Benchmark Land Value (BLV) meaning

Benchmark Land Value (BLV) is the threshold land value used in planning viability assessments to judge whether a development can fund policy requirements and still proceed. It is not a statutory term; in England it follows the NPPF and Planning Practice Guidance, with RICS viability guidance. Wales applies similar principles under Planning Policy Wales and guidance. The starting point is Existing Use Value (EUV) plus an evidence-based premium to the landowner (EUV+). The premium should reflect the minimum incentive to release the land and be compatible with policy-compliant development, including affordable housing, Section 106 obligations and Community Infrastructure Levy (CIL), and should not include hope value. In limited cases, Alternative Use Value (AUV) may set the benchmark, but only where the alternative use is realistic, deliverable and policy-compliant, supported by evidence. Used at plan-making and decision-taking, BLV is the comparator for residual land value and should avoid circularity (i.e. not derived from the obligations being tested). Across Scotland, Northern Ireland and Ireland there is no statutory definition; practice generally mirrors the EUV+ approach under RICS and local guidance. BLV informs negotiations on planning obligations (e.g. s75 in Scotland, s76 in Northern Ireland) and, in Ireland, Part V and development contributions.