in particular policy concerned with the planning, funding and delivery of infrastructure needed to support delivery of the plan.

1.1.4 As per Professional Standards 1 of the RICS Valuation Standards – Global and UK Edition1,

the advice expressly given in the preparation for, or during the course of negotiations or possible litigation does not form part of a formal “Red Book” valuation and should not be relied upon as such. No responsibility whatsoever is accepted to any third party who may seek to rely on the content of the report for such purposes.

1.1.5 PBA have also been commissioned by the Council to undertake two other viability assessment projects for Watford Junction and Clarendon Road. The outputs for these projects will be provided within separate reports.

1.2 Defining Local Plan Level Viability

1.2.1 The 'Viability Testing Local Plans' advice for planning practitioners prepared by the Local Housing Delivery Group and chaired by Sir John Harman June 2012 (the Harman Report) defines whole plan viability (on page 14) as follows:

'An individual development can be said to be viable if, after taking account of all costs, including central and local government policy and regulatory costs, and the cost and availability of development finance, the scheme provides a competitive return to the developer to ensure that development takes place, and generates a land value sufficient to persuade the land owner to sell the land for the development proposed.

At a Local Plan level, viability is very closely linked to the concept of deliverability. In the case of housing, a Local Plan can be said to be deliverable if sufficient sites are viable (as defined in the previous paragraph) to deliver the plan's housing requirement over the plan period.’

1.2.2 It should be noted that the approach to Local Plan level viability assessment does not require all sites in the plan to be viable. The Harman Report says that a site typologies approach (i.e. assessing a range of example development sites likely to come forward) to understanding plan viability is sensible. Whole plan viability:

1 RICS (January 2015) Valuation – Professional Standards, PS1 Compliance with standards and practice statements where a

written valuation is provided


2

'does not require a detailed viability appraisal of every site anticipated to come forward over the plan period… [we suggest] rather it is to provide high level assurance that the policies with the plan are set in a way that is compatible with the likely economic viability of development needed to deliver the plan.

A more proportionate and practical approach in which local authorities create and test a range of appropriate site typologies reflecting the mix of sites upon which the plan relies'.

1.2.3 The Harman Report states that the role of the typologies testing is not required to provide a precise answer as to the viability of every development likely to take place during the plan period.

'No assessment could realistically provide this level of detail…rather, [the role of the typologies testing] is to provide high level assurance that the policies within the plan are set in a way that is compatible with the likely economic viability of development needed to deliver the plan.'

1.2.4 Indeed, the Report also acknowledges that a:

'plan-wide test will only ever provide evidence of policies being 'broadly viable.' The assumptions that need to be made in order to carry out a test at plan level mean that any specific development site may still present a range of challenges that render it unviable given the policies in the Local Plan, even if those policies have passed the viability test at the plan level. This is one reason why our advice advocates a 'viability cushion' to manage these risks.

1.2.5 The report later suggests that once the typologies testing has been done:

'it may also help to include some tests of case study sites, based on more detailed examples of actual sites likely to come forward for development if this information is available'.

1.2.6 The Harman Report points out the importance of minimising risk to the delivery of the plan. Risks can come from policy requirements that are either too high or too low. So, planning authorities must have regard to the risks of damaging plan delivery with excessive policy costs - but equally, they need to be aware of lowering standards to the point where the sustainable delivery of the plan is not possible. Good planning in this respect is about 'striking a balance' between the competing demands for policy and plan viability.

1.3 Approach

1.3.1 The PBA development viability model was used to test Plan delivery based on viability. This involved high level testing of a number of hypothetical schemes that represent the future allocation of development land in Watford, and strategic sites where the bulk of delivery is expected.

1.3.2 The viability testing and study results are based on establishing a residual land value for different land uses relevant to different parts of the Borough. The approach takes the difference between development values and costs, and compares the 'residual value' (i.e. what is left over after the cost of building the site is deducted from the potential sales value of the completed site/buildings) with a benchmark/threshold land value (i.e. the value over and above the existing use value a landowner would accept to bring the site to market for development) to determine the balance that could be available to support policy costs such as affordable housing and infrastructure. This is a standard approach, which is advocated by the Harman Report. The broad method is illustrated in the Figure 1.1.

1.3.3 The arithmetic of residual land value assessment is straightforward (we use a bespoke spreadsheet models for the assessments). However, the inputs to the calculation are hard to determine for a specific site (as demonstrated by the complexity of many S106 negotiations). The difficulties grow when making calculations that represent a typical or average site and/or


3

where site specific conditions and infrastructure are not fully established, as might be the case for some larger strategic sites. Therefore our viability assessments in this report are necessarily broad approximations, subject to a margin of uncertainty.

1.3.4 Examples of the residential and a non-residential site assessment sheets are set out in Appendix A.

Figure 1.1 Approach to residual land value assessment for whole plan viability

Less development

costs – including build costs,

fees, finance costs etc

Balance - available to contribute

towards policy requirements

(can be + or -)

Benchmark land value - to

incentivise delivery and support

future policy requirements

Less developer’s

return (profit) – minimum profit

acceptable in the market to

undertake the scheme

Value of completed

development scheme

1.4 Consultation

1.4.1 The Council arranged a viability workshop for the local development industry to enable PBA to test the assumptions contained within this report. This took place in March 2016 and was attended by a mix of property and development experts, including local agents, house builders and land promoters. A copy of the meeting note is in Appendix B. Following the meeting, the Council circulated the meeting note around the attendees inviting comment on the assumptions.

1.5 Report Structure

1.5.1 The rest of this report is set out as follows:

Chapter 2 sets out the policy and legal requirements relating to whole plan viability, affordable housing and community infrastructure levy which the study assessment must comply with;

Chapter 3 sets out the current local plan policies, identifying any that may require testing for their potential impact on viability;

Chapter 4 describes the local residential market and development context, including a review of past delivery;

Chapter 5 outlines the development scenarios to be tested, tested site typologies and assumptions informing their viability;


4

Chapter 6 and 7 concludes by setting out the viability findings for residential and non-residential tested sites and translates this into recommendations for the whole plan viability; and

A glossary of key terms is available in Appendix C.


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2 National Policy Context

2.1 National Framework

2.1.1 The National Planning Policy Framework (NPPF) recognises that the ‘developer funding pot’ or residual value is finite and decisions on how this funding is distributed between affordable housing, infrastructure, and other policy requirements have to be considered as a whole, they cannot be separated out.

2.1.2 The NPPF advises that cumulative effects of policy should not combine to render plans unviable:

‘Pursuing sustainable development requires careful attention to viability and costs in plan-making and decision-taking. Plans should be deliverable. Therefore, the sites and the scale of development identified in the plan should not be subject to such a scale of obligations and policy burdens that their ability to be developed viably is threatened. To ensure viability, the costs of any requirements likely to be applied to development, such as requirements for affordable housing, standards, infrastructure contributions or other requirements should, when taking account of the normal cost of development and mitigation, provide competitive returns to a willing land owner and willing developer to enable the development to be deliverable’.

2

2.1.3 With regard to non-residential development, the NPPF states that local planning authorities ‘should have a clear understanding of business needs within the economic markets operating in and across their area. To achieve this, they should… understand their changing needs and identify and address barriers to investment, including a lack of housing, infrastructure or viability.’

3

2.1.4 The NPPF does not state that all sites must be viable now in order to appear in the plan. Instead, the NPPF is concerned to ensure that the bulk of the development is not rendered unviable by unrealistic policy costs. It is important to recognise that economic viability will be subject to economic and market variations over the local plan timescale. In a free market, where development is largely undertaken by the private sector, the local planning authority can seek to provide suitable sites to meet the needs of sustainable development. It is not within the local planning authority's control to ensure delivery actually takes place; this will depend on the willingness of a developer to invest and a landowner to release the land. So in considering whether a site is deliverable now or developable in the future, we have taken account of the local context to help shape our viability assumptions.

Deliverability and Developability Considerations in the NPPF

2.1.5 The NPPF creates the two concepts of ‘deliverability’ (which applies to residential sites which are expected in years 1-5 of the plan) and ‘developability’ (which applies to year 6 of the plan onwards). The NPPF defines these two terms as follows:

To be deliverable, ‘sites should be available now, offer a suitable location for development now, and be achievable, with a realistic prospect that housing will be delivered on the site within five years and in particular that development of the site is viable.’

4

To be developable, sites expected from year 6 onwards should be able to demonstrate a ’reasonable prospect that the site is available and could be viably developed at the point envisaged‘.

5

2 DCLG (2012) National Planning Policy Framework (41, para 173)

3 Ibid (para 160)

4 Ibid (para 47, footnote 11 – note this study deals with the viability element only, the assessment of availability, suitability, and

achievability is dealt with by the client team as part of the site selection process for the SHLAA and other site work.


6

2.1.6 This study deals with the viability element only, the assessment of availability, suitability, and achievability, including the timely delivery of infrastructure is dealt with by the Council as part of its site allocations and infrastructure planning.

2.1.7 The NPPF advises that a more flexible approach may be taken to the sites coming forward from year 6 onwards. These sites might not be viable now and might instead only become viable at a future point in time (e.g. when a lease for the land expires or future use values become attractive). This recognises the impact of economic cycles and variations in values and policy changes over time.

National Policy on Affordable Housing

2.1.8 In informing future policy on affordable housing, it is important to understand national policy on affordable housing. The NPPF states:

‘To deliver a wide choice of high quality homes, widen opportunities for home ownership and create sustainable, inclusive and mixed communities, local planning authorities should

6:

Plan for a mix of housing based on current and future demographic trends, market trends and the needs of different groups in the community (such as, but not limited to, families with children, older people, people with disabilities, service families and people wishing to build their own homes);

Identify the size, type, tenure and range of housing that is required in particular locations, reflecting local demand; and

Where they have identified that affordable housing is needed, set policies for meeting this need on site, unless off-site provision or a financial contribution of broadly equivalent value can be robustly justified (for example to improve or make more effective use of the existing housing stock) and the agreed approach contributes to the objective of creating mixed and balanced communities. Such policies should be sufficiently flexible to take account of changing market conditions over time’.

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2.1.9 The NPPF accepts that in some instances, off site provision or a financial contribution of a broadly equivalent value may contribute towards creating mixed and balanced communities.

2.1.10 Finally, the NPPF recognises that market conditions change over time, and so when setting long term policy on affordable housing, incorporating a degree of flexibility is sensible to reflect changing market circumstances.

Housing and Planning Act 2016

2.1.11 At the time of undertaking the viability assessment for this study (July 2016), the Housing and Planning Act 2016 received Royal Assent. The Act is national policy and will eventually feed into Regulations. The Act sets out changes to the delivery of affordable housing in England, as below:

‘The Secretary of State may by regulations provide that an English planning authority may only grant planning permission for a residential development of a specific description if the starter homes requirement is met.’

‘The “starter homes requirement” means a requirement, specified in the regulations, relating to the provision of starter homes in England.’

5 Ibid (para 47, footnote 12)

6 Ibid (para 50 and bullets)

7 Ibid (p13, para 50)


7

Regulations under this section may, for example, provide that an England planning authority may grant planning permission only if a person has entered into a planning obligation to provide a certain number of starter homes or to pay a sum to be used by the authority for providing starter homes.’

8

2.1.12 This indicates that there will be a requirement for starter homes, set by Government, which relates to each local authority in England. The level of that starter home requirement is not known at present and will be set out in Regulations. The Act continues to state:

‘the regulations may confer discretions on an English planning authority.

‘the regulations may make different provision for different areas.’ 9

2.1.13 Therefore at this stage, it is unknown what the starter homes requirement will be within Watford.

2.1.14 The Act sets out the definition of a starter homes:

‘is a new dwelling;

is available for purchase by qualifying first-time buyers only;

is to be sold at a discount of at least 20% of the market value;

is to be sold for less than the price cap; and

is subject to any restrictions on sale or letting specified in regulations made by the Secretary of State.’

10

2.1.15 The “price cap” is set out at £450,000 in Greater London and £250,000 outside Greater London. However, the Act also states that the Secretary of State may by regulations amend the price cap and provide different price caps for different areas within both Greater London and outside Greater London.

2.1.16 The implications of the Housing and Planning Act are unclear at present, and the detail will come within the Regulations. The Council should be aware that any changes in national policy could impact on viability, and therefore further testing of local plan policies may be required at a later date.

Consultation on Proposed Changes to National Planning Policy

2.1.17 Further to the Housing and Planning Act, in December 2015 Government set out further consultation on some specific changes to support home ownership, within proposed changes to national planning policy. Government proposes changes in the following areas:

Broadening the definition of affordable housing to expand the range of low cost housing to include Starter Homes (discounted market sales). No further information is provided on the requirement for Starter Homes in this consultation. Although it does state the homes are to be delivered ‘on all suitable reasonably-sized housing developments’ – indicating there may be a threshold; and

Support delivery of Starter Homes, to extend the current exceptions site policy with unviable or underused brownfield land for retail, leisure and non-residential institutional uses as well as rural areas.

2.1.18 The consultation document does not provide any levels or thresholds relating to Starter Homes or density levels, which could be tested within the Watford viability model. However,

8 Housing and Planning Act 2016 (para 5(1) (4) (5))

9 Ibid (para 5(6) (7))

10 Ibid (para 2(1))


8

the Council will need to be mindful of future changes in national planning policies or regulations which would impact on the viability of development and the overall Local Plan.

National Policy on Infrastructure

2.1.19 The NPPF requires local planning authorities to demonstrate that infrastructure will be available to support development:

‘It is equally important to ensure that there is a reasonable prospect that planned infrastructure is deliverable in a timely fashion. To facilitate this, it is important that local planning authorities understand district-wide development costs at the time Local Plans are drawn up.’

11

2.1.20 It is not necessary for local planning authorities to identify all future funding of infrastructure when preparing planning policy. The NPPF states that standards and policies in Local Plans should ‘facilitate development across the economic cycle,’

12 suggesting that in some

circumstances it may be reasonable for a local planning authority to argue that viability is likely to improve over time, that policy costs may be revised, that some infrastructure is not required immediately, and that mainstream funding levels may recover.

National Policy on Community Infrastructure Levy

2.1.21 The Community Infrastructure Levy (CIL) is a planning charge based on legislation that came into force on 6 April 2010. The levy allows local authorities in England and Wales to raise contributions from development to help pay for infrastructure that is needed to support planned development. Local authorities who wish to charge the levy must produce a draft charging schedule setting out CIL rates for their areas – which are to be expressed as pounds (£) per square metre, as CIL will be levied on the gross internal floorspace of the net additional liable development. Before it is approved by the Council, the draft charging schedule has to be tested by an independent examiner.

2.1.22 The requirements which a CIL charging schedule has to meet are set out in:

The Planning Act 2008 as amended by the Localism Act 2011;

The CIL Regulations 201013

, as amended in 201114

, 201215

, 201316

and 201417

; and

National Planning Practice Guidance on CIL (NPPG CIL).18

2.1.23 Watford CIL was adopted in 2014 and implemented in 2015.

2.2 Policy and Other Requirements

National Space Standards for Housing

2.2.1 Government published ‘Technical Housing Standards – Nationally Described Space Standard’ (NSS) in March 2015. This replaces the existing different space standards used by local authorities. It is not a building regulation and remains solely within the planning system as a new form of technical planning standard. The same standards have been used within the assumptions for house sizes in this study.

11

DCLG (2012) National Planning Policy Framework (p42, para 177) 12

Ibid (p42, para 174) 13

http://www.legislation.gov.uk/ukdsi/2010/9780111492390/pdfs/ukdsi_9780111492390_en.pdf 14

http://www.legislation.gov.uk/ukdsi/2011/9780111506301/pdfs/ukdsi_9780111506301_en.pdf 15

http://www.legislation.gov.uk/uksi/2012/2975/pdfs/uksi_20122975_en.pdf 16



DCLG (February 2014) Community Infrastructure Levy Guidance and DCLG (June 2014) National Planning Practice Guidance: Community Infrastructure Levy (NPPG CIL)


9

2.2.2 NSS deals with the internal space of new dwellings and sets out the requirement for Gross Internal Area, as set out in Table 2.1.

Table 2.1 Reported minimum gross internal floor areas and storage (sqm)

Number of bedrooms (b)

Number of bed spaces (persons)

1 storey dwellings

2 storey dwellings

3 storey dwellings

Built-in storage

1b 1p 39 (37)

2 1.0

2p 50 58 1.5

2b 3p 61 70

2.0 4p 70 79

3b

4p 74 84 90

2.5 5p 86 93 99

6p 95 102 108

4b

5p 90 97 103

3.0

6p 99 106 112

7p 108 115 121

8p 117 124 130

5b

6p 103 110 116

3.5 7p 112 119 125

8p 121 128 134

6b 7p 116 123 129

4.0 8p 125 132 138

Source: Technical Housing Standards – Nationally Descried Space Standard; CLG (March 2015)

2.2.3 GIA is defined as the total floor space measured between the internal faces of perimeter walls. The standard is organised by number of bedrooms; number of bed spaces; number of storeys and provides an area for built-in storage. The table of minimum space standards shown in Table 2.1 is a copy of Table 1 in the Technical Standards Guide. It should be noted that the identified space for internal storage is included in the GIA shown in Table 2.1.

2.2.4 NSS states that GIA ‘will not be adequate for wheelchair housing (Category 3 homes in Part M of the Building Regulations) where additional internal area is required to accommodate increased circulation and functionality to meet the needs of wheelchair households.’

19

2.2.5 Technical requirements are set out in the NSS, which include those identified in Table 2.1 above and the list of requirements set out in NSS.

Code for Sustainable Homes

2.2.6 Following the Ministerial Statement of March 2015, the government withdrew Code for Sustainable Homes and subsequently abandoned the target for zero carbon homes from 2016. Instead, energy requirements for residential development are now set in the national

19

Para. 9, Technical Housing Standards, CLG (March 2015)


10

Building Regulations, although Council can still require for energy performance only to meet the former level 4, which is approximately 20% higher than the building regulations.

2.3 Summary

2.3.1 Plan wide viability testing is different to site viability assessment and adopts a broader plan level approach to viability assessment based on ‘site typologies rather than actual sites’ combined with some case studies.

