Fri Nov 05, 2021 10:26 am
We can assume that the “developer”, or whatever special purpose vehicle has been set up for this, is making at least 20% on the deal as this is what the viability assessment aims to protect. However, the real value of reducing the s106 is going to the landowners. The developer was able to effectively overpay for the land knowing that their 20% margin is protected by the viability rules.
We need more than just transparency - the rules need to be changed and responsibility for this falls to the Welsh Government. I’m surprised they haven’t decided to go their own way on this. Perhaps they are concerned about not making Wales seem less attractive to property developers than England?