1
Q
How did you establish your client’s objectives and priorities for your instruction at the outset?
A
Prior engagement through phone calls and email to understand the objectives. These were set out in our fee proposal and terms of engagement.
2
Q
Tell me about the RICS guidance you referred to in this instruction?
A
RICS Valuations - Global Standards 2022
Valuation of Development Property 2019
RICS Guidance Note: Code of Measuring Practice
3
Q
When would an existing use value be the appropriate approach?
A
This would be more applicable if there was an existing tenant in the unit.
Also if there was no planning consent.
4
Q
Did your update include a development appraisal or RLV? Explain the difference between the two.
A
The report included a RLV as the valuation was to understand the land value.
Development appraisals are set up to establish the profit of a scheme.
5
Q
What would you do differently next time?
A
6
Q
How did you act ethically?
A
During this valuation I acted ethically in that I upheld the requirements of the option agreement, and acted with openess, transparency and integrity within the written update.
7
Q
How did you act within your competence?
A
8
Q
How did you provide a HIgh Quality and Diligent service?
A
9
Q
How were you inclusive?
A
Acting as a project manager in the DTMs, I ensured that I fostered an inclusive environment, respecting all individual’s opinions.
Ensured everyone was treated fairly.
Worked cooperatively
10
Q
How did you take accountability for your actions?
A
Ensured that I was health and my ability to undertake the work was uncompramised.
11
Q
What were your key achievements?
A
I produced a valuation of a development land and completed, providing good client service along the way.
12
Q
What is meant by Satisfactory Planning Permission?
A
Definition was set out in Option agreement (2022).
Means Planning Permission that the developer considers acceptable - completely at their own discretion.
13
Q
What is meant by ‘Commercially Reasonable Endeavors’?
A
Company to make genuine effort to maximise market value, whilst recognising their are practical limits.
- Impact on reputation
- Whether costs are proportionate
14
Q
How did you maximise development coverage?
A
Incorporate more aritecturally/character sensitive design to push closer to the edge of the conservation boundary.
15
Q
How did you maximise market value?
A
Through maximising development extent.
Higher Density (but still reflects character)
Consideration of the value of product
16
Q
What is meant by ‘Satisfactory Planning Permission’?
A
Detailed in the Agreement definitions.
Satisfactory planning permission is a permission which is considered suitable to the Developers discretion.
17
Q
What was the uplift in Housing Numbers for RBWM?
A
866 to 1449 homes per annum
18
Q
Why Grey Belt over Promotion?
A
Time pressume.
General consensus in the industry is that Grey Belt policy may not be forever.
Has led to significant number of changes and best to act prompty
19
Q
What was the Delivery Risk for Site Promotion?
A
That it would take a while with no guarantee.
And no possible Appeal Process.
With Grey Belt, there is greater involvement with LPA through Pre-Application to increase chances.
20
Q
What is a Speculative Planning Application?
A
Generally speaking it means an application on non-allocated site.
21
Q
What is PDL? And how did the site comply?
A
Land which has been lawfully developed and is or was occupied by a permanent structure and any fixed surface structure associated with it.
There was a Manor House which was previously demolished.
22
Q
What are the relevant Green Belt Purposes?
A
23
Q
How did the site not contribute to relevant Green Belt Purposes?
A
Followed PPG guidance on ‘town’ definition. Means historic character and merging fall away.
Site is considered to be viewed spatially as part of the settlement and bounded by the M4 and Ascot Road
24
Q
Why did you recommend testing through Pre-App?
A
Becasue of the unceratinty involved.
Grey Belt is evolving Landscape
From commercial perspective, Company could commit greater spend if more certain on development potential.
25
What supporting info accompanied pre-app?
Highways note
Grey Belt Note which summarised Key points.
Subsequent note on Holyport Studios
26
Why Full Application not Outline?
This quanitity of development is suitable for Full Planning Applications.
Circa 200 units can be covered in sufficient detail through Full Planning.
Greater confidence following Pre-Application so could commit to greater spend with the greater detail required for Full Planning
27
What are the RICS Valuation Approaches?
28
Why was the Cost Approach not appropriate?
No existing asset to replace
29
Why was the Income Approach not appropriate?
Value of land is not derived from rental or investment income.
30
What were the development costs?
31
Why is the residual method the hybrid approach?
Combines elements of market and cost approaches.
Costs associated with development.
And Market value of comparable units to establish GDV
32
33
Why does size of the site impact ability to use Market Approach?
