Whole Plan Viability and CIL Assessment

Final Hastings Borough Whole Plan Viability and CIL Assessment

Hastings Borough Council

27 January 2021 Local Plan Viability Study Hastings Borough Council January 2021

Quality Assurance Date of Report 27 January 2021

Version Final

Filename and path L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Reports\_2101 Final Jan report\2101_Hastings WPV_Final Report_to publish.docx

Prepared by Stuart Cook, Director

James Bullough, Principal

Edward Tyler, Consultant

Lawrence Owho, Consultant

Checked by Stuart Cook, Director

Date 27 January 2020

Authorised by

Date

Limitation This report has been prepared on behalf of and for the exclusive use of Aspinall Verdi Limited’s Client and it is subject to and issued in connection with the provisions of the agreement between Aspinall Verdi Limited and its Client. Aspinall Verdi Limited accepts no liability or responsibility whatsoever for or in respect of any use of or reliance upon this report by any third party. Local Plan Viability Study Hastings Borough Council January 2021

Contents Executive Summary Report

1 Introduction 1 MHCLG – planning system reform consultations 3 2 National planning policy context 5 National Planning Policy Framework (NPPF) (February 2019) 5 PPG for CIL 9 3 Methodology 12 Viability modelling best practice 12 What to test? 13 Development appraisal inputs 14 Benchmark (threshold) land value 15 Viability modelling approach 18 Stakeholder engagement 19 4 Local Plan context 22 Draft Local Plan 22 5 Developing viability scenarios 30 Residential typologies 30 Elderly accommodation typology 38 Non-residential typologies 39 Mixed use typologies 40 6 Appraisal inputs & assumptions 42 Value inputs 42 Build costs inputs & assumptions 44 Policy costs inputs & assumptions 49 Timescales 52 Land value assessment 54 7 Viability testing results 63 Residential – results 63 Elderly accommodation viability testing results 64 Retail viability testing results 65 Employment use viability testing results 65 Mixed use viability testing results 65 8 Conclusions 66 Residential 66 Elderly accommodation viability testing results 67 Retail viability testing results 67 Employment use viability testing results 67 Mixed use viability testing results 67 CIL 67

Local Plan Viability Study Hastings Borough Council January 2021

Tables & Figures

Table ES-1 Example of development appraisal sensitivity tables ii Table ES-2 Generic scenarios iii Figure 1-1 Development objectives for Hastings by 2040 1 Figure 3-1 Elements required for a viability assessment 12 Figure 3-2 Balance between RLV and TLV 13 Table 3-1 Example of development appraisal sensitivity tables 19 Table 3-2 Stakeholder event comments 19 Table 4-1 Emerging policies Regulation 18 draft Local Plan 22 Figure 5-1 Value zones used in viability testing 31 Table 5-1 Value zone by electoral ward 32 Table 5-2 Proposed sale values in viability testing 32 Table 5-3 Analysis of new build units sizes 33 Figure 5-2 New build residential minimum space standards 33 Figure 5-3 Distribution of residential development growth against value zones 35 Table 5-4 Generic scenarios testing 36 Figure 5-4 Size of housing required 2019 – 2039 - Hastings 37 Table 5-5 Blended affordable housing mix calculation 38 Table 5-6 Flatted typology mix 38 Table 5-7 Elderly accommodation scenario 38 Table 6-1 Market value appraisal inputs 42 Table 6-2 Elderly accommodation value inputs 43 Table 6-3 Non-residential rents and yields appraisal inputs 43 Table 6-4 Appraisal build cost inputs & assumptions 44 Table 6-5 Policy costs inputs & assumptions 49 Table 6-6 Appraisal timing inputs 52 Table 6-7 Convenience retail scenarios timescales 53 Table 6-8 No. of planned greenfield and brownfield sites 55 Table 6-9 Agricultural land sold or on market – Hastings/South East 56 Table 6-10 Brownfield land sold or on market 58 Table 6-11 Gross land vale assessment 60 Table 6-12 Land value development appraisal inputs 61

Appendices

Appendix 1 – Policy Review Appendix 2 – Market Report Local Plan Viability Study Hastings Borough Council January 2021

Appendix 3 – Typology analysis Appendix 4 – BCIS Build Costs Appendix 5 – Residential Appraisals Appendix 6 – Elderly Accommodation Appraisal Appendix 7 – Retail Appraisals Appendix 8 – Employment Space Appraisals Appendix 9 – Individual Site Appraisals Local Plan Viability Study Hastings Borough Council January 2021

Executive Summary

ES 1 The main objective in this viability assessment is to provide Hastings Borough Council with an evidence base to assist in identifying the viability impacts of emerging planning policies in its Local Plan.

ES 2 The viability testing has been an evidenced based approach and followed best practice set out in the revised National Planning Policy Framework (NPPF), CIL Regulations and revised Planning Practice Guidance (PPG).

Approach to Study

ES 3 As best practice recommends that it is not appropriate to test every site planned, a typology approach has been undertaken. These typologies are based on the planned development identified in the Council’s emerging Local Plan, including greenfield and brownfield development and residential and commercial uses. Development appraisals have been undertaken to test the viability of proposed allocations against the Council’s proposed policies. A bespoke viability model has been created in Microsoft Excel. The model calculates the Residual Land Value (RLV) for each scenario with results displayed in a series of tables. Figure ES-1 illustrates the principles of a RLV appraisal.

Figure ES-1 Elements required for a viability assessment

Source: Harman Report1

ES 4 In order to advise on the ability of the proposed uses/scheme to support affordable housing and, other policy obligations, the residual land values in the appraisals have been assessed against

1 Harman report, 2012, Viability Testing Local Plans, Advice for planning practitioners, page 30 Local Plan Viability Study Hastings Borough Council January 2021

suitable benchmark land value. The benchmark land values have been calculated on the Existing Use Value plus Premium method as recommended in the PPG.

Viability modelling approach

ES 5 We have undertaken viability testing using a bespoke Microsoft Excel model. The model calculates the viability surplus/deficient for each scenario with results displayed in a series of tables. The viability model treats the Benchmark Land Value as a viability input i.e. costs to the development rather than a comparison between a residual land value and Benchmark Land Value. The benefit of this approach is that land payments can be phased in the cashflow with appropriate interest accrued. The accompany sensitivity tables (see example in Table ES-1) work on the basis that the variables run through the appraisals to generate multiple results of surplus/deficient against the given variables. The example in Table ES-1 assumes a baseline position of 30% affordable housing and £0 per unit S106 - this produces a surplus of £2.25 million. This same surplus is circled in the sensitivity results table because they represent the same assumption in the appraisal. We can see through the sensitivity testing that should S106 increase to £10,00 per unit (as an appraisal input) the deficit decreases to £1.449 million.

Table ES-1 Example of development appraisal sensitivity tables BALANCE Surplus/(Deficit) 902,304 £ per ha 365,158 £ per acre 2,255,761

SENSITIVITY ANALYSIS

AH - % on site 30% Balance (RLV - TLV) 2,255,761 20% 25% 30% 35% 40% 45% 50% - 2,886,241 2,571,001 2,255,761 1,940,521 1,625,281 1,310,042 994,802 2,500 2,684,488 2,369,248 2,054,008 1,738,768 1,423,528 1,108,289 793,049 5,000 2,482,735 2,167,495 1,852,255 1,537,015 1,221,776 906,536 591,296 7,500 2,280,982 1,965,742 1,650,502 1,335,262 1,020,023 704,783 389,543 10,000 2,079,229 1,763,989 1,448,749 1,133,510 818,270 503,030 187,790 Site Specific S106 13,000 1,837,125 1,521,886 1,206,646 891,406 576,166 260,927 (54,313) 0 15,000 1,675,723 1,360,483 1,045,244 730,004 414,764 99,524 (215,716) 17,500 1,473,970 1,158,730 843,491 528,251 213,011 (102,229) (417,468) 20,000 1,272,217 956,978 641,738 326,498 11,258 (303,982) (619,221) 22,500 1,070,464 755,225 439,985 124,745 (190,495) (505,735) (820,974) 25,000 868,712 553,472 238,232 (77,008) (392,248) (707,487) (1,022,727) 27,500 666,959 351,719 36,479 (278,761) (594,001) (909,240) (1,224,480) 30,000 465,206 149,966 (165,274) (480,514) (795,753) (1,110,993) (1,426,233) 32,500 263,453 (51,787) (367,027) (682,267) (997,506) (1,312,746) (1,627,986) 35,000 61,700 (253,540) (568,780) (884,019) (1,199,259) (1,514,499) (1,829,739) 37,500 (140,053) (455,293) (770,533) (1,085,772) (1,401,012) (1,716,252) (2,031,492) 40,000 (341,806) (657,046) (972,285) (1,287,525) (1,602,765) (1,918,005) (2,233,245) 42,500 (543,559) (858,799) (1,174,038) (1,489,278) (1,804,518) (2,119,758) (2,434,997) 45,000 (745,312) (1,060,551) (1,375,791) (1,691,031) (2,006,271) (2,321,511) (2,636,750) 47,500 (947,065) (1,262,304) (1,577,544) (1,892,784) (2,208,024) (2,523,264) (2,838,503) 50,000 (1,148,817) (1,464,057) (1,779,297) (2,094,537) (2,409,777) (2,725,016) (3,040,256) Source: AspinallVerdi, December 2020

Local Plan Viability Study Hastings Borough Council January 2021

Typologies

ES 6 Based on our analysis of the type of development coming forward in the emerging Local Plan we have devised the typologies set out in Table ES-2.

Table ES-2 Generic scenarios No. of Gross Gross site Gross to Net dph Net site Site Units dph area ha net area ha coverage2 Greenfield – higher value zone 7 25 0.28 90% 28 0.25 2,324 sqm 30 25 1.20 90% 28 1.08 2,182 sqm 120 45 2.67 85% 53 2.27 4,130 sqm 235 30 7.83 75% 40 5.88 3,117 sqm Brownfield – higher value zone – houses 10 35 0.29 90% 39 0.26 3,237 sqm 20 40 0.50 90% 44 0.45 3,513 sqm 65 30 2.17 90% 33 1.95 2,634 sqm 160 33 4.85 80% 41 3.88 3,992 sqm Brownfield – higher value zone – flats 10 75 0.13 90% 83 0.12 6,075 sqm 10 200 0.05 90% 222 0.05 16,248 sqm 25 195 0.13 90% 217 0.12 15,882 sqm 190 115 1.65 80% 144 1.32 10,267 sqm Brownfield – lower value zone – flats 12 185 0.06 90% 206 0.06 15,077 sqm 100 230 0.43 85% 271 0.37 19,322 sqm Source: AspinallVerdi, October 2020

ES 7 In addition to regular residential testing, we have also tested two elderly accommodation scenarios as follows

• Brownfield, 50 unit, 100dph Over 55 flatted accommodation scenario • Greenfield, 50 unit, 100dph Extra care flatted accommodation scenario

ES 8 Based on the planned growth non-residential testing has also been undertaken of the following scenarios:

• Convenience retail budget - 2,000 sqm • Convenience retail express - 350 sqm • Comparison retail (town centre) - smaller format - 100 sqm

2 Based on unit size and mix assumptions outlined in this section Local Plan Viability Study Hastings Borough Council January 2021

• Comparison retail (town centre) - larger format - 500 sqm • Office – 1,500 sqm • Industrial unit - 150 sqm • Industrial unit – 500 sqm • Mixed use – 150 residential units 300, 1x 350 sqm convenience retail unit, and 2x 150 sqm comparison retail unit

Results of viability testing

Residential – greenfield

ES 9 The analysis shows that greenfield development in the higher value zone is viable with 40% affordable housing (0% on typologies less than 10 units), biodiversity net gain, both M4(2) and M4(3) requirements, net zero carbon and electric charging point policies across all scenarios. In the least viable scenario, there is a maximum surplus to fund £12,000 per dwelling which could be used to fund infrastructure, including additional S106 obligations.

Residential – brownfield houses

ES 10 A total of four brownfield housing scenarios have been tested of which three are viable with 25% affordable housing (0% on typologies 19 units or less), biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging point policies. Depending on the net density of the typologies the amount of surplus per unit varies between £6,000 and £10,000 per dwelling.

ES 11 The 65 unit scenario is considered marginally viable with 25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. This is generally due to the lower net density of the typology. With very small changes to inputs the typology becomes viable. For example, our sensitivity testing shows that if profit is reduced to 17%, a profit level in the range deemed reasonable by the viability PPG3, the typology becomes viable.

Residential – brownfield flatted higher value zone

ES 12 In total we have tested four brownfield flatted typologies in the higher value zone, two which are viable and produce a small surplus, and two which are on the margins of viability. A key input impacting viability is development density.

3 PPG outlines a target rate of return for plan making purposes of between 15%-20% on GDV for market units. MHCLG, 2019, Viability PPG, Paragraph: 018 Reference ID: 10-018-20190509 Local Plan Viability Study Hastings Borough Council January 2021

ES 13 We have tested two 10-unit typologies, one with a lower and one with a higher density. Both include 0% affordable housing4, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging point policies. The higher density is viable and the lower density is on the margins of viability. This lower density scenario becomes viable with very small changes to inputs. For example, our sensitivity testing shows that if profit is reduced to 17%, a profit level in the range deemed reasonable by the viability PPG, the typology becomes viable.

ES 14 We have tested two larger flatted typologies tested, at 25 and 190 units respectively, with 25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. The 25 unit scenario is viable and the 190 unit scenario is on the margins of viability. This 190 unit scenario becomes viable with very small changes to inputs. For example, our sensitivity testing shows that if profit is reduced to 17%, a profit level in the range deemed reasonable by the viability PPG, the typology becomes viable.

Residential – brownfield flatted lower value zone

ES 15 The analysis shows that brownfield flatted development in the lower value zone is unviable with 25% affordable housing (0% on typologies 19 units or less), biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. The viability gap is more significant than in other scenarios and no single input can change to make the typology viable. If there is a combination of a reduced profit to 15% on GDV, an increase in sales values by 10% and a decrease in costs by 10% viability does improve.

ES 16 Our results show that elderly accommodation development is currently on the margins of viability on both brownfield and greenfield sites with 40%/25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. This is due to low value flatted development and the rule of thumb approach. This being said only small changes to inputs make the typologies viable. In both cases either a 10% increase in sales values or a 10% decrease in build costs would render elderly accommodation viable.

Mixed use viability testing results

ES 17 Our testing results show that viability is challenging in both typologies tested. The lower value scenario has a significant viability gap and there would need to be substantial changes in the viability inputs to enable viable development. The typology in the higher value zone is more marginal and if a combination of a 5% decrease in build costs and 10% increase in values could

4 In line with Hastings Borough Council Strategic Policy 2: New and Affordable Housing which states that there is no minimum affordable housing requirement on brownfield development of 0 – 19 units. Local Plan Viability Study Hastings Borough Council January 2021

be achieved mixed use sites are viable with 25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points.

Non residential testing

ES 18 Our results show that convenience retail is viable generating a surplus of up to £200 psm to fund additional policy costs.

ES 19 Comparison retail is not viable in either scenario, our sensitivity testing shows that there needs to be a combination of a fall in build (around 30%) and an increase in the capital value (yield shift from 10% to 5%) to enable viable development.

ES 20 Our results show that office and industrial development is currently unviable on a speculative basis.

ES 21 Our sensitivity testing for offices shows that there needs to be a combination of a fall in build (around 40%) and an increase in the capital value (yield shift from 10% to 7.5%) to enable viable development.

ES 22 With regards industrial uses, our sensitivity testing shows that yields need to shift from 7.5%/7.0% to 6.0% to enable viable.

Recommendations

ES 23 We have found that the emerging Local Plan is generally viable. The bulk of generic typologies, representing most of the sites and proposed units in the Borough can viably provide their affordable housing targets and policy contributions. On some typologies, viability is marginal, but with small changes to inputs viability improves.

ES 24 In those scenarios where viability is challenging i.e. flatted schemes in the lower value zone, elderly and commercial scenarios (excluding convenience retail) are still likely to be delivered over the planned period because:

• Existing use values could fall in Hastings town centre, improving viability, because some sites are office and retail uses. These sectors were going through a structural change pre- COVID-19 (e.g. flexible working and increase in online sales) and which has now been accelerated. Occupier demand for poor quality space is likely to continue to weaken which in turn will have a negative impact on these capital values. • Hastings Borough Council has a track record of assisting with the delivery of sites with challenging viability while achieving current planning policy obligations e.g. Local Plan Viability Study Hastings Borough Council January 2021

o Lower Tier Site, Bulverhythe: Hastings Borough Council has been awarded up to £6.9m through Homes England’s Local Authority Accelerated Construction programme to investigate and aid the site’s deliverability.

o Coastal Space Project: Hastings Borough Council worked in partnership with Optivo to restore empty, run down and derelict properties across St Leonards to deliver 80, affordable rented homes. This project was delivered across 3 phases which included 38 properties being refurbished across seven sites during the first phase, a derelict building being restored to provide 26 apartments in the second phase and a redundant nursing home being renovated to provide 16 apartments in the third phase. In addition to funding provided by Hastings Borough Council and Optivo, additional funding was secured from a range of partners including the South East Local Enterprise Partnership and Homes England. Without the partnership working and funding levered in to carry out the extensive restoration work required, these sites would’ve remained empty and unused as the market would not have been able to make the necessary investment

• Brownfield sites are of a national priority in terms of delivery - these sites may be able to achieve third party funding through grants. In addition, these sites are now subject to fast track planning5, improving viability by speeding up delivery. • Vacant Building Credit may apply -this has not been included in our assessment, as we have taken a conversative approach, and its application on sites would improve viability. • There are also examples of development receiving planning permission and being built out by private sector developers while paying current levels of policy contributions – most importantly 40% affordable on greenfield sites, and 25% affordable on brownfield sites.

5 ‘Owners of vacant and redundant freestanding buildings of a footprint of up to 1000 square metres will be able to fast-track the planning process for demolishing and rebuilding them as new residential developments within the footprint of the original building, up to a maximum height of 18 metres, including up to 2 storeys higher than the former building.’ Source: https://www.gov.uk/government/publications/permitted-development-rights-and-changes-to-the-use-classes-order/fast-track- planning-for-brownfield-regeneration-key-facts-brief

Local Plan Viability Study Hastings Borough Council January 2021

1 Introduction

The main objective in this viability assessment is to provide Hastings Borough Council (the ‘Council’) with an evidence base to assist in identifying the viability impacts of emerging planning policies in its Regulation 18 draft Local Plan.

The draft Local Plan sets out the development strategy for Hastings Borough:

"The development strategy set out in the draft Local Plan is focused on addressing climate change and delivering more jobs and homes whilst incorporating and embracing the town's rich natural and historic environment to meet 21st century needs of local people."

To achieve the strategy, the Council has identified the development objects set out in Figure 1-1.

Figure 1-1 Development objectives for Hastings by 2040 We want to improve the health and wellbeing of Hastings’ communities and create new opportunities by:

Addressing climate Achieving and sustaining a change and Delivering 4,275 new thriving and diverse supporting our homes that people economy – with a strong carbon neutral can afford and want manufacturing sector ambition through in well- designed including new creative, reduced transport existing, or new, high-tech and green emissions, energy neighbourhoods that industries creating jobs efficient buildings make it easier to lead and skills opportunities for and expanded green a more active local people infrastructure lifestyle The starting point for achieving this is celebrating our unique natural landscapes and the historic built environment that make Hastings special. Source: Hastings Local Plan Consultation Draft (Regulation 2018), Winter 2020

The objectives of the commission are as follows:

• provide clearly presented and justified advice to help the Council assess the viability implications of the emerging local plan and ensure that policies and site proposed allocations are appropriate to the development viability context across the Borough • provide a clear steer on the potential for a Community Infrastructure Levy (CIL) in Hastings - and if relevant advice on rates that can be supported including any variance by use, area and/ or scale that may be necessary to ensure rate(s) are viable. • provide the basis for the viability assessment of planning applications

The viability assessment is be based on the ‘viability standards’ outlined in the revised National Planning Policy Framework (NPPF), Planning Practice Guidance (PPG), the Local Housing Delivery Group publication ‘Viability Testing Local Plans’, 2012; the Royal Institution of Chartered

Local Plan Viability Study Hastings Borough Council January 2021

Surveyors (RICS) ‘Financial Viability in Planning 1st Edition’, 2012.; and the RICS Financial viability in planning: conduct and reporting. 1st Edition, May 2019.

The remainder of this report is structured as follows:

Section 2 – National Planning This section sets out the statutory requirements for the Policy Context Local Plan and CIL viability including the NPPF, CIL Regulations and PPG.

Section 3 – Methodology This section sets out our methodology to establish the viability of the various land uses and development typologies used in the testing. We also set out the professional guidance used when undertaking the economic viability appraisals and some important principles of land economics.

Section 4 – Local Plan Context This section sets out the details of the emerging planning policies of the draft Local Plan.

Section 5 – Developing viability This section sets out each of our scenarios that we have scenarios used in the viability testing and how they have been devised.

Section 6 – Appraisal inputs & This section sets out our viability inputs and assumptions assumptions that have been used in the development appraisals. Also, the assessment of greenfield and brownfield land values that have been used in the viability testing.

Section 7 – Viability testing results This section sets out our viability testing results across all the generic scenarios.

Section 8 –Conclusions In the final section we set our conclusions based on our evidence gathered and the results of our viability testing.

Local Plan Viability Study Hastings Borough Council January 2021

Declaration

In accordance with Royal Institution of Chartered Surveyors (RICS) Financial viability in planning: conduct and reporting 1st edition, May 2019 we declare the following:

Objectivity, impartiality and reasonableness

We can confirm that we have undertaken our financial viability assessment with objectivity, impartiality and without interference. In doing so we have made reference to all appropriate sources of information to form our conclusions and recommendations.

Conflict of interests

We confirm that we have undertaken a conflict-of-interest check in relation to this instruction and we are not aware of any deemed conflicts in relation to this instruction. We confirm that we are not acting on behalf of any party in relation to scheme specific viability testing in Hastings Borough.

Not formal valuations

This report and the accompanying appraisals have been prepared in line with RICS valuation guidance. However, it is first and foremost a supporting document to support the delivery of the draft Local Plan. The appraisals are not a formal ‘Red Book’ (RICS Valuation, Global Standards 2017) valuation and should not be relied upon as such.

MHCLG – planning system reform consultations

On the 6th August 2020, the government opened two consultations where they have suggested major changes to the UK planning system in the coming years. The two consultations closed in October 2020 and we currently do not know when any changes are likely to be implemented.

We summarise both these White Paper documents as follows:

Changes to the current planning system consultation6

This document outlines a number of changes to the existing planning system. The four main points are listed below.

• changes to the standard method for assessing local housing need. • securing of ‘First Homes’ through developer contributions in the short term until the transition to a new system.

6 MHCLG, Changes to the current planning system consultation, August 2020

Local Plan Viability Study Hastings Borough Council January 2021

• supporting small and medium-sized builders by temporarily lifting the small sites threshold below which developers do not need to contribute to affordable housing. • extending the current Permission in Principle to major development.

The potential change with the greatest impact on this viability study would be the increase in the threshold for small sites which need to contribute towards affordable housing.

Planning for the future consultation7

This document outlines considerable changes to the UK planning system. The outcome of this consultation will likely mean changes to primary legislation rather than just the NPPF.

A number of significant changes are proposed not least including the way local authorities’ evidence and create local plans. Amongst other things, the way viability is considered in the planning system will be transformed with proposals including the removal of Section 106 agreements and community infrastructure levy (CIL). These would be replaced with a single consolidated ‘Infrastructure Levy’ which would include all planning gain developer contributions – including affordable housing.

These changes could have a significant impact on the Hastings Borough Local Plan and this viability assessment. We don’t know what future plans may look like under the new system but it is likely that viability assessments such as this will change considerably.

7 MHCLG, Planning for the Future – White Paper, August 2020

Local Plan Viability Study Hastings Borough Council January 2021

2 National planning policy context

Our economic viability appraisal has been carried out having regard to the NPPF, PPG on viability and CIL Regulations. We set out the pertinent points of these documents as follows:

National Planning Policy Framework (NPPF) (February 2019)

The NPPF sets out the Government’s planning policies for England and how these are expected to be applied. It was first published on 27 March 2012 and the Ministry of Housing, Communities & Local Government (MHCLG) issued a revised version in July 2018 which was updated again in February 2019 to reflect the introduction of the standard method for assessing local housing need.

Plans should be deliverable

The NPPF requires local plans to be deliverable, paragraph 16 of the revised NPPF states: ‘Plans should:

a) be prepared with the objective of contributing to the achievement of sustainable development;

b) be prepared positively, in a way that is aspirational but deliverable;

c) be shaped by early, proportionate and effective engagement between planmakers and communities, local organisations, businesses, infrastructure providers and operators and statutory consultees;

d) contain policies that are clearly written and unambiguous, so it is evident how a decision maker should react to development proposals;

e) be accessible through the use of digital tools to assist public involvement and policy presentation; and

f) serve a clear purpose, avoiding unnecessary duplication of policies that apply to a particular area (including policies in this Framework, where relevant).’8

Planning contribution/obligations

The setting of development contributions should not place the delivery of the plan at risk:

‘Plans should set out the contributions expected from development. This should include setting out the levels and types of affordable housing provision required, along with other infrastructure

8 MHCLG, February 2019, National Planning Policy Framework, paragraph 16

Local Plan Viability Study Hastings Borough Council January 2021

(such as that needed for education, health, transport, flood and water management, green and digital infrastructure). Such policies should not undermine the deliverability of the plan.’’9

The NPPF states that planning obligations must only be sought where they meet all of the following tests:

‘a) necessary to make the development acceptable in planning terms;

b) directly related to the development; and

c) fairly and reasonably related in scale and kind to the development.’10

Affordable housing

The NPPF sets a 10 units threshold for seeking affordable housing contributions, except in designated rural areas:

‘Provision of affordable housing should not be sought for residential developments that are not major developments, other than in designated rural areas (where policies may set out a lower threshold of 5 units or fewer).’11

The NPPF defines major development as follows:

‘For housing, development where 10 or more homes will be provided, or the site has an area of 0.5 hectares or more. For non-residential development it means additional floorspace of 1,000m2 or more, or a site of 1 hectare or more, or as otherwise provided in the Town and Country Planning (Development Management Procedure) (England) Order 2015.’’12

Where affordable housing is sought, local planning authorities should seek at least 10% provision where there is identified need:

‘Where major development involving the provision of housing is proposed, planning policies and decisions should expect at least 10% of the homes to be available for affordable home ownership, unless this would exceed the level of affordable housing required in the area, or significantly prejudice the ability to meet the identified affordable housing needs of specific groups. Exemptions to this 10% requirement should also be made where the site or proposed development:

a) provides solely for Build to Rent homes;

b) provides specialist accommodation for a group of people with specific needs (such as purpose- built accommodation for the elderly or students);

9 Ibid, paragraph 34 10 Ibid, paragraph 56 11 Ibid, paragraph 63 12 Ibid, page 68

Local Plan Viability Study Hastings Borough Council January 2021

c) is proposed to be developed by people who wish to build or commission their own homes; or

d) is exclusively for affordable housing, an entry-level exception site or a rural exception site.’13

Vacant building credit (VBC)

The NPPF allows for affordable housing obligations to be reduced if there are any existing buildings on site:

‘To support the re-use of brownfield land, where vacant buildings are being reused or redeveloped, any affordable housing contribution due should be reduced by a proportionate amount.’’14

Our testing of brownfield sites has been conservative and not allowed for VBC, this allows for further viability buffer and future proofs policies should there be a change in VBC.

