{"id":164881,"date":"2026-08-21T13:47:24","date_gmt":"2026-08-21T12:47:24","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=164881"},"modified":"2026-08-21T13:47:24","modified_gmt":"2026-08-21T12:47:24","slug":"why-built-environment-needs-a-viability-rethink","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/why-built-environment-needs-a-viability-rethink\/164881\/","title":{"rendered":"Why the built environment needs a viability rethink"},"content":{"rendered":"

Michael Holloway of Urbana on why so many schemes are technically viable, but not genuinely deliverable in practice<\/h2>\n

The UK development sector is not suffering from a lack of ambition. Across residential, mixed-use, regeneration and infrastructure projects, there is no shortage of sites with potential, investor interest or demand for new development. The bigger challenge is deliverability, which is emerging as one of the most significant threats to development across the built environment.<\/p>\n

Increasingly, schemes that appear promising at inception are struggling to progress to construction, creating a growing disconnect between planning aspirations and real-world delivery.<\/p>\n

From Urbana\u2019s work on projects across the UK, it is clear that this issue is not confined to any one sector or geography. Instead, a combination of planning, regulatory and economic pressures is creating an environment in which viable projects are becoming harder to bring forward.<\/p>\n

The UK development sector is not suffering from a lack of ambition. Across residential, mixed-use, regeneration and infrastructure projects, there is no shortage of sites with potential, investor interest or demand for new development. The bigger challenge is deliverability, which is emerging as one of the most significant threats to development across the built environment.<\/p>\n

Why deliverability is under pressure<\/h3>\n

A series of national and international events over the past decade has fundamentally changed development. Brexit, Covid-19 and geopolitical instability have all contributed to increases in construction costs, supply chain disruption and market uncertainty.<\/p>\n

At the same time, planning has become more complex, costly and protracted. Application costs continue to rise, while uncertainty around outcomes remains a significant concern for developers and investors alike. Strategic sites are particularly exposed, often carrying substantial upfront expenditure with no guarantee of a positive or timely resolution.<\/p>\n

The demands placed on schemes through Section 106 obligations<\/a> and Community Infrastructure Levy<\/a> contributions also continue to grow. While infrastructure investment is essential, these costs inevitably affect project viability and can push otherwise deliverable developments beyond acceptable risk thresholds.<\/p>\n

The introduction of the Building Safety Act has added another layer of challenge. Few would disagree with the need for higher safety standards, but the additional compliance requirements, gateway processes and design considerations have increased both programme timescales and development costs. These impacts are being felt throughout the project lifecycle, from planning through to delivery.<\/p>\n

The cost of uncertainty<\/h3>\n

The cumulative effect of these pressures is a development market increasingly shaped by uncertainty.<\/p>\n

Funding remains available and property continues to be viewed as an attractive long-term investment. However, investors and lenders are placing a greater premium on certainty than ever before. When planning outcomes, build costs, regulatory requirements and programme timelines all become harder to predict, securing investment becomes more difficult.<\/p>\n

This is particularly evident in large regeneration projects, town centre renewal schemes and mixed-use developments, where long delivery programmes expose projects to greater market fluctuations.<\/p>\n

The affordable housing sector provides a good example of the challenge. Across many parts of the country, and especially in London and the South East, development viability<\/a> is being squeezed to the point where schemes are delayed, redesigned or abandoned altogether.<\/p>\n

These regions continue to experience the highest levels of housing demand in the UK, yet many local authorities are struggling to meet housing targets, with viability pressures preventing delivery at the pace required.<\/p>\n

A more pragmatic approach<\/h3>\n

We need a delivery environment that helps schemes to be both viable and ambitious, and with greater realism from all parties involved in the development process. Local authorities must be willing to engage constructively on viability where market conditions have materially changed since policy targets were established. In some cases, delivering slightly less than originally envisaged should not be viewed as failure if it enables a development to proceed.<\/p>\n

A scheme delivering 20% affordable housing is preferable to a scheme delivering none because it never reaches construction. Likewise, a development that achieves 80% of its original vision still creates jobs, homes, infrastructure and economic value.<\/p>\n

Developers have a responsibility to ensure schemes are grounded in robust commercial assumptions from the outset. Overly optimistic expectations around values, costs or funding are becoming increasingly difficult to sustain in the current market and can create viability challenges later in the process.<\/p>\n

There are also opportunities to improve certainty within the planning system itself. Dedicated case officers for major applications and earlier collaboration between applicants, planning authorities and statutory consultees could help reduce delays and improve confidence in the system.<\/p>\n

Deliverability over perfection<\/h3>\n

Consultants and advisers have an important role to play. Honest advice is difficult to deliver but increasingly necessary. In some circumstances, the most effective route to delivery may involve a phased approach, a reduction in scale or a simplification of design.<\/p>\n

If development ambitions are to be realised, there needs to be a shift in focus from pursuing perfect projects towards delivering good projects that can realistically be built.<\/p>\n

Without a more pragmatic and collaborative approach, the industry risks continuing to accumulate consented schemes that never leave the drawing board. By embracing candid advice, realistic expectations and greater cooperation between developers, local authorities and advisers, the sector can begin to unlock stalled projects and ensure that ambition translates into construction.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Michael Holloway of Urbana on why so many schemes are technically viable, but not genuinely deliverable in practice<\/p>\n","protected":false},"author":24,"featured_media":164886,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,276,173330],"stakeholder_rel_tag":[],"contributor_rel_tag":[173395],"class_list":{"0":"post-164881","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-government","10":"tag-pbc-today-august-2026"},"acf":[],"yoast_head":"\nWhy the built environment needs a viability rethink<\/title>\n<meta name=\"description\" content=\"Michael Holloway of Urbana on why so many schemes are 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