2.3.2 The key documents guiding plan viability assessment are the Harman Report and the RICS Guidance. Both approach plan level viability differently to site specific viability, and take account of current and future policy requirements, but both documents differ in their approach to arriving at the benchmark/threshold land value. The Harman Report advocates using the existing use value plus uplift for the potential new use, whilst the RICS report advocates a market value minus a future policy cost approach.

2.3.3 The NPPF requires Councils to ensure that they ‘do not load’ policy costs onto development if it would hinder the site being developed. The key point is that policy costs will need to be balanced so as not to render a development unviable, but should still be considered sustainable.

Infrastructure summary

2.3.4 The infrastructure needed to support the plan over time will need to be planned and managed. Plans should be backed by a thought-through set of priorities and delivery sequencing that allows a clear narrative to be set out around how the plan will be delivered (including meeting the infrastructure requirements to enable delivery to take place).

2.3.5 This study confines itself to the question of development viability. It is for other elements of the evidence base to investigate the other ingredients in the definition of deliverability (i.e. location, infrastructure and prospects for development). Though the study will draw on infrastructure costs (prepared by the Council) to inform the impact on viability where relevant.

Affordable housing summary

2.3.6 The Housing and Planning Act 2016 sets out that future Regulations will identify starter homes requirements for English planning authorities. This may have implications on future Local Plan affordable housing policies. At this stage, the requirements are unknown and the Council will need to keep in mind any change in national policy. In the meantime, this report tests existing proposed affordable housing policy set out by the Council in the Watford Borough Local Plan Part 1 (adopted Dec 2014) and policies within the Part 2 (draft consultation policies Dec 2014 and Jan 2016).

2.3.7 The Government appealed against a High Court ruling that forced ministers to remove a policy to exempt small development from affordable housing and “tariff style” S106 contributions from NPPG. A High Court ruling quashed the policy in July 2015, following a legal challenge by Reading Borough Council and West Berkshire District Council (on the application of West Berkshire District Council and Reading Borough Council) v Secretary of State for Communities and Local Government [2015] EWHC 2222 (Admin) Ref BAILII 31 July 2015). However, in July 2016 the Government won its appeal to not include affordable housing on small scale developments.


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CIL summary

2.3.8 To meet legal requirements and satisfy the independent examiner, a CIL charging schedule published as a draft for consultation must strike an appropriate balance between the desirability of funding (in whole or in part) infrastructure needed to support the development and the potential effects (taken as a whole) of the imposition of CIL on the economic viability of development across its area.

2.3.9 This means that the net effect of the levy on total development across the area should be positive. CIL may reduce the overall amount of development by making certain schemes which are not plan priorities unviable. Conversely, it may increase the capacity for future development by funding infrastructure that would not otherwise be provided, which in turn supports development that otherwise would not happen. The law requires that the net outcome of these two impacts should be judged to be positive. This judgment is at the core of the charge-setting and examination process.

2.3.10 Watford Council have a CIL Charging Schedule adopted and the chargeable amounts for each development type have been tested within this report.


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3 Local Plan Context and Potential Impact on Viability

3.1 Introduction

3.1.1 In identifying the implications of local policies on development viability, we have reviewed the policy requirements within the Watford Borough Local Plan Part 1 (adopted Jan 2013) and Part 2 (draft consultation policies Dec 2014 and Jan 2016) to identify those that may have a cost implication and hence an impact on viability. The cost implications on the viability of two strategic sites, Watford Junction and Clarendon Road, have been assessed within other studies being undertaking by PBA, on behalf of Watford Borough Council.

3.1.2 The policies have been assessed, firstly to determine whether there is likely to be a cost implication over and above that required by the market to deliver the defined development. For those policies where there will be, or could be, a cost implication, we have undertaken a broad assessment of the nature of that cost, including whether the cost is likely to be Borough-wide or site specific, whether costs are related to specific timescales or apply for the entire life of the plan and whether costs are likely to be incurred directly by the developer through on site or off site development, or via financial contributions made by the developer to other agencies or developers towards wider schemes within the Borough.

3.2 Local Plan Policies

3.2.1 Table 3.1 sets out the results of our policy review. Green indicates the policy has no cost/testing implication, amber indicates a slight impact, and red means that the policy would have some bearing on the viability of sites.

3.2.2 The viability policy matrix is for policies in the adopted Local Plan – Part 1 (December 2014) and Draft Watford Local Plan – Part 2 (December 2014 and 2016).

Table 3.1 Viability Policy Matrix for Local Plan policies

Sound Local Plan Part 1 Core Strategy policy (2013)

Any cost implication?

Application Nature of costs How cost is reflected in PBA testing

Page no.

WBC1 Sustainable development

No

SS 1 Spatial Strategy

Potential Watford Junction & strategic sites

PBA are testing Watford Junction in a separate viability assessment Special Policy Area (SPA) – Watford Junction: major transport interchange, 1,500 new homes, employment, retail, leisure and social and community infrastructure – primary school. 1,350 to 2,350 jobs. Town Centre SPA: retail 10,000 sqm, leisure (cinema, car park, indoor market), some residential, 3,000 to 4,200 jobs. Health Campus SPA: new hospital, 500 homes, employment (1,000 to 1,900 new jobs), retail, primary school. Western Gateway SPA: regen existing employment site – employment (700 to 2,000 jobs), supermarket (150 retail

Watford Junction has been tested by PBA in a separate report. All other SPAs containing an element of housing have been tested. Typology sites reflect the number of homes for proposed allocations.

16


13

jobs), primary school, 300 homes Lower High Street SPA: retail. Dome Roundabout SPA: retail, additional residential. CIL is introduced April 2014.

SPA 1 Town Centre

No

No residential element to this strategic site. Various priorities (leisure, employment provision, residential and strategic transport improvements)

23

SPA 2 Watford Junction

Potential Watford Junction

Major transport interchange, 1,500 new homes, employment, retail, leisure and social and community infrastructure – primary school, 1,350 to 2,350 jobs, open space, car parking, offices, communal or district heating systems, GP surgery. Safeguard existing rail depot or relocate.

Watford Junction has been tested by PBA in a separate report.

26

SPA 3 Health Campus

Potential Strategic Site Various priorities (hospital, residential, employment, retail and education uses)

SPA has been included as a residential typology.

30

SPA 4 Lower High Street

Potential Strategic Site

No residential element to this strategic site. Various priorities (retail and regen of gas holder site with existing issues to mitigate)

Potential costs relating to the regeneration of listed buildings and gas holder / mitigation measures.

33

SPA 5 Dome Roundabout

No Strategic Site

No residential element to this strategic site. Various priorities (leisure, employment provision, residential and strategic transport improvements)

35

SPA 5 Western Gateway

Potential Strategic Site Various priorities (new Metropolitan Line station education, 300 homes, supermarket 2,500 sqm)

SPA has been included as a residential typology.

37

IP 1 Croxley Rail Link

No 38

IP 2 The Abbey Flyer

No 39

IP 3 Watford Junction Station

No Policy relates to partnership working and seeking to maximize benefits for the local community.

40

SD 1 Sustainable Design

Potential All development

- Development to comply with national standards as in Code for Sustainable Homes and BREEAM (non-resi).

- Major developments to comply with BREEAM Communities.

No specific standards set within this policy – standards provided within policy SD 5.

41

SD 2 Water and Wastewater

No 43

SD 3 Climate Change


- SPA areas: exceed Code for Sustainable Homes or BREEAM standards.

- Reduce CO2 emissions.

See policy SD 5 (Part 2). 45

SD 4 Waste No 48

TLC 1 Retail and Commercial Leisure Development

Potential Sets out overall retail requirement for Borough, to include Watford Junction SPA and other SPAs.

Watford Junction has been tested by PBA in a separate report. Retail for other SPAs tested through non-resi appraisal.

59


14

TLC 2 Neighbourhood Centres

No 62

HS 1 Housing Supply and Residential Site Selection

No Minimum 6,500 dwellings (2006-2031). 68

HS 2 Housing Mix

Potential

All development and Watford Junction

Mix of housing types, sizes and tenures to meet community needs – family sized units and smaller housing units; higher density development (flats) at Watford Junction and Health Campus SPAs.

Assumptions relating to: housing types taken from the SHMA; housing sizes taken from National Space Standards; tenures set out in policy HS 3. Watford Junction has been tested by PBA in a separate report.

71

HS 3 Affordable Housing

Yes


35% affordable housing on sites with 10 units+ Preferred tenure (SHMA (2008)):

- Social rent 20%; affordable rent 65%; shared ownership 15%.

Typologies have been tested against the policy cost implications for 35% affordable housing and the preferred tenures set out in the SHMA.

73

HS 4 Gypsies and Travellers

No 75

EMP 1 Economic Development

Potential See detailed policies for SPAs.

Watford Junction has been tested as a mixed use site, including employment uses, by PBA in a separate report.

78

EMP 2 Employment Land

No 81

T 1 Regional Transport Node

No 85

T 2 Location of New Development

No 87

T 3 Improving Accessibility

No 87

T 4 Transport Assessments

No 88

T 5 Providing New Infrastructure

Yes


Contributions will be sought for Croxley Rail Link; Watford Junction Interchange; Intelligent Transport Systems Strategy.

Watford Junction has been tested by PBA in a separate report – large infrastructure projects have been considered in that study. Contributions for other development have not been included within the viability assessments for each typology. However, the headroom identified for any of the typologies could be collated via CIL to contribute to new infrastructure needed in Watford borough.

89


15

INF 1 Infrastructure Delivery and Planning Obligations

Yes


- Various infrastructure identified in policy including school, transport.

- CIL introduced in April 2014. See above. 95

UD 1 Delivering High Quality Design

No 98

UD 2 Built Heritage Conservation

No 99

GI 1 Green Infrastructure

No Net gain in green infrastructure across the Borough.

105

GI 2 Green Belt No 106

GI 3 Biodiversity

No Development should protect, maintain and enhance biodiversity.

107

GI 4 Sport and Recreation

No 109

Draft Local Plan Part 2 policy (Dec 2014)


Application Nature of costs

Policy page no.

SD 5 Sustainable Design Standards

Yes


- Development to comply with national standards as in Code for Sustainable Homes level 5 and BREEAM Very Good (non-resi).

- Major development (SPAs): Code for Sustainable Homes level 4 and BREEAM Excellent (non-resi).

This policy cost has not been tested because the Council propose new policy wording as set out in para 3.2.3 below which has been considered in this report.

12

SD 6 Sustainability Statement

No 12

SD 7 Renewable Energy Technology

No

Development should incorporate renewable energy technology. No standards set out in policy.

12

SD 8 Decentralised Energy

Potential


- Development to contribute towards provision of district heating networks where viable – SPA1, SPA2 or SPA 3.

- Throughout borough – development should link up to available networks.

An allowance has been assumed within the opening up costs.

14

SD 9 Managing Flood Risk


Mitigation may be required to offset any impacts


16

SD 10 Drainage (deleted)

No 18

SD 11 Water Consumption

No All development

Water resources – predicted per capita consumption of 105l/p/d

19

SD 12 River Corridors, Canals and Watercourses

No All development

Land take up for river buffer of up to 8 metres

21

SD 14 Waste No 23

SD 15 Potential All Mitigation may be required to offset any An allowance has been 25


16

Unstable, Contaminated and Potentially Contaminated Land

development impacts assumed within abnormal costs for the brownfield sites.

SD 16 Potentially Hazardous or Polluting Development

No 27

SD 17 Air Quality

No 29

SD 18 Noise Potential


Mitigation may be required to offset any impacts of sensitive development adjacent roads, railways etc.


31

SD 19 External Lighting

No 33

TLC 3 Retail policies

No 37


No 38


No 38


No 38


No 42


No 43

TLC 9 Public Realm Enhancement

Potential Town centre area

Development in the town centre area to contribute towards public realm through S106 and/or CIL. Set out in Adopted Streetscape Design Guide.


46

TLC 10 Restriction of Non A1 Use Classes in District and Local Centres

No 47

TLC 11 Community Facilities

Potential


New community uses should be provided to meet identified demand.

Watford Junction has been tested by PBA in a separate report

50

TLC 12 Community Facilities Site Allocations

No Site allocation identified at Tolpits Lane - private sector funding will be used to deliver community facilities.

51

TLC 13 Town Centre Retail Site Allocations

No 52

HS 5 – 11 Residential

No 53 - 63

HS 12 Housing Potential List of allocated sites with potential range Indicative capacity of sites 65


17

Delivery of dwellings; phasing and site specific issues including constraints and CIL charges which would have an impact on viability. Also includes recommendations for number of storeys (resi).

has been used to inform the typologies tested in this study.

GT 1 Gypsy and Traveller Provision

No 73

EMP 3 – 7 Employment policies

No 76 - 80

SP 1 Education No 82

T 6 Car parking provision (superseded Jan 2016)

Potential (superseded Jan 2016)


The number of car parking spaces required per dwelling or for other uses will impact on the viability of that use.

83

T 7 Parking Provision for Low Emission Vehicles

Potential

Update publication version of the Local Plan (August 2016) requests that new development provide:

- 1 in 10 non-dedicated spaces provide active charging point

- 1 in 10 non-dedicated spaces provide passive charging point

For residential uses, we have assumed all units to have a dedicated space and cost has been assumed and tested within the policy layer. For non-residential, this is assumed to be a cost factor in meeting BREEAM.

85

T 8 Cycle Parking Provision

No 86

T 9 Access and Servicing

No 87

INF 2 Mobile Communications

No 89

UD 3 – 4 Urban Design policies

No 91 - 92

GI 5 Trees, Woodlands and Hedgerows

No All development

Mitigation may be required to offset any impacts

96

GI 7 Open Space and Play Space in Residential Development

Yes

All development and Watford Junction.

Revised policy GI9 (July 2016) – standards as set out in Council’s Green Spaces Strategy.

An allowance has been assumed within the site area and S106.

99

GI 8 – 9 Green Infrastructure

No 101 - 103

Draft Local Plan Part 2 extra policies (Jan 2016)


Application Nature of costs Page no.

T 6 Car Parking Provision (revised)

Potential All development and Watford

The number of car parking spaces required per dwelling or for other uses will impact on the viability of that use.

An allowance has been assumed within the costs for externals.

-


18

Junction

TB 1 Location of Taller Buildings (new policy)

Potential Watford Junction

Option 1: Watford Junction SPA2: Heights of 50m (15 storeys) with 1-3 landmark pinnacle buildings up to 70m (21 storeys). Ascot Rd: 50m (15 storeys). Clarendon Rd: 35m (10 storeys) 1 landmark building 50m (15 storeys) Option 2: Pinnacle heights increase 5m (2 storeys) Option 3: Pinnacle heights decrease 10m (4 storeys). [3.3m to 1 storey]

Watford Junction has been tested by PBA in a separate report.

-

GI 6 Sports Facilities (new policy)

No -

GI 8 Cemetery Provision (deleted)

No -

GI 8 Biodiversity (new policy)

Possibly Local Plan Mitigation may be required to offset any impacts.

An allowance has been assumed within S106.

-

GT 1 Gypsy and Traveller Provision

No -

3.2.3 As noted in Chapter 2, following the Ministerial Statement of March 2015, the government withdrew Code for Sustainable Homes and the target for zero carbon homes from 2016. Instead, energy requirements for residential development are now site within Building Regulations.

3.2.4 The Council therefore have rewritten policy SD 5 ‘Sustainable Design Requirements’ and requested PBA to test the following policy text instead of the 2014 draft policy.

Policy SD 5 ‘Sustainable Design Requirements’

- All residential development will need to comply with the energy performance standards set in the building regulations as a minimum. Non-residential development should achieve BREEAM Very Good, as a minimum.

- All major development should meet current BREEAM Communities standards.

- Major development within the Special Policy Areas should achieve an energy performance standard equivalent to the former sustainable code for homes level 4 in the case of residential development or BREEAM Excellent in the case of non-residential development.

3.2.5 The Council have also advised PBA that the Council will adopt the national space standards.


19

3.3 Watford Community Infrastructure Levy (CIL)

3.3.1 Since 1st April 2015 the Council has been charging a Community Infrastructure Levy (CIL).

Table 3.2 sets out the Watford CIL Charging Schedule by development type and location (£ per sqm). These charging amounts have been included within the viability testing within this study, to inform the Plan viability for Watford.

Table 3.2 Watford CIL Charging Schedule 2015

Type of Development CIL Rate (per sqm)

Residential £120

Hotel £120

Specialist accommodation for the elderly and/ or disabled including Sheltered and Retirement Housing and Nursing Homes, Residential Care Homes and Extra Care Accommodation. (This does not include registered, not for profit care homes’) (within Use Class C2 and C3)

£120

Retail (Class A1- A5) £120

Retail - Within the Primary Shopping Area (Class A1-A5) £55

Office £0

Industrial £0

Other uses £0

Major Developed Areas (MDAs) – this relates to Watford Junction Strategic Policy Area (SPA); Health Campus SPA; and Proposal Mixes Use Development Site which includes housing (MXD7).

£0

3.4 Summary

3.4.1 In this report, the PBA development viability model is used to test the Local Plan policy impacts in Plan delivery based on viability.

3.4.2 Many policies have the potential to impact on the viability of development within Watford. However, many of these costs have already been accounted for within assumptions in the PBA model. For example, strategy infrastructure such as landscaping is covered in opening up costs in the PBA model.

3.4.3 The key Local Plan policies tested within this study include:

Policy HS 3: Affordable housing at 35% and preferred tenure (SHMA (2008)) Social rent 20%; affordable rent 65%; shared ownership 15%;

Draft Policy T 7: Parking Provision for Low Emission Vehicles; and

Draft Policy SD 5: Major development (SPAs): Code for Sustainable Homes level 4 and BREEAM Excellent (non-resi).


20

4 Local Development Context

4.1 Introduction

4.1.1 This section provides a brief summary of the residential development context and market conditions within Watford, which are used to inform the residential testing assumptions presented in the following chapter. Non-residential assumptions based on market analysis are presented separately, in line with discussions about the testing assumptions, in Chapter 6.