Planning Practice Guidance (PPG) Viability

Alongside the NPPF, updates to the PPG 'Viability and plan-making' were also applied. The guidance is now much more prescriptive on the methodology to determine the land value and as such Chapter 3 details our approach to land value taking into account those revisions.

Viability to be resolved at planning making stage

The PPG builds on the NPPF in that viability matters should be resolved at the plan making stage rather than decision-making stage, thus placing further weight on viability assessments early in the process:

‘Policy requirements, particularly for affordable housing, should be set at a level that takes account of affordable housing and infrastructure needs and allows for the planned types of sites and development to be deliverable, without the need for further viability assessment at the decision making stage.’15

Setting of policy requirements for contributions

The PPG explains that Plans should set out the contributions expected from development. The contributions should ‘include setting out the levels and types of affordable housing provision

13 Ibid, paragraph 64 14 Ibid, paragraph 63 15 MHCLG, 09 May 2019, Planning Practice Guidance, Paragraph: 002 Reference ID: 10-002-20190509

Local Plan Viability Study Hastings Borough Council January 2021

required, along with other infrastructure (such as that needed for education, health, transport, flood and water management, green and digital infrastructure).’16

When setting policies these will need to be informed through evidence based on the infrastructure and affordable housing need for the area. There is also a need for clarity of policy requirements so that these can be reflected in the land value:

‘These policy requirements should be informed by evidence of infrastructure and affordable housing need, and a proportionate assessment of viability that takes into account all relevant policies, and local and national standards, including the cost implications of the Community Infrastructure Levy (CIL) and section 106. Policy requirements should be clear so that they can be accurately accounted for in the price paid for land. To provide this certainty, affordable housing requirements should be expressed as a single figure rather than a range. Different requirements may be set for different types or location of site or types of development.17’

In setting planning policy requirements local authorities need to have regard to the impact these have on development viability: ‘The role for viability assessment is primarily at the plan making stage. Viability assessment should not compromise sustainable development but should be used to ensure that policies are realistic, and that the total cumulative cost of all relevant policies will not undermine deliverability of the plan.’18

The PPG also places an emphasis on addressing education requirements when considering viability at plan-making stage:

‘When considering viability, it is recommended that plan makers and local authorities for education work collaboratively to identify which schools are likely to expand, and where new schools will be needed as a result of planned growth.

It is important that costs and land requirements for education provision are known to inform site typologies and site-specific viability assessments, with an initial assumption that development will provide both funding for construction and land for new schools required onsite, commensurate with the level of education need generated by the development.’19

Ultimately the PPG is clear that total cumulative costs of policies should not render development unviable:

‘The total cumulative cost of all relevant policies should not be of a scale that will make development unviable. Local planning authorities should set out future spending priorities for developer contributions in an Infrastructure Funding Statement.’20

16 Ibid, Paragraph: 001 Reference ID: 10-001-20190509 17Ibid, Paragraph: 001 Reference ID: 10-001-20190509 18 Ibid, Paragraph: 002 Reference ID: 10-002-20180724 19Ibid, Paragraph: 029 Reference ID: 10-029-20190509 20 Ibid

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Need for engagement

The PPG places a greater emphasis on engagement at plan-making stage, from both plan makers and stakeholders:

‘Plan makers should engage with landowners, developers, and infrastructure and affordable housing providers to secure evidence on costs and values to inform viability assessment at the plan making stage.

It is the responsibility of site promoters to engage in plan making, take into account any costs including their own profit expectations and risks, and ensure that proposals for development are policy compliant. Policy compliant means development which fully complies with up to date plan policies. A decision maker can give appropriate weight to emerging policies. It is important for developers and other parties buying (or interested in buying) land to have regard to the total cumulative cost of all relevant policies when agreeing a price for the land. Under no circumstances will the price paid for land be a relevant justification for failing to accord with relevant policies in the plan.’21

PPG for CIL

CIL is a charge that can be levied by local authorities on new development in their area. CIL is a tool, besides S106, that enables local authorities to collect funding for infrastructure needed to support development in their area.

CIL only applies in areas where a local authority has consulted on and approved a charging schedule which sets out the CIL rates and has published its schedule.

There is a separate section of the PPG for CIL. The CIL PPG was first published in June 2014 and last updated in September 2019. The PPG is intended to provide clarity on the CIL Statutory Regulations which were first introduced in April 2010 and amended in February 2011, November 2012, April 2013, February 2014, and March 2015.22 The Regulations have never been consolidated.

PPG for housing for older & disabled people

There is a separate section of the PPG to help guide Councils in preparing policies on housing for older and disabled people (published 26 June 2019). The PPG recognises the necessity to plan for the housing needs of disabled people:

21 Ibid, Paragraph: 006 Reference ID: 10-006-20190509 22 https://www.local.gov.uk/pas/pas-topics/infrastructure/cil-regulations-and-dclg-documents

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‘The provision of appropriate housing for people with disabilities, including specialist and supported housing, is crucial in helping them to live safe and independent lives. Unsuitable or unadapted housing can have a negative impact on disabled people and their carers. It can lead to mobility problems inside and outside the home, poorer mental health and a lack of employment opportunities. Providing suitable housing can enable disabled people to live more independently and safely, with greater choice and control over their lives. Without accessible and adaptable housing, disabled people risk facing discrimination and disadvantage in housing. An ageing population will see the numbers of disabled people continuing to increase and it is important we plan early to meet their needs throughout their lifetime.’23

Where an identified need exists, planning policies can set out the proportion of new housing that will be delivered to the following standards:

‘M4(1) Category 1: Visitable dwellings (the minimum standard that applies where no planning condition is given unless a plan sets a higher minimum requirement)

M4(2) Category 2: Accessible and adaptable dwellings

M4(3) Category 3: Wheelchair user dwellings

Planning policies for accessible housing need to be based on evidence of need, viability and a consideration of site specific factors.’24

The PPG recognises the diversity of specialist housing, stating:

‘There is a significant amount of variability in the types of specialist housing for older people. The list above provides an indication of the different types of housing available, but is not definitive. Any single development may contain a range of different types of specialist housing.’25

In regards to how the viability of specialist housing for older people should be addressed, the PPG states the following:

‘Viability guidance sets out how plan makers and decision takers should take account of viability, including for specialist housing for older people. Plans should set out the contributions expected from development. This should include setting out the levels and types of affordable housing provision required, along with other infrastructure. Plans can set out different policy requirements for different types of development. These policy requirements should be informed by evidence of infrastructure and affordable housing need, and a proportionate assessment of viability that takes into account all relevant policies and local and national standards, including the cost implications of Community Infrastructure Levy and section 106.

23 MHCLG, 26 June 2019, Paragraph: 002 Reference ID: 63-002-20190626 24 MHCLG, 26 June 2019, Paragraph: 009 Reference ID: 63-015-20190626 25 Ibid, Paragraph: 010 Reference ID: 63-015-20190626

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Viability guidance states that where up to date policies have set out the contributions expected from development, planning applications that comply with them should be assumed to be viable. It is up to the applicant to demonstrate whether particular circumstances justify the need for a viability assessment at the application stage. Such circumstances could include types of development which may significantly vary from standard models of development for sale (for example housing for older people).’26

26 Ibid, Paragraph: 015 Reference ID: 63-015-20190626

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3 Methodology

3.1 In this section of the report, we set out our methodology to establish the viability of the various land uses and development typologies to use in the testing. We also set out the professional guidance that we have had regard to in undertaking the economic viability appraisals.

Viability modelling best practice

3.2 The general principle is that affordable housing, CIL and other planning obligations will be levied on the increase in land value resulting from the grant of planning permission. However, there are fundamental differences between land economics and every development scheme is different. Therefore, in order to derive planning contributions (including CIL) and understand the ‘appropriate balance,’ it is important to understand the micro-economic principles which underpin the viability analysis.

3.3 The uplift in value is calculated using a Residual Land Value (RLV) appraisal Figure 3-1 illustrates the principles of a RLV appraisal.

Figure 3-1 Elements required for a viability assessment

Source Harman Report27 2012

Our specific appraisals for each of the land uses and typologies are set out in the relevant section below.

In order to advise on the ability of the proposed uses/scheme to support affordable housing, other policy obligations and CIL we have benchmarked the residual land values from the viability

27 Local Housing Delivery Group, Local Government Association / Home Builders Federation / NHBC, 20 June 2012, Viability Testing Local Plans, Advice for planning practitioners, Edition 1 (the ‘Harman’ report) page 30

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analysis against existing or alternative land use relevant to the particular typology – the Threshold Land Value (TLV).

A scheme is viable if the total of all the costs of development including land acquisition, planning obligations, CIL and profit are less than the Gross Development Value (GDV) of the scheme. Conversely, if the GDV is less than the total costs of development (including land, S106s, CIL and profit) the scheme will be unviable.

If the balance is positive, then the policy is viable. If the balance is negative, then the policy is not viable and the CIL and/or affordable housing rates should be reviewed.

This approach is summarised on the diagram in Figure 3-2.

Figure 3-2 Balance between RLV and TLV

Source: AspinallVerdi

What to test?

3.9 For plan wide viability testing it is not necessary to test every proposed development site but to base the testing on the ‘type of sites’ which are reflective of the development proposed over the plan period – this is known as testing of ‘typologies.’ Where there are key sites (strategic sites) that are fundamental to the delivery of the plan these need to be considered separately. The PPG explains this as follows:

‘Assessing the viability of plans does not require individual testing of every site or assurance that individual sites are viable. Plan makers can use site typologies to determine viability at the plan making stage. Assessment of samples of sites may be helpful to support evidence. In some

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circumstances a more detailed assessment may be necessary for particular areas or key sites on which the delivery of the plan relies.’28

What is meant by a typology approach to viability?

3.10 Typologies for the viability testing are to be based on the proposed development in the plan to ensure the testing represents the type of development coming forward. In doing so it is appropriate to consider ‘shared characteristics such as location, whether brownfield or greenfield, size of site and current and proposed use or type of development.’29

Viability testing of key sites

3.11 The PPG considers key sites as those sites that are crucial to the delivery of the plan ‘…for example, large sites, sites that provide a significant proportion of planned supply, sites that enable or unlock other development sites or sites within priority regeneration areas.’30

Development appraisal inputs

3.12 In devising the inputs to use in the appraisals, it is acceptable to use standardised inputs, rather than relying on site specifics: ‘All viability assessments, including any undertaken at the plan- making stage, should reflect the recommended approach in national planning guidance, including standardised inputs, and should be made publicly available.’31

Gross development value

3.13 The Gross development value is the cumulative value of the completed development. For plan wide viability assessments ‘…average figures can be used, with adjustment to take into account land use, form, scale, location, rents and yields, disregarding outliers in the data.’32

Development costs

3.14 The PPG explains, as with values, cost should also reflect local market conditions, it also places an emphasis to identify development costs at plan-making stage: Local market development costs could relate to dealing with local ground conditions, environmental mitigation, flood risk, design requirements, sustainability etc. The PPG states ‘As far as possible, costs should be identified at the plan making stage. Plan makers should identify where costs are unknown and identify where further viability assessment may support a planning application.’ 33

28 MHCLG, 05 May 2019, PPG, Paragraph: 004 Reference ID: 10-004-20190509 29 Ibid, Paragraph: 004 Reference ID: 10-003-20180724 30 MHCLG, 24 July 2018, PPG, Paragraph 005 Reference ID: 10-005-20180724 31 MHCLG, National Planning Policy Framework (NPPF), February 2019. Paragraph 57 32 Ibid, Paragraph: 011 Reference ID: 10-011-20180724 33 MHCLG, 05 May 2019, PPG, Paragraph 014 Reference ID: 10-014-20190509

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Benchmark (threshold) land value

3.15 Benchmark land value, also referred to as threshold land value, has been subject to much debate in recent years due to trying to establish the most appropriate method to determine it for planning purposes. The two most common approaches have been Existing Use plus and Market Value adjusted for policy. The latter, although a more market facing approach, has faced criticism34 because practitioners have not been adjusting land values fully for policy. The PPG now provides a clear single method (Existing Use plus Premium) in determining land value:

‘To define land value for any viability assessment, a benchmark land value should be established on the basis of the existing use value (EUV) of the land, plus a premium for the landowner. The premium for the landowner should reflect the minimum return at which it is considered a reasonable landowner would be willing to sell their land. The premium should provide a reasonable incentive, in comparison with other options available, for the landowner to sell land for development while allowing a sufficient contribution to fully comply with policy requirements. Landowners and site purchasers should consider policy requirements when agreeing land transactions. This approach is often called ‘existing use value plus’ (EUV+)’35

3.16 The PPG also sets out the factors that should be considered when establishing the land value:

• ‘be based upon existing use value • allow for a premium to landowners (including equity resulting from those building their own homes) • reflect the implications of abnormal costs; site-specific infrastructure costs; and professional site fees’

Viability assessments should be undertaken using benchmark land values derived in accordance with this guidance. Existing use value should be informed by market evidence of current uses, costs and values. Market evidence can also be used as a cross-check of benchmark land value but should not be used in place of benchmark land value. There may be a divergence between benchmark land values and market evidence; and plan makers should be aware that this could be due to different assumptions and methodologies used by individual developers, site promoters and landowners.

This evidence should be based on developments which are fully compliant with emerging or up to date plan policies, including affordable housing requirements at the relevant levels set out in the plan. Where this evidence is not available plan makers and applicants should identify and evidence any adjustments to reflect the cost of policy compliance. This is so that historic

34 Sayce, S, et al, January 2017, Viability and the planning system: the relationship between economic viability testing, land values and affordable housing in London 35 MHCLG, 05 May 2019, PPG, Paragraph: 013 Reference ID: 10-013-20190509

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benchmark land values of non-policy compliant developments are not used to inflate values over time.

In plan making, the landowner premium should be tested and balanced against emerging policies. In decision making, the cost implications of all relevant policy requirements, including planning obligations and, where relevant, any Community Infrastructure Levy (CIL) charge should be taken into account.’’36

3.17 Despite the clarity the PPG brings, there is still uncertainty on how the premium is calculated. This was highlighted in the research undertaken by Sarah Sayce: ‘Overall, the ‘EUV plus’ approach was favoured by the majority of respondents, despite the recognition that the premium element can be difficult to assess in some circumstances.’37

3.18 The PPG explains ‘The premium should provide a reasonable incentive for a land owner to bring forward land for development while allowing a sufficient contribution to fully comply with policy requirements.

Plan makers should establish a reasonable premium to the landowner for the purpose of assessing the viability of their plan. This will be an iterative process informed by professional judgement and must be based upon the best available evidence informed by cross sector collaboration.’38

In helping to inform the professional judgement, a balance needs to be struck between the competing interests (developers, landowners and the aims of the planning) ‘to secure maximum benefits in the public interest through the granting of planning permission.’39

3.20 In considering suitable premiums to apply we are mindful of the following:

• The Harman Report 40 - was published in response to the introduction of viability becoming more prominent in the planning system post the introduction of the NPPF. Although the Harman Report pre-dates the current iteration of the PPG on viability it does recommend the EUV plus approach to determine the land value for planning purposes. The Harman report also advocates that when assessing an appropriate Benchmark Land Value, consideration should be given to ‘the fact that future plan policy requirements will have an impact on land values and owners’ expectations.’ 41 Harman, does acknowledge that reference to market values will provide a useful ‘sense check’ on the Benchmark Land Values that are being used in the appraisal model; however, ‘it is not recommended that

36 MHCLG, 09 May 2019, PPG, Paragraph: 014 Reference ID: 10-014-20190509 37 Sayce, S, et al, January 2017, viability and the planning system: the relationship between economic viability testing, land values and affordable housing in London, page 6 38 MHCLG, 09 May 2019, PPG, Paragraph: 016 Reference ID: 10-016-20190509 39 MHCLG, 24 July 2018, PPG, 3.21 Paragraph: 010 Reference ID: 10-010-20180724 40 Local Housing Delivery Group Chaired by Sir John Harman, 20 June 2012, Viability Testing Local Plans, Advice for planning practitioners 41 Ibid, page 29

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these are used as the basis for input into a model.’42 It also acknowledges that for large greenfield sites, ‘land owners are rarely forced or distressed sellers, and generally take a much longer term view over the merits or otherwise of disposing of their asset.’43 It refers to these ‘prospective sellers’ as ‘potentially making a once in a lifetime decision over whether to sell an asset that may have been in the family, trust or institution’s ownership for many generations.’44 In these circumstances, Harman states that for these greenfield sites that ‘the uplift to current use value sought by the landowner will invariably be significantly higher than in an urban context and requires very careful consideration.’45 • HCA Area Wide Viability Model - although now a dated document, the HCA Area Wide Viability Model (Annex 1 Transparent Viability Assumptions) provides guidance on the size of the premium. The guidance states that ‘Benchmarks and evidence from planning appeals tend to be in a range of 10% to 30% above EUV in urban areas. For greenfield land, benchmarks tend to be in a range of 10 to 20 times agricultural value’.46 • Inspector's Post-Hearing Letter to North Essex Authorities – the Inspector’s letter is in relation to, amongst other things, the viability evidence of three proposed garden communities in North Essex. The three Garden Communities would provide up to 43,000 dwellings in total. The majority of the land for the Garden Communities is in agricultural use, and the Inspector recognised that the EUV for this use would be around £10,000 per gross acre. In this case, the Inspector was of the opinion that around a x10 multiple (£100,000 per gross acre) would provide sufficient incentive for a landowner to sell. But given ‘the necessarily substantial requirements of the Plan’s policies’ a price ‘below £100,000/acre could be capable of providing a competitive return to a willing landowner’.47 The Inspector, however, judged that ‘it is extremely doubtful that, for the proposed GCs, a land price below £50,000/acre – half the figure that appears likely to reflect current market expectations – would provide a sufficient incentive to a landowner. The margin of viability is therefore likely to lie somewhere between a price of £50,000 and £100,000 per acre.’48

42 Ibid 43 Ibid, page 30 44 Ibid 45 Ibid 46 HCA, August 2010, Area Wide Viability Model (Annex 1 Transparent Viability Assumptions) 47 Planning Inspectorate,15 May 2020, Examination of the Shared Strategic Section 1 Plan - North Essex Authorities, Paragraph 204 48Ibid, Paragraph 205

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Conclusion on approach to land value

3.21 Current guidance is clear that the land value assessment needs to be based on Existing Use plus premium and not a Market Value approach. Although the assessment of the Existing Use can be informed by comparable evidence the uncertainty lies in how the premium is calculated. Whatever is the resulting land value (i.e. Existing Use plus Premium) the PPG is clear that this must reflect the cost of complying with policies: ‘the total cost of all relevant policy requirements including contributions towards affordable housing and infrastructure, Community Infrastructure Levy charges, and any other relevant policies or standards. These costs should be taken into account when defining benchmark land value.’ 49 Furthermore, we need to ensure that the maximum benefits in the public interest are secured once any future granting of planning permission is made.

Viability modelling approach

We have undertaken viability testing using a bespoke Microsoft Excel model. The model calculates the viability surplus/deficient for each scenario with results displayed in a series of tables. The viability model treats the Benchmark Land Value as a viability input i.e. costs to the development rather than a comparison between a residual land value and Benchmark Land Value. The benefit of this approach is that land payments can be phased in the cashflow with appropriate interest accrued. The accompany sensitivity tables (see example in Table 3-1) work on the basis that the variables run through the appraisals to generate multiple results of surplus/deficient against the given variables. The example in Table 3-1 assumes a baseline position of 30% affordable housing and £0 per unit S106 - this produces a surplus of £2.25 million. This same surplus is circled in the sensitivity results table because they represent the same assumption in the appraisal. We can see through the sensitivity testing that should S106 increase to £10,00 per unit (as an appraisal input) the deficit decreases to £1.449 million.

49 MHCLG, 24 July 2018, PPG, Paragraph: 012 Reference ID: 10-012-20180724

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Table 3-1 Example of development appraisal sensitivity tables BALANCE Surplus/(Deficit) 902,304 £ per ha 365,158 £ per acre 2,255,761

SENSITIVITY ANALYSIS

Stakeholder engagement

We have held stakeholder consultations with local developers by telephone or MS Teams calls with follow-up emails. During these engagements, we outlined a schedule of our key proposed inputs into the viability assessment and invited stakeholders to comment on these where appropriate and provide evidence where available. We have held consultations with three stakeholders.

A schedule of the comments is set out in T able 3-2.

Table 3-2 Stakeholder event comments Input Consultee Comments

Value zones 1 Consultee 1 suggested that there should be an extension of the lower value zone boundary but have not provided any evidence to support this.

We have reviewed our evidence base again and there is no reasonable justification to extend this value zone. It is already reflective of the market and the volume of proposed flatted development close to the centre of Hastings.

Sales values 1 Consultee 1 suggested that our proposed sales values were high. We have reviewed our new build sales data within the Borough and our proposed sales values are within the range

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Input Consultee Comments

observed. We have not been presented with evidence to the contrary and therefore we have not changed these values in our assessment.

Externals 1 Consultee 1 suggested that external costs are typically up to 25% of build costs and cited examples of sites they have recently developed with significant archaeological works, topographical issues and attenuation requirements by Southern Water in the Borough. We have reviewed cost plans from Consultee 1 who have provided a schedule of external costs for some of their projects. These are higher than our proposed 10%. But Consultee 1 have omitted their total development costs so are unable to reconcile their external costs as a % of their total development costs.

We will retain our 10% allowance for externals in our generic testing. Any additional development costs incurred on site specifics will need to be reflected in a reduced land value, as per the PPG.

Land value 2 Consultee 2 confirmed that they had undertaken a number of residual appraisals of schemes in Hastings and that our proposed inputs were in line with what they would expect.

Build costs 3 Consultee 3 suggested that our adopted BCIS build costs were too low and suggested we adopt the upper quartile BCIS figures to recognise difficulties with respect to ground conditions and flood issues. To support the use of upper quartile Consultee 3 has provided a copy of the BCIS data. They have not provided any evidence on how the upper quartile data relates to the points raised. Any additional development costs incurred on site specifics will need to be reflected in a reduced land value, as per the PPG. With any unforeseen abnormals captured in the contingency sum of 5%.

Development 3 Consultee 3 suggested that there are more value zones Value Zones across Hastings but have not provided an alternative proposal of defined value zones. In their response,

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Input Consultee Comments

Consultee 3 provided narrative regarding a number submarkets around the Borough and provided a list second hand sales values and averaged these sales to demonstrate the differences in submarkets but provided no analysis on how the values reflect new build prices and the planned growth. When dividing any local authority into value zones there will always be a number of smaller submarkets that do not correlate directly with the evidence. Our analysis reflects new build sold prices and the planned growth for the area. On reviewing the evidence provided, there is not sufficient justification in changing our approach. This is because by analysing the allocations, there are very few sites located to the south east and north west of the Borough therefore creating a sperate value is not proportionate.

Proposed 3 Consultee 3 are involved with a proposed allocated site and allocated site have outlined there are a number of site constraints consisting geotechnical problems requiring site foundations to be piled, flood zone issues and existing infrastructure on the site. There was currently no evidence to support individual costs for these issues therefore we assume that these costs will have to be met through any surplus generated.

Source: Hastings Borough Council, AspinallVerdi, 2020

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4 Local Plan context

As part of our viability testing, we have reviewed the emerging policies within the Hastings Borough Council Regulation 18 draft Local Plan.

Draft Local Plan

As shown in Table 4-1 we have undertaken a review of the emerging policies in the Regulation 18 draft Local Plan. Here we outline Strategic Policies and Development Policies, our full planning policy analysis in Appendix 1.

Table 4-1 Emerging policies Regulation 18 draft Local Plan Draft Local plan viability implications How have these planning costs been dealt policy with in the study

Overarching Strategic Policies Overarching The Council will work with its partners to achieve Cost of providing Strategic their Carbon neutral ambitions and deliver green infrastructure Policy 1 sustainable patterns of development that support reflected in external (OSP1): climate change mitigation and adaptation. To cost allowance. Tackling support this over the life of the plan to 2039, the

Climate Council will: Change • Focus largest scale development in areas Costs for low carbon with good public transport and access to construction and low local shops and services carbon homes have been included as • Support and encourage investment in additional costs that renewable energy can be deducted from • Encourage a shift from reliance on cars to any viability surplus active transport generated. • Expand network of green infrastructure • Explore the use of land at Breadsell as a Cost for provision of Carbon Mitigation Zone electric changing points have been The Council will support measures that help included in the mitigate and adapt to impacts of climate change at appraisals, but we the level of individual sites, recognising the note that this is not a cumulative impact of development and will mandatory support: requirement. • Incorporates low carbon design and

construction • Provision of electric vehicle infrastructure • Incorporation of green infrastructure • Measures that reduce and mitigate flood risk Adapting to and mitigating the impacts of climate change is an overarching policy objective and as

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Draft Local plan viability implications How have these planning costs been dealt policy with in the study such key to policies throughout the rest of this draft Local Plan. Strategic Policies Strategic Strategic Policy which sets out the location of We have tested a Policy 1: future development within the Borough, namely the range of scenarios Directing Local Industrial Employment Areas, Hastings that reflect the Growth Town Centre and the creation of ‘Focus Areas’. planned growth in the area. Strategic Strategic Policy which outlined the minimum Appraisals test Policy 2: New number of new homes required over the plan whether this policy is and Affordable period 4,275) viable along with Housing sensitivity testing at The Council will seek affordable housing as part of other affordable new residential developments as follows: housing percentages. We have tested a range of scenarios over different typologies that reflect the planned growth in the area. A range of typologies Where justified by a viability appraisal, the Council have been developed will apply the 25% affordable housing target to reflect different flexibly where development is for: residential mixes. • Mixed use schemes, in Hastings Central Focus Area, that include cultural, leisure Affordable housing community facilities or employment tenure is based on generating uses; and the draft policy and it • Sites identified in Appendix 1, with is assumed that the capacity of less than 30 units, where there remaining balance of is a specific requirement for provision of 30% to be First onsite cultural, leisure community facilities Homes. or employment generating uses. The policy also sets out the desired private Affordable rent housing mix and the AH mix consisting of: housing mix is based • Affordable/Social Rent – 60% on the draft policy, with all the remaining • Affordable Home Ownership – 10% tenures housing mixes based on the • Remaining balance – remaining 30% will HEDNA. be determined through negotiation comprising AR/SR SO and any other tenure including low-cost homes (which could include First Homes). The required mix for rented affordable homes is: • 1 bedroom homes: 30% • 2 bedroom homes: 35%

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Draft Local plan viability implications How have these planning costs been dealt policy with in the study • 3 bedroom homes: 35% Strategic Strategic Policy that promotes the protection of the We have tested a Policy 3 (SP3): identified Strategic and Local Industrial range of scenarios Business Employment Areas. The policy also promotes that reflect the Development - sustainable development in these areas. planned growth in the Office & area and consider

Industrial Uses these areas. A range of typologies have been developed to reflect different mixes. Strategic Strategic Policy that promotes the protection and We have tested a Policy 4 (SP4): enhancement of town district and local centres. range of scenarios Business This includes support for tourism and visitor uses that reflect the Development - and protections against the loss of hotels. planned growth in the Retail and area and consider Leisure Uses these areas. A range of typologies have been developed to reflect different mixes. Strategic Strategic Policy which outlines the protection and Green space to be Policy 5 (SP5): enhancement of the towns distinctive landscape provided through the Conserving character from an environmental perspective. difference in the and gross to net This includes providing green infrastructure and Enhancing the developable area. protecting landscape character and protecting Natural Cost of providing important designated sites Environment green infrastructure reflected in external cost allowance. All other measures assumed to be covered through general build cost/design allowance. We have included a cost to reflect a 10% net biodiversity gain as proposed in the forthcoming Environment Bill. Strategic Strategic Policy which outlines how the historic Not considered Policy 6 (SP6): character of Hasting will be preserved, reinforced, separately in our Enhancing the enhanced and sustained and change will be testing. Any Historic sensitively managed. The Council will develop developments Environment conservation area management plans to maintain affected by this policy the special historic and architectural interest of assumed areas. management plans

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Draft Local plan viability implications How have these planning costs been dealt policy with in the study covered through professional fees and impact covered through design. Strategic Strategic Policy which outlines that in line with Some sites are Policy 7 (SP7): Policy SP1, major growth and change will be affected by flooding, Managing directed away from areas with the highest flood river or surface – Coastal risk, and in areas of lower flood risk development some of which can be Erosion and will only be permitted where flood risk can be mitigated through Flood Risk mitigated. gross to net developable area and SuDs. Any sites in particularly high flood risk area may require additional mitigating measures, which will be site specific. The cost of meeting these works will need to be met through any surplus generated. The cost of providing and flood defence infrastructure is considered to be delivered through site-specific S106 funded through any viability surplus generated. Strategic Strategic Policy which outlines that the Council will Cost of providing the Policy 8 (SP8): work with transport providers to enable the delivery infrastructure is Transport of infrastructure to support development growth considered to be Infrastructure over the life of the plan and to prioritise pedestrian delivered through movement. external works or site-specific S106 to be funded through any viability surplus generated. Strategic Strategic Policy which outlines that the Council will We have outlined Policy 9 (SP9): work support the development of renewable specific costs for low Renewable energy infrastructure. energy and carbon Energy and reduction, which is to Low Carbon be funded from any Heating viability generated. The cost is not included in the appraisal as these are not mandatory. Strategic Strategic Policy outlining that the Council will work Cost of providing the Policy 10 with partners to enable the delivery of social and infrastructure is

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Draft Local plan viability implications How have these planning costs been dealt policy with in the study (SP10): digital infrastructure to support development considered to be Community growth over the life of the Local Plan. delivered through Facilities and site-specific S106 to Digital be funded through Infrastructure any viability surplus generated. Focus Area Policies Focus Area Policy which sets out the type of development Viability testing Policy 1 (FA1): which will permitted in Hastings Central. includes these uses Hastings identified in the draft Central Local Plan. Focus Area Policy which sets out the type of development As above. Policy 2 (FA2): which will permitted in Bohemia and Centra St Bohemia Leonards. Focus Area Policy which sets out the type of development As above. Policy 3 (FA3): which will permitted in Little Ridge / Ashdown Little Ridge House. and Ashdown House Focus Area Policy which sets out the type of development As above. Policy 4 (FA4): which will permitted in West Marina and West St West Marina Leonards. and West St Leonards Development Policies Development Development policy which outlines that the Council Measures assumed Policy 1 will support high quality development, supported to be covered (DP1): Design by a Design and Assess Statement. through general build – Key cost / design Principles allowances. Development Development policy which outlines that the Council Dwellings sizes meet Policy 2 support development that meets the Nationally national prescribed (DP2): Design Described Space Standards. space standard, cost - Space and included in appraisals The Council will require all new homes to meet Accessibility for M4(2) and M4(3). M4(2) Accessible and Adaptable standards. Where Standards there is an identified need on the Council Housing Register, sites that provide affordable housing in line with Strategic Policy SP2 will, as part of the affordable housing requirement, need to provide 5% of the total housing requirement to meet M4(3): Category 3 - Wheelchair Accessible Dwellings.