Dissimilar comparables reduce the accuracy of the valuation. More assumptons are required which are difficult to evidence back
34
Why was the Residual Method most appropriate?
As the sites value was driven by it's future development potential rather than existing use.
The Residual Method takes this into account as the Gross Development Value is the basis of the model
35
What were the site constraints?
Access (consideration)
Flood Risk
Conservation Area
36
Why did you assume 20% for roads and open space?
This was advised by the Design Director following the NDA calcualtion.
Policy requirements and Urban Design Layout experience were the basis of this 20% figure.
37
What was the appropriate density?
No specific policy requirement - Design Guide Advised matching local character.
36 DPH was considered appropriate for this location.
38
How did you use planning permissions to infomr an appropriate mix?
39
Why was the SHMA not considered appropriate?
Too large of an area, not direclty applicable.
While still relevant, worth getting more site/area specific data
40
What discussions did you have on mix with the design manager?
Look at how mix would impact design. - hoy they fit together.
Location of larger product
41
How did you strike the right balance on mix?
What was the right balance?
Mix between policy compliance, market demand, design efficiency
Important to build propoerties that will sell in the area. And also imcorporate SMHA as this reflects local demand. Architecturally sensetive design is imporatant to ensuring sens of place.
42
What was the AH mix that the council provided?
43
How did you price the SoA in line with RICS Standards? Which Standards?
RICS Red Book.
For example had regard to most appropriate Valuation Approaches.
And Hierarchy of evidence
44
When calculating GDV, how did you make adjustments for comparable property type, secification and location?
45
Why do you think there is a premium with new build housing?
46
How did you get agents to price this to compare?
47
What goes in to Sales Costs?
Sales Office
Show Home Furniture
Marketing Costs
48
What website shows Stamp Duty calculation?
HMRC Stamp Duty Land Tax Breakdown.
In this case it was appropriate but generally would get advise from a solicitor
49
What goes in to Legal Fees?
Legal Fees - Due Diligence and costs associate with the agreement.
50
What is a Judicial Review?
6 week period - individuals or groups can challenge the legality of decision made.
51
What was RBWMs CIL Instalment Policy?
25% 90 days post commencement
25% 180 days
25% 450 days
25% 720 days
52
53
Talk us through your Holyport case study — what was your role and the key challenge?
The site at Holyport is a 20Ha “Grey Belt” location within the RBWM. I prepared a residual land-value appraisal to inform acquisition and planning strategy. My role was to collate technical inputs, establish realistic assumptions on GDV, build costs and planning obligations, and advise on viability. The main challenge was testing deliverability in light of significant S106 and CIL costs while balancing planning risk and policy change under the 2024 NPPF.
54
Why did you use a residual land-value appraisal, and how does this differ from a viability appraisal?
A residual appraisal is used to estimate the maximum price a developer can pay for land, deducting all costs and profit from the expected GDV. A viability appraisal instead tests whether a consented or proposed scheme achieves a reasonable developer return. For Holyport, land value was the unknown variable, so a residual approach was most appropriate. Had I been negotiating affordable housing, I would have used a viability model to assess profit erosion.
55
How did you calculate GDV and what comparables did you rely on?
I analysed new-build sales from comparable schemes in Bray, Fifield Road and Ascot, cross-checking with Land Registry data and Savills market commentary. Adjustments were made for unit size, specification and location quality.
Uplift - New build Premium
Sub Urban location
56
What build cost did you assume and how did you justify it?
Assumed £210 per SQFT.
Cala's internal database . uses BCIS as a base then builds in contingency and recent live data from across our live sites.
57
What developer’s profit did you assume, and how would changing this affect the residual value?
I assumed 24 per cent on GDV, reflecting Company’s internal hurdle rate for sites of this scale and planning complexity. Reducing profit to 20 per cent would increase the residual land value by roughly £1.5 million, whereas increasing it to 26 per cent would render the scheme unviable. This sensitivity helps frame negotiations with the landowner.
58
What sensitivity testing did you undertake, and how did this inform your advice?
I tested changes in revenue, build cost, and abnormal cost allowances to see how they affected RLV. A 5 per cent drop in GDV moved the scheme from marginal to unviable. I advised that until more accurate abnormal costs were confirmed, the appraisal should be treated as indicative and subject to refinement before any binding offer.
59
How did you manage the pre-application process, and what were the key outcomes?
I co-ordinated consultants to prepare a robust pre-app submission covering highways, drainage and landscape. I chaired the meeting with planning and highways officers, presenting a draft layout and transport access strategy. The outcome confirmed that the site could qualify as Grey Belt and established parameters for density and infrastructure contributions, shaping both design and appraisal assumptions.
