Existing Use Value Plus a Premium (EUV+) meaning

Existing Use Value Plus a premium (EUV+) describes a land value equal to the Existing Use Value (EUV) of a site, excluding any hope value, plus an evidence-based premium that provides a reasonable incentive for the landowner to sell. It is a descriptive valuation approach; in England, Planning Practice Guidance states that benchmark land value for viability should normally be EUV+, with the premium evidenced by market data and reflecting site-specific circumstances and policy costs. EUV is the value of the current lawful use (and realistic income and costs), excluding uplift for future development. The premium should be justified by comparable transactions and represent the minimum return a reasonable landowner would accept, without double-counting abnormal, infrastructure or planning-obligation costs. Used to set benchmark land value in plan-making and decision-taking viability for affordable housing, section 106 obligations and the Community Infrastructure Levy. Usage is broadly consistent in England and Wales; in Scotland and Northern Ireland it informs viability and section 75/section 76 negotiations but is not prescribed. In Ireland, similar EUV-plus-uplift methods are used; no statutory definition applies. Not used for compulsory purchase compensation, which is based on market value.