Development Development policy which outlines the following: Costs for 20% Policy 3 reduction in CO2 • (DP3): All new build development should achieve included within our Sustainable a minimum 20% reduction in CO2 appraisals, with Design emissions through energy efficiency greenfield sites measures on site. having a higher costs

Local Plan Viability Study Hastings Borough Council January 2021

Draft Local plan viability implications How have these planning costs been dealt policy with in the study • On new build greenfield sites this target to reflect zero carbon should be exceeded and Bohemia sites development. should target zero carbon development.

• The Council will require the submission of The cost of energy an energy statement for all major statements for major developments. development will be • Major development must: minimise energy covered by demand through fabric performance and professional fees in efficient heating techniques; supply energy our appraisal. efficiently using local energy resources where possible and developers should include technology such as ground source heat pumps, and where possible store renewable energy onsite. Development Development policy which outlines the following: The cost of flood risk Policy 4 assessments will be • (DP4): Flood A flood risk assessment will be required as covered by Risk and a part of a planning application for professional fees in Water Quality developments in flood risk zones 2 and 3. our appraisal. • A flood risk assessment may be required in flood zone one in certain circumstances. Cost of providing • All major development should incorporate SuDS reflected into sustainable urban drainage systems. external cost • Development adjacent to flood and/or sea allowance defences will be required to protect the integrity of existing defences, contribute to new defences where appropriate Cost of providing the flood defences is considered to be delivered through site-specific S106, funded through any viability surplus generated. Development Development policy which outlines the following: The cost of ecological Policy 5 appraisals will be • (DP5): Planning applications be accompanied by covered by Biodiversity ecological appraisals. professional fees in • Development will be expected to our appraisal. demonstrate biodiversity net gain and will be supported when they can demonstrate a minimum 10% biodiversity net gain with Cost of 10% a 30-year management plan. biodiversity net gain included in the appraisal. Development Development policy which outlines the following: Cost of providing Policy 6 green infrastructure • (DP6): Green Development should identify and protect reflected into external Infrastructure green infrastructure and identify cost allowance.

Local Plan Viability Study Hastings Borough Council January 2021

Draft Local plan viability implications How have these planning costs been dealt policy with in the study opportunities to contribute to green The cost of infrastructure and support climate change. contributing to the Green Infrastructure • All major residential development will be and Playspace Fund expected to contribute to Green is assumed to be Infrastructure and Playspace Fund where covered through site- provision is not made on site. specific S106, funded through any viability surplus generated. Development Development policy which outlines the following: It is assumed that on- Policy 7 site parking costs will • (DP7): The Council will require a transport be covered through Access, assessment where development meets external costs Servicing and the relevant thresholds set out in guidance allowances. Parking from East Sussex County Council. Any transport • All residential development should provide assessments will be on-site secure cycle parking facilities in accounted for in the line with East Sussex County Council’s professional fees. Guidance for Parking at New Residential Development or any successor document. Cost for provision of Major office development should also electric changing provide onsite secure cycle parking points have been spaces. included in the appraisals, but we • The Council will minimise car parking note that this is not a provision, particularly in accessible mandatory locations, with a maximum of 1 car parking requirement. space for each home. Any parking contributions will • Car Parking will be restricted for come out of site- residential and office development in the specific S106, funded ‘Low Car Parking Area’, within a 400m through any viability radius of Hastings Station, no new parking surplus generated. should be provided except disabled bays unless transport or viability assessment indicates they are required

• Where feasible, the Council will require electric vehicle charging facilities for all new properties with off-street parking in accordance with current standards and codes of practice.

Development Development policy which outlines that S106 will Our treatment of Policy 8 be used to gather developer contributions for the affordable housing, (DP8): following. parking costs, green Planning infrastructure, SuDs A: All development (excluding householder Obligations and biodiversity are applications), where required: (Section 106) outlined above. • Highways works/contributions Any contributions • Rights of Way sought for highways

Local Plan Viability Study Hastings Borough Council January 2021

Draft Local plan viability implications How have these planning costs been dealt policy with in the study • Biodiversity measures off site or a financial works is assumed to contribution towards these be covered through site-specific S106 • Fluvial or surface water attenuation from the viability measures where impacts cannot be surplus. addressed on site. Our treatment of • Restrictions to on street sparking, car parking costs is clubs or other modal shift schemes in line outlined above. with Policy DP7 Assumed open space B: In addition to A, major residential development will be provided on- (10 or more homes) site in the difference • Affordable Housing in line with Policy SP2 between the gross to net developable area. • Open space contribution where open Where this is not space is not provided on site to pay for possible, cost to be upgrades/access improvements to existing met through S106, ope funded through any viability surplus • n space generated. • Play space contributions and maintenance There is no specific contributions to pay for upgrades/access policy that outlines improvements to existing play space how employment and C: In addition to (A and B), larger scale residential skills contributions and commercial development (40 or more homes can be collected. We or floorspace of 2,500sqm or more) therefore assume this is to be undertaken • Employment and training contributions on a site-by-site • Public transport contributions basis. No cost for this has been included in • Public realm improvements including our appraisals and public art we assume that any • Provision of on-site open space contributions will come out of the S106 • Construction phase local employment viability surplus or labour procurement targets and/or delivered through the employment and skills plans. development process. • Contributions to other social infrastructure, such as health facilities, education libraries Source: Hastings Borough Council, AspinallVerdi, 2020

Local Plan Viability Study Hastings Borough Council January 2021

5 Developing viability scenarios

We now set out the scenarios to use in our viability testing. As we have explained in Chapter 3 it is not necessary to test every proposed development (or in the case of Regulation 18 potential development) in the plan but a typology is acceptable.

5.2 Typologies for the viability testing are to be based on the proposed development in the Plan to ensure the testing represents the type of development coming forward. In doing so it is appropriate to consider ‘shared characteristics such as location, whether brownfield or greenfield, size of site and current and proposed use or type of development.’50

Residential typologies

In residential market terms, a distinct characteristic of location is property prices and this is now a commonly used method to vary typologies – such an approach is explained in the Harman report:

‘Account should also be taken of significant variations in strength of the market across a local authority area, reflected by sales values and sales rate. If a significant proportion of sites within a typology fall into a stronger or weaker market area then additional typologies should be considered.

There is a balance to be struck here between representation of the main ‘viability characteristics’ of the land supply pipeline and limiting the number of typologies to a manageable number, for clarity of analysis.

Typologies should focus on the types of site that make up the majority of the unconsented land supply that is likely to come forward for development during the policy period under consideration.’51

In addition to values, there also has to be a consideration of development density, mix and unit sizes.

Establishing the value zones

As we established in our Market Report in Appendix 2, based on the evidence of sale values there is justification to vary the viability testing across two value zones – see Figure 5-1.

50 Ibid, Paragraph: 004 Reference ID: 10-004-20190509 51 Harman, June 2012, Viability Testing of Local Plans: Advice for planning practitioners, page 42

Local Plan Viability Study Hastings Borough Council January 2021

Figure 5-1 Value zones used in viability testing

Source: AspinallVerdi, Hastings Borough Council, QGIS, Ordnance Survey, 2020 31

Local Plan Viability Study Hastings Borough Council January 2021

The lower value zones comprise the Castle Ward in Hastings town centre of the Borough. The higher value zone is spread across the remainder of the Borough. The electoral wards for each value area are set out in Table 5-1.

Table 5-1 Value zone by electoral ward Value zone Wards

Lower value area Castle

Higher value area West St. Leonards; Central St. Leonards; Maze Hill; Wishing Tree; Gensing; Hollington; Siverhill; Braybrooke; Tressell; St. Helens; Conquest; Baird; Old Hastings; Ashdown; Ore

Source: AspinallVerdi, 2020

The values adopted in each of these zones are set out in Table 5-2 – details of how these values are derived are set out in our Market Report in Appendix 2.

Table 5-2 Proposed sale values in viability testing Typology Unit Size sqm Unit Price £psm

Lower value area

1-bed flat 50 £145,000 £3,200

2-bed flat 61 £170,000 £3,033

2-bed house 72 £275,000 £3,929

3-bed house 86 £300,000 £3,333

4-bed house 110 £340,000 £3,091

Higher value area

1-bed flat 50 £185,000 £3,700

2-bed flat 65 £230,000 £3,538

2-bed house 72 £275,000 £3,929

3-bed house 86 £300,000 £3,333

4-bed house 110 £340,000 £3,091

Source: Market Report Appendix 2, 2020

Local Plan Viability Study Hastings Borough Council January 2021

We have analysed the size of the new build units coming forward which has informed our unit sizes in Table 5-2. Our analysis is outlined in Table 5-3.

Table 5-3 Analysis of new build units sizes Typology No. of bedrooms No. of sales Average size sqm Flatted 1 4 53 Flatted 2 3 70 Terraced 1 10 61 Terraced 2 21 73 Terraced 3 8 86 Semi Detached 2 7 55 Semi Detached 3 4 84 Semi Detached 4 1 104 Detached 3 6 85 Detached 4 1 104 Source: AspinallVerdi, 2020

The proposed unit sizes used in Table 5-2 and the analysis in Table 5-3 are within the range of the minimum recommended space standards (see Figure 5-2). Therefore, they are considered reasonable and robust as they reflect both the aims of the draft plan in providing a range of type of housing and what the market will deliver.

Figure 5-2 New build residential minimum space standards

*Where a 1b1p has a shower room instead of a bathroom, the floor area may be reduced from 39m2 to 37m2, as shown bracketed. Source: MHCLG, Technical housing standards – nationally described space standard, March 2015

Local Plan Viability Study Hastings Borough Council January 2021

Pattern of proposed residential development

The next step is to see how the proposed allocations relate to the value zones proposed and whether they comprise greenfield or brownfield sites (to allow further variation of the testing). The Council has a number of different types of allocations coming forward i.e. housing led, town centre commercial led mixed use, industrial etc. For the purposes of our analysis, we have focused on the housing led allocations.

We have overlaid the housing led allocations with our two value zones – see Figure 5-3. By analysing these sites, we have found that there are no sites over 300 units anywhere in the Borough and the majority of sites are brownfield. The development is spread evenly across the Borough but many of the brownfield sites are located closer to the centre of Hastings town.

Local Plan Viability Study Hastings Borough Council January 2021

Figure 5-3 Distribution of residential development growth against value zones

Source: AspinallVerdi, Hastings Borough Council, QGIS, Ordnance Survey, 2020 35

Local Plan Viability Study Hastings Borough Council January 2021

Residential typologies

5.12 Based on our analysis of the type of development through the proposed housing led allocations provided to us by the council, we have devised the typologies set out in Table 5-4 (our analysis of the housing led allocations can be found in Appendix 3). As previously highlighted the development density for the housing led allocations are wide ranging, we have reflected this through the sensitivity tables in the appraisals.

Table 5-4 Generic scenarios testing No. of Gross Gross site Gross to Net dph Net site Site Units dph area ha net area ha coverage52 Greenfield – higher value zone 7 25 0.28 90% 28 0.25 2,324 sqm 30 25 1.20 90% 28 1.08 2,182 sqm 120 45 2.67 85% 53 2.27 4,130 sqm 235 30 7.83 75% 40 5.88 3,117 sqm Brownfield – higher value zone – houses 10 35 0.29 90% 39 0.26 3,237 sqm 20 40 0.50 90% 44 0.45 3,513 sqm 65 30 2.17 90% 33 1.95 2,634 sqm 160 33 4.85 80% 41 3.88 3,992 sqm Brownfield – higher value zone – flats 10 75 0.13 90% 83 0.12 6,075 sqm 10 200 0.05 90% 222 0.05 16,248 sqm 25 195 0.13 90% 217 0.12 15,882 sqm 190 115 1.65 80% 144 1.32 10,267 sqm Brownfield – lower value zone – flats 12 185 0.06 90% 206 0.06 15,077 sqm 100 230 0.43 85% 271 0.37 19,322 sqm Source: AspinallVerdi, 2021

Individual site testing

The draft Local Plan does not contain any significantly large-scale sites, such an urban extension for example. Therefore, it has been agreed with the Council, that the typologies above are a proportionate representation on the planned growth and no specific site testing is required.

52 Based on unit size and mix assumptions outlined in this section

Local Plan Viability Study Hastings Borough Council January 2021

Dwelling types and mix

The Council along with neighbouring Rother District Council have commissioned GL Hearn to produce the Housing and Economic Development Need Assessment (HEDNA), 2020. The HEDNA amongst other things, sets out the requirement for different size and tenure for Hastings – this is summarised in Figure 5-4. We have used the dwelling mixes as set out in Figure 5-4 in our testing. We have assumed that all 1 bed units will be delivered as flats. The mix for market housing is as follows:

• 1 bed: 8% • 2 bed: 35%53 • 3 bed 40% • 4 bed plus 17%

Figure 5-4 Size of housing required 2019 – 2039 - Hastings

Source: Hastings and Rother HEDNA, August 2020

The appraisals use a single dwelling mix based on a tenure split of 60% affordable rent and 10% shared ownership. The Council’s emerging Strategic Policy 2 New and Affordable Housing states that remaining 30% will be determined through negotiation with the Applicant, though it will be made up from shared ownership and or First Homes. Our testing has assumed that the 30% balance will be First Homes. In reality, the difference in value between this and shared ownership is minimal, therefore should the negotiated tenure be different, the impact on viability would only be small. We have used the blended affordable housing mix from the HEDNA as set out in Table 5-5.

53 Rounded down from 36% - 35% so total mix total 100%

Local Plan Viability Study Hastings Borough Council January 2021

Table 5-5 Blended affordable housing mix calculation Typology Affordable Affordable First Blended affordable tenure (60% rent home Homes affordable rent / 10 affordable ownership home ownership/ 30% First Homes)

1 bed 30% 40% 40% 34% 2 bed 35% 42% 42% 38% 3 bed 35% 15% 15% 27% 4+bed 0% 3% 3% 1% Source: Hastings and Rother HEDNA, August 2020; AspinallVerdi, 2020

As flats are mainly delivered as 1 and 2-bed units, in our testing we pro-rata the market and affordable housing mixes from Figure 5-4 and Table 5-5– the pro-rata mixes are set out in Table 5-6.

Table 5-6 Flatted typology mix Typology Market Adjusted Blended Adjusted blended housing mix housing mix affordable mix affordable for in SHMA for appraisal in SHMA appraisal

1 bed 8% 18.6% 34% 47.4%

2 bed 36% 81.4% 38% 52.6%

Source: Hastings and Rother HEDNA, August 2020; AspinallVerdi, 2020

Elderly accommodation typology

The draft Local Plan is supportive of specialist accommodation, but there is no specific allocation for this type of development. At this stage we do not know what form this will take, but it is most likely that the accommodation will be restricted to those aged 55 and over. New build retirement housing in Hastings usually takes the form of age restricted flatted accommodation with shared communal facilities, or C2 use sheltered housing. Based on our Market Report in Appendix 2 we have tested the generic scenarios set out in Table 5-7.

Table 5-7 Elderly accommodation scenario Scenario Type of specialist No. of Development Dwelling mix accommodation units density per net ha

Brownfield Over 55 flatted 50 100 18.6% 1-Bed & accommodation with 81.4% 2-Bed C2 specialist care units

Local Plan Viability Study Hastings Borough Council January 2021

Scenario Type of specialist No. of Development Dwelling mix accommodation units density per net ha

Greenfield Over 55 flatted 50 100 18.6% 1-Bed & accommodation with 81.4% 2-Bed C2 specialist care units

Source: AspinallVerdi, 2020

Non-residential typologies

With regards to commercial property there is less price variation across the local authority with values predominantly driven by lease length and strength of the occupier (i.e. covenant).

Retail typologies

In determining convenience scenarios, we have had regard to the following occupier requirements:

• Tesco typically only seek sites for their express format i.e. circa 2,200 sqft in main urban areas • Waitrose stores tend to vary greatly in their format, dependent on the location and size of the site with examples in their portfolio of between 2,500 – 56,000 sqft • Aldi and Lidl:

o Prominent sites in town, Borough, edge of centre or out of town locations o Unit sizes flexible on design and scale between 14,000 and 26,500 sqft o 1.3 -1.5 acres plus for standalone units or up to 4 acres for mixed-use sites

• Iceland’s requirements are for 10 – 15,000 sqft size units located on out-of-town retail parks.

Based on current occupier requirements we have tested the following scenarios:

• Express – 350 sqm, with 20% site coverage / gross to net site area 90% • Budget – 2,000 sqm, with 35% site coverage / gross to net site area 85%

As set out in our Market Report in Appendix 2 the comparison retail market is in a state of flux with currently limited new store requirement to base our viability testing. Based on general take- up identified in our Market Report in Appendix 2, we have assumed the following scenarios:

• Smaller format – town centre

o 150 sqm Gross Internal Area (GIA) o Site coverage 80%

Local Plan Viability Study Hastings Borough Council January 2021

o Gross to net site area 90%

• Larger format – town centre

o 500 sqm GIA o Site coverage 40% o Gross to net site area 90%

Employment typology

To reflect the planned employment growth, we have tested office and industrial development. Based on our market report in Appendix 2, we have reviewed Hastings industrial market we have considered the evidence of existing units and units being brought forward by the market, most of these are small units and this is reflected in how we have devised our typologies. As for the offices, there are no new build offices currently coming forward in Hastings or nearby Eastbourne, we have relied upon the second-hand evidence in our Market Report in Appendix 2. We have tested the following office scenario:

• 1,500 sqm GIA – 85% gross to net • Site coverage 200% / gross to net site area 90%

We have tested three industrial scenarios as follows:

• Small B1c/B2 – 150 sqm • Medium B1c/B2 – 500 sqm • Site coverage of 40% / gross to net site area 90%.

Mixed use typologies

The Council has requested that we test generic mixed use scenarios. This is to demonstrate the viability of mixed-use developments which may come forward in and around Hastings town centre. We have assumed that mixed use development will most likely be residential led with supporting convenience and comparison retail. Our specific development appraisal inputs are outlined below.

Key input assumptions

The following viability inputs and assumptions have been used in our assessment – we have tested two generic scenarios one in the higher value residential zone and one in the lower value residential zone:

• 150 units on 1 ha site i.e. gross density of 150 dph

Local Plan Viability Study Hastings Borough Council January 2021

• We have assumed that the residential development would be 100% flatted with retail on the ground floor. • Two scenarios one with higher and one with lower value zone values • We have assumed the same flatted mix as applied in our generic testing for predominately housing scenarios. • Affordable housing values from our generic testing • 1x convenience retail unit

o 350 sqm

• 2x Comparison retail

o 150 sqm each

• Gross to net site area – 80% • Development density – 187.5 dwellings per net hectare. • Net site area: 0.8 net hectares • Remaining 0.2ha

Local Plan Viability Study Hastings Borough Council January 2021

6 Appraisal inputs & assumptions

This section of the report sets out the inputs and assumptions that we have used in the development appraisals. First, we outline the values used across all uses, then build costs, policy costs and then finally land values.

Value inputs

Residential market value inputs & assumptions

Based on our Market Report in Appendix 2 we have used the sale values set out in Table 6-1. The values are reflective of new build achieved sale values, both on a unit and a £psm basis, in each of the value zones.

We have adopted the same values for housing across the two value zones. Our Market Report in Appendix 2 has observed that flatted development is lower toward the centre of Hastings, but there is no significant difference between housing. This is an appropriate approach given that the majority of development coming forward in the lower value area is flatted development, and the sales values used must encapsulate any sales value differences.

Table 6-1 Market value appraisal inputs Typology Unit Size sqm Unit Price £psm

Lower value area

1-bed flat 50 £145,000 £2,900

2-bed flat 61 £175,000 £2,787

2-bed house 72 £275,000 £3,819

3-bed house 85 £300,000 £3,488

4-bed house 110 £340,000 £3,091

Higher value area

1-bed flat 50 £185,000 £3,700

2-bed flat 65 £230,000 £3,538

2-bed house 72 £275,000 £3,819

3-bed house 85 £300,000 £3,488

4-bed house 110 £340,000 £3,091

Source: Market Report Appendix 2, 2020

Local Plan Viability Study Hastings Borough Council January 2021

Affordable housing value inputs & assumptions

Based on consultations with Registered Providers55 (RPs) we have based our affordable housing values on the following rates and comments:

• Affordable rent at 51% - 75% of open market values (OMV) • Intermediate at 74% - 75% of OMV • Some of the larger RPs refrain from taking “off the shelf” units via S106 agreements due to diseconomies of scale and instead prefer to focus on land package agreements, where there is potential grant funding available. • First Homes at 70% OMV

For our testing, we have adopted the 55% of OMV for the value of the affordable rented, 75% of OMV for intermediate and 70% of OMV for First Homes.

Elderly accommodation value inputs & assumptions

Table 6-2 sets out the value inputs used in our elderly accommodation appraisal; this is based on our Market Report in Appendix 2.

Table 6-2 Elderly accommodation value inputs Typology Unit Size sqm Unit Price £psm

1-bed flat 50 £210,000 £4,900

2-bed flat 70 £280,000 £4,000

Source: Market Report Appendix 2, 2020

Non-residential value inputs & assumptions

Based on our Market Report in Appendix 2 we have used the rents, yield and rent-free/void periods as set out in Table 6-3.

Table 6-3 Non-residential rents and yields appraisal inputs Scenario GIA sqm Rent psf Yield Rent free/void

Convenience - Express 350 £23 psf 5.75% 9 months

(£248 psm)

Convenience - Budget 2,000 £21 psf 5.50% 9 months

(£226 psm)

55 Optivo and Orbit

Local Plan Viability Study Hastings Borough Council January 2021

Scenario GIA sqm Rent psf Yield Rent free/void

Comparison - Smaller 150 £20 psf 10% 36 months format – town centre (£215 psm)

Comparison- larger 500 £19 psf 9% 30 months format – town centre (£204 psm)

Office 1,500 £18 psf 10% 12 months

(£194 psm)

B1c/B2 500 £7.50 psf 7.5% 12 months

(£65 psm)

B2/B8 1,000 £5.50 psf 7.0% 6 months

(£59 psm)

Mixed use 350 £23 psf 5.75% 9 months

Convenience retail (£248 psm)

Mixed use – 150 (each) £20 psf 10% 36 months

comparison retail (£215 psm)

Source: Market Report Appendix 2, 2020

Build costs inputs & assumptions

Table 6-4 sets out our build cost inputs and assumptions used in our appraisals. All BCIS build cost data used in our appraisals can be found in Appendix 4.

Table 6-4 Appraisal build cost inputs & assumptions Element Cost Comment

Build cost – houses £1,277 psm ‘Build costs based on appropriate data, for example that of the Building Cost Information Service.’56

Based on median BCIS costs for estate housing generally – using a 5- year sample period to reflect current building regulations, re-based for East

56 MHCLG, 24 July 2018, PPG, Paragraph: 012 Reference ID: 10-012-20180724

Local Plan Viability Study Hastings Borough Council January 2021

Element Cost Comment

Sussex. We are content that a 5-year sample contains a sufficient level of sample data, where this is not the case we will extend the observed period.

Build cost – flats £1,429 psm Based on median BCIS56 costs for flats generally – 5-year sample period to reflect current building regulations, rebased for East Sussex – see additional comments above.

Convenience retail - build £1,490 psm BCIS56 median build costs for costs hypermarkets and supermarkets, rebased to East Sussex, with a default period in order to have a higher number of sample details.

Comparison retail build costs £2,136 psm BCIS56 median build costs for shops, re-based to East Sussex, with a 10- year sample period in order to ensure a sufficient sample size.

Office build costs £2,139 psm BCIS56 median build costs ‘generally’ for offices, re-based to East Sussex, with a 10-year sample period in order to ensure a sufficient sample size.

Industrial build costs £818 psm BCIS56 median build costs warehouse/stores ‘generally’, re-based to East Sussex, with a 10-year sample period in order to ensure a sufficient sample size.