60
How did you coordinate consultant inputs and ensure all technical constraints were reflected in the appraisal?
I issued a clear project brief, collated consultant estimates for SANG, highways and drainage, and logged them in a constraints matrix. Each costed constraint was then input into the appraisal under site-specific abnormal costs. This ensured alignment between technical risk and financial modelling, avoiding omissions that could overstate land value.
61
What were the main risks to delivery and how did you account for these in your appraisal and advice?
Key risks were planning refusal, infrastructure cost escalation, and market softening. I allowed a 5 per cent contingency on build cost and deferred major infrastructure spend within the cashflow. I advised management that the scheme should only progress to detailed design once pre-app feedback was formalised through a Planning Performance Agreement to de-risk programme uncertainty.
62
How did you ensure your appraisal complied with RICS guidance and ethical requirements?
I followed the RICS Valuation of Development Property (1st ed., 2010), ensuring transparent assumptions, clear source referencing and sensitivity analysis. I maintained professional independence, avoided any conflict of interest, and ensured my advice was objective, in line with the RICS Rules of Conduct (2021).
63
How did planning obligations (CIL/S106) impact viability, and what approach did you take to estimate these costs?
I reviewed RBWM’s CIL Charging Schedule and typical S106 costs from comparable consents. The combined contribution equated to ~£50 per sq ft GIA, significantly affecting viability. I indexed CIL to the assumed start date and treated S106 as fixed lump sums. I highlighted that any additional infrastructure asks could render the scheme unviable.
64
Why was the project challenging for you personally?
It required integrating policy, design, and financial considerations under new NPPF guidance. The ambiguity around “Grey Belt” interpretation meant there was no precedent to rely on. I had to make balanced, evidence-based assumptions and communicate clearly with both consultants and senior management.
65
What would you do if there were very few comparable sales?
I’d widen the search radius, look at secondary evidence such as second-hand sales and developer marketing data, and adjust for quality and time. If uncertainty remained, I’d undertake scenario testing within the appraisal and advise that values be refined post-planning once more robust comparables become available.
66
How would abnormal costs influence your build-cost assumption?
Abnormal costs—such as remediation, drainage, or highways works—are added separately to the base build cost. They directly reduce RLV because they aren’t captured within BCIS median rates. I always seek consultant cost estimates or benchmarks from similar Company's schemes before finalising them.
67
Why did you use profit on GDV rather than on cost?
Company's internal standard is profit on GDV, aligning with most market-facing residual models. Profit on cost can distort results when comparing schemes of different scale. However, when reporting to funders or banks, profit on cost may be required, so I’d state both if appropriate.
68
How could planning negotiations improve viability?
Through flexibility on tenure mix, reduced infrastructure contributions, or phased delivery. Demonstrating that the scheme is marginally unviable can support negotiation for deferred payments or reduced obligations, ensuring deliverability while still meeting policy objectives.
69
What evidence would you use to justify the site’s ‘Grey Belt’ classification?
Aerial imagery and site photos demonstrating degraded land quality, plus policy alignment with paragraph 155 of the NPPF. I’d evidence how development would deliver clear public benefits—such as housing delivery and biodiversity gain—outweighing harm to openness.
70
How did you ensure productive dialogue with the local authority at pre-app?
I circulated the agenda and supporting documents in advance, encouraged open discussion, and summarised key actions in a follow-up note. Maintaining transparency and showing responsiveness to feedback established trust and led to a positive written response.
71
Which risk do you think posed the greatest threat to deliverability?
Planning risk. If the council or inspector interpreted “Grey Belt” more restrictively, the principle of development could fail. I therefore recommended securing an in-principle position through a Planning Performance Agreement before significant design expenditure.
72
How did you evidence your advice to management?
I supported my recommendation with the appraisal outputs, sensitivity results, and a written risk summary. The report clearly stated key assumptions, data sources, and policy references so it could stand up to internal and external scrutiny.
73
What would you do if you were asked to amend the appraisal to meet a predetermined outcome?
I’d refuse any request that compromises objectivity. I would explain that the RICS Rules of Conduct require members to act with integrity and provide unbiased professional advice. Any change must be evidence-based and fully documented.
74
Why was option 2 more appropriate?
Promotion would take a while with no guarantee.
And no possible Appeal Process.
Grey Belt might not be long lasting
With Grey Belt, there is greater involvement with LPA through Pre-Application to increase chances.
75
What was the AH mix that the council provided?
