Case Studies

Arla Foods, Northallerton

Site Specific S106/Affordable Housing Economic Viability Appraisals

Hambleton District Council


AspinallVerdi was retained to carry out an independent review of the proposed development of the Arla Foods site at Romanby Road, Northallerton to -

  • provide a second opinion/review of the applicants economic viability appraisal (EVA)
  • ‘sense check’ the cost and value information provided to ensure no double counting
  • provide a residual land value appraisal, and 
  • make recommendations to the Council.

Economic Viability

We carried out a detailed residual land value appraisal and sensitivity testing to show the RLV for different levels of affordable housing (0% - 50%) and the impact of changes the private sales values.

We found that the RLV was negative at the policy compliant level of affordable housing (40%).  However, the scheme was viable at lower levels of affordable housing depending on the threshold land value (TLV).

The site was a cleared site, but there were a number of historic costs that the applicant required to overcome including redundancy costs; plant and machinery write off; decommissioning costs (fencing, chemical removal, gas shut off etc.) and demolition costs.

We made recommendations about the veracity of these costs and to the level of affordable housing that could be viable.  We recommended mechanisms for the Council to maximise the affordable housing. 

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Arla Foods, Northallerton