Affordable Housing Viability Study
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Hastings Borough Council Local Development Framework: Housing Sites Viability and the Impact of Affordable Housing APPENDICES Report for the consideration of Hastings Borough Council: This document does not constitute Council Policy March 2011 Appendix I Appendix I - Development Scenarios and Key Assumptions Required for Hastings Borough Council Economic Viability Assessment- On-Site Affordable Housing GENERAL SITES Percentage Affordable Housing & Tenure Mix 20% Affordable Housing 25% Affordable Housing 30% Affordable Housing 40% Affordable Housing Affordable Affordable Affordable Affordable Affordable Affordable Affordable Affordable Affordable Affordable Dwelling Mix (BF Affordable Affordable Approx. Tenure Split Tenure Split Tenure Split Tenure Split Tenure Split Tenure Split Tenure Split Tenure Split Tenure Split Tenure Split Build Site Size Appraised Site Typology = Bed Flat; BH Tenure Split Tenure Split Survey Costs Site Density Private Mix 70% GN Rent; 100% GN 50% GN Rent; Private Mix 70% GN Rent; 100% GN 50% GN Private Mix 70% GN Rent; 50% GN Private Mix 70% GN Rent; 50% GN Rent; Period = Bed House 100% GN Rent; 100% GN Rent; (per site) Prep. 30% Rent; 0% 50% 30% Rent; 0% Rent; 50% 30% Rent; 50% 30% 50% (Months) 0% Intermediate 0% Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Intermediate Small urban 1 x 3BH GN; 1 x 1 x 3BH GN; 1 x 5 Houses 35 5 x 3BH 4 x 3BH 1 x 3BH GN 1 x 3BH GN TBC 4 x 3BH 1 x 3BH GN 1 x 3BH GN 3 x 3BH 2 x 3BH GN 3 x 3BH 2 x 3BH GN £2,500 6 £20,000 brownfield 3BH Int 3BH Int Small urban 1 x 2BF GN; 1 x 1 x 2BF GN; 1 x 5 Flats 75 5 x 2BF 4 x 2BF 1 x 2BF GN 1 x 2BF GN TBC 4 x 2BF 1 x 2BF GN 1 x 2BF GN 3 x 2BF 2 x 2BF GN 3 x 2BF 2 x 2BF GN £2,500 6 £20,000 brownfield 2BF Int 2BF Int Small urban 1 x 3 BH GN; 1 x 2 x 3BH GN; 1 x 2 x 3BH GN; 1 x 3 x 3BH GN; 1 x 10 Houses 35 10 x 3BH 8 x 3BH 2 x 3BH GN TBC 7 x 3BH 3 x 3BH GN 7 x 3BH 3 x 3BH GN 6 x 3BH 4 x 3BH GN £5,000 9 £40,000 brownfield 3BH Int 3BH Int 3BH Int 3BH Int Small urban 1 x 2BF GN; 1 x 1 x 1BF, 1 x 2BF 3 x 1BF; 4 x 1 x 1BF, 1 x 2BF 1 x 1BF, 2 x 3 x 1BF; 4 x 1 x 1BF, 1 x 2BF 1 x 1BF, 2 x 2BF 2 x 1BF; 4 x 1 x 1BF, 2 x 2BF 2 x 1BF, 2 x 2BF 10 Flats 75 4 x 1BF; 6 x 2BF 3 x 1BF; 5 x 2BF TBC £5,000 9 £40,000 brownfield 1BF Int GN 2BF GN; 1 x 2BF Int 2BF GN 2BF GN; 1 x 2BF Int GN 2BF GN; 1 x 1BF Int GN Small 1 x 3BH, 1 x 1 x 3BH, 2 x 10 x 3BH; 5 x 1 x 3BH, 1 x 4BH 2 x 3BH, 1 x 1 x 3BH, 1 x 4BH 7 x 3BH; 4 x 2 x 3BH, 1 x 4BH 3 x 3BH, 1 x 7 x 3BH; 3 x 2 x 3BH, 2 x 4BH 3 x 3BH, 2 x 4BH 6 x 3BH, 3 x 2 x 3BH, 2 x 4BH 4 x 3BH, 2 x 4BH 1 x 3BH, 2 x 4BH 15 Houses 30 greenfield semi- 8 x 3BH; 4 x 4BH 4BH GN; 2 x 4BH GN; 2 x £7,500 9 £60,000 4BH GN; 1 x 3BH Int 4BH GN GN; 1 x 3BH Int 4BH GN; 1 x 3BH Int 4BH GN 4BH GN; 1 x 3BH Int GN 4BH GN; 2 x 3BH Int GN GN; 3 x 3BH Int urban 3BH Int 3BH Int Brownfield 4 x 2BF GN; 1 x 4 x 2BF GN; 2 x 6 x 2BF GN; 2 x 7 x 2BF GN; 3 x 25 Flats 45 25 x 2BF 20 x 2BF 5 x 2BF GN TBC 19 x 2BF 6 x 2BF GN 17 x 2BF 8 x 2BF GN 15 x 2BF 10 x 2BF GN £12,500 12 £100,000 semi-urban 2BF Int 2BF Int 2BF Int 2BF Int Former dwelling large 12 x 2BF; 13 x 10 x 2BF; 10 x 1 x 2BF, 3 x 3BH 2 x 2BF, 3 x 3BH 3 x 3BH GN; 2 x 9 x 2BF; 10 x 1 x 2BF, 3 x 3BH 3 x 2BF, 3 x 3 x 3BH GN; 3 8 x 2BF; 9 x 2 x 2BF, 4 x 3BH 4 x 2BF, 4 x 3BH 4 x 3BH GN; 4 7 