Social Rent - 45%
Affordable Rent - 35%
Shared Ownership 20%
1 Bed - 15%
2 Bed - 45%
3 Bed - 30%
4 Bed - 10%
76
When calculating GDV, how did you make adjustments for comparable property type, specification and location?
Judgement basis, evidence backed where possible. Got input from sales manager and land team for wider opinions on comparable evidence.
77
Why do you think there is a premium with new build housing?
78
What is an option agreement? How does it differ to a promotion agreement?
79
Define Market Value.
The estimated amount for which an **asset
or liability** should **exchange** on the **valuation date** between a **willing buyer and a willing seller** in an **arm’s length transaction** after **proper
marketing** and where the **parties had each
acted knowledgeably**, prudently and **without
compulsion**
80
In this case what was a satisfactory planning permission?
81
How were these updates provided? What method of communication was used?
82
Do you consider 3 months to be a sufficient amount of time between updates?
83
How did you undertake a planning review?
84
Does a positive pre-app mean that you will definitely achieve planning permission?
85
What were some of the constraints for this site?
86
Define Grey Belt
87
How was the Standard Method changed?
Calculation now considers affordability.
Complicated formula which I'll leave to the mathmeticians.
Baseline 0.8% of existing housing stock for the area
88
Was this a Red Book valuation?
What are the exceptions?
This was NOT a Red Book.
Red Books generally use industry standard data
This was undertaken using company specific data. Increased accuracy but less consistency and therefore not true recognised market value.
89
Where would you find the comparable land transactions?
90
What is the hierarchy of comparable evidence?
Category A – direct comparables
Category B – general market data
Category C – other sources
Prof standard: Comparable Evidence in Real Estate
91
Are there any RICS documents that relate to development valuation? Is it a professional standard or guidance note or...?
92
What is the requirement for AH?
How did you value the affordable housing?
Sought advice from Land Director.
I am aware that there is a calculation within our bespoke aprraisal model.
Fluctuates due to the nature of market so best to seek advice.
93
How did you gather comparable evidence?
For the purpose of this instruction, internal comarable transpactions were available and appropriate.
Input also from Land Owner who advised of known transactions.
94
How did you verify that this evidence was accurate?
95
What % contingency?
96
How did you calculate CIL?
How is CIL paid/ distributed in an appraisal?
97
What is the difference between CIL and S106?
98
When were BNG requirements introduced? What % was required on site?
February 2024
10%
99
If BNG could not be achieved on site how would it impact the residual value?
100
Was the profit on cost or on GDV?
Profit was on GDV
NET profit as it accounted for Interest
101
What is a JR period?
102
Why produce a sensitivity analysis?
RLV highly sensitive to relatively small changes in the
forecast cash flows and the practitioner *should* provide separate sensitivity
analyses for each significant factor.
103
What did you test in the sensetivity analysis?
104
What % change steps did you use and why?
5, 10, 15% - Revenue
50, 100,150% - Abnormals
Based on advice from Technical and Land Directors
105
What are M4(2) and M4(3)?
M4(2) - Accessible and Adaptable Dwellings
M4(3) - Wheelchair User Dwellings
106
Which Rule does recognising the limits of your technical experience comply with?
Rule of Conduct Number 2.
107
Why is it important to have an internal review?
108
What is a promotion agreement?
Agreement typically between a promoter and landowner.
- Get planning or allocation within fixed time period
- Market the property for sale on open market once has planning
Promoter typically funds all costs. (planning and marketing)
Agreement on percentage of sales to be paid to landowner based on contract.
109
What is an option agreement?
An agreement which gives one party the right, but not the obligation to buy land or property.
Landowner cannot sell land to anyone else.
Allows developers to take on risk and expense of planning permission while ensuring they can purchase land at pre determined cost.
Also, if planning is unsuccessful, they do not have to purchase land.
110
Key points in the agreement?
Initial Period of 5 years. available to extend another 5 years.
Developer issue price notice upon recieving satisfactory PP.
Sets out deducible spend (planning and developer costs)
Developer exercise option within 2 months of agreed market value.
111
What measurement did you use?
GEA for build costs
NSA for Sales Values
112
Difference between Red Book Valuation and Development Appraisal?
Red Book - Industry Norms - Ensures consistency
Development Appraisal - For Company specific things - to
113
What was the Stamp Duty?
Sought input from our Solicitor.
