In UK property development finance, the robustness of an S106 Viability Test measures how thoroughly and reliably a financial assessment establishes a development’s ability to meet its planning obligations under Section 106 agreements. This test evaluates whether developers can realistically afford the required contributions without undermining overall project viability. A robust viability test takes into account all development costs, future market conditions, and financing arrangements. It provides developers, lenders, and advisers with a dependable basis to minimise financial risk and make informed funding decisions. Ultimately, this assessment is crucial for balancing planning requirements with commercial feasibility and ensuring sustainable project delivery.
This sits beneath Composite Risk Scores, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Eligibility Threshold Buffer, as both are closely related measures used to assess similar aspects of performance or risk.
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