4.2 Local Residential Development Context

Past development patterns

4.2.1 Patterns of past development can often provide a guide to the likely patterns of future development. The Local Plan (Part 1) annual housing target is for 260 net additional units per annum up to 2031. Figure 4.1 shows the net delivery of dwellings in Watford according to Watford Council’s Annual Monitoring Report, which has varied considerably over the period 2006 to 2015. Since 2007, the housing delivery across Watford has delivered above the housing target set in the Core Strategy, although 2014-15 saw a slight drop to 246 dwellings.

Figure 4.1 Residential net annual completions in Watford

Source: Watford Borough Council Annual Monitoring Report, 2015

Likely future development patterns

4.2.2 The adopted Local Plan (Part 1) sets out an overall housing target that is 6,500 homes, between 2006/07 to 2030/31. At the time of this study, almost half of the housing target has been met by housing completions and further sites are under construction or have planning permission. The Council confirm that the provision still to be met in the Core Strategy period is 2,885 homes.

4.2.3 The draft Local Plan (Part 2), published in 2014 with amendments in 2016, sets out the number of homes for each type of housing allocation, as shown in Table 4.1. The location of

246 291

327

516

633

417

541

398

246

0

100

200

300

400

500

600

700

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15


21

each housing allocation is shown within Figure 4.2. These figures may change in the publication version of the plan.

Table 4.1 Number of units to each type of housing allocation

Type of housing allocation in adopted and draft Local Plan documents (Part 1 and 2)

Dwelling Provision

3 Strategic Policy Areas (SPAs)

- Watford Junction – 1,500 units

- Health Campus – 200 units

- Western Gateway – 100 units

1,800

4 mixed development sites (including an element of housing)

152 - 164

14 housing sites 526 - 660

Sum 2,478 – 2,624

Source: Watford Borough Council Draft Local Plan Part 2, 2014

4.2.4 The Council has identified new housing to be allocated in three Strategic Policy Areas (SPAs), with a large percentage of housing to be delivered at Watford Junction SPA. Each SPA is allocated for an identified number of dwellings, as outlined in Table 4.1 above. The Council have since advised PBA that the Western Gateway SPA is likely to be a site of 750+ dwellings, which includes Croxley View (H10).

4.2.5 There are four mixed use allocations, which include an element of housing providing sites of approximately 10 to 100 dwellings each, and in total provide a range of yields between 52 and 164 units.

4.2.6 14 small sites are allocated for housing in the draft Local Plan (Part 2) providing, in total, between 526 and 600 dwellings on sites of between 3 and 120 units.

Household size

4.2.7 Based on 2012 based interim household projects, between 2012 and 2037, Watford’s average household size will decrease from 2.44 to 2.3

20. This indicates that there could be a future

need for smaller type of units (number of bedrooms).

4.2.8 The South West Hertfordshire Strategic Housing Market Assessment (SHMA) sets out the estimated requirement of housing in Watford by type of units (i.e. number of bedrooms) between 2013 and 2036.

4.2.9 Table 4.2 sets out the housing requirement by number of bedrooms for market sector housing and affordable housing sector. This shows that the future need of 1 and 2 bedroom dwellings is 27% of the total housing need, with 3 bedrooms at 41% and 4 bedrooms at 22% of dwellings.

20

Watford Borough Council Monitoring Report, 2015


22

Table 4.2 Dwelling requirement by market sector in SW Hertfordshire

Housing type Number of dwellings All housing %

1 bedroom 1,012 9%

2 bedrooms 2,488 28%


4+ bedrooms 1,524 22%

Source: South West Hertfordshire SHMA, 2016

4.2.10 Table 4.3 shows the housing requirement by number of bedrooms for affordable sector housing. The housing types for affordable housing shows a need for more smaller sized affordable units than the need under market housing with 65% of needed affordable units being for 1 or 2 bedroom properties, and only 4% of dwellings to have four or more bedrooms.

Table 4.3 Estimated dwelling requirement by affordable sector in SW Hertfordshire

Housing type Number of dwellings All housing %

1 bedroom 1,764 37%



4+ bedrooms 182 4%

Source: South West Hertfordshire SHMA, 2016

Affordable homes

4.2.11 Policies regarding the level of affordable housing to be sought are a key component in viability studies. The Council will need to be mindful of overloading development costs and potentially stymieing development. The viability analysis contained within this report tests the existing affordable housing policy.

4.2.12 Watford’s Local Plan seeks the provision of 35% of dwellings in Watford to be affordable between 2013 and 2031, on sites of 10 units and above, with a mix of 20% social rent, 65% affordable rent and 15% intermediate affordable housing. Table 4.4 below shows the number of affordable housing delivered in Watford over the last four years. There was a peak in affordable housing provision in 2012-13 and otherwise delivery is between 79 and 95 units a year. However, this is not necessarily an indication of the affordable housing percentage being applied to market housing sites. The AMR (2015) states that three sites delivered all of the 79 affordable housing units in Watford in 2014-15. Of those sites, two sites were developed for 100% affordable housing. Therefore, only one site was completed in Watford in 2014-15 for a mix of both market housing and affordable housing.


23

Table 4.4 Delivery of affordable housing in Watford

Year

Social rent Affordable rent Intermediate Total

Number of units

% of total

Number of units

% of total

Number of units

% of total

Units provided

2011-12 79 83% 0 0 16 17% 95

2012-13 122 66% 31 17% 31 17% 184

2013-14 10 12% 34 41% 38 46% 82

2014-15 12 15% 48 61% 19 24% 79

Source: Watford Borough Council Annual Monitoring Report

4.3 Residential Market Sales Values

4.3.1 In terms of locations within Watford, Figure 4.2 and Figure 4.3 summarises land registry data of transactions, separately looking at houses and flats sales, within the borough over the previous two years, since January 2013. This is to indicate where values may differ by mapping average price values based on postcodes across Watford. Postcodes with lighter shading refer to areas where values are lower compared with darker areas where the average is higher.

4.3.2 Figure 4.2 and Figure 4.3 also map the location of each type of Local Plan housing allocation listed in Table 4.1. A large percentage of housing delivery is planned for Watford Junction SPA which is located in the centre of the borough, close to the town centre. The other two SPAs, which will deliver substantial housing numbers, are located to the south of the borough. The remaining smaller housing allocations are scattered across the local authority area.

4.3.3 Figure 4.2 maps the sale value areas for houses. It shows there is a variation in house values across Watford, with values of houses notably higher in western areas compared to the east of the borough. However, the locations where housing development is being identified in the Local Plan, it is evident that sales values are very similar and not identified in any of the high value areas.

4.3.4 Figure 4.3 maps the sale value areas for flats. It shows a similar picture to houses, with higher values in the north-west compared to the east of the borough. However, generally the variation in sales values between areas where future delivery is planned is limited.

4.3.5 However, at the developer workshop held in March 2016, it was suggested that the difference in values between areas may not be so stark as that presented in the two maps. This is because the areas with the highest value units tend to be locations with fewer sales, and these sales are likely to be skewed by larger than averaged sized properties.


24

Figure 4.2 Spread of average prices of new and secondhand houses in Watford, 2013 to 2015

Source: Land Registry data and Watford Borough Council


25

Figure 4.3 Spread of average prices of new and secondhand flats in Watford, 2013 to 2015

Source: Land Registry data and Watford Borough Council


Final Report

26

4.3.7 Figure 4.4 below shows the average sale values of each property type of new and existing properties, since January 2015. The data shows that property prices over this period are lower in Watford than in other neighbouring local authority areas. For Watford, it shows flats selling at just over £200,000; terraced housing at over £300,000; semi-detached housing at just over £300,000; and detached housing at £700,000.

Figure 4.4 Sales values of residential units in SW Herts local authority areas

Source: Land Registry (2016)

Residential price trends

4.3.8 After the peak of the market pre-global financial recession (c.end of 2007), house prices fell significantly). However, house prices have recovered since prices bottomed out in 2008/09; although, the extent of the recovery varies significantly from region to region. Rightmove reported that asking prices increased in February 2016 (2.9%) hitting a new record of £299,287 across England.

4.3.9 Government schemes, like the Help to Buy Initiative, have helped, and should continue to make schemes viable across the country, and particularly more so in mortgage constrained markets like that in London and surrounding areas including Watford.

4.3.10 Figure 4.5 sets out the sales values of residential units for local authorities in the housing market area of South West Hertfordshire, including Watford, for 1998-2007. All local authorities show the same pattern of sales values with a general rise in value between 2010 and 2016, and Watford stands out for being a relatively cheaper location amongst its neighbours (excluding London boroughs). Despite this relative position, Watford experienced an increase of approximately £100,000 in house sale values over this period.

£0

£100,000

£200,000

£300,000

£400,000

£500,000

£600,000

£700,000

£800,000

£900,000

£1,000,000

DACORUM HERTSMERE ST ALBANS THREE RIVERS WATFORD

Flat Terraced Semi Detached


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27

Figure 4.5 Trends in median house sale values by SW Herts local authority area

Source: Land Registry (2016)

4.3.11 Whilst guidance on viability dictates that decisions on costs and values must be made on current data, it is also useful to gain an understanding of future values are forecasted to be. Looking forward in Table 4.5, the latest projections of house prices prepared by Savills in their Residential Property Focus

21, shows that the South East followed by the East is expected to

grow at the highest rate than any other area in the UK (26%), at significantly higher than the UK average (19%) and over twice the rate of London (10%).

Table 4.5 Mainstream Markets Five Year forecast values (2015-2019)

UK London South

East South West

East of England

East Midlands

West Midlands

North East

North West

Yorks & Humber

19.3% 10.4% 26.4% 21.1% 25.2% 19.3% 18.2% 12.6% 13.7% 16.5%

Source: Savills Research (Feb 2015)

4.4 Feedback from the Development Industry

4.4.1 Alongside the developer workshop, we consulted directly with five estate agents who are active in Watford Borough. The main points of discussions were:

Owing to being a commuter town for London, the highest values in Watford are in the vicinity of Watford Junction rail station, which also benefits from its close proximity to the popular Watford Girls’ and Boys’ Grammar Schools;

Highest values in Watford are in the Cassiobury and the Colne Valley area where properties are generally large detached dwellings;

21

Residential Property Focus, Issue 1 2015, Savills Research (Feb 2015)

£200,000

£250,000

£300,000

£350,000

£400,000

£450,000

£500,000

£550,000

£600,000

£650,000

£700,000

Jan-1

0

Mar-1

0

May-10

Jul-10

Sep-1

0

No

v-10

Jan-1

1

Mar-1

1

May-11

Jul-11

Sep-1

1

No

v-11

Jan-1

2

Mar-1

2

May-12

Jul-12

Sep-1

2

No

v-12

Jan-1

3

Mar-1

3

May-13

Jul-13

Sep-1

3

No

v-13

Jan-1

4

Mar-1

4

May-14

Jul-14

Sep-1

4

No

v-14

Jan-1

5

Mar-1

5

May-15

Jul-15

Sep-1

5

No

v-15

Jan-1

6

DACORUM HERTSMERE ST ALBANS

THREE RIVERS WATFORD


Final Report

28

In general, prices across the borough have been rising sharply over the last eighteen months in a similar way to London. Consequently, there are an increasing proportion of properties achieving their asking price and properties moving from the market more quickly, which is the product from the London market squeezing existing and prospective home owners to other nearby locations like Watford, in addition to local purchasers; and

Agents felt however, that the market appeared to be stabilising after a period of steep price increases, which again may be attributable to the trend in London.

4.4.2 Consultation with local estate agents provided the current quoting values in Watford. Their estimates of specific typical value of new build properties are listed for Watford in Table 4.6. These are substantially higher than the average values recorded against all property transactions in the Land Registry noted above.

Table 4.6 Typical Estate Agent values for new build properties

Type of unit £ per new unit

Flat £250,000 - £365,000

Terraced house £300,000 - £400,00

Semi-detached house £450,000 - £800,000

Detached house £800,000 - £1,000,000


Final Report

29

5 Viability Testing Assumptions

5.1 Introduction

5.1.1 It is not always possible to get a perfect fit between a site, the site profile and cost/revenue categories but we have attempted a best fit in the spirit of the Harman Report. For this, the viability testing requires a series of assumptions about site typologies, the site coverage and floorspace mix to generate an overall sales turnover and value of land, which along with viability assumptions are discussed here for residential and non-residential testing in turn.

Consultation

5.1.2 In our experience, local agents and developers are always happy to explain where the market is at, what is going on, and why. The consultation with the development industry has helped to make our assumptions more robust and these discussions identify potential concern, which enables the Council to be better prepared to address concerns.

5.1.3 The key variables discussed with consultees include:

The density and mix of development;

Estimated market values of completed development;

Existing use and open market land values;

Basic build cost;

External works (% of build cost);

Professional fees (% of build cost);

Marketing & sales costs (% of development value);

Typical S106 costs;

Finance costs (typical prevailing rates); and

Developer’s profit (% of revenue).

5.1.4 We worked with the Council to set up a Stakeholder meeting for the development industry active in the borough. This took place on 2 March 2016, and in addition to the consultants, and Council officers, was attended by landowners, developers and agents. We also consulted separately with local estate agents and promotors of large sites at Watford Junction (see separate report), the Health Campus and Western Gateway.

5.1.5 Comments have been taken into account and reflected in Section 5 where appropriate. Minutes from the workshop are provided in Appendix B.

5.2 Residential Site typologies

5.2.1 This section identifies a suitable list of typologies (i.e. hypothetical developments), that are likely to be brought forward in the plan period, and then assign them to broad locations within Watford. The starting point is understanding where development is likely to take place, which was discussed in Chapter 4. After consultation with the Council, this study sets out the broad typologies used in the study, as set out in Table 5.1. Although determined by the characteristics of known development sites, the majority of the typologies are hypothetical which allows the study to deal efficiently with the very high level of detail that would otherwise be generated by an attempt to viability test each site. This approach is set out in the Harman Report, which suggests ‘a more proportionate and practical approach in which local authorities


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create and test a range of appropriate site typologies reflecting the mix of sites upon which the plan relies’.

22

5.2.2 The typologies are supported with a selection of case studies reflecting CIL guidance (2014), which suggests that:

‘a charging authority should directly sample an appropriate range of types of sites across its area, in order to supplement existing data. This will require support from local developers. The exercise should focus on strategic sites on which the relevant Plan relies, and those sites where the impact of the levy on economic viability is likely to be most significant (such as brownfield sites). The sampling should reflect a selection of the different types of sites included in the relevant Plan, and should be consistent with viability assessment undertaken as part of plan-making.’

23

5.2.3 The Harman Report states that the role of the typologies testing is not required to provide a precise answer as to the viability of every development likely to take place during the plan period:

‘No assessment could realistically provide this level of detail…rather, [the role of the typologies testing] is to provide high level assurance that the policies within the plan are set in a way that is compatible with the likely economic viability of development needed to deliver the plan.’

24

5.2.4 Indeed the Report also acknowledges that a:

‘plan-wide test will only ever provide evidence of policies being ‘broadly viable.’ The assumptions that need to be made in order to carry out a test at plan level mean that any specific development site may still present a range of challenges that render it unviable given the policies in the Local Plan, even if those policies have passed the viability test at the plan level. This is one reason why our advice advocates a ‘viability cushion’ to manage these risks.

25

Developing site profile categories

5.2.5 A list of typologies, reflecting planned development and representing the cross section of sites identified in conjunction with the Council is set out in Table 5.1. The typologies reflect Local Plan housing allocation in terms of yield, dwelling mix and land type. Where the typologies are a mix of housing and flats, PBA have assumed a mix of 20% housing and 80% flats for market housing and 100% flats for affordable housing.

5.2.6 The Council confirm that there is unlikely to be any development for assisted and retirement living in Watford. Therefore the residential testing typologies do not include specialist market products for assisted living and retirement living.

22

Local Housing Delivery Group Chaired by Sir John Harman (2012) Viability Testing Local Plans 23

DCLG CIL Guidance 2014 page 16. 24

Local Housing Delivery Group ( 2012), op cit (para 15) 25

Ibid (para 18)


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Table 5.1 Residential Typologies Tested

Typology Houses / Flats / Mixed Land type No. of dwellings

3 units Houses Brownfield 3




12 units Flats Brownfield 12





60 units Mixed Brownfield 60





700 units Mixed Brownfield 700

Health Campus Mixed Brownfield 200

Western Gateway Flats Brownfield 750

5.3 Residential values and costs viability assumptions

Site coverage and area

Net (developable) area and housing density

5.3.1 For establishing housing land values, assumptions about the likely number of units and saleable floorspace of the dwellings are required for generating a sales turnover. Total turnover is dramatically increased by greater coverage. But housing needs to be serviced by roads for instance, and for larger developments, land is required for public open space, strategic landscaping, community buildings, employment and possibly schools.

5.3.2 The gross area of the site allows for the provision of non-residential land uses normally associated with larger sites which generally do not provide any direct revenue to the development. Also residential land values are normally traded and reported on a per net hectare basis, since it is only the developable area which delivers a saleable return and is therefore valued. Consequently, the viability assessments identify the likely net developable area to identify its value and to compare this with net developable land values benchmark.

5.3.3 For the residential typologies, the net developable areas have been derived using a formula26

based on discussions with the Council and the wider development industry, and examples from elsewhere.

5.3.4 The density is likely to vary widely between sites, which is what would be expected across different locations and site characteristics. Higher density sites are traditionally more likely to accommodate flats whilst low density sites will have a much higher proportion of family dwellings.

5.3.5 Details on gross and net areas for each typology are shown in Table 5.2.

26

Uses a non-linear formula to estimate the net area from the gross area, so that the greater the number of units that there are the greater the amount of gross to net land area.


