The Viability of Aggregate Developments

Salami Slicing: A "divide and conquer" strategy used to minimise resistance in corporate cost-cutting or political negotiations.

The viability of a development can be complex and subject to many variables. This can include infrastructure costs, affordable housing contributions, and the phasing of development.

One factor which can sometimes arise is that of aggregate developments.

Where a site/development is seen to have been separated into sections, the decision maker could consider it to be an aggregate development.

Ultimately, there are three key tests to see whether a scheme is an aggregate development:

1. The ownership of the site;

2. Whether the land could be considered to be a single site for planning purposes; and,

3. Whether the development should be treated as a single development.

These tests have been applied in multiple planning appeal decisions and originate in planning case law, including the High Court case R. (Westminster City Council) v First Secretary of State and Brandlord Limited [2003] JPL 1066 (‘the Brandlord case’) and New Dawn Homes Ltd v SSCLG [2016] EWHC 3314 (Admin).

The Brandlord Case has been subject to consideration in many appeal decisions, including one decision which found that "in order to determine whether the two sites could be aggregated or considered to form part of a larger whole for the purposes of the provision of affordable housing, my attention has been drawn to the High Court Judgment in respect of Westminster City Council v FSS and Branlord which suggested three ways in which a conclusion might be reached on the matter: whether the sites are in single ownership; whether they constitute a single site for planning purposes; and whether the proposals can be deemed to constitute a single development."

Viable Placemaking has experience advising local planning authorities and developers on aggregate developments and how this can impact the approach to development viability at all stages of the planning process. We also have experience in preparing Viability Assessments to accompany developments which are considered aggregate developments.

If you think a scheme you are involved in may be an aggregate development and would like advice on how to approach planning and viability, please don't hesitate to get in touch.