External works 15% of BCIS for External works will vary, depending on greenfield, 10% of on-site requirements, but this can be BCIS for brownfield inclusive of but no limited to: landscaping, utilities, foul and surface water drainage, street lighting, yard area/car parks etc). Industry norms

Local Plan Viability Study Hastings Borough Council January 2021

Element Cost Comment

and other schemes coming forward in the Borough.

Site abnormals – applied to £110,000 per net Site abnormals will vary significantly brownfield development only developable acre from site to site. We have assumed our allowance includes the cost for demolition and remediation. We have had regard to HCA (now Homes England) guidance on dereliction, demolition and remediation costs, March 2015, along with comparable and other schemes coming forward in the Borough.

Statutory Planning Fees Based on national Based on national formula. (Residential) formula.

Planning Application Calculated as a Calculated as a three times multiplier Professional Fees, Surveys three times to national formula above. and reports multiplier to national formula above.

Professional fees 10% of BCIS build Typically ranges between 8% - 12%, cost based on industry norms and other schemes coming forward in the Borough.

Contingency 5% of BCIS build Typically ranges between 3% - 5%, cost based on industry norms and other schemes coming forward in the Borough.

Residential - Sale Agents 1.5% Source: Page 35 Harman report and Costs comparable schemes

Residential - Sale Legal 0.5% As above. Costs

Local Plan Viability Study Hastings Borough Council January 2021

Element Cost Comment

Residential - Marketing and 1.5% As above. Promotion

Elderly accommodation - 5% market value Comparable scheme analysis shows Marketing and Promotion higher costs over ‘general needs market housing’. Cost allowance assumed still in line with the Harman report (P.35) but at higher end.

Marketing and Promotion – 1.00% GDV Ditto commercial

Profit on market housing 20.0% on GDV ‘For the purpose of plan making an assumption of 15-20% of gross development value (GDV) may be considered a suitable return to developers in order to establish the viability of plan policies. Plan makers may choose to apply alternative figures where there is evidence to support this according to the type, scale and risk profile of planned development.’57

Profit on affordable housing 6.0% on GDV ‘A lower figure may be more appropriate in consideration of delivery of affordable housing in circumstances where this guarantees an end sale at a known value and reduces risk. Alternative figures may also be appropriate for different development types.’57

Profit on retail, office and 20% of build costs Commercial development is assessed industrial by way of profit on costs and not GDV to reflect the developer who then sells the completed scheme onto an investor.

57 MHCLG, 05 May 2019, PPG, Paragraph: 018 Reference ID: 10-018-20190509

Local Plan Viability Study Hastings Borough Council January 2021

Element Cost Comment

Interest 7.5% Gross interest inclusive of fees. Interest is added to the all construction costs and benchmark land value as we assume the schemes are 100% debt financed, of which there will also be a fee attributable to the arrangement of a development loan, this is inclusive within the global figure. Industry norms and other schemes coming forward in the Borough.

SDLT on land value 5.0% Based on HMRC variable rates.

Agents fee on land value 1.0% Industry norms and other schemes coming forward in the Borough.

Legal fee on land value 0.5% As above.

Letting Agents Costs 10.0% rental value Based on industry norms and other schemes coming forward in the Borough.

Letting Legal Costs 5.0% rental value Ditto

Investment Sale Agents 1.0%GDV Ditto Costs

Investment Sale Legal Costs 0.50% GDV Ditto

Gross to net of general 85% Based on schemes we have analysed needs flats and offices previously

Gross to net of elderly 75% Due to these types of schemes accommodation providing communal facilities the gross to net area ratio is reduced when compared to general needs flatted developments. Based on schemes we have analysed previously this is around 75% compared.

Local Plan Viability Study Hastings Borough Council January 2021

Policy costs inputs & assumptions

Based on our review of the council’s emerging policies we have identified costs to use in our testing - these are set out in Table 6-5.

Table 6-5 Policy costs inputs & assumptions Element Cost Comment

Biodiversity net gain £948 per dwelling Based on: Biodiversity net gain and local nature recovery strategies, 2019 Impact Assessment by (national requirement DEFRA, using the central estimate cost per dwelling for already included in our the South East. This cost is reflective of policies SP5 appraisals) (strategic policy) & DP5 (development policy) of the draft Local Plan.

Affordable Housing We have tested the council’s Calculated as on-site provision through reduced capital values emerging policy as follows: on affordable housing tenure. Sensitivity testing is used to show (included in our appraisals) the impact of varying the amount provided. This is reflective of policy SP2 & DP8 of the draft Local Plan.

Housing Mix Reflected in the housing mix in the Mix in accordance with HEDNA as set out in Figure 5-4. appraisal (included in our appraisals)

Housing accessibility M4(2) all dwellings – @ £1,400 per Cost is based on the DCLG Housing Standards Review, Final dwelling Implementation Impact Assessment, March 2015, paragraphs

Local Plan Viability Study Hastings Borough Council January 2021

Element Cost Comment

M4(3) Accessible – @ £22,79158 per 153 and 157. This cost is reflective of policy DP2 of the draft dwelling on schemes of 20 or more Local Plan. units applied to 5% of affordable housing dwellings.

Sustainable urban drainage The cost of this is included within This is the same approach as we have used in our work in systems (SuDs) external works, in Table 6-4 Lincolnshire. This was accepted at EiP and they have subsequently had schemes built. This cost is reflective of policy SP7, DP4 and DP8 of the draft Local Plan.

Electric charging points £1,000 per dwelling housing schemes Cost based on cost advice by Swindon Borough Council for their assumed wallbox Whole Plan Wide Viability study we are advising on. This cost is reflective of policy DP7 of the draft Local Plan. £10,000 per multi car park charge point for flatted schemes – assumed for every 4 dwellings.

Green infrastructure/open Included in external works The provision of open space or green infrastructure will be space delivered in the difference between the gross to net developable area with any cost associated within our external works allowance.

Where sites that are being tested separately have specific requirements for the provision of open space or play space

58 Equality and Human Rights Commission, October 201 8,Habinteg, Housing and disabled people Planning for accessible homes 50

Local Plan Viability Study Hastings Borough Council January 2021

Element Cost Comment

standards that are tailored specifically to the site (i.e. provision of MUGA pitches, play park, country parks), then we will include an evidence-based cost. This cost would be sought from a development viability surplus. This cost is reflective of policy DP8 of the draft Local Plan.

20% reduction in CO2 £2,557 per dwelling This cost is ‘Based on the energy and carbon performance of a based on 2013 standards home with: i. Very high fabric standards to minimise heat loss from windows, walls, floors and roofs (typically with triple glazing). This would be the same fabric requirement as we currently anticipate for the Future Homes Standard ii. A gas boiler iii. A waste water heat recovery system’59. This cost is reflective of policy DP3 of the draft Local Plan.

100% reduction in operation £10,000 per dwelling Zero regulated carbon, £6,800 - £10,100 per dwelling60 carbon on new build (cost varies on house type). Achieved by a combination greenfield and sites within of measures. We have assumed £10,000 per dwelling the Bohemia area as a conservative position. This cost is reflective of policy DP3 of the draft Local Plan.

59 MHCLG, 2019, The Future Homes Standard 2019 Consultation on changes to Part L (conservation of fuel and power) and Part F (ventilation) of the Building Regulations for new dwellings: Impact Assessment 60 Currie & Brown, 2018, Cost of Carbon Reduction in New Buildings 51

Local Plan Viability Study Hastings Borough Council January 2021

Timescales

Timescales reflect both the development period and the sales period. These inputs are reflected in the appraisals through the cashflow.

Residential timescales

Table 6-6 sets out our timing inputs used in the residential appraisals, this takes account of the pre-construction and preparatory works “lead in”, then the time taken to construct and complete the development “build period” and the time taken to sell all of the units “sale period”. It is assumed that the sales of the affordable housing units occur during the build period, in line with how the market operates on a “golden brick” payment basis. Sale period for houses commences 9 months after the construction of units and continues 9 months post construction. For flats we have assumed market sales commence on build complete of the units.

There are other assumptions that we have made, these are listed below:

• For site over 99 units, there is a bigger lead in period assumed in order to achieve planning permission. • We have assumed that all typologies have a single land payment upfront. • We have assumed that all policy contributions are paid on the month of sale (i.e. occupation) of first unit.

Table 6-6 Appraisal timing inputs No. of Lead in Build period Sale period Units period

Greenfield – higher value zone

7 12 months 12 months 12 months (9 months after build start)

30 12 months 12 months 12 months (9 months after build start)

120 18 months 30 months 30 months (9 months after build start)

235 18 months 48 months 48 months (9 months after build start)

Brownfield – higher value zone

9 12 months 12 months 12 months (9 months after build start)

20 12 months 12 months 12 months (9 months after build start)

65 12 months 18 months 18 months (9 months after build start)

Local Plan Viability Study Hastings Borough Council January 2021

No. of Lead in Build period Sale period Units period

160 12 months 30 months 30 months (9 months after build start)

Brownfield – higher value zone – flats

10 12 months 12 months 12 months (on scheme practical completion)

25 12 months 12 months 12 months (on scheme practical completion)

190 12 months 36 months 36 months (18 months after build start by 18 months)

Brownfield – lower value zone – flats

12 12 months 12 months 12 months (on scheme practical completion)

101 12 months 24 months 24 months (on scheme practical completion)

Source: AspinallVerdi, 2021

Elderly accommodation timescales

For elderly accommodation housing our disposal timescales have been extended compared to general needs housing to reflect the narrow market that can access these units, with sale commencing on build complete on the units. The timescales are as follows:

• Lead in period - 12 months • Construction - 12 months • Sales period - 24 months

Non-residential timescales

Table 6-7 sets out the timescales used in the non-residential testing appraisals. It is assumed the investments of the completed schemes are sold on build complete of the units.

Table 6-7 Convenience retail scenarios timescales Scenario GIA sq m Lead in period Development period

Convenience retail - 350 12 months 12 months Express

Convenience retail - 2,000 12 months 12 months Budget

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Scenario GIA sq m Lead in period Development period

Comparison retail - 150 12 months 12 months Smaller format

Comparison retail - 500 12 months 12 months Larger format

Small office 450 12 months 12 months

Large office 2,000 12 months 12 months

B1c/B2 150 12 months 12 months

B1c/B2 500 12 months 12 months

B2/B8 1,000 12 months 12 months

Source: AspinallVerdi, 2021

Mixed use timescales

Our timings are similar to what has been used in our residential flatted testing. We have assumed the following

• Lead in period - 12 months • Construction - 36 months • Sales period (residential) - 36 months • Sales period (commercial) – sold fully let on practical completion

Land value assessment

6.16 As we have set out in Chapter 3 of this report the recommended approach to establishing land value for planning purposes is the EUV plus method. It is therefore important to understand the types of sites coming forward and then make an assessment of values with reference to comparable evidence.

Residential sites – land value assessment

6.17 Table 6-8 shows the sum of the proposed housing led allocations that we have considered when creating our generic typologies. The vast majority of residential housing led sites in the proposed housing led allocations are identified as brownfield. This does not include windfall development.

Local Plan Viability Study Hastings Borough Council January 2021

Table 6-8 No. of planned greenfield and brownfield sites Type of site No. of sites Total no. of units proposed.

Greenfield sites 11 816

Brownfield sites 34 2,157

Source: Hastings Borough Council proposed housing led allocations, AspinallVerdi

Residential sites – greenfield land value assessment

In a greenfield context, we consider the existing use to be agricultural land for any potential proposed development in the draft Local Plan. Table 6-9 shows recent sold or currently marketed prices for agricultural land across Hastings Borough recorded by RICS/Royal Agricultural University (RAU) Rural Land Market Survey, agent consultation and other sources that we have researched. The evidence in Table 6-9 shows that agricultural land across the Borough and nearby has traded in recent years has sold between £7,197 and £8,252 per acre (£17,784 and £20,392 per hectare).

We have used agricultural land values because this is the closest use that reflects the nature of the greenfield development sites coming forward. We do recognise that some of the greenfield sites differ in their uses, for example former playing pitches and bare land. But there is no evidence readily available to base a value for these existing uses. Therefore, in taking a pragmatic approach we have used agricultural land values for all greenfield sites because there is little alternative uses other than agricultural.

Local Plan Viability Study Hastings Borough Council January 2021

Table 6-9 Agricultural land sold or on market – Hastings/South East Sold Size Size Sold or Price per Price per Comment date Address acres ha Description asking price acre hectare

Jul-20 Lot 2 Old 26.43 10.7 Bare land £215,000 £8,134 £20,099 Grade 4 land, good road Coghurst Farm, frontage, vacant possession, Three Oaks, 30% residential overage within Hastings 25 years. Sold below guide (£225,000). On Lot 1 (West), 10.3 4.16 Bare land £85,000 £8,252 £20,392 Grade 4 land, good road market Coghurst Farm, frontage, vacant possession, Three Oaks, 30% residential overage within Hastings 25 years. £85,000 is the guide, land currently under offer as at July 2020. Nov-19 Pleasant Farm, 315.41 127.64 Farmhouse, £2,270,000 £7,197 £17,784 Buildings comprising four Lenham, Kent land and storage barns, grade 2 & 3 buildings arable land with some pasture & woodland. Vacant possession. Land split by M20 motorway and other minor roads. On Lot 1 (East), 24.7 9.99 Gently £195,000 £7,894 £19,507 Grade 4 land, no services, market Coghurst Farm, sloping average access, 30% residential Three Oaks, bareland overage within 25 years. Hastings £195,000 is the guide as at July 2020. Source: RICS/RAU Farmland Market Directory of Land Prices, H2 2019, agent consultation, Rightmove

Local Plan Viability Study Hastings Borough Council January 2021

These agricultural values are narrow and to confirm our findings we have consulted a rural agent as a sense check, the response was as follows:

• Bare agricultural land transacts typically between £6,000 and £8,000 per acre around Hastings and the outskirts.

• Land parcels that are below 10 acres will attract a wider market such as equestrian or recreational buyers because a smaller plot of land is more affordable to purchasers outside of agriculture. Here, land values may reach between £12,000 - £15,000 per acre, depending on the location, services and access.

Residential sites – brownfield land value assessment

There is a wide range of potential brownfield housing led sites that could come forward for development. To allow for analysis we have grouped the brownfield sites into broad categories based of their existing uses. In some cases, where a site has multiple uses, we have focused on the most predominant. Our analysis shows 60% of brownfield development is likely to come forward on sites currently in use for employment, care and health care. We have focused our land value assessment on these uses as they form the bulk of housing led allocations.

Table 6-10 shows sold prices for brownfield land across Hastings Borough, these are mainly employment. Due to the lack of evidence, we have looked beyond the Hastings Borough boundary, to support our evidence base. Table 6-10 shows that brownfield land ranges between £672,515 and £2,336,449 per gross hectare (£271,868 - £943,396 per gross acre).

57 Local Plan Viability Study Hastings Borough Council January 2021

Table 6-10 Brownfield land sold or on market Address Existing Deal date Sold or Gross Gross Price per Price per Comment use asking price area ha area acres gross ha gross acre

Ashdown Office Mar-2020 £6,750,000 5.16 12.75 £1,308,140 £529,412 This is an office complex consisting House, circa. 200,000 sqft of office space. The Sedlescomb site was sold to a fund management e Road, company and benefits from Prior TN37 7GA Approval for residential use encompassing 246 units - all apartments. The site was advertised as having development potential and we acknowledge that the buyer will have paid a premium for the site above its existing use. 35 Beeching Warehouse Quoting £650,000 4.82 1.951 £823,278 £333,162 Site comprises existing single storey and Road, Bexhill / industrial (18.08.202 plus part two storey warehouse. Site benefits on Sea, 0) from contained yard. TN39 3LJ Land at Bare land, Sale £1,200,000 1.06 2.61 £1,132,075 £459,770 Marstons are disposing of this site to a Bexhill consent for agreed, + developer who intends to bring forward a Enterprise pub exchange pub/restaurant use (TBC) to compliment Park, TN39 restaurant pending the existing new business park as it 5ES and hotel becomes occupied. A conversation with the selling agent confirms that there was interest from employment users from the centre of Bexhill to develop the site, but these offers were not suitable. 3 Market Storefront Dec-2019 £1,419,725 0.67 1.66 £2,118,993 £855,256 Jempson’s sold their freehold interest in Square, retail / 3 Market Square to Rother District Battle, TN33 residential Council. The property was leased back 0XB to them, terms unknown.

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Address Existing Deal date Sold or Gross Gross Price per Price per Comment use asking price area ha area acres gross ha gross acre

591 Light Apr-2018 £2,500,000 1.07 2.65 £2,336,449 £943,396 Hastings Borough Council purchased Sedlescomb industrial the freehold interest in the property. e Road, St There is a leasehold of 999 years from Leonards On 2004. Google search reveals Jewson is Sea, TN37 currently occupying the site. 7PY 2 Diplocks Demolishe Dec-2018 £450,000 0.34 0.83 £1,323,529 £542,169 Aspen A. C. Ltd has purchased the Way, d freehold interest in 2 Diplocks Way, Hailsham, warehouse Hailsham from Skinners Sheds Ltd for BN27 3JF £450,000. This was an off-market deal. The space was used by Aspen A. C. Ltd themselves. The seller was represented. Source: CoStar, accessed September 2020

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Residential sites – conclusion land value assessment

6.23 We have not varied the greenfield land value by our value zones as there is no evidence to suggest this is required. We have, however, taken account of the market commentary we received in respect of sites smaller than 10 acres (4 hectares), and the introduction of a wider market for land. To reflect the varying agricultural land values, we have used existing use land values from £8,000 - £15,000 per gross acre depending on site size. Using a 10x multiplier as a baseline starting point, this results in a benchmark land value of £197,600 -£370,500 per gross hectare (£80,000 - £150,000 per gross acre).

6.24 Brownfield land values are based on an existing use value of £460,000 per gross acre (£1,136,660 per gross hectare). To reflect a benchmark land value on the brownfield sites, we have applied a 10% landowner premium to this to get to a benchmark land value of £506,000 per gross acre (£1,249,820 per gross hectare).

6.25 The benchmark land values, do in our opinion, strike that balance between the competing interests (developers, landowners and the aims of the planning system) whilst still securing the maximum benefits in the public interest through the granting of planning permission – therefore meeting the aims of the PPG. Should the residual land value exceed the benchmark land value once all abnormal and policies costs are taken into account for in the appraisal, then there is scope for the landowner to secure a higher premium. Should any site-specific assessments incur any additional costs that have not been allowed for in our benchmark land value assessments then these costs we need to be reflected in a reduced land value than that stated in Table 6-11.

Table 6-11 Gross land vale assessment Site Existing Existing Benchmark Benchmark land Use Value Use Value land value value gross ha per gross per gross gross acre acre ha Greenfield 10 acres £8,000 £19,800 £80,000 £197,600 (4.05ha) plus Greenfield 7-10 £10,000 £25,000 £100,000 £247,000 acres (2.8 - 4ha) Greenfield 2.5-7 £12,000 £29,600 £120,000 £296,400 acres (1 - 4ha) Greenfield sub 2.5 £15,000 £37,000 £150,000 £370,500 acres (1ha) Brownfield land £460,000 £1,136,660 £506,000 £1,249,820 Source: AspinallVerdi, 2020

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6.26 Table 6-12 also provides the assessment of gross site area and net developable area, these are based on comparable schemes.

Table 6-12 Land value development appraisal inputs No. of Gross Gross Gross Net Net Total site Land value Land value Units dph site to net dph site value per net ha net acre area area ha ha

Greenfield - housing

7 25 0.28 90% 28 0.25 £103,740 £411,667 £166,667

30 25 1.20 90% 28 1.08 £444,600 £411,667 £166,667

120 45 2.67 85% 53 2.27 £988,000 £435,882 £176,471

235 30 7.83 75% 40 5.88 £2,902,250 £494,000 £200,000

Brownfield flats - higher value

10 75 0.13 90% 83 0.12 £166,643 £1,388,689 £562,222

10 200 0.05 90% 222 0.05 £62,491 £1,388,689 £562,222

25 195 0.13 90% 217 0.12 £160,233 £1,388,689 £562,222

190 115 1.65 80% 144 1.32 £2,064,920 £1,562,275 £632,500

Brownfield flats - lower value

12 185 0.06 90% 206 0.06 £81,069 £1,388,689 £562,222

100 230 0.43 85% 271 0.37 £543,400 £1,470,376 £595,294

Brownfield - housing

9 25 0.35 90% 28 0.32 £437,437 £1,388,689 £562,222

20 45 0.44 90% 50 0.40 £555,476 £1,388,689 £562,222

65 30 2.17 90% 33 1.95 £2,707,943 £1,388,689 £562,222

160 33 4.85 80% 41 3.88 £6,059,733 £1,562,275 £632,500

Source: AspinallVerdi, 2020

Elderly accommodation - land value assessment

It is envisaged that elderly accommodation development will come forward on brownfield and greenfield sites.

Local Plan Viability Study Hastings Borough Council January 2021

For the brownfield sites, we have used the same land value assumptions set out in our brownfield land value analysis above (Table 6-10) of £460,000 per gross acre (£1,136,660 per gross hectare).

For the greenfield sites, we have used the same land value assumptions set out in our greenfield land value analysis, a land value of £247,000 per gross hectare (£100,000 per gross acre) with a 90% gross to net site coverage.

Convenience & comparison retail - land value assessment

It is assumed that convenience and comparison retail will come forward on brownfield sites, and we have used a land value of £460,000 per gross acre (£1,136,660 per gross hectare), based on our assessment of land values in Table 6-10.

Offices & industrial - land value assessment

For employment uses, again we have used the brownfield land values of £460,000 per gross acre (£1,136,660 per gross hectare), based on our assessment of land values in Table 6-10.

Mixed use – land value assessment

It is assumed that mixed use schemes will come forward on brownfield sites, and we have used a land value of £1,249,820 million per gross hectare (£506,000 per gross acre) based on our assessment of land values in Table 6-10.

Local Plan Viability Study Hastings Borough Council January 2021

7 Viability testing results

We set out below a summary of our viability findings for all the scenarios tested.

Residential – results

We first provide our residential viability findings based on the draft policies. As a baseline assessment of viability, the appraisals (contained in Appendix 5) include the following potential policy costs61:

• Biodiversity net gain • M4(2) on 100% of units • M4(3) wheelchair accessible housing on 5% of units – for sites 20 units or more • 20% carbon reduction on brownfield sites • Net zero % carbon on greenfield sites. • Electric charging on all flats and houses

Table 6-5 identifies other potential policy costs, which form part of our policy recommendations in the following chapter.

Greenfield houses sites higher value zone

The analysis shows that greenfield development in the higher value zone is viable with 40% affordable housing (0% on typologies less than 10 units), biodiversity net gain, both M4(2) and M4(3) requirements, net zero carbon and electric charging point policies across all scenarios. In the least viable scenario, there is a maximum surplus to fund £12,000 per dwelling which could be used to fund infrastructure, including additional S106 obligations.

Brownfield houses higher value zone

A total of four brownfield housing scenarios have been tested of which three are viable with 25% affordable housing (0% on typologies 19 units or less), biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging point policies. Depending on the net density of the typologies the amount of surplus per unit varies between £6,000 and £10,000 per dwelling.

The other scenario of 65 units is considered marginally viable with 25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. This is generally due to the lower net density of the typology. With very small changes to inputs the typology becomes viable. For example, our sensitivity testing shows that if

61 Cost set out in Table 6-5 63

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profit is reduced to 17%, a profit level in the range deemed reasonable by the viability PPG62, the typology becomes viable.

Brownfield flats higher value zone

In total we have tested four brownfield flatted typologies in the higher value zone, two which are viable and produce a small surplus, and two which are on the margins of viability. A key input impacting viability is development density.

We have tested two 10-unit typologies, one with a lower and one with a higher density. Both include 0% affordable housing63, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging point policies. The higher density is viable and the lower density is on the margins of viability. This lower density scenario becomes viable with very small changes to inputs. For example, our sensitivity testing shows that if profit is reduced to 17%, a profit level in the range deemed reasonable by the viability PPG, the typology becomes viable.

We have tested two larger flatted typologies, at 25 and 190 units respectively, with 25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. The 25 unit scenario is viable and the 190 unit scenario is on the margins of viability. This 190 unit scenario becomes viable with very small changes to inputs. For example, our sensitivity testing shows that if profit is reduced to 17%, a profit level in the range deemed reasonable by the viability PPG, the typology becomes viable.

Brownfield flats lower value zone

The analysis shows that brownfield flatted development in the lower value zone is unviable with 25% affordable housing (0% on typologies 19 units or less), biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. The viability gap is more significant than in other scenarios and no single input can change to make the typology viable. If there is a combination of a reduced profit to 15% on GDV, an increase in sales values by 10% and a decrease in costs by 10% viability does improve.

Elderly accommodation viability testing results

Our viability testing results for elderly accommodation Appendix 6. Our results show that elderly accommodation development is currently on the margins of viability on both brownfield and greenfield sites with 40%/25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points. This is due to low value flatted

62 PPG outlines a target rate of return for plan making purposes of between 15%-20% on GDV for market units. MHCLG, 2019, Viability PPG, Paragraph: 018 Reference ID: 10-018-20190509 63 In line with Hastings Borough Council Strategic Policy 2: New and Affordable Housing which states that there is no minimum affordable housing requirement on brownfield development of 0 – 19 units. 64

Local Plan Viability Study Hastings Borough Council January 2021

development and the rule of thumb approach. This being said only small changes to inputs make the typologies viable. In both cases either a 10% increase in sales values or a 10% decrease in build costs would render elderly accommodation viable.

Retail viability testing results

Our viability testing results for convenience and comparison retail are set out in Appendix 7. Our results show that convenience retail is viable generating a surplus of up to £200 psm to fund additional policy costs.

Comparison retail is not viable in either scenario, our sensitivity testing shows that there needs to be a combination of a fall in build (around 30%) and an increase in the capital value (yield shift from 10% to 5%) to enable viable development.

Employment use viability testing results

Our viability testing results for industrial and office uses are set out in Appendix 8. Our results show that office and industrial development is currently unviable on a speculative basis.

Our sensitivity testing for offices shows that there needs to be a combination of a fall in build (around 40%) and an increase in the capital value (yield shift from 10% to 7.5%) to enable viable development.

With regards industrial uses, our sensitivity testing shows that yields need to shift from 7.5%/7.0% to 6.0% to enable viable.

Mixed use viability testing results

Our viability testing results for mixed use scenarios are set out in Appendix 9. Our testing results show that viability is challenging in both typologies tested. The lower value scenario has a significant viability gap and there would need to be substantial changes in the viability inputs to enable viable development. The typology in the higher value zone is more marginal and if a combination of a 5% decrease in build costs and 10% increase in values could be achieved mixed use sites are viable with 25% affordable housing, biodiversity net gain, both M4(2) and M4(3) requirements, 20% carbon reduction and electric charging points.

Local Plan Viability Study Hastings Borough Council January 2021

8 Conclusions

In this section we have provided conclusions to the Council in regards to the viability of their emerging Local Plan.

Residential

The Council’s policies are viable on all greenfield sites and the majority of brownfield sites. The small number of brownfield sites that are currently unviable are still likely to be delivered over the planned period because

64 ‘Owners of vacant and redundant freestanding buildings of a footprint of up to 1000 square metres will be able to fast-track the planning process for demolishing and rebuilding them as new residential developments within the footprint of the original building,

Local Plan Viability Study Hastings Borough Council January 2021

• Vacant Building Credit may apply -this has not been included in our assessment, as we have taken a conversative approach, and its application on sites would improve viability. • There are also examples of development receiving planning permission and being built out by private sector developers while paying current levels of policy contributions – most importantly 40% affordable on greenfield sites, and 25% affordable on brownfield sites.