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Table 5.2 Gross and net areas for each typology

Typology Type of units

Gross area (ha)

Net area (ha)

No. of units

3 units Houses 0.06 0.06 3



10 units Houses 0.20 0.20 10

12 units Flats 0.086 0.09 12

15 units Houses 0.30 0.30 15

30 units Houses 0.66 0.50 30

30 units Flats 0.214 0.21 30

60 units Flats 0.52 0.37 60

60 units Mixed 0.83 0.60 60

100 units Flats 0.90 0.62 100

200 units Flats 1.53 1.00 200

300 units Flats 1.97 1.25 300

400 units Flats 2.69 1.67 400

700 units Mixed 7.39 4.37 700

Health Campus Mixed 1.91 1.25 200

Western Gateway Flats 5.31 3.12 750

Saleable floorspace

5.3.6 To establish housing land values, assumptions about the likely saleable floorspace of the dwellings are used to generate an overall sales turnover. PBA have looked used National Space Standards to inform the floorspace assumptions presented in Tables 5.3 below.

Table 5.3 Average saleable floorspace by unit type and location

Type Size (sqm)

Apartments (NIA) 57

2 bed house 72

3 bed house 91

4+ bed house 126

5.3.7 Two floor areas are used for flatted schemes. The Net Internal Area (NIA) is applied to calculate the sales revenue and the Gross Internal Area (GIA) which includes an additional 15% circulation space, is used to calculate build costs.

Sales values

5.3.8 Current residential revenues and other viability variables are obtained from a range of sources, including:

Land Registry, as considered in a Chapter 4, provides a wealth of transactional data for a local area for new and second hand properties

27;

27

Using average new build values for the past two years and floorspace from the Energy Performance Certificate to ascertain an average sales value per square metre.


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Property websites, such as Rightmove, provide a snapshot of values of properties currently on the market, including new build and the floorspace of new build which is used to derive a sales value per square metre. A cross-section of some of the properties considered is listed in Appendix D; and

Direct research with developers and agents operating in the area.

5.3.9 The sales values per square metre shown in Table 5.4 are used for testing open market units in the viability assessment.

Table 5.4 Modelled average Open Market residential sales value, per sqm

Value area Houses Flats

Watford £4,000 £4,400

5.3.10 To corroborate these values, we carried out various consultations with the development industry, not least via helpful discussions at the Stakeholder Workshop in March 2016. This provided invaluable information about the various elements of the Watford housing market including likely sales values per square metre, which were in line with the information presented in Table 5.4.

Build costs

5.3.11 Residential build costs are based on actual tender prices for new builds in the market place over a 15 year period from the Build Cost Information Service (BCIS), which is published by the Royal Institution of Chartered Surveyors (RICS). The data is derived from the median first quarter 2015 prices, which is the most recent data that reflects actual construction data as opposed to later figures that are based on estimated figures. The tender price data is also rebased to Watford prices using BCIS defined adjustments, to give the median build costs for small, medium and large schemes as shown in Table 5.5.

Table 5.5 Median build costs in Watford at Q1 2015 tender prices

Build Costs Build Cost (per sqm)

Flats / Apartments (BCIS general) £1,247

Houses (small house builder 3 and under) £1,306

Houses (medium house builder 4 to 14) £1,185

Houses (large house builder 15 and above) £1,063

Source: PBA derived from BCIS

5.3.12 Volume and regional house builders are able to operate within the median cost figures comfortably, especially given that they are likely to achieve significant economies of scale in the purchase of materials and the use of labour. Many smaller and medium sized developers of houses are usually unable to attain the same economies, so their construction costs may be higher as shown in Table 5.5, which reflects the higher costs for schemes with 3 or less houses (taken from BCIS) and for 4-15 houses (taken as a mid-point between the larger and small schemes).

5.3.13 The BCIS build costs are exclusive of external works, fees, contingencies, VAT and finance charges, plus other revenue costs. We discuss these additional costs below.


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Other development costs

External works

5.3.14 This input incorporates all additional costs associated with the site curtilage of the built area. These include circulation space in flatted areas and garden space with housing units; incidental landscaping costs including trees and hedges, soft and hard landscaping; estate roads and connections to the strategic infrastructure such as sewers and utilities.

5.3.15 The external works variable had been set at a rate of 10% of build cost.

Professional fees

5.3.16 This input incorporates all professional fees associated with the build, including fees for designs, planning, surveying, project managing, etc, at 10% of build cost plus externals.

Contingency

5.3.17 It is normal to build in contingency based on the risk associated with each site and has been calculated based on industry standards. It is applied at 5% of build cost plus externals.

Site variables and opening up costs

5.3.18 Developing greenfield and brownfield sites represent different risk and costs. All sites identified in the Local Plan are brownfield sites, and these costs can vary significantly depending on the site's specific characteristics. To reflect additional costs associated with residential site development on brownfield sites such as site clearance and remediation, we have increased the build costs as in Tables 5.6 and 5.7.

Table 5.6 Site abnormal costs on Brownfield sites

Site abnormal costs Per net hectare

Brownfield (industrial/retail/car park/storage uses) £300,000

Land purchase costs

5.3.19 The land value needs to reflect additional purchase cost assumptions, shown in Table 5.7. These are based on surveying costs and legal costs to a developer in the acquisition of land and the development process itself, which we have established from discussions with developers and agents, and are also reflected in the Harman Report (2012) as industry standard rates.

Table 5.7 Land purchase costs

Land purchase costs Rate Unit

Surveyor's fees 1.00% land value

Legal fees 0.75% land value

Stamp Duty Land Tax HMRC rate land value

5.3.20 A Stamp Duty Land Tax is payable by a developer when acquiring development land. This factor has been recognised and applied to the residual valuation as percentage cost based on the HM Customs & Revenue variable rates against the residual land value.


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Sales fees

5.3.21 The Gross Development Value (GDV) on open market housing units need to reflect additional sales cost assumptions relating to the disposing of the completed residential units. This will include legal, agents and marketing fees at the rate of 3% of the open market unit GDV, which is based on industry accepted scales established from discussions with developers and agents.

Developer profit

5.3.22 The developer's profit is the expected and reasonable level of return that a private developer would expect to achieve from a specific development scheme. We assume a profit of 20% of open market residential sales value. This also allows for internal central overheads.

5.3.23 For the affordable housing element, because they will have some, albeit lower, risks to the developer, we assume a lower 6% profit margin of affordable housing transfer value for the private house builders. This is on a nil grant basis.

Finance

5.3.24 We have used a monthly cashflow based on a finance cost of 6.5% throughout the sites appraisals. This is used to account for the cost of borrowing and the risk associated with the current economic climate and the near term outlook and associated implications for the housing market. This is a typical rate which is being applied to schemes of this nature.

CIL, S106 and Local Plan policy costs

5.3.25 In the policy testing we assess the impact of different policies, including CIL, S106, affordable housing and access standards.

CIL

5.3.26 In the policy testing, Watford Council’s adopted CIL charging schedule, as discussed in Chapter 3, has been applied at the rates noted in Section 3.3.

S106 costs (excluding affordable housing)

5.3.27 Watford Council is currently not charging CIL on Strategic Policy Areas (SPAs) with the intention of collecting all monies for these sites through S106. There are three SPA areas in Watford which are identified for housing. Watford Junction is being tested by PBA in a separate project and therefore it has not been considered within this study. The other two SPA housing allocations have been tested in this study, to identify if there is sufficient headroom available to fund likely S106 requirements.

5.3.28 The Council have confirmed that the average S106 collected for residential development is £250 per dwelling. This amount has been tested against each of the residential typologies.

Policy HS 3 Affordable Housing

5.3.29 One of the most significant items of S106 sought from residential development sites is affordable housing. All scheme typologies with 10 units or more would be tested against the following affordable housing levels:

Baseline 0% affordable housing; and

Affordable housing level of 35%, as set out in the draft Watford Local Plan Part One (2013).


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5.3.30 Policy HS3 requires affordable housing tenure, based on the Strategic Housing Market Assessment (2008), and therefore the following assumptions are applied to the affordable housing units:

20% social rent;

65% affordable rent; and

15% shared ownership.

5.3.31 The appraisal assumes that affordable housing will command a transfer value to a Registered Provider at lower than market rates. The values have been confirmed by the Council. The testing assumes the values set out in Table 5.8.

Table 5.8 Assumed transfer values by Affordable Housing tenure

Land purchase costs Transfer value

House Flat

Social rent 45% £1,800 £1,980

Affordable rent 55% £2,200 £2,420

Intermediate/shared ownership 65% £2,600 £2,860

5.3.32 It is noted that the Government proposes to extend the definition of intermediate affordable housing to include starter homes. These will have an initial value of around 80% of open market value (or slightly less due to other occupancy restrictions, which will expire after 5 years). Whilst it is too early to model the impact of these proposals, it should be noted that the requirement for starter homes is likely to reduce the impact on viability compared to other affordable housing tenures. This will need to be readdressed by the Council once Regulations are enacted.

Draft Policy SD 5 Sustainable Design Standards policy costs

5.3.33 A review of past Government research on cost impacts of changes in Building Regulations and Code for Sustainable Homes (CfSH) suggests that past forecasts of price changes have never affected costs to the extent forecast. Nonetheless, to err on the side of caution we have incorporated estimated additional costs into the model based on the latest advice on the additional cost of moving to CfSH Level 4 from Building Regulations Part L 2013 in a report from Autumn 2013 by Davis Langdon

28, which was an update to their original 2011 estimates

that were published by DCLG. This update study estimated that the increased requirements to meet similar standards to those previously met by CfSH Level 4 across a range of unit types, averaged at around £2,500 more on build costs for meeting the Building Regulations Part L 2013. This extra over cost is applied to Watford Local Plan SPA residential typologies (700 mixed, Health Campus & Western Gateway) when testing this policy later in Section 3.

Draft Policy T 7 Parking Provision for Low Emission Vehicles policy costs

5.3.34 This policy requires that new developments provide 1 active electrical charging point in every 10 spaces and also 1 passive provision in every 10 spaces. The Energy Saving Trust website

29 states that the typical home charging equipment and installation is £1,400 per

dwelling. For the purpose of this testing PBA have assumed that each unit provides one parking space.

28

This assumption has been informed by a Davis Langdon report (Sept 2013) which assessed the Extra over capital costs per dwelling for CSH4 may be between £2k to £3k on BCIS building costs to 2010 Building Regulations standards 29

http://www.energysavingtrust.org.uk/scotland/grants-loans/domestic-charge-point-funding

http://www.energysavingtrust.org.uk/scotland/grants-loans/domestic-charge-point-funding


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Meeting local housing needs (housing standards requirements)

5.3.35 The minimum national space standards have been used in the PBA viability model to test the viability of using the standards as a local standard on the sample of sites across Watford. The floorspaces tested are presented in Tables 5.9.

Table 5.9 Minimum national space standards tested

Type Size (sqm)

Apartments (GIA) 65

2 bed house 75

3 bed house 93

4+ bed house 126

Benchmark/threshold land values

5.3.36 To assess viability, the residual value generated by a scheme is compared with a benchmark value. This benchmark should reflect a competitive return for a landowner to sell their land. Benchmark values will vary to reflect the landowner’s judgements, which might include the contextual nature of development, the site density achievable, the approach to the delivery of affordable housing (in the context of residential development) and so on. There are a wide range of permutations here. In order to make progress, we have to assume general values based on existing uses plus uplift, even though there could be a margin of error in practice.

5.3.37 PBA have consulted a number of sources in order to determine reasonable land values. For instance, PBA have reviewed websites such as EGI, confidential appraisals held by the local council and websites of local land agents in order to gain an approximate sales value. PBA also note that the findings of a previous CIL study for Watford, carried out by Lambert Smith Hampton in 2013

30, which used values ranging between £3m for low density residential units

to £1.8m for higher density units.

5.3.38 DCLG sets out residential land value estimates for policy appraisal for all local authorities in England. The latest data uses residual land valuations (RLVs) carried out by the Valuation Office Agency as of December 2015. The RLVs assumes land ready for development with residential permission and zero affordable housing. The documents indicates that land values in Watford could be considered as £3.385 million per ha.

5.3.39 PBA have also consulted with the local development industry, via telephone interviews and during a Developers Workshop that was held (minutes are included in Appendix B). From the information gathered, it would be expected that residential land value in Watford with planning permission is expected to achieve about £4m per net hectare.

5.3.40 But this is likely to vary according to the location of the site and by the existing use of the site. Where sites have non-residential existing uses or are greenfield without the benefit of permission for residential uses, as we assume for threshold land value in our viability assessments, then the benchmark land values would be sufficiently below the market rate for clean residential land to allow for possible on-costs, like remediation and opening up costs discussed earlier. These on-costs would normally be expected to come off the clean land value price.

5.3.41 It is important to appreciate that assumptions on benchmark/threshold land values can only be broad approximations subject to a wide margin of uncertainty. This uncertainty is considered

30

Lambert Smith Hampton (2013) Community Infrastructure Levy Study Stage 2 Viability Assessment , LSH


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when drawing conclusions and recommendations. From our research we have concluded that the values set out in Table 5.10 could be considered as an appropriate benchmark.

Table 5.10 Benchmark land values for sites without planning

Site Typology Residential land value

Small Brownfield £4,000,000

Small Greenfield £4,000,000

Brownfield £4,000,000

Greenfield £4,000,000

Strategic site £2,500,000

5.4 Non Residential Typologies for Viability Testing

5.4.1 We test for non-residential development on the basis of the hypothetical schemes that a sound Watford Local Plan is dependent on for coming forward over the plan period. Viability testing on a typical basis has been adopted since it is impossible for this study to consider viability on a site-specific basis at this stage, given that there is currently insufficient data on site-specific costs and values, as site details have yet to be established. Such detail will evolve over the plan period.

31

5.4.2 For the purpose of testing plan policies and identifying a potential for CIL, the following typologies, as described in Table 5.11, are to be tested, which have been agreed with the Council and through the stakeholder workshop.

Table 5.11 Non-residential use typologies

Use GIA (sq m) NIA (sq m)

1: Town Centre Office 1,500 1,350

2: Business Park 2,000 1,800

3: Industrial / warehouse 1,500 1,425

4: Hotel (60 bed) 1,500 1,275

5: Local convenience 280 266

6: Town Centre Retail 200 190

7: Smaller supermarket 1,000 950

8: Supermarket 3,000 2,850

9: Retail Warehouse / OOC 2,000 1,900

10: Care Home 2,000 1,400

31

Site-specific testing for non-residential uses would be considering detail on purely speculative / assumed scenarios, producing results that would be of little use for a study for strategic consideration.


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Site coverage

5.4.3 It is important to consider the density of development proposed. Table 5.12 sets out the assumed site net developable area for each development type and plot ratios to derive floorspace estimates.

Table 5.12 Non-residential uses – site coverage ratios

Use Site (ha) Site coverage

1: Town centre office 0.075 200%

2: Business park 0.333 60%

3: Industrial / warehouse 0.375 40%

4: Hotel (60 bed) 0.075 200%

5: Local convenience 0.031 90%

6: Town centre retail 0.020 100%

7: Smaller supermarket 0.167 60%

8: Supermarket 0.750 40%

9: Retail warehouse / OOC 0.500 40%

10: Care Home 0.25 80%

5.5 Non-Residential Values and Costs Viability Assumptions

Establishing gross development value (GDV)

5.5.1 In establishing the GDV for non-residential uses, a similar approach to residential has been use, so we do not repeat the process here. However, given the significant variety in development types, this report has also considered historical comparable evidence for new values on both a local, regional and national level. This information is included in Appendix E.

5.5.2 The following Table 5.13 illustrates the values established for a variety of non-residential uses, expressed as a per square metre figure with the exception of care homes which is considered on a per bed basis.

Table 5.13 Non-residential uses – rent and yields

Use Rents (per sqm) Yield

1: Town centre office £250 6.75%

2: Business park £230 7.0%

3: Industrial / warehouse £100 8.0%

4: Hotel (60 bed) £200 6.25%

5: Local convenience £220 6.0%

6: Town centre retail £200 7.0%

7: Smaller supermarket £205 5.5%

8: Supermarket £220 5.0%


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Source: PBA research

Developer profit

5.5.3 The developer’s profit is the expected and reasonable level of return a private developer can expect to achieve from a development scheme. This figure is based a 20% profit margin of the total development cost of the development.

Build costs

5.5.4 Build cost inputs have been established from the RICS Build Cost Information Service (BCIS) at values set at the time of this study (current build cost values). The build costs are entered at a pound per square metre rate at the following values shown in Table 5.14. The build costs adopted are based on the BCIS median values, rebased to Watford prices at 2015 Q1. An allowance of 10% of build costs is also made for external works such as car parking and landscaping.

Table 5.14 Non-residential uses – build costs in Watford at Q1 2015

Use Cost per sqm

1: Town centre office £1,710

2: Business park £1,437

3: Industrial / warehouse £747

4: Hotel (60 bed) £1,390

5: Local convenience £1,234

6: Town centre retail £1,138

7: Smaller supermarket £1,234

8: Supermarket £1,551

9: Retail warehouse / OOC £711

10: Care Home £1,440

Source: BCIS

Professional fees, overheads

5.5.5 This input incorporates all professional fees associated with the build, including: architect fees, planner fees, surveyor fees, project manager fees. The professional fees variable is set at a rate of 10% of build cost.

5.5.6 This variable has been applied to the valuation appraisal as a percentage of the total construction cost. This figure is established from discussions with both regional and national developers as well as in-house knowledge and experience of industry standards.

Professional fees on land purchase

5.5.7 This input represents the fees associated with the lands purchase and are based upon the following industry standards: Surveyor = 1%; Legals = 0.75% of residual land value.

5.5.8 A Stamp Duty Land Tax is payable by a developer when acquiring development land. This factor has been recognised and applied to the residual valuation as percentage cost against

9: Retail warehouse / OOC £180 6.0%

10: Care Home £13,000 (per bed) 6.0%


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the residual land value at the standard variable rates set out by HMRC (at between 0% to 4% of land value based on the actual value of the land purchase), which was discussed in Chapter 4.

Finance

5.5.9 A finance rate has been incorporated into the viability testing to reflect the value of money and the cost of reasonable developer borrowing for the delivery of development. This is applied to the valuation appraisal as a percentage of the build cost at the rate of 7% of total development costs (incl: build costs, external works, professional fees, sales and marketing). This is marginally higher than for residential development to reflect the slightly greater risk to lending for non-residential development in Watford, which is typically weaker than residential sales.