114
What are the Green Belt Purposes
a) to check the **unrestricted sprawl** of large built-up areas;
b) to prevent neighbouring** towns merging **into one another;
c) to assist in safeguarding the **countryside from encroachment**;
d) to preserve the setting and special character of **historic towns**; and
e) to assist in urban regeneration, by **encouraging the recycling** of derelict and other urban land.
115
How do you value AH Tenure Mix?
Vary's between LPA's.
Due to Nuance - would get specialist opinion.
Would seek advice from AH manager
116
Why would a developer take out Title Insurance?
117
What is Covenant Strength?
Financial Position of company.
118
Holyport Appraisal Key figures?
GDV - £100 Mil
Land Costs - £20 Mil
Build Costs - £46 Mil
Sales Costs - £2.5 Mil
Interest - £1.5 Mil
Abnormals - £1.5 Mil
119
What did you test in Sensitivity?
What should you have tested?
Tested - Abnormals / Revenue
Should have - Build Cost / RP Income
120
Market Approach to calculate GDV?
Used Market Comparables
Recent transactions of properties
Assessed per housetype
Calculate price per SQFT
Checked with Sales
121
Red Book Exceptions
Outlined under PS1
Acting as Expert Witness
Agency or Brokerage Service
Expressly for negotiations
122
Unknown Answers
A. refer to this guidance / policy / professional standard / person
B. can you rephrase the question
C. can I come back to that at the end
123
Can you give me a breakdown of Holyport as a location as it’s not somewhere I am familiar with?
124
What is the 5 year housing land supply of RBWM?
125
How did you determine that the site could be considered grey belt?
126
What is included in your professional fees?
127
What outputs did you stress test in the sensitivity analysis?
128
How did you arrive at 50% OMV valuation for affordable housing?
129
Special Assumption?
A special assumption is an assumption which specifically **Differs from Reality**
130
What timescales did you assume for planning?
Special Assumption - assumes planning permission has been granted on the date of valuation.
131
Example Point
The nature of my role means that I have wider involvement across a smaller number of projects, but the specific aspect of my involvement in each project varies across the competencies
132
What were the Abnormals?
Ground Investigation
Contamination
Site Levelling
Drainage Attenuation
Utilities
Site Clearance
133
What is the RIBA Plan of Work?
Framework that organises a building project into a series of clearly defined stages.
Universal structure
134
Client Care
Transparency Proactive Communication
KPIs
Complaints Handling Procedure (CHP)
Duty of Care – act with reasonable care
Managing Expectations
Feedback and Continuous Improvement
Confidentiality / GDPR
Professionalism and Empathy
Evidence-Based Advice
135
Communication and Negotiation
Active Listening
Clarity and Structure
Tailored Communication
Transparency and Professionalism
Preparation
Evidence-Based Discussion
Collaborative Approach
Document and Record
Calm and Controlled Delivery
Feedback and Reflection
136
RBWM 5 Year Housing Land Supply
4.04 Years
137
M4(2) / M4(3)
30% of homes meet M4(2) standards and 5% meet M4(3)
138
Notes on the Reporting of Sensitivity Analysis
VPGA10 states that uncertainty should be reported qualitatively - A range of figures is bad practice.
139
Define 'Development'
The carrying out of building, engineering, mining or other operations in, on, over or under land, or the making of any material change in the use of any buildings or other land.
140
5 Methods of Valuation
Comparable Method
Profits Method
Residual Method
Contractors Method
Investment Method
141
Stamp Duty?
£800,000
142
Why was build costs sensitivity not used?
VoDP - not normal to incorporate expected construction cost changes.
RICS APC Planning and Development
flashcards
Decks in class (24)
# Cards
-
ETHICS167
-
CASE STUDY142
-
CLIENT CARE54
-
COMMUNICATION & NEGOTIATION61
-
HEALTH AND SAFTEY73
-
ACCOUNTING42
-
BUSINESS PLANNING29
-
CONFLICT RESOLUTION36
-
DATA MANAGEMENT73
-
DIVERSITY EQUITY & INCLUSION27
-
INCLUSIVE ENVIRONMENTS35
-
SUSTAINABILITY74
-
DEVELOPMENT APPRAISALS266
-
DEVELOPMENT PROJECT BRIEFS71
-
LEGAL REGULATORY51
-
MEASUREMENT55
-
P&D MANAGEMENT130
-
SPATIAL PLANNING87
-
SURVEYING AND MAPPING23
-
VALUATION221
-
MASTERPLANNING AND URBAN DESIGN52
-
HOUSING STRATEGY AND PROVISION138
-
DOCUMENTS55
-
UNKNOWN ANSWERS25