Elderly accommodation viability testing results

There are no specific sites allocated for elderly accommodation. Therefore, despite our testing showing this type of development being on the margins of viability it does not render policies to be unviable.

Retail viability testing results

Our testing shown that convenience retail is viable with a surplus to fund additional S106 obligations, if required. Comparison retail is more challenging, but development is still likely to come forward over the plan period because of the points previously mentioned above

Employment use viability testing results

Despite our viability testing showing employment uses are unviable, development is still likely to come forward over the plan period because of the points previously mentioned above and our testing showing a shift in yields (which may be possible with a pre-let solution) improves viability.

Mixed use viability testing results

Though our viability testing shows the two mixed use scenarios as unviable. Development is still likely to come forward over the plan period for the points previously made. As we have demonstrated only small changes to sales values and build costs are needed to improve viability.

CIL

Given the need for other policy asks such as carbon reduction / zero carbon combined with the fact some sites sit on the margins of viability we recommend that the Council continues with its approach to funding infrastructure through S106 and not a CIL.

up to a maximum height of 18 metres, including up to 2 storeys higher than the former building.’ Source: https://www.gov.uk/government/publications/permitted-development-rights-and-changes-to-the-use-classes-order/fast-track- planning-for-brownfield-regeneration-key-facts-brief

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Appendix 1 – Policy Review

Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study

Overarching Strategic Policies Overarching Strategic High The Council will work with its partners to achieve Cost of providing green infrastructure Policy 1 (OSP1): Tackling their Carbon neutral ambitions and deliver reflected in external cost allowance. Climate Change sustainable patterns of development that support

climate change mitigation and adaptation. To support this over the life of the plan to 2039, the Costs for low carbon construction and low Council will: carbon homes have been included as • Focus largest scale development in areas additional costs that can be deducted from with good public transport and access to any viability surplus generated. local shops and services

• Support and encourage investment in Cost for provision of electric changing renewable energy points have been included in the appraisals, • Encourage a shift from reliance on cars to but we note that this is not a mandatory active transport requirement. • Expand network of green infrastructure • Explore the use of land at Breadsell as a Carbon Mitigation Zone The Council will support measures that help mitigate and adapt to impacts of climate change at the level of individual sites, recognising the cumulative impact of development and will support: • Incorporates low carbon design and construction • Provision of electric vehicle infrastructure • Incorporation of green infrastructure • Measures that reduce and mitigate flood risk Adapting to and mitigating the impacts of climate change is an overarching policy objective and as Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study such key to policies throughout the rest of this draft Local Plan. Strategic Policies Strategic Policy 1: Low Strategic Policy which sets out the location of We have tested a range of scenarios that Directing Growth future development within the Borough, namely reflect the planned growth in the area. the Local Industrial Employment Areas, Hastings Town Centre and the creation of ‘Focus Areas’. Strategic Policy 2: New High Strategic Policy which outlined the minimum Appraisals test whether this policy is viable and Affordable Housing number of new homes required over the plan along with sensitivity testing at other period 4,275) affordable housing percentages. We have tested a range of scenarios over different The Council will seek affordable housing as part typologies that reflect the planned growth in of new residential developments as follows: the area. A range of typologies have been developed to reflect different residential mixes.

Affordable housing tenure is based on the draft policy and it is assumed that the remaining balance of 30% to be First Where justified by a viability appraisal, the Council Homes. will apply the 25% affordable housing target flexibly where development is for: Affordable rent housing mix is based on the • Mixed use schemes, in Hastings Central draft policy, with all the remaining tenures Focus Area, that include cultural, leisure housing mixes based on the HEDNA. community facilities or employment generating uses; and • Sites identified in Appendix 1, with capacity of less than 30 units, where there is a specific requirement for provision of onsite cultural, leisure community facilities or employment generating uses. The policy also sets out the desired private housing mix and the AH mix consisting of: Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study • Affordable/Social Rent – 60% • Affordable Home Ownership – 10% • Remaining balance – % will be determined through negotiation comprising AR/SR SO and any other tenure including low-cost homes (which could include First Homes). The required mix for rented affordable homes is: • 1 bedroom homes: 30% • 2 bedroom homes: 35% • 3 bedroom homes: 35% Strategic Policy 3 (SP3): Low Strategic Policy that promotes the protection of We have tested a range of scenarios that Business Development - the identified Strategic and Local Industrial reflect the planned growth in the area and Office & Industrial Uses Employment Areas. The policy also promotes consider these areas. sustainable development in these areas. A range of typologies have been developed to reflect different mixes. Strategic Policy 4 (SP4): Low Strategic Policy that promotes the protection and We have tested a range of scenarios that Business Development - enhancement of town district and local centres. reflect the planned growth in the area and Retail and Leisure Uses This includes support for tourism and visitor uses consider these areas. and protections against the loss of hotels. A range of typologies have been developed to reflect different mixes. Strategic Policy 5 (SP5): Low Strategic Policy which outlines the protection and Green space to be provided through the Conserving and enhancement of the towns distinctive landscape difference in the gross to net developable Enhancing the Natural character from an environmental perspective. area. Cost of providing green infrastructure Environment reflected in external cost allowance. All This includes providing green infrastructure and other measures assumed to be covered protecting landscape character and protecting through general build cost/design important designated sites allowance. We have included a cost to reflect a 10% net biodiversity gain as proposed in the forthcoming Environment Bill. Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study Strategic Policy 6 (SP6): Low Strategic Policy which outlines how the historic Not considered separately in our testing. Enhancing the Historic character of Hasting will be preserved, reinforced, Any developments affected by this policy Environment enhanced and sustained and change will be assumed management plans covered sensitively managed. The Council will develop through professional fees and impact conservation area management plans to maintain covered through design. the special historic and architectural interest of areas. Strategic Policy 7 (SP7): Medium Strategic Policy which outlines that in line with Some sites are affected by flooding, river or Managing Coastal Policy SP1, major growth and change will be surface – some of which can be mitigated Erosion and Flood Risk directed away from areas with the highest flood through gross to net developable area and risk, and in areas of lower flood risk development SuDs. Any sites in particularly high flood will only be permitted where flood risk can be risk area may require additional mitigating mitigated. measures, which will be site specific. The cost of meeting these works will need to be met through any surplus generated. The cost of providing and flood defence infrastructure is considered to be delivered through site-specific S106 funded through any viability surplus generated.

Strategic Policy 8 (SP8): Low Strategic Policy which outlines that the Council Cost of providing the infrastructure is Transport Infrastructure will work with transport providers to enable the considered to be delivered through external delivery of infrastructure to support development works or site-specific S106 to be funded growth over the life of the plan and to prioritise through any viability surplus generated. pedestrian movement. Strategic Policy 9 (SP9): Low Strategic Policy which outlines that the Council We have outlined specific costs for low Renewable Energy and will work support the development of renewable energy and carbon reduction, which is to be Low Carbon Heating energy infrastructure. funded from any viability generated. The cost is not included in the appraisal as these are not mandatory. Strategic Policy 10 Low Strategic Policy outlining that the Council will work Cost of providing the infrastructure is (SP10): Community with partners to enable the delivery of social and considered to be delivered through site- Facilities and Digital digital infrastructure to support development specific S106 to be funded through any Infrastructure growth over the life of the Local Plan. viability surplus generated. Focus Area Policies Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study Focus Area Policy 1 Low Policy which sets out the type of development Viability testing includes these uses (FA1): Hastings Central which will permitted in Hastings Central. identified in the draft Local Plan. Focus Area Policy 2 Low Policy which sets out the type of development As above. (FA2): Bohemia which will permitted in Bohemia and Centra St Leonards. Focus Area Policy 3 Low Policy which sets out the type of development As above. (FA3): Little Ridge and which will permitted in Little Ridge / Ashdown Ashdown House House. Focus Area Policy 4 Low Policy which sets out the type of development As above. (FA4): West Marina and which will permitted in West Marina and West St West St Leonards Leonards. Development Policies Development Policy 1 Low Development policy which outlines that the Measures assumed to be covered through (DP1): Design – Key Council will support high quality development, general build cost / design allowances. Principles supported by a Design and Assess Statement. Development Policy 2 High Development policy which outlines that the Dwellings sizes meet national prescribed (DP2): Design - Space Council support development that meets the space standard, cost included in appraisals and Accessibility Nationally Described Space Standards. for M4(2) and M4(3). Standards The Council will require all new homes to meet M4(2) Accessible and Adaptable standards. Where there is an identified need on the Council Housing Register, sites that provide affordable housing in line with Strategic Policy SP2 will, as part of the affordable housing requirement, need to provide 5% of the total housing requirement to meet M4(3): Category 3 - Wheelchair Accessible Dwellings. Development Policy 3 High Development policy which outlines the following: Costs for 20% reduction in CO2 included (DP3): Sustainable within our appraisals, with greenfield sites • Design All new build development should achieve having a higher costs to reflect zero carbon a minimum 20% reduction in CO2 development. emissions through energy efficiency measures on site. Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study • On new build greenfield sites this target The cost of energy statements for major should be exceeded and Bohemia sites development will be covered by should target zero carbon development. professional fees in our appraisal. • The Council will require the submission of an energy statement for all major developments. • Major development must: minimise energy demand through fabric performance and efficient heating techniques; supply energy efficiently using local energy resources where possible and developers should include technology such as ground source heat pumps, and where possible store renewable energy onsite. Development Policy 4 Development policy which outlines the following: The cost of flood risk assessments will be (DP4): Flood Risk and covered by professional fees in our • Water Quality A flood risk assessment will be required appraisal. as a part of a planning application for developments in flood risk zones 2 and 3. • A flood risk assessment may be required Cost of providing SuDS reflected into in flood zone one in certain external cost allowance circumstances. • All major development should incorporate Cost of providing the flood defences is sustainable urban drainage systems. considered to be delivered through site- • Development adjacent to flood and/or sea specific S106, funded through any viability defences will be required to protect the surplus generated. integrity of existing defences, contribute to new defences where appropriate Development Policy 5 High Development policy which outlines the following: The cost of ecological appraisals will be (DP5): Biodiversity covered by professional fees in our • Planning applications be accompanied by appraisal. ecological appraisals.

Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study • Development will be expected to Cost of 10% biodiversity net gain included demonstrate biodiversity net gain and will in the appraisal. be supported when they can demonstrate a minimum 10% biodiversity net gain with a 30-year management plan. Development Policy 6 Medium Development policy which outlines the following: Cost of providing green infrastructure (DP6): Green reflected into external cost allowance. • Infrastructure Development should identify and protect green infrastructure and identify The cost of contributing to the Green opportunities to contribute to green Infrastructure and Playspace Fund is infrastructure and support climate change. assumed to be covered through site- specific S106, funded through any viability • All major residential development will be surplus generated. expected to contribute to Green Infrastructure and Playspace Fund where provision is not made on site. Development Policy 7 Medium Development policy which outlines the following: It is assumed that on-site parking costs will (DP7): Access, Servicing be covered through external costs • and Parking The Council will require a transport allowances. assessment where development meets the relevant thresholds set out in Any transport assessments will be guidance from East Sussex County accounted for in the professional fees. Council. Cost for provision of electric changing • All residential development should points have been included in the appraisals, provide on-site secure cycle parking but we note that this is not a mandatory facilities in line with East Sussex County requirement. Council’s Guidance for Parking at New Any parking contributions will come out of Residential Development or any site-specific S106, funded through any successor document. Major office viability surplus generated. development should also provide onsite secure cycle parking spaces.

• The Council will minimise car parking provision, particularly in accessible locations, with a maximum of 1 car parking space for each home.

Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study • Car Parking will be restricted for residential and office development in the ‘Low Car Parking Area’, within a 400m radius of Hastings Station, no new parking should be provided except disabled bays unless transport or viability assessment indicates they are required

• Where feasible, the Council will require electric vehicle charging facilities for all new properties with off-street parking in accordance with current standards and codes of practice.

Development Policy 8 High Development policy which outlines that S106 will Our treatment of affordable housing, (DP8): Planning be used to gather developer contributions for the parking costs, green infrastructure, SuDs Obligations (Section 106) following. and biodiversity are outlined above. A: All development (excluding householder Any contributions sought for highways applications), where required: works is assumed to be covered through site-specific S106 from the viability surplus. • Highways works/contributions Our treatment of parking costs is outlined • Rights of Way above. • Biodiversity measures off site or a Assumed open space will be provided on- financial contribution towards these site in the difference between the gross to • Fluvial or surface water attenuation net developable area. Where this is not measures where impacts cannot be possible, cost to be met through S106, addressed on site. funded through any viability surplus generated. • Restrictions to on street sparking, car clubs or other modal shift schemes in line There is no specific policy that outlines how with Policy DP7 employment and skills contributions can be collected. We therefore assume this is to be B: In addition to A, major residential development undertaken on a site-by-site basis. No cost (10 or more homes) for this has been included in our appraisals • Affordable Housing in line with Policy SP2 and we assume that any contributions will Draft planning policy Impact on Local plan viability implications How have these costs been dealt with in viability the study • Open space contribution where open come out of the S106 viability surplus or space is not provided on site to pay for delivered through the development process. upgrades/access improvements to existing open space • Play space contributions and maintenance contributions to pay for upgrades/access improvements to existing play space C: In addition to (A and B), larger scale residential and commercial development (40 or more homes or floorspace of 2,500sqm or more) • Employment and training contributions • Public transport contributions • Public realm improvements including public art • Provision of on-site open space • Construction phase local employment labour procurement targets and/or employment and skills plans • Contributions to other social infrastructure, such as health facilities, education libraries

Local Plan Viability Study Hastings Borough Council January 2021

Appendix 2 – Market Report

Final Draft APPENDIX 2 Local Plan Viability – Property Market Report

Hastings Borough Council

26 January 2021

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Quality Assurance Date of Report 26 January 2021

Version Final draft

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Checked by Stuart Cook, Director

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Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Contents

Report

1 Introduction 5 Novel Coronavirus (COVID-19) 5 2 Residential market assessment 10 Introduction 10 Residential market overview 11 Average property prices 12 East Sussex average property prices 12 Hastings overview 13 New build sale prices 16 New build quoting prices 19 Residential agent consultation 19 Residential market conclusion 20 3 Elderly accommodation 22 Introduction 22 Specialist housing premiums 23 Conclusion 26 4 Retail market assessment 27 Introduction 27 Retail market overview 27 Convenience sector 27 Comparison retail 31 Conclusion 33 5 Industrial market 34 Introduction 34 Industrial market Hastings 35 Conclusion 36 6 Office market 38 Introduction 38 Hastings office market 39 Conclusion 40

Tables & Figures

Figure 2-1 Percentage of businesses, current trading status, broken down by industry, UK, 19 October to 1 November 2020 6 Figure 2-2 Effect on turnover, businesses who are continuing to trade, broken down by industry, UK, 19 October to 1 November 2020 7 Figure 2-3 UK GDP growth, Quarter 1 (Jan to Mar) 2005 until March to May 2020 8 Figure 2-1 Study Boundary 10 Figure 2-2 Average property price and number of sales 2007 – present 11

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Figure 2-3 Average property prices 12 Table 2-1 Property values by type - East Sussex 13 Figure 2-4 Hastings values by ward boundary: 04/2018 – 04/2020 14 Figure 2-5 Hastings residential values expressed as a heatmap: 03/2018 – 03/2020 15 Figure 2-6 Hastings residential values expressed as a heatmap, flatted only: 03/2018 – 03/2020 .... 16 Table 2-2 Analysis of new build sold prices – Little Acres Way 17 Table 2-3 Analysis of new build sold prices – Robert De Mortain 17 Table 2-4 Analysis of new build sold prices – Rossetti Gardens 17 Table 2-5 Analysis of new build sold prices – Ivy Gardens 18 Table 2-6 Analysis of new build sold prices – Rosewood Park 18 Table 2-7 New build quoting prices - Hastings 19 Table 2-8 Proposed sale prices across Hastings Borough 20 Table 2-9 Proposed housing development - sale prices 21 Table 3-4 Proposed sale prices 26 Figure 4-1 Great Britain Grocery market share 12 weeks ending 22/04/18 & 29/11/20 28 Table 4-1 Convenience retail occupational transactions 29 Table 4-2 Convenience retail investment transactions 30 Table 4-3 Comparison retail occupational transactions 32 Table 4-4 Comparison retail investment transactions 32 Table 5-1 Industrial occupational transactions 35 Table 5-2 Industrial investment transactions 36 Table 6-1 Achieved office rents 39 Figure 6-1 Office investment transactions 40

Appendices

Appendix 2.1 – Residential sale value evidence

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

1 Introduction

1.1 This property market report has been used to inform our assumptions and inputs for the Hastings Borough Council Local Plan and CIL viability testing. This report draws on data from recognised published data such as CoStar, Land Registry, Rightmove.co.uk, Zoopla, Energy Performance Certificates (EPCs) and published reports.

1.2 Our market assessment considers the following markets:

• General residential. • Specialist residential. • Retail (comparison and convenience). • Office uses. • Industrial uses.

Novel Coronavirus (COVID-19)

1.3 On the 11 March 2020, the World Health Organisation declared the coronavirus a worldwide pandemic. Since the 23 March 2020 the UK has been in lockdown which has resulted in measures such as the government asking people to work from home (unless key workers), furlough scheme to protect workers, restrictions in leaving the house, school closures, social distancing measures and travel restrictions, In June the government announced an easing of restrictions but the area was subject to “local lockdown” depending on the spread of the virus.

1.4 In November England faced its second national lockdown but the measures were not as extreme as the first. The second lockdown had come to an end by December and the country was living in a tired system.

1.5 At the time of writing, the country was placed into a third lockdown in January 2021 as a result of a new variant of the virus which is more transmissible. It is too early to tell what impact coronavirus will have on the UK property market but it is likely to be significant given many sectors have had to pause trading and turnover has decreased leading to the UK economy shrinking.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Impact on the economy

1.6 As shown in Figure 2-1, most sectors have been affected by the pandemic through pausing in trading.

Figure 2-1 Percentage of businesses, current trading status, broken down by industry, UK, 19 October to 1 November 2020

Source: Office for National Statistics – Business Impact of Coronavirus (COVID-19) Survey

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

1.7 Due to the pandemic, a large percentage of businesses in all sectors are seeing a reduction in turnover (see Figure 2-2).

Figure 2-2 Effect on turnover, businesses who are continuing to trade, broken down by industry, UK, 19 October to 1 November 2020

Source: Office for National Statistics – Business Impact of Coronavirus (COVID-19) Survey

1.8 Overall, the UK economy has shrunk (see Figure 2-3) significantly (19%) during the first national lockdown. ONS state that UK gross domestic product (GDP) is estimated to have grown by a record 15.5% in Quarter 3 (July to Sept) 2020, as lockdown measures were eased.1

1 GDP first quarterly estimate, UK - Office for National Statistics (ons.gov.uk)

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Figure 2-3 UK GDP growth, Quarter 1 (Jan to Mar) 2005 until March to May 2020

Source: Office for National Statistics

1.9 According to the most recent figures, there was a 2.6% fall in GDP in November 2020. The Government are continuing to roll out support measures for businesses and the furlough scheme has been extended until April 2021.

Brexit: trade border issues

1.10 Beyond the pandemic, January 2021 marked the end of the free movement of people and goods and services between the UK and the EU. This has increased bureaucratic complications that are now prevalent at trade borders. This disruption is increasing damage to domestic businesses who export to the EU and will exacerbate existing financial difficulties as a result of the pandemic.

Impact on the property market

1.11 We are only now seeing some data on the impact coronavirus is having on the property market but not in significant quantum to draw robust analysis - this is because the market has effectively been held in abeyance and with the time-lag of recording data the full impacts will not be known for several months to come.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Conclusion

1.12 Overall, though there is increased market uncertainty due to the pandemic and ongoing Brexit complications, we are still able to take an assessment to inform our viability testing.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

2 Residential market assessment Introduction

2.1 This section deals with the residential market in Hastings Borough Council– see the map in Figure 2-1. Hastings is a seaside town that over time has expanded to St Leonards-on-Sea to the west and roads through the Old Town lead to the village of Ore to the east before returning back along The Ridge which forms the broad boundary of Hastings Borough. The growth of Hastings has led to a sprawl of development following the A259 and A21.

Figure 2-1 Study Boundary

Source: AspinallVerdi, 2020

2.2 For context, we firstly provide an overview of market conditions at a national, regional and local scale. We then analyse second-hand sales evidence and new-build development data in terms of achieved and asking prices to ensure the value assumptions and inputs adopted within the financial appraisals are robust.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Residential market overview

2.3 Following the global financial crisis, the residential market in England & Wales was generally been in a period of growth. The growth was initially seen in London, which responded to the quickest to the financial crisis. This growth then rippled out to the southeast and regions. But this growth in values has not been spread equally across England & Wales. Those regions that performed well were located within an hour’s commute to London, commonly known as the ‘golden hour’ for commuters. As London has faced affordability issues, those locations within an hour commute had become more attractive as they often better value money for those wishing to buy, or upsize.

2.4 In recent years, the market has become more unstable due to; changes in Stamp Duty Land Tax (SDLT), the UK leaving the EU and entering into a transition period and more recently and much more severe the impact of COVID-19. As demonstrated in Figure 2-2 since lockdown sales have fallen significantly as such there is not sufficient data at this current time to draw conclusions this is having on the residential market. As Land Registry is updated over the coming months, we may see sales being recorded during the lockdown period but as yet there is no data. In order to support the housing market the government announced on the 08 July 2020 that from that date until 31 March 2021 there will be a SDLT holiday for properties up to the value of £500,000. It is looking ever more likely that the UK will have no trace deal with the EU once the transition period comes to an end on 1 January 2021. This is likely to have a significant impact on the housing market and the wider economy.

Figure 2-2 Average property price and number of sales 2007 – present

£220,000 200 180 £215,000 160 140 £210,000 120 100 £205,000 Lockdown 80 60 £200,000 40 20 £195,000 0 2018-01 2018-02 2018-03 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 2018-11 2018-12 2019-01 2019-02 2019-03 2019-04 2019-05 2019-06 2019-07 2019-08 2019-09 2019-10 2019-11 2019-12 2020-01 2020-02 2020-03 2020-04 2020-05 2020-06 2020-07 2020-08

Average price All property types Sales volume

Source: Land Registry, accessed August 2020

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Average property prices

2.5 Figure 2-3 shows the average property prices (new and re-sales) for England, East Sussex and Hastings Borough.

2.6 Since 2009, the England average price has increased by around 55%, from £159,000 to £247,000. In the same period, prices across East Sussex have grown at a slightly higher rate of 59%, from a higher average price; the current difference in average prices in East Sussex and England is currently around £30,000 (or 14%). The average prices in Hastings are lower than the average prices in England and East Sussex but have made the greatest recovery of the three areas since 2009 with growth of 72%. Compared to East Suffolk, average prices are currently 30% lower, at £217,963 as of January 2020.

Figure 2-3 Average property prices

£350,000

£300,000

£250,000

£200,000

£150,000

£100,000

£50,000

£0 2000-01 2000-07 2001-01 2001-07 2002-01 2002-07 2003-01 2003-07 2004-01 2004-07 2005-01 2005-07 2006-01 2006-07 2007-01 2007-07 2008-01 2008-07 2009-01 2009-07 2010-01 2010-07 2011-01 2011-07 2012-01 2012-07 2013-01 2013-07 2014-01 2014-07 2015-01 2015-07 2016-01 2016-07 2017-01 2017-07 2018-01 2018-07 2019-01 2019-07 2020-01

England East Sussex Hastings

Source: Land Registry, accessed March 2020

East Sussex average property prices

2.7 Table 2-1 shows average property prices for East Sussex split by typology. The analysis shows that the difference between the average unit price for detached and semi-detached is significant at around £200,000 (or 62%) this is despite the difference in £ psf being only 4% - this would indicate that the average size of a detached property is relatively large compared to semi- detached. The remaining typologies all rise on a £ psf basis from detached to flats, demonstrating that generally, the smaller properties are more expensive.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Table 2-1 Property values by type - East Sussex

Property type Avg. current Avg. £ per sq ft. Avg. # Avg. £ paid (last value beds 12m)

Detached £530,740 £340 3.7 £484,872

Semi- £361,906 £326 3.1 £352,361 detached

Terraced £354,084 £361 2.8 £342,562

Flats £252,987 £388 1.8 £242,279

Source: Zoopla, accessed August 2020

Hastings overview

2.8 Analysis has been undertaken of Land Registry data of sold prices for re-sales on a price per unit basis over the last two years across Hastings Borough.

2.9 The map in Figure 2-4 shows property prices grouped in value bands analysed against ward boundaries. The analysis shows higher values on a price per unit basis around the outer wards and the east seafront, the majority of the new build development has been occurring around the urban fringe of Hastings.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council January 2021

Figure 2-4 Hastings values by ward boundary: 04/2018 – 04/2020

Source: Land Registry Sale Value data, Basemap ArcGIS online, April 2020

2.10 The map in Figure 2-5 is the same Land Registry data expressed a ‘heatmap.’ The data is not ‘fixed’ against ward boundary boundaries thus allowing for finer grain analysis of the areas of higher, mid and lower values. The red/orange colours represent higher average prices and the blue colours represent the lower values. The analysis shows an emphasis on the low-value area toward Hastings and St Leonards. The higher value areas are achieved around the outer suburbs of Hastings. The heatmap does not show that there is a specific area of higher value, this is mainly due to the smaller properties that are sold closer to the centre of Hastings.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Figure 2-5 Hastings residential values expressed as a heatmap: 03/2018 – 03/2020

Source: Land Registry Sale Value data, Basemap ArcGIS online, April 2020

2.11 We have also taken the same heatmap approach to analyse flatted sales in Table 2-5. This allows for a more in-depth understanding of the differing value zones for the flatted areas in the Borough. Our heatmap containing sales from all property types in Table 2-4 outlines Hastings and St Leonards as lower value areas, but it is important to be aware that many of these properties will be flatted and have a lower overall sales value. When focusing purely on flatted development, is clear that Hastings town centre itself is the lower value area, which is reflected in the smaller unit types being delivered here.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Figure 2-6 Hastings residential values expressed as a heatmap, flatted only: 03/2018 – 03/2020

Source: Land Registry Sale Value data, Basemap ArcGIS online, April 2020

New build sale prices

2.12 New build sale values have been analysed using Land Registry Data, this data has been analysed on a £ psm basis through cross-referencing with EPC data. The EPC certificate data provides evidence of the unit sizes but does not record the number of bedrooms per property. Evidence of the number of beds has been taken from the Councils’ planning portal, Rightmove, Zoopla and Prime Location; although, it has not been possible to reconcile all property types. Where the number of beds for the property is known, this has been recorded. Where the number of beds is not known this has been left ‘blank’ in our analysis. The tables of the new build sold prices summarise sale values for each typology and number of beds. We also display tables including all properties sold for the unit typology – this includes those where the number of beds is not known i.e. total sales per typology. The data covers approximately two years of sales (March 2018 – March 2020), the full analysis is contained in Appendix 2.1.