CIL

5.5.10 Watford Council’s adopted CIL charging schedule, as discussed in Chapter 3, has been applied at the rates noted in Section 3.3.

Land for non-residential uses

5.5.11 After systematically removing the various costs and variables detailed above, the result is the residual land value. In order to ascertain the level of likelihood towards delivery and the level of risk associated with development viability, the resulting residual land values are measured against a benchmark value which reflects a value range that a landowner would reasonably be expected to sell/release their land for development.

5.5.12 Establishing the existing use value (EUV) of land and in setting a benchmark at which a landowner is prepared to sell to enable a consideration of viability can be a complex process. There are a wide range of site specific variables which affect land sales (e.g. position of the landowner – are they requiring a quick sale or is it a long term land investment?). However, for a strategic study, where the land values on future individual sites are unknown, a pragmatic approach is required.

5.5.13 PBA have consulted a number of sources in order to determine what could be a suitable value in which a landowner could reasonably be willing to sell the land for. For instance, PBA have reviewed websites such as EGI, confidential appraisals held by the local council and websites of local land agents to gain an approximate sales value. The benchmark values are given in Table 5.15.

Table 5.15 Non-residential uses – land values

Use Land values

1: Town centre office £4,000,000

2: Business park £2,000,000

3: Industrial / warehouse £1,600,000

4: Hotel (60 bed) £3,000,000

5: Local convenience £4,000,000

6: Town centre retail £5,000,000

7: Smaller supermarket £4,000,000

8: Supermarket £4,000,000

9: Retail warehouse / OOC £3,000,000

10: Care Home £4,000,000


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6 Development Viability Analysis

6.1 Residential Development Viability Analysis

6.1.1 This section sets out the viability assessments of emerging Local Plan policies to identify and assess their burden on future development within Watford. This is based on running iterative viability appraisals, introducing Local Plan policies including the impact of S106, the affordable housing policies, renewable energy standards and electric charging points for vehicles set out in the Watford Local Plan. Existing policies, affordable housing and CIL, have been included within initial layers as they are adopted policies.

6.1.2 Each typology site has been subjected to a detailed appraisal, complete with cashflow analysis. For each policy layer, the impact of policy costs are then considered through adding policy 'layers' to judge the cumulative impact of policies. These are:

Policy layer 1 – This is a base layer, which includes open space allowances but no CIL, no other S106, and no policy layer applied;

Policy layer 2 – This is adds the current CIL rates and S106 at £250 to the base layer;

Policy layer 3 – Policy layer 2 plus the requirement for affordable housing at the adopted rates of 35% subject to the prescribed AH threshold, as set out in Watford Local Plan Policy HS3; and

Policy layer 4 - Policy layer 3 plus the requirement for meeting sustainable construction standards as set out in the draft Local Plan Policies SD 5 and T 7.

6.1.3 For Policy Layer 2, 3 and 4, our assumption for CIL is based on the existing CIL rate for Watford. We understand that all residential typologies are liable to pay a £120 per sqm rate, with the exception of the Health Campus which is zero rated.

6.1.4 For Policy Layer 4, we assume that the cost of meeting the emerging Local Plan policy SD5 is £2,500 per unit. This figure has been derived from a report

32 published by construction

consultants Davis Langdon (now part of AECOM group). Since policy SD5 indicates that this is for development within Special Policy Areas, this has been applied only to the 700 mixed units, Health Campus and the Western Gateway typologies. Additionally, we assume that the cost of meeting the emerging Local Plan policy T 7 is £1,400 per unit (applied to 2 in every 10 units).

6.1.5 We display the results of each policy layer’s impact on the tested 17 residential typologies in Table 6.1 using a 'traffic light' system. A green colour means that the development is viable and amber is marginal in that they fall within a 20% range (i.e. 10% above or below) around the benchmark land value, and a red colour means it is unviable.

6.1.6 From the analysis in Table 6.1, in Table 6.2 we summarise the average positive or negative financial headroom in Watford to see if there is scope for a contribution towards planning policy or CIL if the Council were to revisit the Charging Schedule, and, if so, how much scope.

6.1.7 Using the PBA viability model, a complete example of an individual residential site appraisal is provided in Appendix A. The results of each site’s viability against different policy scenarios are presented in the rest of this chapter.

6.2 Residential viability results

6.2.1 Table 6.1 provides a summary of the potential excess financial headroom of development above the level required to deliver the tested site typologies. That is the headroom between

32

Figure 6 of “Costs of building to the Code for Sustainable Homes, Final Report”, Davis Langdon (Sept. 2013).


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value and all costs associated with each typology. It is given as a per square metre amount by dividing the total headroom by all the floorspace within each scheme and also the same total amount divided by only the CIL liable floorspace (i.e. the open market floorspace element).

6.2.2 This headroom is available as a contribution towards further planning policy and S106. As shown in Table 6.1, on a site type, it can be seen that there are varying levels of headroom to charge for planning gain depending on how each policy scenario impacts on the tested sites.


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Table 6.1 Residential site financial headroom summary

Site typology

Policy layer 1 = No policy, no CIL

Policy layer 2 = Policy layer 1 with CIL + S106 £250

Policy layer 3 = Policy layer 2 + AH policy (35%)

Policy layer 4 = Policy layer 3 + sustainable design standards + policy T 7 (electric charging points)

Headroom (per net hectare)

Viable Headroom (per net hectare)



Viable

3 houses £1,282,851 Yes £747,045 Yes £747,045 Yes £747,045 Yes

6 houses £1,875,772 Yes £1,345,033 Yes £1,345,033 Yes £1,345,033 Yes

9 houses £1,882,313 Yes £1,351,574 Yes £1,351,574 Yes £1,351,574 Yes

10 houses £1,882,313 Yes £1,351,574 Yes -£54,199 Marginal -£67,166 Marginal

12 flats £5,666,377 Yes £4,633,025 Yes £2,205,172 Yes £2,174,995 Yes

15 houses £2,521,709 Yes £1,990,969 Yes £564,079 Yes £555,457 Yes

30 houses £2,512,561 Yes £1,981,821 Yes £555,410 Yes £542,543 Yes



60 mixed £3,599,631 Yes £2,835,333 Yes £838,197 Yes £812,593 Yes





700 mixed £8,094,932 Yes £6,872,062 Yes £3,742,179 Yes £3,359,505 Yes

Health Campus £9,002,815 Yes £8,964,990 Yes £5,378,843 Yes £4,981,049 Yes

Western Gateway £11,706,061 Yes £9,934,600 Yes £5,854,665 Yes £5,283,004 Yes


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45

6.2.3 Based on the four tested policy scenarios, the average headrooms across the typologies of sites are derived and the viability impact for each policy layer is set out below:

Policy layer 1 (no policy): all 17 residential typologies, including the two SPA typology sites, are viable with no policy layer;

Policy layer 2 (CIL and S106): all 17 residential typologies, including the two SPA typology sites, are viable when applying the current CIL rate of £120 per unit on non strategic sites and a S106 of £250 per unit;

Policy layer 3 (CIL, S106, and 35% affordable housing): 16 residential typologies, including the two SPA typology sites, are viable when applying CIL, S106 and affordable housing. The typology of 10 houses is only marginally unviable at this policy layer, due to the affordable housing policy standard starting at 10 units;

Policy layer 4 (CIL, S106, affordable housing policy, sustainable design standards (SPA areas only) and draft policy T 7 regarding electric charging point): the 700 mixed units; Health Campus and Western Gateway typologies are both viable at this policy layer. Again, the typology of 10 houses is only marginally unviable at this policy layer, due to the affordable housing policy standard starting at 10 units.

6.2.4 The Council have set out in the current CIL Charging Schedule that Major Developed Areas (MDAs), at Watford Junction and the Health Campus, are not charged CIL. Watford Junction has been assessed by PBA in a separate study. Table 6.1 demonstrates that the Health Campus is viable.

6.3 Non-residential Development Viability Analysis

6.3.1 This section sets out the assessment of non-residential development viability based on the assumptions set out in the previous chapter. The tables below summarise the detailed assessments, and represent the residual value per square metres after values and costs, including land have been calculated.

6.3.2 It is important to note that the analysis considers development that might be built for subsequent sale or rent to a commercial tenant. However there will also be development that is undertaken for specific commercial operators either as owners or pre-lets.

6.3.3 The tests have not accounted for s106/s278 etc contributions to mitigate direct impacts of the development. This is because S106/278 agreements are likely to vary more than they do for residential schemes because they will be more specific to individual developments. These payments will often centre on highways improvements but could also relate to design and access.

6.4 Policy Layers

6.4.1 PBA have identified two policies that are considered to have an impact on viability; the existing CIL rate and meeting BREEAM Excellent. Table 6.2 appraises the different uses, firstly without any policy costs. Secondly, by evaluating viability when the existing CIL rate is included. And finally by including an assumption for meeting the cost of BREEAM Excellent, which has been assumed as including an additional 2% on top of build costs.

6.4.2 Table 6.2 indicates that the existing CIL rates appropriate. The additional cost of achieving BREEAM excellent is considered viable on all non-residential uses, with the exception of industrial or warehouse uses.


Final Report

46

Table 6.2 Viability of Non-residential uses in Watford borough

Use Existing CIL rate

Policy Layer 1

Headroom without policy costs

Policy Layer 2:

Headroom with CIL

Policy Layer 3:

Headroom with CIL and BREEAM

1: Town centre office £0 £200 £200 £158

2: Business park £0 £137 £137 £102

3: Industrial / warehouse £0 -£420 -£420 -£440

4: Hotel (60 bed) £120 £200 £91 £57

5: Local convenience £120 £683 £571 £541

6: Town centre retail £55 £173 £125 £98

7: Smaller supermarket £120 £494 £383 £353

8: Supermarket £120 £254 £143 £105

9: Retail warehouse / OOC £120 £530 £419 £402

10: Care Home £120 £188 £77 £42


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47

7 Conclusions

7.1 Introduction

7.1.1 The final stage of this viability assessment is to draw broad conclusions on whether the Watford Local Plan is deliverable in terms of viability.

Residential testing

7.1.2 Either through adding costs and/or by reducing value, the Local Plan viability assessment identified the policies which are most likely to impact on future residential viability, were affordable housing and sustainability requirements.

7.1.3 The whole plan viability assessment and emerging options for affordable housing policy and other policy options are set out in chapter 5 and 6. These do not include Watford Junction SPA, which is covered in a separate PBA study. The main findings to inform the recommendation options are as follows:

The appraisal findings demonstrate that viability does not significantly vary across the borough and therefore there should be no distinction between policy approaches across the borough;

7.1.4 The strategic sites are all viable, although caution should be exercised in order to allow for the currently unknown site specific S106 costs. As this information becomes available further testing is advised.

7.1.5 Chapter 5 shows that all but one of the residential typologies are currently viable, even when all additional policy costs are included. Where typologies are viable once affordable housing and sustainability requirement policy costs are included, the viability of schemes varies further depending on the scale of policy obligation. The 10 house typology is at the margins of viability when applying all the policy costs.


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48

Non-residential testing

7.1.6 With regard to non-residential element of the planned development, the delivery of schemes taking place is less affected by the impact of 'policy burdens' and more sensitive to wider economic market conditions of demand and supply for such development. The viability assessment assessed a range of speculative development scenarios, without the imposition of any planning obligations and found the schemes most likely to take place are those that have an identified client requiring specific development requirements rather than speculative delivery.

7.1.7 In testing if the CIL would affect delivery on those uses where it is applied as part of the adopted charging schedule, the conclusion from this study is that the adopted CIL rates remain deliverable and that they would not undermine delivery of the emerging Local Plan.

7.2 Is the Local Plan deliverable?

7.2.1 This study has assessed the viability of the Local Plan and concludes that the Local Plan (Part 2) is viable for the Council to require sustainable design standards above Building Regulations taking into account existing affordable housing policy, S106 and CIL requirements set out in the Council’s Charging Schedule.


Final Report

Appendix A Example Appraisals

Non-residential

1: Town centre office

ITEM

Residual value

Net Site Area 0.08 £7,990,936.14 per ha

1.0 Development Value

No. of units Size sq.m Rent Yield Value per unit Capital Value

1.1 1: Town centre office 1 1350 250 6.75% £5,000,000 £5,000,000.00

Rent free period Adjusted for rent free

No. of months 0 £5,000,000

Total development value £5,000,000

2.0 Development Cost

2.1 Site Acquisition

2.1.1 Site value (residual land value) £599,320

5.75%

£633,781.12

2.2 Build Costs

No. of units Size sq.m Cost per sq.m Total Costs

2.2.1 1: Town centre office 1 1,500 £1,710 £2,564,250

2.2.2 BREEAM 0% of Build costs £0

£2,564,250

2.3 Externals

2.3.1 external works as a percentage of build costs 15.0% £384,638

£384,638

2.4 Professional Fees

2.4.1 as percentage of build costs & externals 10% £294,889

£294,889

2.5 Total construction costs £3,243,776

3.0 Contingency

3.1.1 Contingency : 5% as a percentage of total construction costs £162,188.81

3.1.2 Community Infrastructure Levy £0 £0.00

£162,189

TOTAL DEVELOPMENT COSTS (including land payment) £4,039,746

4.0 Developers' Profit

Rate

4.1 as percentage of total development costs 20% £807,949.24

£807,949

TOTAL PROJECT COSTS [EXCLUDING INTEREST] £4,847,695

TOTAL INCOME - TOTAL COSTS [EXCLUDING INTEREST] £152,305

5.00 Finance Costs APR PCM

7.00% 0.565% -£152,305

TOTAL PROJECT COSTS [INCLUDING INTEREST] £5,000,000

Purchaser costs

This appraisal has been prepared by Peter Brett Associates on behalf of the Council. The appraisal has been prepared in line with the RICS valuation guidance. The purpose of the

appraisal is to inform Council as to the impact of planning policy has on viability at a strategic borough level. This appraisal is not a formal 'Red Book' (RICS Valuation – Professional

Standards January 2014) valuation and should not be relied upon as such.


Final Report

Residential

3 houses Watford Borough 3 Units

ITEM

Residual Value Technical Checks:

Net area (ha) 0.06 Brownfield Brownfield £5,378,316 per net ha Sqm/ha 4,573

Stamp Duty Old Dwgs/ha 50

Units/pa 3

Private Affordable Social rent Affordable rent Intermediate Starter Homes GDV=Total costs -

Nr of units 3.00 0.00 0.00 0.00 0.00 0.00

1.0 Development Value

1.1 Private units No. of units Size sq.m Total sq.m £psm Total Value

1.1.1 Flats (NIA) 0.00 55 0 £4,400 £0

1.1.2 2 bed house 1.11 75 83 £4,000 £330,780

1.1.3 3 bed house 1.23 93 114 £4,000 £457,560

1.1.4 4+ bed house 0.66 117 77 £4,000 £309,173

3.0 274

1.2 Social rent No. of units Size sq.m Total sq.m £psm Total Value

1.2.1 Flats (NIA) 0.00 55 0 £1,980 £0

1.2.2 2 bed house 0.00 75 0 £1,800 £0

1.2.3 3 bed house 0.00 93 0 £1,800 £0

1.2.4 4+ bed house 0.00 117 0 £1,800 £0

- -

1.3 Affordable rent No. of units Size sq.m Total sq.m £psm Total Value

1.3.1 Flats (NIA) 0.00 55 0 £2,420 £0

1.3.2 2 bed house 0.00 75 0 £2,200 £0

1.3.3 3 bed house 0.00 93 0 £2,200 £0

1.3.4 4+ bed house 0.00 117 0 £2,200 £0

- -

1.4 Intermediate No. of units Size sq.m Total sq.m £psm Total Value

1.4.1 Flats (NIA) 0.00 55 0 £2,860 £0

1.4.2 2 bed house 0.00 75 0 £2,600 £0

1.4.3 3 bed house 0.00 93 0 £2,600 £0

1.4.4 4+ bed house 0.00 117 0 £2,600 £0

- -

1.5 Starter Homes No. of units Size sq.m Total sq.m £psm Total Value

1.5.1 Flats (NIA) 0.00 55 0 £3,520 £0

1.5.2 2 bed house 0.00 75 0 £3,200 £0

1.5.3 3 bed house 0.00 93 0 £3,200 £0

1.5.4 4+ bed house 0.00 117 0 £3,200 £0

- -

Gross Development value £1,097,513

2.0 Developer's Profit

2.1 Private units 20.0% on OM GDV £219,503

2.2 Affordable units 6% on AH transfer values £0.00

Total Developer's Profit £219,503

3.0 Development Costs

3.1 Sale cost

3.1.1 Private units only 3.00% on OM GDV £32,925

£32,925

3.2 Build Costs

3.2.1 Private units No. of units Size sq.m Total sq.m Cost per sq.m Total Costs

3.2.1.1 Flats (GIA) 0.00 63 0 £1,247 £0

3.2.1.2 2 bed house 1.11 75 83 £1,306 £108,000

3.2.1.3 3 bed house 1.23 93 114 £1,306 £149,393

3.2.1.4 4+ bed house 0.66 117 77 £1,306 £100,945

3 274

3.2.2 Affordable units No. of units Size sq.m Total sq.m Cost per sq.m Total Costs

3.2.2.1 Flats (GIA) 0.00 63 0 £1,247 £0

3.2.2.2 2 bed house 0.00 75 0 £1,306 £0

3.2.2.3 3 bed house 0.00 93 0 £1,306 £0

3.2.2.4 4+ bed house 0.00 117 0 £1,306 £0

- -

3.2.3 Extra-over BR2013 £0 per unit £0

Total build costs 3 £358,338

3.3 Extra over construction costs

3.3.1 Externals 10% extra-over on build cost £35,834

3.3.2 Site abnormals (remediation/demolition) £200,000 per net ha £12,000

3.3.3 Site opening up costs £5,000 per unit £15,000

Total extra over construction costs £62,834

3.4 Professional Fees

3.4.1 on build costs (incl: externals) 10% £39,417

Total professional fees £39,417

3.5 Contingency

3.5.1 on build costs (incl: externals) 5% £19,709

Total contingency £19,709

3.6 Developer contributions

3.6.1 Lifetime homes £0 per unit £0

3.6.2 Renewable energy (on typologies 14,15,16 and 17) £0.00 per unit £0

3.6.3 CIL £0 per sqm £0

3.6.4 S106/S278/AH contribution £0 per unit £0

3.6.5 Renewable energy (on larger sites) FALSE build cost £0

Total developer contributions £0

TOTAL DEVELOPMENT COSTS £513,223

4.0 Site Acquisition

4.1 Net site value (residual land value) £322,699

£0

£9,681

4.3 Purchaser costs 1.75% on land costs £5,647

Total site costs £338,027

TOTAL PROJECT COSTS [EXCLUDING INTEREST] £1,070,753

TOTAL INCOME - TOTAL COSTS [EXCLUDING INTEREST] £26,760

5.0 Finance Costs

APR PCM

5.1 Finance 6.50% on net costs 0.526% -£26,760

TOTAL PROJECT COSTS [INCLUDING INTEREST] £1,097,513

This appraisal has been prepared by Peter Brett Associates for the Council. The appraisal has been prepared in line with the RICS valuation guidance. The purpose of the appraisal is to inform the Council about the impact of planning policy has on viability at a

strategic level. This appraisal is not a formal 'Red Book' (RICS Valuation – Professional Standards January 2014) valuation and should not be relied upon as such.

