Decision

Decision:

To adopt the proposed hurdle rate framework for affordable housing development schemes across the Borough as an indicative guide to support the assessment of financial viability.

Reason(s):

1. The introduction of the proposed hurdle rate framework for assessing the financial viability of housing development schemes will promote transparency and comparability in early-stage appraisals, helping to identify schemes that are broadly financially viable.
2. By adopting the framework as a guide, rather than an absolute, the Council will retain the ability to approve schemes that do not meet the benchmark where this can be justified, ensuring that best value, and social, economic and environmental considerations continue to inform decisions.

Other options considered and rejected by the Executive:

OPTION 1: The Council could decide not to progress with adopting the hurdle rate framework proposed, and instead, continue to rely on scheme-by-scheme appraisals and affordability metrics without a formal benchmark return. This approach offers maximum flexibility, allowing each scheme to be assessed on its own merits and enabling full consideration of social, environmental and housing delivery objectives. However, it may result in less consistency across schemes, making it harder to demonstrate financial discipline and potentially reducing transparency.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.