2.13 Given the size of the study area, there is little evidence available for new build sales values. This is because generally volume housebuilders are not active in the area, local developers deliver the bulk of development and data is largely absent as regards new build sales. Our research has shown that Park Homes deliver a lot of the new build housing within Hastings.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Hastings

2.14 Table 2-2 shows new build sold prices for Little Acres Way, a development by Park Lane, northeast of Hastings, near Ore. It is a Park Lane Group development and has delivered a mix of 3, 4- and 5-bedroom houses. The new build sold prices show that there is a narrow price range on a psm basis due to units being similar in size and all terraced.

Table 2-2 Analysis of new build sold prices – Little Acres Way

Typology No. of Number Average Sold Sold £psm £ psm beds of sales size value value Min Max Sqm min max Terraced 2 19 73 £249,950 £284,950 £3,420 £3,818

Terraced 3 7 86 £274,950 £282,500 £3,197 £3,284

Source: Land Registry, Hasting Borough Council planning portal, accessed April 2020

2.15 Table 2-3 shows new build sold prices for the Robert De Mortain development at The Ridge, Hastings. It is another Park Lane Group development, on the northern edge of Hastings off the B2093. The development delivered 3-bedroom detached properties. Analysis of new build sold prices were again tight due to the type and size of dwellings delivered. Values were notably higher on a psm basis for than the terraced properties at Little Acre Way.

Table 2-3 Analysis of new build sold prices – Robert De Mortain

Typology No. of Number Average Sold Sold value £psm £ psm beds of sales size value max Min Max Sqm min Detached 3 5 86 £339,950 £357,500 £3,953 £4,157

Source: Land Registry, Hasting Borough Council planning portal, accessed April 2020

2.16 Table 2-4 shows new build sold prices for the Rossetti Gardens development in St. Leonards- On-Sea. It is another development by Park Lane Group, delivering a mix of 2, 3 and 4-bedroom properties. The analysis shows that in this instance the semi-detached units were the highest value, between £3,999 and £4,181 psm. The larger 4-bedroom units achieved the lowest price on a psm basis.

Table 2-4 Analysis of new build sold prices – Rossetti Gardens

Typology No. of Number Average Sold Sold £psm £ psm beds of sales size value value Min Max Sqm min max Semi 2 7 55 £219,950 £229,950 £3,999 £4,181 Detached

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Typology No. of Number Average Sold Sold £psm £ psm beds of sales size value value Min Max Sqm min max Semi 3 1 72 £265,000 £265,000 £3,681 £3,681 Detached

Semi 4 1 104 £314,950 £314,950 £3,028 £3,028 Detached

Detached 3 1 79 £338,000 £338,000 £4,278 £4,278

Detached 4 1 104 £314,950 £314,950 £3,028 £3,028

Source: Land Registry, Hasting Borough Council planning portal, accessed April 2020

2.17 Table 2-5 shows new build sold prices for Ivy Gardens, northeast of Hastings. It is another Park Lane Group development that contains a mix of 1 and 2-bed terraced properties. The £ psm paid ranges are again narrow.

Table 2-5 Analysis of new build sold prices – Ivy Gardens

Typology No. of Number Average Sold Sold £psm £ psm beds of sales size value value Min Max Sqm min max Terraced 1 10 61 £220,000 £239,950 £3,607 £4,181

Terraced 2 2 71 £254,950 £259,950 £3,681 £3,681

Source: Park Lane Group, Hasting Borough Council planning portal, accessed April 2020

Rother District Council

2.18 Given the lack of new-build sales data available for flats we have looked neighbouring Rother District. David Wilson Homes’ Rosewood Park development, which mostly delivered 3 – 5- bedroom dwellings also had an element of flats. The data in Table 2-6 that flats achieved around £3,000 psm.

Table 2-6 Analysis of new build sold prices – Rosewood Park

Typology No. of Number Average Sold Sold £psm £ psm beds of sales size value value Min Max Sqm min max Flatted 1 4 53 £168,000 £195,000 £3,170 £3,679

Flatted 2 3 70 £210,000 £215,000 £3,000 £3,071

Source: Land registry, EPC, Rother District Council planning portal, accessed August 2020

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

New build quoting prices

2.19 A comparable analysis of new build available properties has been undertaken to gain an understanding of the location of new build schemes and their quoting prices – this is set out in Table 2-7. There is a small volume of new build housing schemes currently on the market.

2.20 The analysis of quoting prices shows that there are very few new build 1 or 2 bedroom units currently being advertised in the area. There is one new-build 1-bed flat advertised at £130,000. The 2-bed flats are between £150,000 and £155,000. The 3-bed properties in a range between £335,000 and £350,000, 4-bed properties range between £380,000 and £465,000. The lack of data is an account of the lack of development in Hastings. Generally, this is not an area where volume housebuilders are active.

Table 2-7 New build quoting prices - Hastings

Address Developer Typology Quoting prices West Trees, - A development of 4- 4 bedroom semi: Beauharrow Road, bedroom properties £380,000 Hastings, TN37 4 bedroom detached: £490,000 - £550,000 The Ridge, Hastings, The Park Lane Group A development of 3 bedroom TN34 (10) 3-bedroom detached: £340,000 properties Burry Road, Hastings, - A development of 3 3 bed semi: TN37 and 4-bedroom £335,000 – properties £350,000

4 bed detached: £450,000 - £465,000 Waterworks Road, - A development of 1- 1 bed flat: £130,000 Hastings, TN34 and 2-bedroom flats 2 bed flat: £150,000 - £155,000 Source: Developer websites, Rightmove, accessed March 2020, AspinallVerdi

Residential agent consultation

2.21 Telephone consultations have been undertaken with local estates agents during the end of July/early August 2020 active across the Hastings, to supplement the desk-based research. This is an informal consultation to help verify our evidence and as such we do not have permission to publish their names.

2.22 Our telephone consultations are the summarised responses:

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

• The higher value and more desirable areas of the Borough are to the north and due to its better schools and more bespoke homes and preferred location toward the rural hinterland. • Hastings town centre comprises older buildings, with flats and terraces which are generally worn out. • Housing stock toward the centre of Hastings is poor quality and there is a lack of new development with Park Lane Group delivering the majority of new stock. • St Leonards is generally considered a nicer area than Hastings.

2.23 Agents gave a broad indication of what values they could achieve for new build properties in Hastings area but emphasised there is a lack of new build development to test these values. Some specific developments may exceed these values but the bulk of new development is within the range.

Table 2-8 Proposed sale prices across Hastings Borough

Address Typology Agents quoting unit prices

Hastings 1 bed flatted (town centre) £140,000-£145,000 2 bed flatted (town centre) £170,000-£180,000 2 bed terraced £230,000-£250,000 2 bed semi-detached £270,000-£280,000 3 bed semi-detached £290,000-£300,000 3 bed detached £310,000-£330,000 4 bed detached £340,000+ St Leonards-On-Sea 1 bed flatted £165,000-£185,000 2 bed flatted £200,000-£220,000 Source: Residential agents Hastings, December 2020

2.24 Based on our market analysis we proposed to test two value zones which we will set out in the next section. The lower value area is applicable for flatted development only, to reflect development coming forward.

Residential market conclusion

2.25 In conclusion, the residential market in Hastings is relatively homogenous except for the town centre. Our market evidence shows that volume (national) housebuilders have been inactive in the Hastings compared with elsewhere in the country and the Borough is reliant on one main housebuilder to deliver much of the new housing stock.

We observe that larger and more expensive properties are being built in the outer suburbs of Hastings and the existing stock particularly in the town centre is poor quality. One key difference

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

we have identified is in the flatted market which is toward the coastline and main town centres, here it is clear that Hastings town centre itself is the lowest value area for this type of development. Based on our market analysis we proposed to test two value zones using the values set out in Table 2-9. As mentioned, the lower value area is applicable to flatted development only.

Table 2-9 Proposed housing development - sale prices

Typology Unit size unit price £psm

Higher value area

2 bed house 72 £275,000 £3,819

3 bed house 85 £300,000 £3,488

4 bed house 110 £340,000 £3,091

1 bed flat 50 £185,000 £3,700

2 bed flat 65 £230,000 £3,538

Lower value area

2 bed house 72 £275,000 £3,819

3 bed house 85 £300,000 £3,488

4 bed house 110 £340,000 £3,091

1 bed flat 50 £145,000 £2,900

2 bed flat 61 £170,000 £2,787 Source: AspinallVerdi, December 2020

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

3 Elderly accommodation Introduction

3.1 With an ageing population, the demand for forms of specialist accommodation for the elderly is growing. This type of specialist accommodation usually takes the form of retirement living (typically over 55 accommodations), housing with support, and housing with care. We define these below:

• Age restricted-exclusive / sheltered / retirement housing – this is an accommodation that is built specifically for sale or rent to older people e.g. McCarthy and Stone or Churchill properties. They comprise self-contained units (apartments) with communal facilities and a live-in or mobile scheme manager and alarm call systems in case of emergency. • Assisted living/extra care / very sheltered housing - this is similar to sheltered housing but is designed to enable residents to retain their independence as they grow older and their need for support and/or care increases. Residents still occupy their own self-contained home within blocks of flats, estates of bungalows or retirement ‘villages’ but often enjoy enhanced communal accommodation and occupants may also be offered individual care and assistance from support staff, within the complex, 24 hours per day. • Close care or assisted living housing – This is normally situated within the grounds of a care home and takes the form of self-contained, independent flats or bungalows. Units may be rented or purchased by the occupier. Residents will also have access to the care home’s other facilities and will normally have some form of direct communication with the care home for emergencies. There may well be an arrangement whereby the care home management will buy-back the property if it becomes necessary for them to move into the care home. • Care homes / residential care homes – living accommodation for older people who employ staff that provides residents with personal care, such as washing and dressing. Residents normally occupy their single rooms but have access to other communal facilities. • Care homes with nursing/nursing homes – Similar to a residential home but they offer the full-time service of qualified nursing. Such accommodation is suited to residents who are physically or mentally less capable and require a higher level of care. 3.2 Figure 3-1 shows the supply of retirement living units in 2018 and demonstrates that the majority of supply is delivered through age-restricted/exclusive or sheltered housing for sale. With extra care schemes, the tenure split is more widely spread with social rented and shared ownership options.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Figure 3-1 Supply of retirement living units in 2018

Source: Knight Frank, November 2018

3.3 Our focus is on age-restricted as these are more likely to be developed by the private sector and are most similar to C3 use housing. C2 use residential institutions such as residential care homes and nursing homes are specialist developments (valued on a turnover or ‘profits’ basis) and are not considered in this analysis. Some of these schemes are developed by housing associations and others by the private sector and/or charities and all will have a different status in terms of liability for Affordable Housing or CIL, (for example, Charitable Organisations are exempt from CIL).

Specialist housing premiums

3.4 Research by the Retirement Housing Group 2 (RHG) indicates that sheltered housing values carry a premium over general needs housing – this analysis is set out in Table 3-1.

Table 3-1 Sheltered housing and ECH sales values premiums

Typology Assumption

Sheltered In mid & higher-value areas - housing unit • prices 10-15% premium to private market 1 – 2-bed flats Or, in lower-value areas (with no apartment scheme comparables) – • 75% value of a 3-bed semi-detached house for a 1-bed sheltered housing unit, and • 100% value of a 3-bed semi-detached house for a 2-bed sheltered housing unit Source: Retirement Housing Group 2013.

2 RHG Retirement Housing Group, 2013, Retirement Housing Viability Base Data/ Churchill Retirement Living and McCarthy and Stone, 2013, Briefing Paper for CIL Practitioners Retirement Housing and the Community Infrastructure Levy

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

RHG rule of thumb - the higher-value area

3.5 There are no new build flatted sales in Hastings Borough, so we considered quoting prices in Hastings and sales in nearby in Bexhill, in the Rother District. Our evidence indicates that 1-bed units would achieve approximately £185,000 and 2-bed units £230,000. We have applied the RHG rule of thumb approach to our higher sales values in Table 2-9, it generates the following adjusted values:

• For a 1-bed flat, 15% premium on £185,000 = £218,000 • For a 2-bed flat 15% premium on £230,000 = £280,000

3.6 We would expect the 2 bed flats to be larger for this type of development to account for space required for extra care facilities, we have adjusted the value upwards, as above.

Marketed properties – Hastings and the wider area

3.7 There are no new-build developments in Hastings being marketed and so we have also looked at local resales and new build schemes in the wider area. Churchill Retirement Living is currently selling a new-build development in Eastbourne, Seaford and Peacehaven and McCarthy and Stone are marketing a new site in Southborough and Royal Tunbridge Wells. All of these are flatted schemes. These schemes and their marketed prices are outlined in Table 3-2. The 1-bed properties are marketed between £293,950 and £325,000 and the 2-bed properties are marketed between £398,950 and £450,000.

Table 3-2 New-build marketed properties Site Address Type Size Quoting price sqm Allingham Lodge, Eastbourne 1 bed £293,950 - £299,999 2 bed £384,950 - £448,950 Hortsley, Seaford 1 bed £255,000 2 bed £370,000 Rowe Avenue, Peacehaven 1 bed £300,000 - £317,950 2 bed £400,000 - £421,950 Brookfield Court, Southborough 1 bed £325,000 Gate & Pinewood Gardens, Tunbridge Wells 2 bed £420,000 - £450,000 Source: Rightmove, accessed March 2020

3.8 These quoting prices are all significantly higher than the rule of thumb approach based on the sales data for flats Bexhill. A sense check reveals that this is expected because average prices for flats in these neighbouring areas are much higher than Hastings, see Figure 3-2.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Figure 3-2 Average prices for flats and maisonettes by local authority £300,000

£250,000

£200,000

£150,000

£100,000

£50,000

£0 2018-01 2018-02 2018-03 2018-04 2018-05 2018-06 2018-07 2018-08 2018-09 2018-10 2018-11 2018-12 2019-01 2019-02 2019-03 2019-04 2019-05 2019-06 2019-07 2019-08 2019-09 2019-10 2019-11 2019-12 2020-01 2020-02 2020-03

Hastings Eastbourne Lewes Tunbridge Wells

Source: Land Registry, accessed August 2020

3.9 There are a small number of local elderly accommodation resales in Hastings, these are outlined in Table 3-3 and again consist of flatted development located on or near to the seafront. We are aware of houses marketed for over-60s based on a one-off discounted payment in exchange for a lifetime lease. However, these homes are then handed back to investors at the end of the tenant’s life, this is akin to an equity release model and does not represent the type of new build development coming forward.

Table 3-3 Resale quoting prices in Hastings Site Address Type Size Quoting price sqm St Marys Court, Warrior Square 1 bed 34 £69,900 St Leonards-on-Sea 1 bed 33 £85,000 1 bed n/a £150,000 2 bed n/a £149,950 - £165,000 Verulam Place, St Leonards-on- 1 bed n/a £100,000 – £120,000 Sea Source: Rightmove, accessed August 2020

3.10 Prices for second hand 1-bed elderly accommodation ranges from £69,900 - £150,000, and 2- bed equivalents between £149,950 - £165,000. Overall, the quality of second-hand stock is poor and this is reflected in the prices per unit.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Conclusion

3.11 Based on our market analysis we proposed to test a single value zone using the values set out in Table 2-9, these values are higher than the resale value evidence observed as we would expect a premium to be achieved for new builds. A single value zone is appropriate as this is where allocations, and windfall development, is most likely to come forward as over 55 accommodation.

Table 3-4 Proposed sale prices

No. of bed Unit size sqm Unit price £ psm

1 50 £215,000 £4,300 2 70 £280,000 £4,000 Source: AspinallVerdi 2020

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

4 Retail market assessment Introduction

4.1 In our assessment of the retail sector, we consider both convenience and comparison retail because they both have different market drivers.

Retail market overview

4.2 Prior to the COVID-19 pandemic the retail market was going through a structural change. The structural changes in the retail market were being caused by the growth in online sales and falling footfall in town centres. Retailers were also facing cost pressures from business rates and national living wage. During the COVID-19 outbreak many retailers have had to close or limit customer access due to social distancing measures introduced by the government. Many retailers have sought to take advantage of the Coronavirus Act 20203 and not paid rent – CoStar reported that only 41% of March quarter date rent was collected and 40% June quarter date.4

4.3 The furlough scheme and a temporary restriction on statutory demands and winding up petitions, are ending April 2021 and March 2021 respectively. Both of these measures will hold back some of the financial pressure on businesses affected by the pandemic. Once removed, the future financial security of businesses will become uncertain.

Convenience sector

4.4 The convenience retail sector has seen a significant change since the financial crisis. In the years following 2008, supermarkets appeared to have weathered the economic storm with most operators aggressively expanding (commonly referred to as the race for space). Operators were able to competitively bid for sites as they were taking advantage of other sectors in the property market is much weaker. During this period of growth, there was a strong appetite from operators to open large-format stores of up to circa 11,150 sqm (123,785 sqft). This format providing a mixture of convenience and comparison retail.

4.5 In more recent years shopping patterns have changed significantly: there is more reliance on online shopping combined along with customers supplementing a ‘big’ shopping trip with regular smaller shops during the week. Also, some customers are splitting their shopping trips between the big four supermarkets (Tesco, Sainsbury’s, Asda and Morrisons) and discounters such as Aldi and Lidl. This resulted in supermarket operators shifting away from large format stores

3 'Coronavirus Act 2020' which received royal assent on 25 March 2020 introduced new legalisation ‘that no right of re-entry or forfeiture may be enforced due to non-payment of rent until the end of the 'relevant period' (30 June 2020 (unless extended)).’ The Coronavirus Act 2020 has provided the flexibility to allow tenants not to make their quarter day payment in March. 4 CoStar, 2 July 2020, Forty six per cent of June Quarter Day commercial rent now collected

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

4.6 The convenience retail market appears to have performed relatively well during the outbreak with many reporting a higher volume of sales than they would experience during Christmas. At some points, demand has appeared to outstrip supply, with the likes of Ocado temporarily suspending their ordering application and restricted access to their website. The pressures faced by supermarkets during the COVID-19 lockdown are; maintaining social distancing in their physical stores, through restricting customers numbers; maintain supply chains (resulting in less choice of items and restricting the number of purchasers, and increasing capacity for home deliveries to meet demand. The pressure for retailers to have an online presence has been felt during the pandemic more than ever before. Even Marks and Spencer, who have traditionally only sold groceries in store, have invested in Ocado to provide this service.

4.7 Figure 4-1 shows how the changes in the market have affected the relevant supermarket operators market share in recent years. The big four have been losing market share whereas the budget operators of Lidl and Aldi have gained market share along with online delivery service Ocado.

Figure 4-1 Great Britain Grocery market share 12 weeks ending 22/04/18 & 29/11/20

Source: Kantar WorldPanel, December 2020

4.8 Due to the changes in the market, operators are now more selective in the types of and locations of stores the seek to open. Tesco typically only seeks sites for their express format i.e. circa 200 sqm (2,200 sqft) in main urban areas ideally close to transport hubs, The likes of Asda, Morrisons and Sainsbury’s focus on the main urban areas where there is a perceived market gap. Aldi and Lidl have been a bit more aggressive which has led them to increase their market share.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

4.9 Lidl5 seek sites with a minimum of 1.5 acres to accommodate a store totalling between 14,000- 26,500 sqft (1,300-2,460 sqm). In terms of location, the sites would ideally have main road frontage with easy access and be situated within town, district or edge of centre or out of town locations. Aldi6 also has similar requirements in terms of location and size, with a minimum of 1.5 acres to accommodate 18,000 - 20,000 sqft of space and 100+ car parking spaces.

4.10 The Borough is well represented with supermarkets:

• Asda Battle Road, St Leonards-on-se (6,000 sqm) • Morrisons, Queens Road, Hastings (6,400 sqm) • Sainsbury’s, John Macadam Way, St Leonards-on-sea (8,300 sqm) • Tesco Extra, Churchwood Drive, St Leonards-on-sea (11,500 sqm)

4.11 In addition to the above there are a number of smaller format stores found around the Borough.

Convenience retail rents

4.12 There has been a lack of new letting activity for supermarkets in the Borough recorded on CoStar therefore we have considered transactions in the wider Kent area. Table 4-1 shows that rents achievable range between £21 psf up to £29 psf.

Table 4-1 Convenience retail occupational transactions

Lease Address Tenant Size sqft Rent £ Comment start date psf 06/07/2020 Mont St. Aignan Way, Waitrose 18,923 N/a 20-year Edenbridge lease 25/06/2020 Church Rd, Tonbridge Waitrose 32,505 N/a 20-year lease 14/06/2019 Talbot Lane, Swanscombe The Co- 3,050 N/a Operative Food Ltd 17/07/2019 Dadson Way, Ramsgate Sainsbury's 121,364 £21.34 Effective rent, 40- year lease 18/06/2019 29 High St, Canterbury Sainsbury's 3,846 £28.60 25-year lease 12/02/2019 Dadson Way, Ramsgate Sainsbury's 121,364 £21.00 25-year lease 01/09/2019 Thames Way, Gravesend Lidl 25,137 N/a

05/06/2019 Longfield Rd, Tunbridge Aldi 27,000 N/a 20-year Wells sub-lease Source: CoStar, accessed July 2020

5 Lidl.co.uk/en/Site-Requirements, accessed February 2019 6 Aldi.co.uk/about-aldi/property/required-towns, accessed February 2019

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Convenience retail yields

4.13 There is little evidence of recent convenience retail transactions in the Borough recorded on CoStar therefore we have considered Kent and the wider South East market (excluding London). Table 4-2 shows that net initial yields are as a low as 4.0% with cap and collar RPI rent reviews.

Table 4-2 Convenience retail investment transactions

Date of Address Tenant Size Yield Comment transaction sqft 28 Nov 17 Martin Hardie Co-Op 1,766 N/a 1970s built unit. 2019 Way, Tonbridge Sold at £600 psf 11 Feb Medway Queen, A.F. 3,574 5.81% Let until 2034 with 2020 Churchill Avenue, Blakemore no breaks. RPI Chatham & Son Ltd linked rent reviews (t/a SPAR) every 5th year, next review in 2023. Passing rent £19.71 psf Quarter 3, Canterbury Aldi 13,050 5.4% FH. Built 1982 but 2019 recently refurbished internally. 20 year lease until July 2032, break July 2027. Next rent review 2022. RPI linked, subject to a cap of 3% per annum compounded. Feb 2019 2-4 Fitzalan Road, Co-op 5,678 6.50% Horsham, RH13 6AA Sep 2019 61-69 Perrymount Waitrose 46,036 4.07% Road, Haywards Heath, RH16 3DR Mar 2019 Ham Road, Co-op 35,648 6.75% Shoreham by Sea, BN43 6PA Aug 2018 Wolverton Works, Lidl 28,041 4.84% FH. Built 2018. 5 Milton Keynes yearly rent reviews to OMRV, capped at 2% per annum. Part of a wider regeneration scheme May 2018 Bedford Aldi 20,972 4.00% FH. 5 yr reviews to RPI (1% and 3% collar & cap). Next

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Date of Address Tenant Size Yield Comment transaction sqft review 2023 shows yield 4.56% assuming RPI at 2.70% per annum. Adjacent Sainsbury’s store. Source: CoStar, accessed July 2020, Savills, 2019

Comparison retail

4.14 Prior to the global pandemic, the shift from bricks to clicks was being significantly felt in the comparison sector. Many well-known names were lost e.g. BHS, Poundworld, Maplin and Toys ‘R’ Us and entering CVAs or administration e.g. New Look, Debenhams and House of Fraser.

4.15 As the high street starts to re-open we have seen further changes which include:

• Intu – one of the UK’s largest shopping centre owners, with the likes of Trafford Centre and Lakeside entered administration. • All Saints – the fashion retailer has agreed to a CVA which has resulted in them changing to turnover rents rather than fixed rents. • Go Outdoors - entered administration end of June 2020 and was bought by JD Sports and the business will be restructured and reports they will be seeking to significantly cut rents to avoid store closures. • Oasis and Warehouse – entered administration in April 2020 with all of its 92 stores closes and 400 concessions terminated. The brands and e-commerce platforms were sold in June 2020 online fashion retailer BooHoo.

Hastings comparison retail

4.16 The comparison retail market in Hastings is mostly located around Hastings town centre and St. Leonards-On-Sea.

4.17 There is no recent new build retail evidence for yields or rents listed on CoStar for the area, a reflection of no new development recently occurring. We have reviewed the second-hand units that have recently sold. Table 4-3 shows some transactions across the Borough. The majority of the transactional evidence contains smaller units up to 3,000 sqft. Rents are highly dependent on location, outside of Hastings and St. Leonards town centres, rents quickly fall.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Table 4-3 Comparison retail occupational transactions

Date of Address Tenant Size sqft Rent £ Comment transaction psf 06/01/2020 2-3 Claremont Street, n/a 1,015 £19.21 n/a Hastings, TN34 1HA

13/05/2019 20-28 London Road, St. Urban Hair 358 £20.67 Let on a Leonards-On-Sea, TN37 10-year 6AN term 02/09/2019 111 Sedlescombe Road, n/a 820 £8.00 Let on a St. Leonards-On-Sea, 3-year TN37 7EJ term 20/04/2018 109 Sedlescombe Road, Ben Smith 820 £7.32 Let on a St Appliance 3-year Specialists term 05/11/2019 261 Battle Road, St. n/a 384 £16.93 Let on a Leonards-On-Sea, TN37 5-year 7AN term 01/05/2019 150 Queens Road, n/a 532 £13.16 n/a Hastings, TN34 1RN 17/12/2018 7-8 Queens Road, n/a 3,120 £20.83 n/a Hastings, TN34 1QP Source: CoStar, accessed March 2020

4.18 There is limited evidence of recent investment deals in Hastings recorded on CoStar, most of the evidence is again based in the town centre. The evidence in Table 4-4 shows that sales achieved yields between 6.06%- 14.16%.

Table 4-4 Comparison retail investment transactions

Date of Address Tenant Size sqft Yield transaction 09/07/2019 207-212 Queens Road, - 11,041 7.76% Hastings, TN34 1QP 16/10/2019 74 Battle Road, St. Coral Racing 1,716 6.02% Leonards-On-Sea, TN37 7AG Under Offer 1-3 Robertson Street, Debenhams 96,089 14.16% Hastings, TN34 1HN (not achieved) Source: CoStar, accessed March 2020

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Conclusion

4.19 Based on the above evidence we have proposed to test the following:

• Convenience retail budget format store 2,000 sqm (21,528 sqft)

o Rent £247 psm (£23 psf) o Yield 5.5%

• Convenience retail express format store 350 sqm (3,767 sqft)

o Rent £215 psm (£21 psf) o Yield 5.75%

• Comparison small town centre store 150 sqm (1,615 sqft)

o Rent £215 psm (£20 psf) o Yield 10%

• Comparison large town centre store 500 sqm (5,920 sqft)

o Rent £204 psm (£19 psf) o Yield 9%

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

5 Industrial market Introduction

5.1 Prior to the COVID-19 lockdown, the UK industrial market was tight, with growing demand pushing against restricted supply.

5.2 In the years before the recession caused by the Global Financial Crisis, the industrial market saw a wave of speculative development, fuelled by easy access to finance. Much of the new space that resulted remained on the market as occupier demand weakened in the recession, so speculative development came to a halt. In more recent years supply has tightened against demand, due to the economic recovery, the increase in online shopping (which needs warehouse space) and some industrial units being lost to higher-value residential uses.

5.3 Due to the tight nature of the funding markets, speculative development is generally only occurring in ‘super-prime’ areas such as parts of the M1 corridor, Heathrow, etc. Those areas have very strong occupier demand from blue-chip covenants, who are prepared to commit to longer-term leases (typically more than 10 years), therefore the perceived risk is low. Elsewhere, speculative development is generally occurring only for larger units that can be occupied by these large national /international firms.