Stamp Duty4.2


Final Report

Appendix B Notes from the Developer Workshop

NOTES

J:\37165 - Watford Viability\Communication\Developers Workshop 02.03.16\Watford Local Plan Developer Workshop Final Notes.docx Page 1 of 15

Meeting Title: Watford Local Plan Viability Developer Workshop

Attendees: Russell Porter (RP) - PBA, Louise (LF) – PBA; Sian Finney-McDonald (SFM) - WBC, Catriona Ramsay WBC Habib Neshat (WBC) - Peter Brown, (Braser Freeth) Chris Smiddy, (Smiddy Property) Paul Felton, (Stimpsons)Joe Cook, (Aldwyck) Douglas Bond (Wolf Bond) Jonathan Paul Smart | Land Manager | Taylor Wimpey North Thames Lisa Cathro - Watford Community Housing Trust John Rockminster - Lambert Smith Hampton James Chell - Land Manager, Bugler

Date of Meeting: 2nd

March 2016

Comment Actions

1. Introduction SFM introduced the workshop and explained how it fitted with the preparation of the emerging Watford Local Plan.

2. Purpose of the Workshop RP explained that the role of the workshop was to find out about local experience of development, including CIL, and the approach to testing viability in Watford. RP explained that PBA is assessing viability in terms of delivering office space in Clarendon Road, the emerging development brief options for Watford Junction and the whole plan viability test including any revisions to the current Community Infrastructure Levy (CIL).

3. Experience of CIL RP asked the workshop attendees about their experience of CIL in Watford or where it has been approved in other locations. A few participants had experience of working with CIL. Feedback included:

Where CIL related to C2, it was cited as sometimes problematic, particularly in relation to care homes/care villages where a large amount of facilities such as pools are charged (experience outside WBC).

Although C3 in Watford was considered acceptable for CIL, it was suggested that the rates should be amended to reflect the differences in cost associated with tall buildings and 2-storey houses.

Another participant had experience with a developer who bought the land under the assumption that they could have CIL exemption – it wasn’t exempted and therefore the developer argued viability based on misinformation in order to negotiate down AH (in Watford).

There was consensus that a CIL officer was an absolutely essential role.

It was noted that, on big sites with smaller development parcels,

NOTES


Comment Actions

the S106/CIL liability can be heavy and confusing and therefore greater clarity would be required.

The ACC regulations in Hertfordshire have helped developers with S106 negotiations and certainty. It was felt that this diluted the benefits of CIL in terms of certainty. Rates the ACC is achieving not dissimilar to CIL.

There was concern about the potential for double dipping on infrastructure funding through CIL and S106, however RP noted that the CIL Regs does not allow this.

Potential future issue with Starter Homes (under AH) was raised because these would be exempt from paying CIL there might therefore be potential for increase in CIL.

4. Approach RP explained the approach to viability testing using the slide copied below, in particular noting that it followed a residual value approach, as recommended in government and RICS guidance, and that it would be applied with iterations (scenarios) in testing for an appropriate balance between plan policies and infrastructure funding.

No comments were made, so it assumed that the approach is acceptable.

5. Sites for non-residential uses to be tested RP explained that there is a need for identifying suitable and appropriate development typologies for testing the impact of Local Plan policies and CIL on the future land supply and development, which should be discussed and generally agreed by stakeholders at this workshop. There was general agreement that those identified in the workshop slide (copied below) broadly reflected future development scenario in the borough.

With likely new A3 leisure coming forward could be accommodated in existing industrial / warehousing type units or constructed to a similar standard, it is not felt necessary to this specific land use to the testing.

Peter Brett Associates LLP

Viability modelling

=

• OM & AH residential sales

• Business space sales

Developers' Profit

RESIDUAL LAND VALUE

(minus)

• Marketing

•Contingencies

• Finance

• Planning contributions

Total Costs

• Extra overs e.g. opening up costs, CfSH

• Construction costs

• Retail space sales

Gross Development Value

• Professional fees

(minus)

BENCHMARK LAND VALUE

(minus)

=

What planning obligation is affordable?

Is development viable?

An iterative

approach…

NOTES


Comment Actions

However, the potential for A3 leisure uses such as out-of-town trampoline centres and gyms, and D1 type uses non-residential institutions such as health centres and crèches, were suggested.

The D1 type uses rarely generate a value to add to them, and are likely to be just a cost.

6. Non-residential sales values - rents and yields assumptions RP set out the recent average data on non-residential transactions in and around Watford (slide copied below).

Several participants disputed the office rents, suggesting the figures were too low, by about 20%. Yields should also be keener owing to it being a healthy market driven by the businesses moving away from high rents in

.

NOTES


Comment Actions

London. Specifically, office rents should be around £27psqft out-of-town and £27.50 for town centre. Yields should drop to 6%. A lack of office development in the main office area of Clarendon Road was specifically discussed. It was suggested by participants that this has been driven by a lack of market certainty and the high security sought by investors. It was felt that the relatively new offices in the borough were attractive and fit for purpose, but a lot of the older stock was lacking quality for current high value demand for the location, which was considered to be a prime location. Big floor areas were considered to be better for office investment. New office space in Watford was considered attractive because of its close proximity to the motorway/airport/good schools/parking, and would therefore be attractive to occupiers looking to relocate out of London. Car parking was seen only as an issue for certain occupiers; however those who need more spaces would be more likely to choose to locate to places like Croxley Business Park. Also, there is potential competition from Croxley Green with new rail line and good parking. It was also commented that Clarendon Road lack local services such as café/restaurants to support the employee population. Demand may potentially come from more back office functions coming out of London. And one participant had recently gained the first speculative permission for an office/café scheme on Clarendon Rd. But it was noted that the scheme had to be made bigger in scale to attract investors. It was felt that there may be scope for more employment-led hybrid schemes with residential elements but this would work better by using single sites for one type of use. There was a discussion about residential uses in Clarendon Road. It was suggested that if a residential element were to be pursued for Clarendon Road, it would need to come forward on a substantial plot of its own, rather than as small part of commercial development. Although, corner plots with double frontage did potentially allow for true mixed use scheme. It was noted that the market is reluctant to build and purchase mixed use block combining residential and office uses. Residential developers want to be in and out quickly, not worrying about vacant commercial units. The market for commercial/office is just about there for pure commercial schemes without need for residential – the council also has a need for more employment and so does not want to lose areas of Clarendon Rd (main area for focus). Potential issues of PD residential conversion schemes such as noise complaints were cited as concerns of commercial occupiers. Industrial rates were suggested to be a couple of pounds per sqft too low, however this market was considered to be less strong. Hotel demand was considered very locationally driven, and the values are probably about right.

NOTES


Comment Actions

7. Non-residential benchmark land value assumptions RP set out the previous land values assumptions shown in the slide copied below. These had been informed by a number of appraisals submitted to the Council, and other sources including the CIL viability work.

Feedback suggested that the values were too low. It was suggested that the figures would be more accurate if they were the figures for per acre. One participant had seen office sites on Clarendon Rd go for up to £8m, however it is unclear what site area this covered. It was also commented that a problem with Clarendon Rd is the lack of difference in existing and redevelopment values, so the only way to deal with costs associated with rebuilding is to go higher. A further respondent noted that Greenfield land values were considered to fetch around £200k per acre; while brownfield land elsewhere in Watford, were at around £1/2m. It was suggested that the Health Campus site value would provide an insight. Industrial and warehouse land values were considered to be about right. No other feedback was given.

Comments were noted, and further evidence was asked for.

8. Non-residential build costs RP set out the build costs in the slide copied below and confirmed that these were based on BCIS median averages, rebased to Watford in Q4 2015.

Comments were noted, and further evidence was asked for.

NOTES


Comment Actions

BCIS costs were considered to be about 20% too low – particularly in the case of town centre offices (which should be £180+) and Business Parks. It was noted that BCIS cost do not always recognise the higher costs associated with Grade A standards, which is what is required for Clarendon Road. Inflation on build costs was noted to be very high at the moment.

9. Non-residential other development assumptions RP presented other development costs assumptions for non-resi that are listed in the workshop slide copied below. There was general agreement that these assumptions broadly reflected extra over development costs in the borough. The exception was that developer return might be closer to 15%, but this would depend on the type of scheme.

NOTES


Comment Actions

10. Sites for Residential uses to be tested RP presented the proposed residential typologies in the slide below to be tested. There was agreement that these typologies broadly reflected future development scenarios in the borough. However, some comments were made, including: It was recommended that a 9 dwelling and a 10 dwelling typology should be tested to identify the impact of the AH threshold on similar schemes. It was more likely that developers will look to build 2-bed flats rather than 3-bed flats because the latter would attract more families and therefore increase the need for providing more schools and parking, which reduces viability. This was noted to be more pertinent in Watford than elsewhere in Hertfordshire because of the land constraints within the borough. It was commented that in planning for the future to improve sustainability in Watford, the development industry will need to better plan for balanced communities. This is happening in London, where families are accepting that they may live in flatted developments. It was commented that many new purchasers of homes and flats in Watford would likely to be from London residents and commuters.

NOTES


Comment Actions

11. Residential unit types and sizes to be tested It was commented that across Watford as a whole, the market would probably want to see more houses. However, the constraints on the allocated sites/space means that you will see primarily flatted development. It was recommended that densities were likely to be around 25 per acre for what will likely be 4-5 storey blocks. If you can go up 10 storeys, this would increase. An unmet demand for bungalows was highlighted. However, it was also noted that this was unlikely to be met by the market.

NOTES


Comment Actions

RP presented assumptions about the size of units in Watford, commenting that they are based on averages using the National Space Standards which are to be compulsory on all homes in Watford. It was suggested that rather than blend the averages for flats, more information about the sizes of different flats should be used since development in Watford is likely to be concentrating on flatted schemes. In terms of sizes, it was noted that 2 bed flats should be at 65 sqm net internal, and studios at 27 sqm. It was recommended that there may be some demand for pocket units sized development at Watford Junction.

NOTES


Comment Actions

12. Residential sales values RP presented sales values as mapped across Watford in the slide below. Comments received included the values reflected unit values rather than per square metre values is not useful because the in the darker areas there generally are fewer but larger units, which will be the reason for the higher values. The same applies in comparing flats and houses, which explains the pattern of difference.

RP presented the average per square metre values for Watford as a whole (shown below), which would inform the viability testing. It was anticipated that these values would increase sharply, driven in part by in-migration from London where sales values are much higher. A figure of nearer £500 per sqft at Watford Junction and Clarendon Road was considered a likely figure for new builds in these locations. Examples from elsewhere were identified, including a scheme near Watford Junction which had achieved around £570 sqft. Also, it was noted that proximity to the station commands a premium; such as at £650 sqft near the St Albans station, whereas in Bushey (outside of centre but with a station) values are looking at £480-90 sqft.

NOTES


Comment Actions

13. Assumptions about the rate of residential building per site Comments received that schemes of up to 50 units would not take longer than one year to be built out. No developer will deliver more than 70-80 units per annum. However, a 1,500 unit scheme would be delivered by more than one outlet. If the 1,500 units is purely flatted, it was expected that 2-3 outlets would deliver more than 200 pa. Also depends on infrastructure and phasing issues. Building heights were cited as slowing delivery – can’t deliver until gone all the way up. Sales lapse should be increased to 9 months.

NOTES


Comment Actions

14. Residential build costs The values presented were considered about 40% too low across board. Flatted development (inc. undercroft) should be around £200k per sqm; a simple 4 storey flatted scheme around £1,600 per sqm. Example offered: 82 flat extra care facility in Leighton Buzzard £1,400 per sqm (including 10% for extra year since this was tendered). RP clarified that the presented figures (copied below) excluded other cost items like externals, other site costs and professional fees. Once these are added, then the figures were unlikely to be significantly different to the quoted examples.

NOTES


Comment Actions

15. Other residential development cost assumptions RP presented the slides copied below and asked for comments. Comments received included: On sites like that at Watford Junction, professional fees need to be higher to reflect complexity of the site – all the easy sites have gone. Finance should be 6.5%. Contingency should be 5%, particularly on flatted schemes due to the required pilling. It was suggested that it would be better to look at return on capital of around 25% (22-23% on AH/OM houses blend). No comments on extra over land costs were noted.

NOTES


Comment Actions

16 Residential benchmark land value assumptions RP presented a list of land values compiled from previous studies and viability evidence submitted to the Council to see if these were reasonable benchmark values. These values reflect site values prior to planning for residential use and prior to any necessary remediation or infrastructure investment for delivering residential uses. It was commented that CIL studies should be considered differently to plan viability studies, because there is a need to be generous on costs and pessimistic on values to make sure CIL will not be a barrier.

We are looking for benchmark land value

NOTES


Comment Actions

It was noted that even sites with only the opportunity of gaining planning permission, but not actually yet benefiting from consent, commanded similar rates to those with consent. It was quoted that for an option agreement (with planning), the discounts would be about 10-25% of market value. Example given: Greenfield (23 acres in Hertfordshire green belt - not Watford) had a 3 year option at £1m per acre. Another at £2m per acre with planning consent. Suggested values given were about £1m per acres for Greenfield and £1.5m per acre for brownfield at existing use value.


Final Report

Appendix C Glossary

Affordable Housing

Housing provided for sale, rent or shared equity at prices in perpetuity below the current market rate,

which people in housing need are able to afford

Affordable Rent

Affordable rented housing is let by local authorities or private registered providers of social housing to

households who are eligible for social rented housing. Affordable Rent is subject to rent controls that

require a rent of no more than 80 per cent of the local market rent (including service charges, where

applicable).

Allocated

Land which has been identified for a specific use in the current development

Brownfield Land, Brownfield Site

Land or site that has been subject to previous development

Charging Authority

The charging authority is the local planning authority, although it may distribute the received levy to

other infrastructure providers such as the county council in two tier authorities

Charging Schedule

The Charging Schedule sets out the charges the Charging Authority proposes to adopt for new

development

Code for Sustainable Homes

The Code for Sustainable Homes is an environmental assessment method for rating and certifying the

performance of new homes. It is a national standard for use in the design and construction of new

homes with a view to encouraging continuous improvement in sustainable home building

Convenience Goods

Widely distributed and relatively inexpensive goods which are purchased frequently and with minimum

of effort, such as newspapers and food.


Final Report

Comparison Goods

Household or personal items which are more expensive and are usually purchased after comparing

alternative models/types/styles and price of the item (e.g. clothes, furniture, electrical appliances).

Such goods generally are used for some time

Development

Defined in planning law as ‘the carrying out of building, engineering, mining or other operations in, on,

over, or under land, or the making of a material change of use of any building or land’

Headroom

The residual value from development after deducting development costs, including profit and land

value, from the gross development value.

Infrastructure

The network of services to which it is usual for most buildings or activities to be connected. It includes

physical services serving the particular development (e.g. gas, electricity and water supply;

telephones, sewerage) and also includes networks of roads, public transport routes, footpaths etc. as

well as community facilities and green infrastructure

Intermediate Housing

Intermediate housing is homes for sale and rent provided at a cost above social rent, but below

market levels subject to the criteria in the Affordable Housing definition above. These can include

shared equity (shared ownership and equity loans), other low cost homes for sale and intermediate

rent, but not affordable rented housing. Homes that do not meet the above definition of affordable

housing, such as "low cost market" housing, may not be considered as affordable housing for

planning purposes.

Low Carbon

To minimise carbon dioxide emissions from a human activity.

New Homes Bonus

The New Homes Bonus is a government funding scheme to ensure that the economic benefits of

growth are returned to the local area. It commenced in April 2011, and will match fund the additional

council tax raised for new homes and properties brought back into use, with an additional amount for

affordable homes, for the following six years

Planning Obligations

Legal agreements between a planning authority and a developer, or undertakings offered unilaterally

by a developer to ensure that specific works are carried out, payments made or other actions

undertaken which would otherwise be outside the scope of the planning permission. Often called

Section 106 (S106) obligations or contributions. The term legal agreements may embrace S106.


Final Report

Renewable Energy

Energy generated from sources which are non-finite or can be replenished. Includes solar power, wind

energy, power generated from waste, biomass etc.

Residual land value

The amount remaining once the gross development cost of a scheme is deducted from its gross

development value and an appropriate return has been deducted

Rural exception sites

Small sites used for affordable housing in perpetuity where sites would not normally be used for

housing. Rural exception sites seek to address the needs of the local community by accommodating

households who are either current residents or have an existing family or employment connection.

Small numbers of market homes may be allowed at the local authority’s discretion, for example where

essential to enable the delivery of affordable units without grant funding.

Section 106 (S106) Contributions

See Planning Obligations.

Social Rent

Social rented housing is owned by local authorities and private registered providers (as defined in

section 80 of the Housing and Regeneration Act 2008), for which guideline target rents are determined

through the national rent regime. It may also be owned by other persons and provided under

equivalent rental arrangements to the above, as agreed with the local authority or with the Homes and

Communities Agency.