x 2BF; 8 x 2 x 2BF; 5 x 3BH 5 x 2BF; 5 x 3BH 5 x 3BH GN; 5 x 25 Mixed 35 £12,500 12 £100,000 grounds - semi- 3BH 3BH GN; 1 x 2BF Int GN 2BF Int 3BH GN; 2 x 2BF Int 3BH GN x 2BF Int 3BH GN; 2 x 2BF Int GN x 2BF Int 3BH GN; 3 x 2BF Int GN 2BF Int urban Central urban 7 x 2BF GN; 3 x 9 x 2BF GN; 4 x 11 x 2BF GN; 4 x 14 x 2BF GN; 6 x 50 Flats* 375 50 x 2BF 40 x 2BF 10 x 2BF GN TBC 37 x 2BF 13 x 2BF GN 35 x 2BF 15 x 2BF GN 30 x 2BF 20 x 2BF GN £25,000 18 £200,000 brownfield site 2BF Int 2BF Int 2BF Int 2BF Int 10 x 3BH, 3 x 12 x 3BH, 3 x Part greenfield 1 x 2BF, 10 x 7 x 2BF, 10 x 7 x 3BH, 3 x 4BH 2 x 2BF, 13 x 3BH, 9 x 2BF, 13 x 2 x 2BF, 16 x 2 x 2BF, 21 x 15 x 3BH, 5 x 36 x 2BF; 52 x 29 x 2BF; 42 x 27 x 2BF; 39 x 4BH GN; 9 x 25 x 2BF; 36 x 11 x 2BF, 16 x 4BH GN; 11 x 22 x 2BF; 31 x 14 x 2BF, 21 x 100 Mixed 35 part brownfield 3BH, 3 x 4BH 3BH, 3 x 4BH GN; 7 x 2BF, 3 x 3 x 4BH GN; 7 x 3BH, 3 x 4BH 3BH, 3 x 4BH GN; 3BH, 5 x 4BH 4BH GN: 14 x £50,000 24 £400,000 3BH; 12 x 4BH 3BH; 9 x 4BH 3BH; 9 x 4BH 2BF, 3 x 3BH 3BH; 9 x 4BH 3BH, 3 x 4BH GN 2BF, 4 x 3BH 3BH; 7 x 4BH 3BH, 5 x 4BH GN semi-urban GN; 6 x 2BF Int GN 3BH Int 2BF Int GN 9 x 2BF Int GN; 12 x 2BF Int 2BF, 6 x 3BH Int Int Int Values (Provisional) Value Point 1-Bed Flats 2-Bed Flats 2-Bed Houses 3-Bed Houses 4-Bed Houses £ / sq m Houses 1 £80,000 £107,200 £120,000 £136,000 £160,000 £1,600 2 £100,000 £134,000 £150,000 £170,000 £200,000 £2,000 3 £120,000 £160,800 £180,000 £204,000 £240,000 £2,400 4 £140,000 £187,600 £210,000 £238,000 £280,000 £2,800 5 £160,000 £214,400 £240,000 £272,000 £320,000 £3,200 Sizes (sq m) - Gross Internal Area (GIA) 1-Bed Flats 2-Bed Flats 2-Bed Houses 3-Bed Houses 4-Bed Houses 50 67 75 85 100 Other Assumptions: Developments are 2-3 storeys unless stated. *4-6 storey Infrastructure Costs per Adams Integra to model on the basis of set costs per unit. To be modelled at £3,000, £10,000 & £20,000 per unit: unit across all scheme types and Value Points Finance (%) 7.0% Base Build Costs (Flats) £1,150 per sq m Urban High Density Flats - £1,500 per sq m plus fees etc Base Build Costs (Houses)£1,000 per sq m plus fees etc Build Period Lead In 6 months Developer Profit: 17.5% of Gross Development Value - Sample of appraisals at 20% developer's profit on sample of appraisals. Profit on affordable - 6% Carry out appraisals assuming grant and sample without grant. HBC suggest assumption is that grant will be provided. Data provided by HBC shows Grant Subsidy: over past 5 years average of £63k for GN Rent and £27k for intermediate. However, RSL response suggests should assume 25% / 30% below this - i.e. £45k rented / £18,000 LCHO. Housing Mix As above. Affordable Unit Mix: Transferred on a proportional basis (i.e. same proportions as for private mix). Developer Receipt for Currently based on negotiation through developers and RSLs. AI to run calculations using Affordable Units (on-site Proval based on normal RSL financial appraisal assumptions. provision): Tenure Split As above. Assume all units comply - Level 3 of CfSH. Cost inrease to achieve these standards over and above our assumed base build costs above are "3–4% at level 3, 6–8% at Level 4, 25–30% at Level 5 and anything from Code for Sustainable 30 to 40 % at Level 6"*. Sample to be carried out assuming higher Code for Sustainable Homes Levels 4, 5 Homes and 6 on sites of 15, 25 & 50 units.