5.4 The economics for small and mid-sized units is different from large-scale distribution units, both in terms of cost and values. Smaller and mid-sized units do not benefit from economies of scale for build costs as large units do. Covenant strength of occupiers of smaller units is generally weaker and result in less secure income, which is guaranteed for shorter periods due to shorter lease terms, and hence lower capital values. Consequently, small and medium-sized development typically occurs only on existing employment sites - where infrastructure is currently in place; or as part of larger strategic schemes, whereby the large-scale distribution units can pay for the infrastructure to service the smaller and medium-sized units.

5.5 Concerning small and mid-size units, the lack of speculative development has led to an imbalance in the market, with some occupiers having to wait for the build to suit opportunities, or taking second-hand space to satisfy immediate requirements although they would prefer new space. With a lack of suitable medium-sized space, occupiers across the country are struggling to find suitable space for business expansion. This is having a knock-on effect, with smaller units not experiencing ‘natural’ levels of market churn, therefore not freeing up space for SMEs and start-ups.

5.6 Since the coronavirus lockdown the industrial market appears to be performing well. Demand for online retail has increased significantly and manufactures have sought to re-purpose space to respond to the government’s need for protective equipment.

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Industrial market Hastings

5.7 The Hastings area has a handful of industrial estates with units ranging in age and specification, much of this is focused around the edge of the town off the A2690 and the B2093, each leading to the A21. There are also units closer to the centre of town, off Drury Lane but these are generally older stock. There are small ‘pockets’ of units elsewhere. There has been virtually no new build development in the last 10 years according to CoStar, but what has come forward are small scale industrial units between 1,000 sqft and 10,000 sqft which have been absorbed by the market. The majority of the industrial stock in the area is second-hand and of poor quality. There are cases where units are over 50 years old and are coming to the end of their economic lives.

5.8 The area benefits from local trade counter services, automotive services, some general manufacturing and storage.

Light/general industrial (B1c/B2)

5.9 Demand for industrial space in Hastings is from a mix of local and some regional companies, looking to service regional and local markets. Strategic distribution is not considered to be a key attribute of the area and therefore the industrial market will be analysed as one. Demand does not come from one specific sector but most occupiers are already located in Hastings or the local area. Often larger or better-quality units are required by companies already located in the area who are looking to expand. Due to a lack of recent transactions in Hastings, we have looked further afield to form our evidence base. Table 5-1 shows that rents industrial range between £5.00 psf and £7.50 psf.

Table 5-1 Industrial occupational transactions

Date Address Tenant Size sqft Rent £ psf 16/03/2018 Unit 16-22 North Ridge Park, n/a 3,790 £7.50 Haywood Way, Hastings, TN35 4PP 12/06/2018 Unit 16-22 North Ridge Park, n/a 1,902 £6.50 Haywood Way, Hastings, TN35 4PP 12/06/2018 Unit 16-22 North Ridge Park, n/a 2,495 £7.50 Haywood Way, Hastings, TN35 4PP 02/01/2019 Unit 4, Birch Close, Eastbourne, n/a 2,375 £5.00 BN23 6PH

23/12/2019 Hawthorn Road Industrial n/a 3,744 £6.41 Estate,11-14 Hawthorn Rd, Eastbourne, BN23 6QA

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Date Address Tenant Size sqft Rent £ psf 26/09/2019 Unit 1-2 - Whiteknight Business n/a 10,621 £6.50 Park, Hammonds Dr, Eastbourne, BN23 6PW Source: CoStar, accessed March 2020

5.10 There is limited evidence of investment transactions recorded on CoStar so we have considered evidence from the neighbouring boroughs, Eastbourne. Table 5-2 shows investment transactions are achieving between 5.49% and 7.97% yields. Due to the lack of available data on CoStar, we have also reviewed the Knight Frank Yield Guide7 which states that Secondary Estates are at a yield of 6.00%+, lower than the recent transactions.

Table 5-2 Industrial investment transactions

Date of Address Tenants Size sqft Yield transaction

11/04/2019 6 Lister Road, Eastbourne, Kwik-Fit 3,021 5.49% BN23 6PU 11/12/2019 Compton Industrial Estate Links Waste 150,224 7.52% (Portfolio), Eastbourne, Management, BN23 6QF Eastbourne Coast Finishers, DPD Group UK, All Pallets, Rossetts, Millbrook Furnishing, Williams Trade Suppliers, Fast Heat International, LWC Drinks, Level Exhibitions & Howden Joinery 23/04/2019 Units 1-7, Newhaven Prismaflex UK & 42,278 7.97% Industrial Park, Newhaven, Boutique Modern East Sussex, BN9 0BX Source: CoStar, accessed March 2020

Conclusion

5.11 Based on the above evidence propose the following rents, yields, and scenarios to use in the viability testing:

• Industrial units 500 sqm (5,382 sqft)

o Rent £64.58 psm (£7.50 psf) o Yield 7.50%

7 Knight Frank, 2019, Investment yield guide December 2019

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

• Industrial units 1,000 sqm (10,764 sqft)

o Rent £59.20 psm (£5.50 psf) o Yield 7.00%

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

6 Office market Introduction

6.1 Similar to the residential market, the full impact of COVID-19 on the office market is unknown. With the government encouraging working from home measures, many offices have been left unoccupied or at greatly reduced occupancy. Companies have been forced to embrace video conferencing and other measures to ensure business continuity.

6.2 What has emerged to date is that:

• Leasing decisions deferred – due to the uncertain world economic outlook companies have deferred the decision making in taking new space, this is more apparent with micro- businesses and SME’s whose current focus is dealing with the immediate fallout and business continuity. • Tenants seeking to defer rent payments – the 'Coronavirus Act 2020' which received royal assent on 25 March 2020 introduced new legalisation ‘that no right of re-entry or forfeiture may be enforced due to non-payment of rent until the end of the 'relevant period' (30 June 2020 (unless extended)).’8 The Coronavirus Act 2020 has provided the flexibility to allow tenants not to make their quarter day payment in March. • Increase in office occupier tenant incentives – Knight Frank indicates that ‘Lease incentives, however, have drifted: 21-24 months on some 10-year leases, instead of 18- 21 months in the West End and nearer 24 months in the City, which were previously at 21- 24 months.’9

6.3 Typically, new office development is only financially viable in major towns and cities. Generally, new development requires a pre-let in place to a blue-chip covenant – i.e. on a long lease to a high-quality tenant that is likely always to pay its rent and adhere to its obligations. This structure gives sufficient security to the investment to enable funding to be obtained. For example, office take-up in 2019 to the end of September was 1.8m sq ft, of which 90% of the take-up was Grade A.10 Only 460,000 sq ft of speculative schemes are expected to complete in 2019, well below the 5-year average of 1.0m sq ft delivered per annum in the South East11.

6.4 In recent years the main drivers of demand for new office space have been from finance, professional services, Technology, Media and Telecommunications (TMTs) and flexible workspace providers. Since the referendum to leave the European Union there has been a slight

8 https://www.rpc.co.uk/perspectives/rpc-big-deal/covid-19-and-commercial-tenants-rights-regarding-rent/ 9 Knight Frank, June 2020, COVID-19 What we know, what we expect, what we question 10 BNP Paribas, 2019 Q3, South East Offices Review, 11 Ibid

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

cooling of office demand from the finance and professional services, but demand from TMTs and flexible workspace providers remains robust.

Hastings office market

6.5 The Hastings office market is centred around the town centre, here we see the majority of professional services for the area, the highest rents in this area are up to £16 psf.

Office rents

6.6 Table 6-1 sets out achieved rents for the area recorded on CoStar. Rents for second-hand units range from £5 psf to £16 psf; and we would expect some price premium for new build stock. There is no new build stock in Hastings, however further afield, new units such as Highweald House in Bexhill can reach up to £18.50 psf.

Table 6-1 Achieved office rents

Date of Address Tenant Size sqft £psf transaction

12/04/2019 One Priory Square, Medica Group 6,630 £15.78 Priory Street, Hastings, TN34 1BP

29/04/2019 20-28 London Road, St. Secretary of State of 7,673 £5.53 Leonards-On-Sea, TN37 Communities and 6AN Local Government

10/01/2020 Highweald House, Acuity Professional 3,163 £18.50 Glovers Lane, Rother, Bexhill-On-Sea, TN39 5ES

01/03/2019 Unit J1-J8, Chaucer Sovereign Cargo Ltd 1,108 £18.00 Business Park, Wealden, Polegate, BN26 6JF

01/01/2019 Pacific House, Pevensey n/a 1,269 £17.00 Bay, Eastbourne, BN23 6FA

Source: CoStar accessed March 2020

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Office yields

6.7 There is evidence of recent office investment activity recorded on CoStar. Figure 6-1 shows these investment transactions, with yields between 4.35%-6.28%, in addition to this the Knight Frank Secondary Asset Yield Guide provides a 9.50% yield for offices in SE towns (tertiary).

Figure 6-1 Office investment transactions

Date of Address Tenants Size sqft Yield transaction

24/04/2019 Lacuna Place, Havelock The Secretary of 39,696 6% Road, Hastings, TN34 1BP State of Communities and Local Government & Tesco 09/01/2020 20-28 London Road & 35 Co-op, Secretary of 14,842 6.28% Shepherd Street, East State for Housing, Sussex TN37 6AN Communities and Local Government & Hair Salon 06/11/2019 7 Gildredge Road, Bloom Hearing 1,672 4.35% Eastbourne, BN21 4RB Source: CoStar, accessed March 2020

Conclusion

6.8 Based on the above evidence propose the following rents, yields, and scenarios to use in the viability testing:

• Offices units 1,500 sqm (16,145 sqft)

o Rent £194 psm (£18 psf) o Yield 10.0%

Local Plan Viability Study Appendix 2 – Market Report Hastings Borough Council December 2020

Appendix 2.1 – Residential sale value evidence

Date Number Street Settlement Postcode Price Paid Type Beds Size sqm Size sqft Price psf Price sqm 10/08/2018 17 DOWNEY CLOSE ST LEONARDS-ON-SEA TN37 7LJ £230,000 Semi Detached 3 88 947 £243 £2,614 07/09/2018 25 DOWNEY CLOSE ST LEONARDS-ON-SEA TN37 7LJ £250,000 Terraced 3 88 947 £264 £2,841 16/11/2018 21 DOWNEY CLOSE ST LEONARDS-ON-SEA TN37 7LJ £254,950 Semi Detached 3 88 947 £269 £2,897 19/11/2018 19 DOWNEY CLOSE ST LEONARDS-ON-SEA TN37 7LJ £260,000 Semi Detached 3 88 947 £274 £2,955 31/01/2019 4 BROOKLANDS HOUSE BEXHILL-ON-SEA TN39 4FR £210,000 Flatted 2 70 753 £279 £3,000 21/02/2018 37 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £314,950 Detached 4 104 1119 £281 £3,028 23/03/2018 39 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £314,950 Semi Detached 4 104 1119 £281 £3,028 26/03/2019 23 BROOKLANDS HOUSE BEXHILL-ON-SEA TN39 4FR £214,995 Flatted 2 70 753 £285 £3,071 10/06/2019 2 BROOKLANDS HOUSE BEXHILL-ON-SEA TN39 4FR £215,000 Flatted 2 70 753 £285 £3,071 14/05/2019 19 BROOKLANDS HOUSE BEXHILL-ON-SEA TN39 4FR £168,000 Flatted 1 53 570 £294 £3,170 23/09/2019 20 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 3 86 926 £297 £3,197 28/06/2019 21 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 3 86 926 £297 £3,197 28/06/2019 23 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 3 86 926 £297 £3,197 17/07/2019 25 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 3 86 926 £297 £3,197 07/06/2019 22 BROOKLANDS HOUSE BEXHILL-ON-SEA TN39 4FR £170,000 Flatted 1 53 570 £298 £3,208 13/08/2019 3 Little Acres Way Hastings TN35 5FJ £279,950 Terraced 3 86 926 £302 £3,255 28/06/2019 19 Little Acres Way Hastings TN35 5FJ £282,500 Terraced 3 86 926 £305 £3,285 09/08/2019 27 Little Acres Way Hastings TN35 5FJ £282,500 Terraced 3 86 926 £305 £3,285 26/07/2019 5 BROOKLANDS HOUSE BEXHILL-ON-SEA TN39 4FR £176,995 Flatted 1 53 570 £310 £3,340 11/10/2019 9 Little Acres Way Hastings TN35 5FJ £259,950 Terraced 2 76 818 £318 £3,420 22/10/2019 15 Little Acres Way Hastings TN35 5FJ £259,950 Terraced 2 76 818 £318 £3,420 23/08/2019 6 Little Acres Way Hastings TN35 5FJ £249,950 Terraced 2 72 775 £323 £3,472 21/05/2019 11 Little Acres Way Hastings TN35 5FJ £269,950 Terraced 2 76 818 £330 £3,552 29/05/2019 13 Little Acres Way Hastings TN35 5FJ £269,950 Terraced 2 76 818 £330 £3,552 2019 9 Ivy Gardens Hastings TN35 5FA £254,950 Terraced 2 71 764 £334 £3,591 2019 7 Ivy Gardens Hastings TN35 5FA £220,000 Terraced 1 61 657 £335 £3,607 2019 8 Ivy Gardens Hastings TN35 5FA £220,000 Terraced 1 61 657 £335 £3,607 25/06/2019 7 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 2 76 818 £336 £3,618 2019 1 Ivy Gardens Hastings TN35 5FA £259,950 Terraced 2 71 764 £340 £3,661 01/03/2019 20 BROOKLANDS HOUSE BEXHILL-ON-SEA TN39 4FR £195,000 Flatted 1 53 570 £342 £3,679 19/12/2018 4 Little Acres Way Hastings TN35 5FJ £264,950 Terraced 2 72 775 £342 £3,680 16/11/2018 12 Little Acres Way Hastings TN35 5FJ £264,950 Terraced 2 72 775 £342 £3,680 16/11/2018 14 Little Acres Way Hastings TN35 5FJ £264,950 Terraced 2 72 775 £342 £3,680 07/02/2018 24 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £265,000 Semi Detached 3 72 775 £342 £3,681 28/02/2019 26 Little Acres Way Hastings TN35 5FJ £279,950 Terraced 2 76 818 £342 £3,684 2019 2 Ivy Gardens Hastings TN35 5FA £224,950 Terraced 1 61 657 £343 £3,688 2019 3 Ivy Gardens Hastings TN35 5FA £224,950 Terraced 1 61 657 £343 £3,688 2019 4 Ivy Gardens Hastings TN35 5FA £224,950 Terraced 1 61 657 £343 £3,688 2019 5 Ivy Gardens Hastings TN35 5FA £224,950 Terraced 1 61 657 £343 £3,688 2019 6 Ivy Gardens Hastings TN35 5FA £224,950 Terraced 1 61 657 £343 £3,688 26/02/2019 28 Little Acres Way Hastings TN35 5FJ £282,500 Terraced 2 76 818 £345 £3,717 02/08/2019 1 Little Acres Way Hastings TN35 5FJ £269,950 Terraced 2 72 775 £348 £3,749 04/02/2019 2 Little Acres Way Hastings TN35 5FJ £269,950 Terraced 2 72 775 £348 £3,749 13/08/2019 5 Little Acres Way Hastings TN35 5FJ £269,950 Terraced 2 72 775 £348 £3,749 20/08/2019 22 Little Acres Way Hastings TN35 5FJ £269,950 Terraced 2 72 775 £348 £3,749 22/03/2019 17 Little Acres Way Hastings TN35 5FJ £284,950 Terraced 2 76 818 £348 £3,749 2019 11 Ivy Gardens Hastings TN35 5FA £229,950 Terraced 1 61 657 £350 £3,770 19/12/2018 8 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 2 72 775 £355 £3,819 23/11/2018 10 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 2 72 775 £355 £3,819 16/11/2018 16 Little Acres Way Hastings TN35 5FJ £274,950 Terraced 2 72 775 £355 £3,819 2019 10 Ivy Gardens Hastings TN35 5FA £234,950 Terraced 1 61 657 £358 £3,852 2019 12 Ivy Gardens Hastings TN35 5FA £239,950 Terraced 1 61 657 £365 £3,934 24/09/2019 2 ROBERT DE MORTAIN PLACE HASTINGS TN34 2FY £339,950 Detached 3 86 926 £367 £3,953 27/02/2018 27 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £219,950 Semi Detached 2 55 592 £372 £3,999 14/02/2018 29 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £219,950 Semi Detached 2 55 592 £372 £3,999 07/02/2018 22 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £220,000 Semi Detached 2 55 592 £372 £4,000 19/07/2019 3 ROBERT DE MORTAIN PLACE HASTINGS TN34 2FY £349,950 Detached 3 86 926 £378 £4,069 15/03/2018 31 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £224,950 Semi Detached 2 55 592 £380 £4,090 11/05/2018 33 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £224,950 Semi Detached 2 55 592 £380 £4,090 22/02/2018 35 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £224,950 Semi Detached 2 55 592 £380 £4,090 11/07/2019 5 ROBERT DE MORTAIN PLACE HASTINGS TN34 2FY £357,500 Detached 3 86 926 £386 £4,157 11/07/2019 6 ROBERT DE MORTAIN PLACE HASTINGS TN34 2FY £357,500 Detached 3 86 926 £386 £4,157 11/07/2019 7 ROBERT DE MORTAIN PLACE HASTINGS TN34 2FY £357,500 Detached 3 86 926 £386 £4,157 23/01/2018 25 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £229,950 Semi Detached 2 55 592 £388 £4,181 19/01/2018 26 ROSSETTI GARDENS ST LEONARDS-ON-SEA TN38 9AP £338,000 Detached 3 79 850 £397 £4,278

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Local Plan Viability Study Hastings Borough Council January 2021

Appendix 3 – Typology analysis

Local Plan Viability Study Hastings Borough Council January 2021

In this Appendix we outline our typology analysis. This involves our review of the proposed residential housing led allocations and how these have been analysed to form our proposed development typologies outlined in Table 5-4 of the main report.

Potential greenfield residential sites in the higher value zone

All of the proposed greenfield housing led allocations fall in the higher value zone. Our analysis is in Table I shows there are 11 greenfield sites with a total of 816 units. The bulk of sites are reasonably small with more than half of them with 40 units or less. The gross densities of all greenfield sites are wide ranging from 14 dph to 53 dph.

Table I Greenfield housing led allocations in higher value zone – Houses

Capacity No. in No. in band Total no. of Total no. of Gross density Banding banding % split units units % split range (ha) 0-10 4 36% 27 3% 14-31 11-50 3 27% 81 10% 21-36 51-150 2 18% 238 29% 42-53 151-300 2 18% 470 58% 20-45

Total 11 100% 816 100% Source: Hastings Borough Council and AspinallVerdi, 2021

Potential brownfield residential sites in the higher value zone

Table II shows all the proposed brownfield housing led allocations in the higher value zone analysed using size bands. Overall, there are 17 proposed housing sites on brownfield land in the higher value zone. Again the majority of sites are smaller under 50 units, though there are 5 larger sites over 100 units. Gross densities across all the sites range from between 8 dph to 54 dph.

Table II Brownfield housing led allocations sites in higher value zone – Houses

Capacity No. in No. in band Total no. of Total no. of Gross density

Banding banding % split units units % split range (ha)

0-10 4 24% 30 3% 8-36 11-50 5 29% 92 8% 36-54 51-100 3 18% 191 17% 17-32 101-250 5 29% 801 72% 22-53

Total 17 100% 1,114 100% Source: Hastings Borough Council and AspinallVerdi, 2021

Local Plan Viability Study Hastings Borough Council January 2021

Table III shows all proposed brownfield flatted housing led allocations in the higher value zone. There are a total of 14 sites, with the majority of them small. There are no sites between 51 and 100 units though there are 4 larger sites with over 100 units. Gross densities are very wider ranging from 68 dph to 400 dph.

Table III Brownfield housing led allocation sites in higher value zone – Flats

Capacity No. in No. in band Total no. of Total no. of Gross density Banding banding % split units units % split range (ha) 0-10 5 36% 44 5% 75-225 11-50 5 36% 108 12% 74-400 51-100 0 0% 0 0% 0 101-250 4 29% 765 83% 68-176

Total 14 100% 917 100% Source: Hastings Borough Council and AspinallVerdi, 2021

Potential residential sites in the lower value zone

Table IV shows sites in the lower value zone – there is only brownfield flatted development proposed. There are only three sites in total with densities ranging from between 167 to 230 dph.

Table IV Brownfield housing led allocations sites in lower value zone – Flats

Capacity No. in No. in band Total no. of Total no. of Gross density Banding banding % split units units % split range (ha) 0-10 1 33% 44 5% 167 11-50 1 33% 108 12% 200

51-100 0 0% 0 0%

101-250 1 33% 765 83% 230

Total 3 100% 917 100% Source: Hastings Borough Council and AspinallVerdi, 2021

Local Plan Viability Study Hastings Borough Council January 2021

Appendix 4 – BCIS Build Costs

£/m2 study

Description: Rate per m2 gross internal floor area for the building Cost including prelims. Last updated: 16Jan2021 00:38 Rebased to East Sussex ( 109; sample 130 )

Maximum age of results: 10 years

Building function £/m² gross internal floor area Sample (Maximum age of projects) Mean Lowest Lower quartiles Median Upper quartiles Highest

New build

345. Shops Generally (10) 2,206 891 1,290 2,136 2,737 4,359 7 12 storey (10) 2,206 891 1,290 2,136 2,737 4,359 7

20Jan2021 14:24 © RICS 2021 Page 1 of 1 20Jan2021 14:26 © RICS 2021 Page 1 of 1

£/m2 study

Description: Rate per m2 gross internal floor area for the building Cost including prelims. Last updated: 16Jan2021 00:38 Rebased to East Sussex ( 109; sample 130 )

Maximum age of results: 10 years

Building function £/m² gross internal floor area Sample (Maximum age of projects) Mean Lowest Lower quartiles Median Upper quartiles Highest

New build

284. Warehouses/stores Generally (10) 948 396 607 818 1,023 2,928 28 Up to 500m2 GFA (10) 1,503 659 953 1,037 1,937 2,928 5 500 to 2000m2 GFA (10) 892 470 719 827 994 1,607 11 Over 2000m2 GFA (10) 768 396 588 652 956 1,482 12 284.1 Advance 881 596 946 1,037 4 warehouses/stores (10)

284.2 Purpose built warehouses/stores Generally (10) 958 396 617 806 1,010 2,928 22 500 to 2000m2 GFA (10) 887 470 677 818 1,006 1,607 10 Over 2000m2 GFA (10) 744 396 590 693 946 1,188 9 £/m2 study

Description: Rate per m2 gross internal floor area for the building Cost including prelims. Last updated: 16Jan2021 00:38 Rebased to East Sussex ( 109; sample 130 )

Maximum age of results: 10 years

Building function £/m² gross internal floor area Sample (Maximum age of projects) Mean Lowest Lower quartiles Median Upper quartiles Highest

New build

320. Offices Generally (10) 2,084 1,041 1,514 2,139 2,449 3,269 24 Airconditioned Generally (10) 1,997 1,235 1,671 2,077 2,440 2,471 9 12 storey (10) 1,862 1,235 1,671 1,856 2,077 2,471 5 35 storey (10) 2,103 1,415 2,440 2,452 3 Not airconditioned Generally (10) 2,113 1,041 1,508 2,081 2,484 3,269 12 12 storey (10) 2,274 1,421 1,954 2,207 2,592 3,269 9

20Jan2021 14:25 © RICS 2021 Page 1 of 1 20Jan2021 14:21 © RICS 2021 Page 1 of 1

£/m2 study

Description: Rate per m2 gross internal floor area for the building Cost including prelims. Last updated: 16Jan2021 00:38 Rebased to East Sussex ( 109; sample 130 )

Maximum age of results: 5 years

Building function £/m² gross internal floor area Sample (Maximum age of projects) Mean Lowest Lower quartiles Median Upper quartiles Highest

New build

810. Housing, mixed 1,326 756 1,178 1,294 1,424 3,071 411 developments (5) 810.1 Estate housing Generally (5) 1,361 742 1,137 1,277 1,447 4,813 241 Single storey (5) 1,584 913 1,175 1,476 1,783 4,813 45 2storey (5) 1,276 742 1,120 1,248 1,384 2,190 186 3storey (5) 1,522 1,017 1,186 1,277 1,573 2,846 7 4storey or above (5) 2,926 2,323 2,594 3,861 3 810.11 Estate housing 2,543 1,131 1,877 2,392 2,719 4,813 6 detached (5)

810.12 Estate housing semi detached Generally (5) 1,292 813 1,137 1,266 1,404 2,374 60 Single storey (5) 1,394 1,064 1,144 1,331 1,553 2,374 17 2storey (5) 1,257 813 1,141 1,250 1,373 2,030 42 810.13 Estate housing terraced Generally (5) 1,519 891 1,155 1,362 1,508 3,861 25 2storey (5) 1,323 891 1,151 1,326 1,457 1,857 20 816. Flats (apartments) Generally (5) 1,526 864 1,275 1,429 1,720 3,377 230 12 storey (5) 1,492 1,108 1,246 1,408 1,544 2,180 54 35 storey (5) 1,510 864 1,267 1,411 1,702 3,377 148

6 storey or above (5) 1,669 1,187 1,406 1,657 1,869 2,385 28 £/m2 study

Description: Rate per m2 gross internal floor area for the building Cost including prelims. Last updated: 16Jan2021 00:38 Rebased to East Sussex ( 109; sample 130 )

Maximum age of results: Default period

Building function £/m² gross internal floor area Sample (Maximum age of projects) Mean Lowest Lower quartiles Median Upper quartiles Highest

New build

344. Hypermarkets, supermarkets Generally (30) 1,676 704 1,180 1,490 2,248 2,911 30 1000 to 7000m2 GFA (30) 1,661 704 1,073 1,477 2,253 2,911 25

20Jan2021 14:25 © RICS 2021 Page 1 of 1 Local Plan Viability Study Hastings Borough Council January 2021

Appendix 5 – Residential Appraisals

210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 7 Title: 7 Units Notes: Greenfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 7 Units AH Policy requirement (% Target) 0% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 0.0% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 100% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 2.5 37.8% 0.0 35% 2.5 4.9 3 bed House 40.0% 2.8 27.0% 0.0 40% 2.8 7.8 4 bed House 17.0% 1.2 1.2% 0.0 17% 1.2 4.2 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 0.6 34.0% 0.0 8% 0.6 0.8 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 7.0 100.0% 0.0 100% 7.0 17.7

Net area per unit Net to Gross % Gross (GIA) per unit OMS Unit Floor areas - (sqm) (sqft) % (sqm) (sqft) 1 bed House 0 0.0 0 2 bed House 72.0 775 72.0 775 3 bed House 86.0 926 86.0 926 4 bed House 110.0 1,184 110.0 1,184 5 bed House 0 0.0 0 1 bed Flat 50.0 538 85.0% 58.8 633 2 bed Flat 65.0 700 85.0% 76.5 823

Net area per unit Net to Gross % Gross (GIA) per unit AH Unit Floor areas - (sqm) (sqft) % (sqm) (sqft) 1 bed House 0 0.0 0 2 bed House 70.0 753 70.0 753 3 bed House 84.0 904 84.0 904 4 bed House 97.0 1,044 97.0 1,044 5 bed House 0 0.0 0 1 bed Flat 50.0 538 85.0% 58.8 633 2 bed Flat 61.0 657 85.0% 71.8 772