Threshold land value

Landowners have an important role in deciding whether a project goes ahead on the basis of return

from the value of their land. The threshold land value, or the benchmark land value, refers to the

minimum value of the land that is likely to trigger the land owner to sell the land.

Use Classes and ‘Use’

The Town and Country Planning (Use Classes) Order, 1987, a statutory order made under planning

legislation, which groups land uses into different categories (called use classes). Change of within a

use class and some changes between classes do not require planning permission. Please note that the

definition of ‘use’ within the CIL regulations is meant in its wider sense and not in terms of the use

classes e.g. whilst a supermarket and a shop selling clothes are the same use in terms of the use class

system i.e. A1 – they are clearly a different use in terms of the CIL regulations as a store selling only

clothes is different from a store selling predominantly food.


Final Report

Appendix D New Build Residential Properties on the Market at February 2016

Broad location Asking price Dwelling type No. of beds

Nascot Wood £1,250,000 Detached 6

Nascot Wood £920,000 Detached 4

Long Acre, Hagden Lane

£589,950 Terrace (end of) 3

Long Acre, Hagden Lane

£549,950 Terrace 3

Church Road £1,100,000 Semi-detached 6

Windmill Street, Bushey Heath

£1,350,000 Detached 5

Copper Beeches, Bushey

£1,300,000 Detached 6

Rossway Drive, Bushey

£995,000 Detached 5


Final Report

Appendix E Research on Non-Residential Units Values

Research on High Street Retail

Scheme Location Size

(sqm)

Rent (p.a.) per sqm

Unit 160, Intu Watford, High Street, Watford, Hertfordshire, WD17 2UA

Watford 165 £969.73

38A, Palace View, 38 High Street, Watford, WD17 2BS

Watford 39 £923.08


Watford 265 £811.17


Watford 242 £743.48


Watford 282 £708.39


Watford 289 £692.00

Unit 1 and 2, Chiltern House, 24-30 King Street, Watford, WD18 0BP

Watford 43 £537.05

Ground, 422 St. Albans Road, Watford, WD24 6PJ Watford 20 £473.42

13 King Street, Watford, WD18 0BW Watford 84 £448.50

Ground, 6 Clarendon Road, Watford, WD17 1DY Watford 57 £421.43

Ground, 105 High Street, The Parade, Watford, WD17 1LU

Watford 108 £416.49

Unit 1, Met Quarter, 132-136 High Street, 3-9 King Street, 13 Smith Street, Watford, Hertfordshire, WD17 2EN

Watford 218 £413.12

Retail Area and Rear Storage, 6 Market Street, Watford, WD18 0PD

Watford 61 £408.35

58 High Street, The Parade, Watford, WD17 1AH Watford 110 £386.36

Unit 3, Faircross House, 116 High Street, The Parade, Watford, WD17 1BD

Watford 41 £380.05

106-108 High Street, Watford, WD17 2BW Watford 99 £352.75

Ground and Basement, The Met Quarter, King Street, Watford, Hertfordshire, WD18 0BW

Watford 336 £346.89

114b High Street, Watford, WD17 2BJ Watford 304 £328.97

Entire Building, 3 Meeting Alley, High Street, Watford, WD17 2RR

Watford 141 £313.62

62, 60-62 Queens Road, Watford, Hertfordshire, Watford 33 £304.07


Final Report


(sqm)

Rent (p.a.) per sqm

WD17 2LA

340 St. Albans Road, Watford, Hertfordshire, WD24 6PQ

Watford 25 £303.50

12 Prestwick Road, The Parade, Watford, WD19 7ED Watford 296 £292.52

Ground, 143 Courtlands Drive, Watford, WD24 5LL Watford 58 £291.38


Watford 379 £290.21

Ground, 175 St. Albans Road, Watford, Hertfordshire, WD24 5BD

Watford 88 £284.76

114b High Street, Watford, WD17 2BJ Watford 304 £279.63

89 High Street, Watford, WD17 2DQ Watford 144 £278.50

No 5, 1-5 The Parade, High Street, Watford, Hertfordshire, WD17 1LQ

Watford 255 £266.94

Ground, 8 Market Street, Watford, WD18 0PD Watford 114 £262.96

Ground, 57 High Street, The Parade, Watford, WD17 1LJ

Watford 119 £260.08

Ground and 1st, 114c High Street, Watford, WD17 2BJ Watford 158 £252.97

60, 60-62 Queens Road, Watford, Hertfordshire, WD17 2LA

Watford 33 £248.77

Ground, 1st and 2nd, 116a High Street, Watford, WD17 2BJ

Watford 185 £243.04


Watford 94 £239.08


Watford 94 £239.08

57 High Street, The Parade, Watford, WD17 1LJ Watford 300 £238.42

20 Charter Place, Watford, WD17 2RS Watford 84 £236.83

Entire Building, 129 High Street, The Parade, Watford, WD17 1NA

Watford 103 £227.68

Basement and Ground, 106 High Street, The Parade, Watford, WD17 1AW

Watford 168 £223.50

Ground, 3 High Street, The Parade, Watford, WD17 1LQ

Watford 255 £215.91

216 St. Albans Road, Watford, WD24 4AU Watford 51 £215.67

Ground, 257 St Albans Road, Watford, Hertfordshire, WD24 5BJ

Watford 66 £205.54

172 Bushey Mill Lane, Watford, WD24 7PB Watford 49 £203.86

111 Leavesden Road, Watford, WD24 5ER Watford 35 £202.01

Ground, 338 St. Albans Road, Watford, WD24 6PQ Watford 55 £198.33


Final Report


(sqm)

Rent (p.a.) per sqm

Ground, 53 Queens Road, Watford, WD17 2QN Watford 2 £196.70

Ground, 133 St. Albans Road, Watford, WD17 1RA Watford 41 £189.16

Ground, 413 St. Albans Road, Watford, WD24 6PR Watford 56 £187.43

Ground, 413 St. Albans Road, Watford, WD24 6PR Watford 56 £187.43

Ground, 172 Bushey Mill Lane, Watford, WD24 7PB Watford 49 £183.48

Entire Building, 152-154 High Street, Watford, Hertfordshire, WD17 2EN

Watford 451 £177.29

Unit 3, Met Quarter, 132-136 High Street, 3-9 King Street, 13 Smith Street, Watford, Hertfordshire, WD17 2EN

Watford 929 £171.15

118 High Street, Watford, WD17 2BJ Watford 381 £170.77


Watford 176 £170.23

Entire Building, 46 High Street, Watford, WD17 2BS Watford 266 £169.30

1 Market Street, Watford, WD18 0PA Watford 132 £166.65

Ground and Basement Floors, 104 High Street, The Parade, Watford, WD17 1AW

Watford 183 £163.84

Entire Building, 94 High Street, The Parade, Watford, WD17 1AW

Watford 184 £163.01

Basement and Ground, 214 St. Albans Road, Watford, WD24 4AU

Watford 75 £159.86

Unit 2, 53 Queens Road, Watford, WD17 2QN Watford 107 £158.57

Ground, 175-177 The Parade, High Street, Watford, Hertfordshire, WD17 1NJ

Watford 111 £156.98

Ground Storage and Ground, 72 Market Street, Watford, WD18 0PX

Watford 84 £155.14

Ground, 2 New Road, Watford, Hertfordshire, WD17 2EX

Watford 130 £153.82


Watford 164 £152.29

Entire Building, 230 St. Albans Road, Watford, WD24 4AU

Watford 91 £148.87

Ground and 1st, JSA HOUSE, 107-107a High Street, Watford, Hertfordshire, WD17 2DQ

Watford 400 £145.95

Ground and 1st, 142 High Street, Watford, WD17 2EN Watford 191 £143.69

Ground, 271a St. Albans Road, Watford, WD24 5BJ Watford 153 £143.16

Ground, 1st and 2nd, 147 High Street, The Parade, Watford, WD17 1NA

Watford 168 £142.88

Rear Store and Ground, 245-247 St. Albans Road, Watford 196 £142.84


Final Report


(sqm)

Rent (p.a.) per sqm

Watford, Hertfordshire, WD24 5BQ

Ground, 97a Vicarage Road, Watford, WD18 0EB Watford 71 £140.89


Basement and Ground, 155-157 St. Albans Road, Watford, Hertfordshire, WD24 5BD

Watford 84 £130.69

No. 68, 66-68 Queens Road, Watford, WD17 2LA Watford 97 £129.38

Hille House, 132 St. Albans Road, Watford, WD24 4AQ

Watford 132 £120.77

76a High Street, Watford, WD17 2BP Watford 93 £118.40


478 St. Albans Road, Watford, WD24 6QU Watford 244 £102.63

Ground and Basement, 478-480 St Albans Road, Watford, WD24 6QU

Watford 244 £102.58

Basement and Ground, 146-150 St Albans Road, Watford, WD24 4FT

Watford 431 £99.03

Entire Building, 40 Charter Place, Watford, WD17 2RX Watford 158 £94.92

Entire Building, 1-3 Euston Avenue, Watford, WD18 7SZ

Watford 158 £88.64

Unit 2 - 1st Floor, The Parade, 23-33 The Parade, High Street, Watford, Hertfordshire, WD17 1LX

Watford 2,087 £71.87

1st, 101 High Street, Watford, WD17 2DQ Watford 361 £69.32

Ground, 46 The Parade, Prestwick Road, Watford, Hertfordshire, WD19 7EY

Watford 697 £48.08

Unit 4 - 2nd & 3rd Floor Front, The Parade, 23-33 The Parade, High Street, Watford, Hertfordshire, WD17 1LX

Watford 951 £42.06

Research on Supermarkets

Store Operator Location Rent (sqm) Yield New store

Date

Morrisons South Shields £137 5.25% N Jun-10

Waitrose Rickmansworth £211 4% N Oct-10

M&S Simply Food Maldon £197 5.58% N Jun-08

Waitrose Hornchurch, London £186 4.43% N Unknown

Sainsbury’s Tooting £253 4.50% Y Mar-11

Tesco Welling High St, Bexley

£232 4.75% Y Nov-10


Final Report


Date

Waitrose Clerkenwell, London £226 4.20% Y Nov-09

ASDA Bangor £204 5% Y Jun-11

Tesco Extra Coventry £168 4.11% N Unknown

Waitrose Crowborough £192 5.04% N Unknown

Tesco Metro London N7 £193 5.25% N Unknown

Sainsbury’s Londonderry £167 5.36% N Unknown

Waitrose Wantage £172 4.50% N Unknown

Tesco Wembley £317 5.50% Y Sep-12

Tesco Congleton - 4.90% Y Jun-12

Tesco Glastonbury - 4.50% Y Apr-12

Tesco St Ives - 4.90% Y Jan-12

Tesco Tiptree £236 4.90% Y Jan-12

Tesco Cross Point, Coventry

- 4.57% Y Sep-11

Tesco Keynsham - 4.96% Y Aug-11

Tesco Ruthin £161 4.96% Y Aug-11

Tesco Welling - 5% Y Jul-11

Tesco Cardiff - 4.50% N Feb-11

Tesco Investment Chatteris - 5% Y Sep-12

Tesco Investment Gosport £215 5% Y Apr-12

Tesco Investment Corby £215 4.60% Y Oct-11

Tesco Investment Welling High St, Bexley

£232 4.75% Y Jun-11

Sainsbury’s Putney £273 4% N Current

Tesco Perth £212 4.35% N Aug-13

Sainsbury’s Sale £242 4.10% N Aug-13

Sainsbury’s Hythe £226 4.10% Y Aug-03

Sainsbury’s Ashford £248 4.10% Y Aug-13

Morrisons Milton Keynes £242 4.25% Y Jul-13

Morrisons Edgware Road, London

£286 4.60% Y Jan-13

Sainsbury’s Harrow Manor Way, London

£237 4.50% Y Jan-13

Sainsbury’s March £194 4.76% N Jul-13

Morrisons Aldershot £224 4.25% Y Apr-13


Final Report


Date

Sainsbury’s Hayes £331 4.19% Y Apr-13

Tesco Oldham £181 5.28% N Current

ASDA Torquay £248 N Nov - 11

Research on Smaller Supermarkets (rents)

Broad Location Tenant Achieved rent per sqm

Transaction date

Cheshire Aldi Stores Ltd £137 2013

West Midlands Aldi Ltd £147 2013

Merseyside Aldi £152 2011

London Lidl Ltd £161 2008

West Midlands Iceland Foods Plc £161 2008

Nottinghamshire ALDI, Inc. £171 2006

Suffolk ALDI, Inc. £175 2013

Cheshire Aldi Stores Ltd £191 2009

Essex Lidl Ltd £191 2008

London Lidl Ltd £279 2010

Essex Tesco £137 2012

Torbay Iceland Foods Plc £310 2008

Essex Tesco £136 2011

Research on Smaller Supermarkets (yields)

Broad Location Tenant Yield Transaction Date

Lancashire Aldi Stores Ltd 6.25 2009

Not Disclosed Lidl Ltd, 6.5 2010

Co Durham Lidl UK Properties GmbH, 7.46 2010

Middlesex Lidl Ltd 4.15 2009

London Lidl (UK) GMBH 5.5 2006

Staffordshire n/a 5.2 2005

West Glamorgan Lidl Ltd 5.76 2005

Avon n/a 5.75 2005


Final Report

Research on Small, Local Convenience Retailers

Broad Location Tenant Size

(sqm)

Rent (p.a.) per sqm

Langley Road, Watford Tesco 400 £125.13

High Street, Watford Tesco 306 £179.67

Research on Town Centre Offices


(sqm)

Rent (p.a.) per sqm

1st Floor, 28a Market Street, Watford, WD18 0PY Watford 45 £133.90

Building 2, Axis, 7 Rhodes Way, Watford, WD24 4TP Watford 836 £161.46

2nd (part), 34 Clarendon Road, Watford, WD17 1JJ Watford 100 £66.74

Victoria House, 49 Clarendon Road, Watford, WD17 1HX Watford 158 £150.70

Ground, Meridien House, 69-71 Clarendon Road, Watford, WD17 1DS

Watford 1,233 £234.54


21 Station Road, Watford, WD17 1AP Watford 254 £166.84

Unit 34, Metro Centre, Dwight Road, Tolpits Lane, Watford, Hertfordshire, WD18 9HG

Watford 231 £129.17

Building 6, Suite 18, Unit 2, 2 Blackmoor Lane, Watford, WD18 8GA

Watford 134 £215.39

Lucidus Building, 41-43 Clarendon Road, Watford, WD17 1TR

Watford 992 £215.28



2nd, 30 Clarendon Road, Watford, WD17 1JJ Watford 190 £193.75


Watford 116 £129.17

1st Floor, 46 Clarendon Road, Watford, WD17 1JJ Watford 1,041 £215.28




2nd, Hannay House, 39 Clarendon Road, Watford, WD17 1JA

Watford 241 £137.15

2nd Floor Rear 1, Victoria House, 49 Clarendon Road, Watford, WD17 1HX

Watford 171 £182.99

1st (part), Hille House, 132 St. Albans Road, Watford, WD24 4AQ

Watford 41 £146.82


Final Report

Unit 2, Unit 2, Tolpits Lane, Century Court, Watford, WD18 9RS

Watford 883 £102.26

Unit 9 (part), Bermer Place, Imperial Way, Watford, WD24 4XX

Watford 107 £106.99

2nd Floor Rear 2, Victoria House, 49 Clarendon Road, Watford, WD17 1HX

Watford 156 £150.70

2nd (part), 21 Station Road, Watford, WD17 1AP Watford 277 £139.93

Entire Building, 12 Station Road, Watford, WD17 1EG Watford 179 £156.08

1st, Arliss Court, 24 Clarendon Road, Watford, WD17 1JY Watford 326 £156.18

34 Clarendon Road, Watford, WD17 1JJ Watford 100 £193.75

Hille Centre Block, St. Albans Road, Watford, Hertfordshire, WD24 4AS

Watford 41 £146.82


Watford 82 £139.93

Offices, 103-105 High Street, Watford, WD17 2DQ Watford 149 £161.46

Silica, 53 Clarendon Road, Watford, WD17 1LA Watford 446 £188.37

Silica, 53 Clarendon Road, Watford, WD17 1LA Watford 273 £139.93

Ground, 22-24 Station Road, Watford, Hertfordshire, WD17 1ER

Watford 58 £155.00

Axis 1, 1 Rhodes Way, Watford, WD24 4FD Watford 1,762 £113.51

151-153 The Parade, High Street, Watford, Hertfordshire, WD17 1NA

Watford 117 £204.38

2nd (part), 21 Station Road, Watford, WD17 1AP Watford 377 £161.46

1st and 2nd, 114 High Street, Watford, WD17 2BJ Watford 69 £108.51

Ground (part), Hille House, 132 St. Albans Road, Watford, WD24 4AQ

Watford 65 £129.17

1st Floor, 21 Station Road, Watford, WD17 1AP Watford 460 £139.93


Watford 60 £199.13

20 Upton Road, Watford, WD18 0JP Watford 191 £161.46

Unit 2, Unit 2, 2 Blackmoor Lane, Watford, WD18 8GA Watford 1,864 £79.39

Unit 1, Boulevard, Blackmoor Lane, Watford, Hertfordshire, WD18 8UW

Watford 347 £182.99

2nd Floor, Lucidus Building, 41-43 Clarendon Road, Watford, WD17 1TR

Watford 992 £215.28

4th Floor, Radious House, 51 Clarendon Road, Watford, WD17 1HP

Watford 762 £215.28

Ground, 1 The Boulevard, Watford, Hertfordshire, WD18 8YW

Watford 435 £156.08



Final Report

Ground, Apex House (Formerly Shire House), 1 Bridle Path, Watford, Hertfordshire, WD17 1UD

