The Homes and Communities Agency (HCA) has published on its website a viability modelling tool aimed at helping the HCA and local authorities consider and plan the pipeline of housing supply in local areas.

The tool calculates the viability of housing schemes across a local area, such as a district, allowing local authorities and the HCA to plan investment in future development and balance policy priorities around infrastructure and affordable housing.

The Area Wide Viability Model works by grouping sites together into different types and considers the costs and revenues associated with developing them in order to identify whether they are financially viable, within any given set of planning policies.


As part of the HCA's Local Investment Planning process, the model can be used to look at a range of different types of sites in an area and assess the impact on development viability of various planning policies, including the potential public investment needed to deliver the best solution for an area.

Richard Hill, Director of Housing Growth and Affordability at the HCA said: "The Area Wide Viability Model demonstrates the HCA's enabling role perfectly. Local authorities are trying to achieve their ambitions for affordable housing and housing supply in the context of current market conditions.

"This model helps them to consider their planning policies and allows us together to think about the resulting potential investment implications and the options for bringing forward development to access the New Homes Bonus, in the current financial climate. We have already trialled this model with local authorities and have received some very positive feedback."

(CD/GK)