Watford 378 £193.75

Ground, Hannay House, 39 Clarendon Road, Watford, WD17 1JA

Watford 160 £107.64

22 Station Road, Watford, WD17 1ER Watford 162 £122.25

Unit 5, 10 Beechen Grove, Watford, WD17 2AD Watford 123 £223.40

Ground and 1st, 64 Leavesden Road, Watford, WD24 5EH Watford 28 £223.89

Suite 15, Leavesden Park, Hercules Way, Leavesden, Watford, WD25 7GS

Watford 35 £221.74


Watford 69 £134.55

Csb House, Clarendon Road, Watford, Hertfordshire, WD17 1JJ

Watford 1,860 £298.49

1st, Consort House, 60 Leavesden Road, Watford, WD24 5DN

Watford 111 £144.60


Watford 63 £228.95


Watford 307 £97.74


Watford 36 £153.77

10-12 Caxton Way, Watford, Hertfordshire, WD18 8JY Watford 505 £49.49

4th (part), Edward Hyde Building, 38 Clarendon Road, Watford, WD17 1HZ

Watford 628 £247.57

1st and 2nd, 137 High Street, The Parade, Watford, WD17 1NA

Watford 94 £96.11

3rd, 28 Clarendon Road, Watford, WD17 1JJ Watford 456 £215.28

3rd, Arliss Court, 24 Clarendon Road, Watford, WD17 1JY Watford 69 £134.55

1st, M D & C House, 45 Clarendon Road, Watford, WD17 1SZ

Watford 615 £221.20

Unit 2, 10 Beechen Grove, Watford, WD17 2AD Watford 52 £242.43

Ground, Arliss Court, 24 Clarendon Road, Watford, WD17 1JY

Watford 233 £134.55

Unit 1, Bermer Place, Imperial Way, Watford, WD24 4XX Watford 99 £116.12

131 High Street, The Parade, Watford, WD17 1NA Watford 125 £96.32

3rd Floor, Meridien House, 69-71 Clarendon Road, Watford, WD17 1DS

Watford 852 £214.79


Watford 111 £179.40

Entire Building, Vision House, Colonial Way, Watford, WD24 4JL

Watford 2,569 £209.90

Suite 11a, Greenhill House, 26 Greenhill Crescent, Watford, Watford 33 £218.00


Final Report

Hertfordshire, WD18 8JA

1st (part), Hille House, 132 St. Albans Road, Watford, WD24 4AQ

Watford 41 £146.78

Suite 13, Leavesden Park, Hercules Way, Leavesden, Watford, WD25 7GS

Watford 39 £99.57

Suite G2, 34 Clarendon Road, Watford, WD17 1JJ Watford 222 £242.19

4th Floor, Lucidus Building, 41-43 Clarendon Road, Watford, WD17 1TR

Watford 869 £215.28

3rd Floor, Lucidus Building, 41-43 Clarendon Road, Watford, WD17 1TR

Watford 992 £242.19

Unit 6, Century Court, Tolpits Lane, Watford, Hertfordshire, WD18 9RS

Watford 242 £107.32

Suite G3, Sunley House, Olds Approach, Watford, WD18 9TB

Watford 88 £107.64

Abloy House, Hatters Lane, Watford, WD18 8QY Watford 554 £104.95

Iveco House, Station Road, Watford, WD17 1GD Watford 6,965 £129.17

Fusion House, The Green, Letchmore Heath, Watford, WD25 8ER

Watford 152 £165.01

Quindell House, 10 King Street, Watford, WD18 0BW Watford 2,085 £231.43

19 Colonial Way, Watford, WD24 4JL Watford 4,004 £113.63

40 Clarendon Road, Watford, WD17 1TQ Watford 4,589 £215.28

126 Rickmansworth Road, Watford, WD18 7WR Watford 203 £139.93

1st, Radious House, 51 Clarendon Road, Watford, WD17 1HP

Watford 906 £215.28

1st and 2nd, 137 High Street, The Parade, Watford, WD17 1NA

Watford 94 £112.16

1st, Egale, 80 St. Albans Road, Watford, WD17 1RP Watford 496 £242.19

Unit 1, Orient Centre, Greycaine Road, Watford, WD24 7GP Watford 554 £107.64

2nd, Arliss Court, 24 Clarendon Road, Watford, WD17 1JY Watford 111 £129.17

40 Clarendon Road, Watford, WD17 1TQ Watford 4,589 £225.94

Ground & 1st Floors, Lucidus Building, 41-43 Clarendon Road, Watford, WD17 1TR

Watford 1,815 £220.66

Unit 9 (First Floor), Bermer Place, Imperial Way, Watford, WD24 4XX

Watford 132 £105.70

1st, 14a Delta Gain, The Parade, Watford, WD19 5BL Watford 56 £214.53

Ground and 3rd, Meridien House, 69-71 Clarendon Road, Watford, WD17 1DS

Watford 2,072 £215.28

Unit 41 Ground Floor, Metro Centre, Dwight Road, Tolpits Lane, Watford, Hertfordshire, WD18 9HG

Watford 103 £125.84

2nd (part), 77-79 High Street, Watford, WD17 2DN Watford 110 £182.44


Final Report

114 High Street, Watford, WD17 2BJ Watford 69 £101.29

1st Floor - Centre, 21 Station Road, Watford, WD17 1AP Watford 162 £188.37

1st Floor - East, 21 Station Road, Watford, WD17 1AP Watford 166 £188.37

2nd Floor - West, 21 Station Road, Watford, WD17 1AP Watford 203 £172.22

Unit 1 - Ground Floor, Orient Centre, Greycaine Road, Watford, WD24 7GP

Watford 461 £107.64

Unit 1 - 1st Floor, Orient Centre, Greycaine Road, Watford, WD24 7GP

Watford 473 £135.63

3rd Floor Front, Victoria House, 49 Clarendon Road, Watford, WD17 1HX

Watford 177 £204.52

3rd Floor Rear, Victoria House, 49 Clarendon Road, Watford, WD17 1HX

Watford 360 £204.52

Lucidus Building, 41-43 Clarendon Road, Watford, WD17 1TR

Watford 4,761 £229.71

50 Clarendon Road, Watford, WD17 1TX Watford 5,505 £169.53

1st Floor, Centre Block, Hille House, 132 St. Albans Road, Watford, WD24 4AQ

Watford 84 £131.56

Entire Building, Apex House (Formerly Shire House), 1 Bridle Path, Watford, Hertfordshire, WD17 1UD

Watford 801 £187.29

147 High Street, The Parade, Watford, WD17 1NA Watford 74 £161.46

19 Colonial Way, Watford, WD24 4JL Watford 1,418 £226.04

2nd Floor, Victoria House, 49 Clarendon Road, Watford, WD17 1HX

Watford 140 £182.99

1st, 2nd & 3rd Floor, 151-153 The Parade, High Street, Watford, Hertfordshire, WD17 1NA

Watford 257 £116.92

2nd Floor, Meridien House, 69-71 Clarendon Road, Watford, WD17 1DS

Watford 521 £215.28

Suite 10, Greenhill House, 26 Greenhill Crescent, Watford, Hertfordshire, WD18 8JA

Watford 81 £215.28

Ground (part), 64 Clarendon Road, Watford, WD17 1DA Watford 617 £193.75

Ground, Egale, 80 St. Albans Road, Watford, WD17 1RP Watford 453 £242.19

Suite 3.3, 34 Clarendon Road, Watford, WD17 1JJ Watford 105 £242.19

Suite G1, 34 Clarendon Road, Watford, WD17 1JJ Watford 89 £241.82

1st, 64 Clarendon Road, Watford, WD17 1DA Watford 1,184 £226.04

Ground, Arliss Court, 24 Clarendon Road, Watford, WD17 1JY

Watford 93 £64.58


Final Report

Research on Business Park Offices


(sqm)

Rent (p.a.) per sqm

Suite 11, Building 6, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 65 £333.99


Watford 173 £182.99

Ashley House - A3 1st Floor F3, Vale Industrial Estate, Tolpits Lane, Vale Industrial Estate, Watford, WD18 9QP

Watford 85 £35.41

Ashley House - Ground, Vale Industrial Estate, Tolpits Lane, Vale Industrial Estate, Watford, WD18 9QP

Watford 44 £112.59

Ashley House - A3 1st Floor, Vale Industrial Estate, Tolpits Lane, Vale Industrial Estate, Watford, WD18 9QP

Watford 83 £60.13

Ashley House - A3 1st Floor F, Vale Industrial Estate, Tolpits Lane, Vale Industrial Estate, Watford, WD18 9QP

Watford 116 £51.58


Watford 16 £153.77

Building 6 Suite 7, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 597 £182.99


Watford 85 £146.39


Watford 188 £182.99

Building 6 - Unit 8, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 613 £226.04

Building 6 - Unit 24, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 388 £226.04

Croxley Business Park - The Pavilion, Blackmoor Lane, Watford, WD18 8GA

Watford 744 £198.92


Watford 94 £105.94

Unit B1a, Vale Industrial Estate, Tolpits Lane, Vale Industrial Estate, Watford, WD18 9QP

Watford 60 £33.15

Suite 8, Watford Business Park - Acorn House, 2 Greenhill Crescent, Watford, Hertfordshire, WD18 8JA

Watford 34 £272.01

Unit 2, Paramount Industrial Estate, Sandown Road, Watford, WD24 7XA

Watford 225 £66.53


Watford 110 £218.93

Suites 4, 10 and 11, Watford Business Park - Acorn House, 2 Greenhill Crescent, Watford, Hertfordshire, WD18 8JA

Watford 161 £217.65

Suites 5 and 13, Watford Business Park - Acorn House, 2 Greenhill Watford 108 £230.56


Final Report

Crescent, Watford, Hertfordshire, WD18 8JA

Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR Watford 41,806 £167.44

Building 6 - Suite 14, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 182 £204.52


Watford 198 £247.68

Building 3, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 732 £226.04


Watford 62 £241.01

Unit 18a, 25 Dwight Road, Orbital 25 Business Park, Watford, WD18 9DA

Watford 158 £107.64

Part Gound, The Belfry Business Park - St Andrews, Colonial Way, Watford, WD24 4WH

Watford 167 £161.46

Ground Floor, The Belfry Business Park - Wentworth House, Colonial Way, Watford, WD24 4WH

Watford 400 £166.84

Building 1 - Suite 2 & 2A, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 1,022 £129.17

Building 3 (part), Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 639 £226.04

1st (part), Watford Business Park - Acorn House, 2 Greenhill Crescent, Watford, Hertfordshire, WD18 8JA

Watford 39 £272.34

Building 8 - 1st Floor, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 1,849 £247.57


Watford 29 £306.57

Building 2, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 1,022 £172.22

Unit 1, Watford Business Park - Acorn House, 2 Greenhill Crescent, Watford, Hertfordshire, WD18 8JA

Watford 58 £98.00

1st (part), Watford Business Park - Acorn House, 2 Greenhill Crescent, Watford, Hertfordshire, WD18 8JA

Watford 39 £217.87


Watford 158 £137.40


Watford 302 £209.90

2nd Floor, The Belfry Business Park - Sunningdale, Colonial Way, Watford, WD24 4WH

Watford 548 £161.46


Watford 1,700 £215.28


Final Report

Research on Industrial Units


(sqm)

Rent (p.a.) per sqm

Unit 3, 25 Dwight Road, Orbital 25 Business Park, Watford, WD18 9DA

Watford 274 £54.68

Unit 4, Industrial Units At, Olds Close, Off Olds Approach, Watford, Hertfordshire, WD18 9RU

Watford 214 £93.65

Unit 9, Watford Enterprise Centre, 25 Greenhill Crescent, Watford, WD18 8XU

Watford 44 £118.40

Warehouse, Colne Valley Retail Park, Lower High Street, Watford, Hertfordshire, WD17 2JZ

Watford 576 £37.67


Watford 218 £91.49

Caxton Court, Caxton Way, Watford, WD18 8RH Watford 15,253 £78.68

Sunley House, Olds Approach, Watford, WD18 9TB Watford 865 £69.97

Unit 1, Vale Industrial Estate, Tolpits Lane, Vale Industrial Estate, Watford, WD18 9QP

Watford 209 £96.88

Unit 16, Watford Business Park, Greenhill Crescent, Watford, Hertfordshire, WD18 8JL

Watford 69 £195.04

Unit 8, Bermer Place, Imperial Way, Watford, WD24 4XX Watford 238 £84.07

Unit 11, Shakespeare Industrial Estate, Shakespeare Street, Acme Road, Watford, Hertfordshire, WD24 5HF

Watford 208 £106.03

Unit D, Penfold Trading Estate, Imperial Way, Watford, Hertfordshire, WD24 4YH

Watford 275 £89.34

Unit E, 3 Regal Way, Watford, WD24 4YJ Watford 406 £99.57

Unit 1, Watford Business Park, Caxton Way, Watford, WD18 8UA Watford 407 £53.82

Unit 5, Vale Industrial Estate, Tolpits Lane, Vale Industrial Estate, Watford, WD18 9QP

Watford 801 £77.39

Unit 7, Croxley Green Business Park, Woodshots Meadow, Watford, WD18 8YX

Watford 1,240 £104.95

Unit 18, Watford Enterprise Centre, 25 Greenhill Crescent, Watford, WD18 8XU

Watford 70 £107.64

Unit 9 (Ground Floor), Bermer Place, Imperial Way, Watford, WD24 4XX

Watford 132 £75.46

Unit 2, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 1,864 £226.04

Unit 14 & 16, Paramount Industrial Estate, Sandown Road, Watford, WD24 7XA

Watford 508 £53.82

Unit 19, Unit 5, Tolpits Lane, Moor Park Industrial Centre, Watford, WD18 9SP

Watford 456 £76.75


Final Report


Watford 114 £118.40

Unit 25, Empire Centre, Imperial Way, Empire Centre, Watford, WD24 4YH

Watford 209 £86.11

Unit 7, Byfleet Industrial Estate, Olds Approach, Watford, Hertfordshire, WD18 9TS

Watford 1,295 £75.67


Watford 217 £87.62



Watford 718 £104.95

Caxton Court, Caxton Way, Watford, WD18 8RH Watford 5,973 £93.75

Unit 21, Industrial Units At, Olds Close, Off Olds Approach, Watford, Hertfordshire, WD18 9RU

Watford 184 £70.61

Unit O, Penfold Works, Imperial Way, Watford, WD24 4YY Watford 462 £88.70

Unit 3, Rembrandt House, Whippendell Road, Watford, WD18 7PG

Watford 133 £53.82

Unit B, Greycaines House, 21 Greycaine Road, Watford, WD24 7GP

Watford 607 £64.26

Unit A & C, Greycaines House, 21 Greycaine Road, Watford, WD24 7GP

Watford 996 £60.17

Unit 26, Empire Centre, Imperial Way, Empire Centre, Watford, WD24 4YH

Watford 116 £107.64

Unit 11, 25 Dwight Road, Orbital 25 Business Park, Watford, WD18 9DA

Watford 225 £88.80

Unit 1, Watford Interchange, Colonial Way, Watford Interchange, Watford, WD24 4WP

Watford 1,674 £88.80

100 Cecil Street, Watford, Hertfordshire, WD24 5AQ Watford 145 £37.89


Watford 539 £104.95

Entire Building, Old Station Approach, Pinner Road, Watford, Hertfordshire, WD19 4EA

Watford 369 £203.01

Unit T, Penfold Trading Estate, Penfold Works, Imperial Way, Watford, Hertfordshire, WD24 4YY

Watford 239 £86.11

Unit 4 - Ground Floor, Bermer Place, Imperial Way, Watford, WD24 4XX

Watford 125 £80.19


Watford 422 £105.38

Unit 7, Paramount Industrial Estate, Sandown Road, Watford, WD24 7XA

Watford 321 £59.20

Unit 7, Colne Way Estate, Colne Way, Watford, Hertfordshire, WD24 7NE

Watford 239 £100.64

Unit 7, 25 Dwight Road, Orbital 25 Business Park, Watford, Watford 204 £48.87


Final Report

WD18 9DA

Unit 8/8A, Byfleet Industrial Estate, Olds Approach, Watford, Hertfordshire, WD18 9TS

Watford 757 £40.90

Unit Q1, Penfold Trading Estate, Penfold Works, Imperial Way, Watford, Hertfordshire, WD24 4YY

Watford 339 £86.11

Unit 1, Handford Court, Garston Lane, Watford, Hertfordshire, WD25 9EJ

Watford 177 £96.88

Unit 19, Greycaine Industrial Estate, Greycaine Road, Watford, Hertfordshire, WD24 7GP

Watford 868 £70.18

Unit 15, Riverside Works, Off Riverside Road, Watford, Hertfordshire, WD19 4HY

Watford 60 £161.46

Unit 4, Colne Way Court, Colne Way, Watford, Hertfordshire, WD24 7NE

Watford 207 £91.82

Unit 6, Industrial Space, Clive Way, Watford, WD24 4PX Watford 581 £55.11

Unit 4, Olds Approach, Tolpits Lane, Watford, Hertfordshire, WD18 9XT

Watford 591 £86.11

Unit 19, Greycaine Industrial Estate, Greycaine Road, Watford, Hertfordshire, WD24 7GP

Watford 878 £66.20

Unit 1, Olds Approach, Tolpits Lane, Watford, Hertfordshire, WD18 9XT

Watford 593 £83.42

Building 1 & 2, Croxley Green Business Park, Hatters Lane, Watford, WD18 8YR

Watford 948 £104.95

Unit 7, Colne Way Industrial Estate, Brookside, Colne Way, Watford, Hertfordshire, WD24 7QJ

Watford 239 £100.64


Watford 552 £105.06

Bay 5, Ascot Centre, Ascot Road, Watford, WD18 8AL Watford 743 £30.14

Unit 4, Riverside Works, Off Riverside Road, Watford, Hertfordshire, WD19 4HY

Watford 74 £161.46

Unit 4a/4b, Industrial Space, Clive Way, Watford, WD24 4PX Watford 167 £101.29

40 Caxton Way, Watford, WD18 8QZ Watford 1,115 £64.58


Watford 2,089 £83.42

Unit 1, Wiggenhall Industrial Estate, Wiggenhall Road, Watford, Hertfordshire, WD18 0FG

Watford 214 £72.44

Units 6 & 7, Bermer Place, Imperial Way, Watford, WD24 4XX Watford 487 £63.62

watford local plan 2 site allocations and development ... · 1.1 the study scope 1.1.1 peter brett...

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