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 176 1,899 0 0 176 1,899 3 bed House 241 2,592 0 0 241 2,592 4 bed House 131 1,409 0 0 131 1,409 5 bed House 0 0 0 0 0 0 1 bed Flat 33 355 0 0 33 355 2 bed Flat 0 0 0 0 0 0 581 6,254 0 0 581 6,254 AH % by floor area: 0.00% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 673,750 3 bed House 300,000 3,488 324 840,000 4 bed House 340,000 3,091 287 404,600 5 bed House 0 1 bed Flat 185,000 3,700 344 103,600 2 bed Flat 230,000 3,538 329 0 2,021,950 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 2.5 @ 275,000 673,750 3 bed House 2.8 @ 300,000 840,000 4 bed House 1.2 @ 340,000 404,600 5 bed House 0.0 @ 0 - 1 bed Flat 0.6 @ 185,000 103,600 2 bed Flat 0.0 @ 230,000 - 7.0 2,021,950 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 101,750 - 2 bed Flat 0.0 @ 126,500 - Page 1/56 0.0 - Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 7 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 7 Title: 7 Units Notes: Greenfield - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 206,250 - 3 bed House 0.0 @ 225,000 - 4 bed House 0.0 @ 255,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 138,750 - 2 bed Flat 0.0 @ 172,500 - 0.0 - First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 192,500 - 3 bed House 0.0 @ 210,000 - 4 bed House 0.0 @ 238,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 129,500 - 2 bed Flat 0.0 @ 161,000 - 0.0 -

Sub-total GDV Residential 7.0 2,021,950 AH on-site cost analysis: £MV less £GDV 0 0 £ psm (total GIA sqm) 0 £ per unit (total units)

Grant 7 @ 0 -

Total GDV 2,021,950

Gross Benchmark Land Value (BLV)

Residential Density 28.0 dph Site Area (Resi) 0.25 ha 0.62 acres Density analysis: 2,324 sqm/ha 10,124 sqft/ac Benchmark Land Value (BLV) 14,708 £ per plot 411,833 £ per ha 166,667 £ net per acre 102,958 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 102,958 0 1,030 515 (104,503) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 102,958.33 (104,503) RLV analysis: 14,708 £ per plot 411,833 £ per ha 166,667 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (10,000) Statutory Planning Fees (Residential) (2,695) CIL 581 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (6,636) Zero Carbon 10,000 £ per dwelling (70,000) EV charging points (houses) 1,000 £ per house (6,440) Ev charging points (flats) 2,500 £ per flat (1,400) - - - -

- total 7 units @ 0 per unit (77,840) - S106 analysis: 3.85% % of GDV 11,120 £ per unit (total units) AH Commuted Sum 581 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 0.62 acres @ 0 £ per acre (if brownfield) -

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 0.62 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 176 sqm @ 1,277 psm (252,076) 3 bed House 241 sqm @ 1,277 psm (307,502) 4 bed House 131 sqm @ 1,277 psm (167,159) 5 bed House - sqm @ 1,277 psm - Page1 bed 2/56 Flat 33 sqm @ 1,429 psm (47,073) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 7 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 7 Title: 7 Units Notes: Greenfield - higher value

2 bed Flat 581 - sqm @ 1,429 psm -

External works 773,809 @ 15.0% (116,071) 16,582 £per unit

Category 2 Housing 100% of All units 7 units @ 1,400 £ per dwelling (9,800) Category 3 Housing 0% of All units 7 units @ 10,307 £ per dwelling -

Contingency 899,681 @ 5.0% (44,984)

Professional Fees 899,681 @ 10.0% (89,968)

Disposal Costs - Marketing and Promotion 2,021,950 OMS @ 1.50% (30,329) Residential Sales Agent Costs 2,021,950 OMS @ 1.00% (20,220) Residential Sales Legal Costs 2,021,950 OMS @ 0.50% (10,110)

Interest - 7.50% APR 0.604% pcm (69,830) Interest sense check (only if viable) 4.10% (69,830) Developers Profit - Margin on AH 0 6.00% on AH values - Profit on GDV 2,021,950 20.00% (404,390) 1,262,292 32.04% on costs (404,390) 2,021,950 20.00% blended (404,390)

TOTAL DEVELOPMENT COSTS (1,771,185)

BALANCE Surplus/(Deficit) 1,003,061 £ per ha 405,933 £ per acre 250,765

SENSITIVITY ANALYSIS

AH - % on site 0% Balance (RLV - TLV) 250,765 0% 5% 10% 15% 20% 25% 30% - 250,765 232,834 214,903 196,971 179,040 161,109 143,178 2,000 235,757 217,826 199,895 181,963 164,032 146,101 128,170 4,000 220,749 202,818 184,887 166,956 149,024 131,093 113,162 6,000 205,741 187,810 169,879 151,948 134,016 116,085 98,154 8,000 190,733 172,802 154,871 136,940 119,008 101,077 83,146 Site Specific S106 10,000 175,725 157,794 139,863 121,932 104,000 86,069 68,138 0 12,000 160,717 142,786 124,855 106,924 88,992 71,061 53,130 14,000 145,709 127,778 109,847 91,916 73,984 56,032 38,043 16,000 130,701 112,770 94,839 76,908 58,923 40,933 22,944 18,000 115,694 97,762 79,803 61,813 43,824 25,835 7,845 20,000 100,683 82,694 64,704 46,715 28,725 10,736 (7,253) 22,000 85,584 67,595 49,606 31,616 13,627 (4,363) (22,352) 24,000 70,486 52,496 34,507 16,517 (1,472) (19,461) (37,451) 26,000 55,387 37,398 19,408 1,419 (16,571) (34,560) (52,550) 28,000 40,288 22,299 4,309 (13,680) (31,669) (49,659) (67,654) 30,000 25,190 7,200 (10,789) (28,779) (46,768) (64,757) (82,844) 32,000 10,091 (7,898) (25,888) (43,877) (61,867) (79,935) (98,034) 34,000 (5,008) (22,997) (40,987) (58,976) (77,026) (95,125) (113,224) 36,000 (20,106) (38,096) (56,085) (74,117) (92,216) (110,315) (128,414) 38,000 (35,205) (53,195) (71,208) (89,307) (107,406) (125,505) (143,604) 40,000 (50,304) (68,299) (86,398) (104,497) (122,596) (140,695) (158,794)

AH - % on site 0% Balance (RLV - TLV) 250,765 0% 5% 10% 15% 20% 25% 30% 80% 468,783 449,472 430,161 410,849 391,538 372,227 352,916 85% 414,446 395,508 376,570 357,632 338,687 319,712 300,736 90% 359,923 341,323 322,723 304,124 285,524 266,924 248,324 95% 305,401 287,139 268,877 250,615 232,353 214,091 195,829 Build rate (£psm) 100% 250,765 232,834 214,903 196,971 179,040 161,109 143,178 105% 195,913 178,322 160,731 143,139 125,548 107,957 90,366 110% 141,061 123,810 106,558 89,307 72,056 54,776 37,471 115% 86,119 69,156 52,192 35,229 18,266 1,303 (15,661) 120% 30,935 14,314 (2,307) (18,928) (35,550) (52,171) (68,805)

AH - % on site 0% Balance (RLV - TLV) 250,765 0% 5% 10% 15% 20% 25% 30% 80% (68,080) (70,095) (72,110) (74,125) (76,140) (78,155) (80,170) 85% 11,921 5,919 (83) (6,085) (12,087) (18,089) (24,091) 90% 91,832 81,839 71,842 61,844 51,846 41,848 31,851 95% 171,299 157,341 143,383 129,425 115,467 101,509 87,551 Market units sale values 100% 250,765 232,834 214,903 196,971 179,040 161,109 143,178 105% 329,948 308,071 286,193 264,316 242,438 220,561 198,683 110% 409,018 383,187 357,356 331,525 305,694 279,863 254,032 115% 488,088 458,304 428,519 398,735 368,950 339,166 309,381 120% 566,909 533,197 499,484 465,771 432,058 398,345 364,632

AH - % on site 0% Balance (RLV - TLV) 250,765 0% 5% 10% 15% 20% 25% 30% 80,000 315,989 298,065 280,141 262,217 244,293 226,369 208,445 100,000 300,963 283,039 265,115 247,191 229,267 211,343 193,419 Page 3/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 7 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 7 Title: 7 Units Notes: Greenfield - higher value

120,000 285,938 268,014 250,090 232,166 214,242 196,318 178,394 TLV (per acre) 140,000 270,912 252,988 235,058 217,127 199,195 181,264 163,333 166,667 160,000 255,804 237,873 219,941 202,010 184,079 166,148 148,216 180,000 240,688 222,756 204,825 186,894 168,963 151,031 133,100 200,000 225,571 207,640 189,709 171,778 153,846 135,915 117,984 220,000 210,455 192,524 174,592 156,661 138,730 120,799 102,867 240,000 195,339 177,407 159,476 141,545 123,614 105,682 87,751

AH - % on site 0% Balance (RLV - TLV) 250,765 0% 5% 10% 15% 20% 25% 30% 10 18,807 818 (17,172) (35,161) (53,151) (71,166) (89,265) 15 140,574 122,643 104,712 86,781 68,849 50,866 32,876 20 200,377 182,446 164,515 146,584 128,652 110,721 92,790 Density dph 25 235,649 217,718 199,786 181,855 163,924 145,993 128,061 28.0 30 259,163 241,232 223,301 205,369 187,438 169,507 151,576 35 275,921 257,997 240,073 222,149 204,225 186,301 168,372 40 288,442 270,518 252,594 234,670 216,746 198,822 180,898 45 298,181 280,257 262,333 244,409 226,485 208,561 190,637 50 305,972 288,048 270,124 252,200 234,276 216,352 198,428 55 312,346 294,422 276,498 258,574 240,650 222,726 204,802 60 317,658 299,734 281,810 263,886 245,962 228,038 210,114

AH - % on site 0% Balance (RLV - TLV) 250,765 0% 5% 10% 15% 20% 25% 30% 15% 351,863 328,877 305,890 282,904 259,918 236,932 213,946 16% 331,643 309,668 287,693 265,718 243,743 221,767 199,792 17% 311,424 290,460 269,495 248,531 227,567 206,603 185,639 Profit % on GDV 18% 291,204 271,251 251,298 231,345 211,391 191,438 171,485 20.00% 19% 270,985 252,042 233,100 214,158 195,216 176,274 157,331 20% 250,765 232,834 214,903 196,971 179,040 161,109 143,178 21% 230,546 213,625 196,705 179,785 162,865 145,944 129,024 22% 210,326 194,417 178,508 162,598 146,689 130,780 114,870 23% 190,107 175,208 160,310 145,412 130,513 115,615 100,717 24% 169,887 156,000 142,112 128,225 114,338 100,450 86,563 25% 149,668 136,791 123,915 111,039 98,162 85,286 72,409

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Scheme Ref: GF 30 Title: 30 Units Notes: Greenfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 30 Units AH Policy requirement (% Target) 40% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 12.0% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 60% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 6.3 37.8% 4.5 36% 10.8 21.7 3 bed House 40.0% 7.2 27.0% 3.2 35% 10.4 29.2 4 bed House 17.0% 3.1 1.2% 0.1 11% 3.2 11.2 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 1.4 34.0% 4.1 18% 5.5 7.7 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 18.0 100.0% 12.0 100% 30.0 69.8

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 454 4,883 318 3,418 771 8,300 3 bed House 619 6,665 272 2,930 891 9,595 4 bed House 337 3,623 14 150 351 3,773 5 bed House 0 0 0 0 0 0 1 bed Flat 85 912 240 2,583 325 3,495 2 bed Flat 0 0 0 0 0 0 1,494 16,082 844 9,081 2,338 25,163 AH % by floor area: 36.09% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 2,979,900 3 bed House 300,000 3,488 324 3,132,000 4 bed House 340,000 3,091 287 1,089,360 5 bed House 0 1 bed Flat 185,000 3,700 344 1,021,200 2 bed Flat 230,000 3,538 329 0 8,222,460 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 6.3 @ 275,000 1,732,500 3 bed House 7.2 @ 300,000 2,160,000 4 bed House 3.1 @ 340,000 1,040,400 5 bed House 0.0 @ 0 - 1 bed Flat 1.4 @ 185,000 266,400 2 bed Flat 0.0 @ 230,000 - 18.0 5,199,300 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 2.7 @ 151,250 411,642 3 bed House 1.9 @ 165,000 320,760 4 bed House 0.1 @ 187,000 16,157 5 bed House 0.0 @ 0 - 1 bed Flat 2.4 @ 101,750 249,084 2 bed Flat 0.0 @ 126,500 - Page 5/56 7.2 997,643 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 30 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 30 Title: 30 Units Notes: Greenfield - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.5 @ 206,250 93,555 3 bed House 0.3 @ 225,000 72,900 4 bed House 0.0 @ 255,000 3,672 5 bed House 0.0 @ 0 - 1 bed Flat 0.4 @ 138,750 56,610 2 bed Flat 0.0 @ 172,500 - 1.2 226,737 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 1.4 @ 192,500 261,954 3 bed House 1.0 @ 210,000 204,120 4 bed House 0.0 @ 238,000 10,282 5 bed House 0.0 @ 0 - 1 bed Flat 1.2 @ 129,500 158,508 2 bed Flat 0.0 @ 161,000 - 3.6 634,864

Sub-total GDV Residential 30.0 7,058,543 AH on-site cost analysis: £MV less £GDV 1,163,917 498 £ psm (total GIA sqm) 38,797 £ per unit (total units)

Grant 30 @ 0 -

Total GDV 7,058,543

Gross Benchmark Land Value (BLV)

Residential Density 28.0 dph Site Area (Resi) 1.07 ha 2.65 acres Density analysis: 2,182 sqm/ha 9,505 sqft/ac Benchmark Land Value (BLV) 14,708 £ per plot 411,833 £ per ha 166,667 £ net per acre 441,250 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 441,250 11,563 4,413 2,206 (459,431) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 441,250.00 (459,431) RLV analysis: 14,708 £ per plot 411,833 £ per ha 166,667 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (30,000) Statutory Planning Fees (Residential) (11,550) CIL 1,494 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (28,440) Zero Carbon 10,000 £ per dwelling (300,000) EV charging points (houses) 1,000 £ per dwelling (24,480) Ev charging points (flats) 2,500 £ per flat (13,800) - - - -

- total 30 units @ 0 per unit (338,280) - S106 analysis: 4.79% % of GDV 11,276 £ per unit (total units) AH Commuted Sum 2,338 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 2.65 acres @ 0 £ per acre (if brownfield) -

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 2.65 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 771 sqm @ 1,277 psm (1,101,930) 3 bed House 891 sqm @ 1,277 psm (1,138,267) 4 bed House 351 sqm @ 1,277 psm (447,675) 5 bed House - sqm @ 1,277 psm - Page1 bed 6/56 Flat 325 sqm @ 1,429 psm (464,005) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 30 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 30 Title: 30 Units Notes: Greenfield - higher value

2 bed Flat 2,338 - sqm @ 1,429 psm -

External works 3,151,877 @ 15.0% (472,782) 15,759 £per unit

Category 2 Housing 95% of All units 30 units @ 1,400 £ per dwelling (39,900) Category 3 Housing 5% of All units 30 units @ 22,791 £ per dwelling (34,187)

Contingency 3,698,745 @ 5.0% (184,937)

Professional Fees 3,698,745 @ 10.0% (369,875)

Disposal Costs - Marketing and Promotion 5,199,300 OMS @ 1.50% (77,990) Residential Sales Agent Costs 5,199,300 OMS @ 1.00% (51,993) Residential Sales Legal Costs 5,199,300 OMS @ 0.50% (25,997)

Interest - 7.50% APR 0.604% pcm (208,557) Interest sense check (only if viable) 3.24% (208,557) Developers Profit - Margin on AH 1,859,243 6.00% on AH values (111,555) Profit on GDV 5,199,300 20.00% (1,039,860) 5,026,363 20.69% on costs (1,039,860) 7,058,543 16.31% blended (1,151,415)

TOTAL DEVELOPMENT COSTS (6,637,209)

BALANCE Surplus/(Deficit) 393,246 £ per ha 159,144 £ per acre 421,335

SENSITIVITY ANALYSIS

AH - % on site 40% Balance (RLV - TLV) 421,335 15% 20% 25% 30% 35% 40% 45% - 805,576 728,727 651,879 575,031 498,183 421,335 344,486 2,000 741,256 664,408 587,559 510,711 433,863 357,015 280,167 4,000 676,936 600,088 523,240 446,391 369,543 292,695 215,847 6,000 612,616 535,768 458,920 382,071 305,223 228,375 151,527 8,000 548,296 471,448 394,600 317,752 240,903 164,055 87,052 Site Specific S106 10,000 483,976 407,128 330,280 253,432 176,539 99,441 22,344 0 12,000 419,657 342,808 265,960 188,927 111,830 34,732 (42,365) 14,000 355,337 278,414 201,316 124,219 47,121 (29,976) (107,074) 16,000 290,803 213,705 136,608 59,510 (17,587) (94,685) (171,782) 18,000 226,094 148,996 71,899 (5,199) (82,296) (159,394) (236,491) 20,000 161,385 84,288 7,190 (69,907) (147,005) (224,102) (301,301) 22,000 96,677 19,579 (57,518) (134,616) (211,713) (288,835) (366,401) 24,000 31,968 (45,129) (122,227) (199,324) (276,422) (353,935) (431,501) 26,000 (32,741) (109,838) (186,936) (264,033) (341,468) (419,034) (496,601) 28,000 (97,449) (174,547) (251,644) (329,001) (406,568) (484,134) (561,701) 30,000 (162,158) (239,255) (316,534) (394,101) (471,667) (549,234) (626,801) 32,000 (226,867) (304,068) (381,634) (459,201) (536,767) (614,334) (691,963) 34,000 (291,601) (369,167) (446,734) (524,300) (601,867) (679,434) (757,456) 36,000 (356,701) (434,267) (511,834) (589,400) (666,967) (744,693) (822,950) 38,000 (421,800) (499,367) (576,934) (654,500) (732,067) (810,186) (888,443) 40,000 (486,900) (564,467) (642,033) (719,600) (797,423) (875,680) (953,936)

AH - % on site 40% Balance (RLV - TLV) 421,335 15% 20% 25% 30% 35% 40% 45% 80% 1,722,657 1,639,895 1,557,133 1,474,370 1,391,608 1,308,845 1,226,083 85% 1,494,354 1,413,191 1,332,029 1,250,744 1,169,422 1,088,099 1,006,776 90% 1,265,031 1,185,317 1,105,602 1,025,888 946,174 866,460 786,746 95% 1,035,708 957,442 879,176 800,911 722,645 644,379 566,113 Build rate (£psm) 100% 805,576 728,727 651,879 575,031 498,183 421,335 344,486 105% 574,866 499,475 424,084 348,693 273,302 197,911 122,520 110% 344,157 270,099 195,933 121,768 47,602 (26,564) (100,729) 115% 112,161 39,461 (33,239) (105,938) (178,638) (251,338) (324,277) 120% (119,943) (191,177) (262,411) (333,933) (405,600) (477,268) (548,935)

AH - % on site 40% Balance (RLV - TLV) 421,335 15% 20% 25% 30% 35% 40% 45% 80% (356,735) (365,370) (374,006) (382,641) (391,276) (399,912) (408,547) 85% (64,899) (90,622) (116,345) (142,068) (167,790) (193,513) (219,236) 90% 226,224 183,377 140,529 97,681 54,834 11,986 (30,862) 95% 516,090 456,271 396,451 336,631 276,812 216,992 157,172 Market units sale values 100% 805,576 728,727 651,879 575,031 498,183 421,335 344,486 105% 1,094,426 1,000,665 906,904 813,143 719,382 625,621 531,800 110% 1,382,466 1,271,762 1,161,057 1,050,353 939,648 828,944 718,239 115% 1,670,507 1,542,859 1,415,211 1,287,563 1,159,915 1,032,267 904,619 120% 1,958,036 1,813,552 1,669,068 1,524,585 1,380,101 1,235,590 1,090,998

AH - % on site 40% Balance (RLV - TLV) 421,335 15% 20% 25% 30% 35% 40% 45% 80,000 1,097,804 1,020,986 944,169 867,351 790,534 713,717 636,899 100,000 1,031,609 954,792 877,975 801,157 724,340 647,522 570,705 Page 7/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 30 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 30 Title: 30 Units Notes: Greenfield - higher value

120,000 964,042 887,225 810,407 733,590 656,773 579,945 503,096 TLV (per acre) 140,000 896,210 819,362 742,514 665,665 588,817 511,969 435,121 166,667 160,000 828,234 751,386 674,538 597,690 520,841 443,993 367,145 180,000 760,258 683,410 606,562 529,714 452,866 376,017 299,169 200,000 692,283 615,434 538,586 461,738 384,890 308,042 231,193 220,000 624,307 547,459 470,610 393,762 316,914 240,066 163,218 240,000 556,331 479,483 402,635 325,787 248,938 172,090 95,136

AH - % on site 40% Balance (RLV - TLV) 421,335 15% 20% 25% 30% 35% 40% 45% 10 (217,328) (294,471) (372,038) (449,605) (527,171) (604,738) (682,309) 15 314,568 237,471 160,373 83,276 6,178 (70,919) (148,017) 20 578,990 502,142 425,293 348,445 271,597 194,749 117,900 Density dph 25 737,600 660,752 583,903 507,055 430,207 353,359 276,511 28.0 30 843,340 766,492 689,644 612,795 535,947 459,099 382,251 35 918,869 842,020 765,172 688,324 611,476 534,628 457,779 40 975,303 898,486 821,668 744,851 668,034 591,216 514,399 45 1,019,097 942,279 865,462 788,645 711,827 635,010 558,193 50 1,054,027 977,210 900,393 823,575 746,758 669,941 593,123 55 1,081,885 1,005,068 928,250 851,433 774,616 697,798 620,981 60 1,105,100 1,028,282 951,465 874,647 797,830 721,013 644,195

AH - % on site 40% Balance (RLV - TLV) 421,335 15% 20% 25% 30% 35% 40% 45% 15% 1,173,859 1,075,347 976,835 878,323 779,812 681,300 582,788 16% 1,100,203 1,006,023 911,844 817,665 723,486 629,307 535,127 17% 1,026,546 936,699 846,853 757,006 667,160 577,314 487,467 Profit % on GDV 18% 952,889 867,375 781,862 696,348 610,834 525,321 439,807 20.00% 19% 879,232 798,051 716,870 635,689 554,509 473,328 392,147 20% 805,576 728,727 651,879 575,031 498,183 421,335 344,486 21% 731,919 659,403 586,888 514,372 441,857 369,342 296,826 22% 658,262 590,079 521,897 453,714 385,531 317,349 249,166 23% 584,605 520,755 456,905 393,055 329,206 265,356 201,506 24% 510,949 451,431 391,914 332,397 272,880 213,363 153,845 25% 437,292 382,107 326,923 271,738 216,554 161,370 106,185

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Scheme Ref: GF 120 Title: 120 Units Notes: Greenfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 120 Units AH Policy requirement (% Target) 40% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 12.0% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 60% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 25.2 37.8% 18.1 36% 43.3 86.7 3 bed House 40.0% 28.8 27.0% 13.0 35% 41.8 116.9 4 bed House 17.0% 12.2 1.2% 0.6 11% 12.8 44.9 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 5.8 34.0% 16.3 18% 22.1 30.9 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 72.0 100.0% 48.0 100% 120.0 279.4

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 1,814 19,530 1,270 13,671 3,084 33,201 3 bed House 2,477 26,660 1,089 11,718 3,565 38,378 4 bed House 1,346 14,493 56 601 1,402 15,094 5 bed House 0 0 0 0 0 0 1 bed Flat 339 3,647 960 10,333 1,299 13,980 2 bed Flat 0 0 0 0 0 0 5,976 64,330 3,375 36,324 9,351 100,653 AH % by floor area: 36.09% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 11,919,600 3 bed House 300,000 3,488 324 12,528,000 4 bed House 340,000 3,091 287 4,357,440 5 bed House 0 1 bed Flat 185,000 3,700 344 4,084,800 2 bed Flat 230,000 3,538 329 0 32,889,840 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 25.2 @ 275,000 6,930,000 3 bed House 28.8 @ 300,000 8,640,000 4 bed House 12.2 @ 340,000 4,161,600 5 bed House 0.0 @ 0 - 1 bed Flat 5.8 @ 185,000 1,065,600 2 bed Flat 0.0 @ 230,000 - 72.0 20,797,200 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 10.9 @ 151,250 1,646,568 3 bed House 7.8 @ 165,000 1,283,040 4 bed House 0.3 @ 187,000 64,627 5 bed House 0.0 @ 0 - 1 bed Flat 9.8 @ 101,750 996,336 2 bed Flat 0.0 @ 126,500 - Page 9/56 28.8 3,990,571 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 120 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 120 Title: 120 Units Notes: Greenfield - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 1.8 @ 206,250 374,220 3 bed House 1.3 @ 225,000 291,600 4 bed House 0.1 @ 255,000 14,688 5 bed House 0.0 @ 0 - 1 bed Flat 1.6 @ 138,750 226,440 2 bed Flat 0.0 @ 172,500 - 4.8 906,948 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 5.4 @ 192,500 1,047,816 3 bed House 3.9 @ 210,000 816,480 4 bed House 0.2 @ 238,000 41,126 5 bed House 0.0 @ 0 - 1 bed Flat 4.9 @ 129,500 634,032 2 bed Flat 0.0 @ 161,000 - 14.4 2,539,454

Sub-total GDV Residential 120.0 28,234,174 AH on-site cost analysis: £MV less £GDV 4,655,666 498 £ psm (total GIA sqm) 38,797 £ per unit (total units)

Grant 120 @ 0 -

Total GDV 28,234,174

Gross Benchmark Land Value (BLV)

Residential Density 53.0 dph Site Area (Resi) 2.26 ha 5.59 acres Density analysis: 4,130 sqm/ha 17,991 sqft/ac Benchmark Land Value (BLV) 8,228 £ per plot 436,059 £ per ha 176,471 £ net per acre 987,303 Gross to net land area 85% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 987,303 38,865 9,873 4,937 (1,040,978) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 987,303.00 (1,040,978) RLV analysis: 8,228 £ per plot 436,059 £ per ha 176,471 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (80,000) Statutory Planning Fees (Residential) (27,099) CIL 5,976 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (113,760) Zero Carbon 10,000 £ per dwelling (1,200,000) EV charging points (houses) 1,000 £ per dwelling (97,920) Ev charging points (flats) 2,500 £ per flat (55,200) - - - -

- total 120 units @ 0 per unit (1,353,120) - S106 analysis: 4.79% % of GDV 11,276 £ per unit (total units) AH Commuted Sum 9,351 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 5.59 acres @ 0 £ per acre (if brownfield) -

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 5.59 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 3,084 sqm @ 1,277 psm (4,407,722) 3 bed House 3,565 sqm @ 1,277 psm (4,553,067) 4 bed House 1,402 sqm @ 1,277 psm (1,790,701) 5 bed House - sqm @ 1,277 psm - Page1 bed 10/56 Flat 1,299 sqm @ 1,429 psm (1,856,019) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 120 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 120 Title: 120 Units Notes: Greenfield - higher value

2 bed Flat 9,351 - sqm @ 1,429 psm -

External works 12,607,509 @ 15.0% (1,891,126) 15,759 £per unit

Category 2 Housing 95% of All units 120 units @ 1,400 £ per dwelling (159,600) Category 3 Housing 5% of All units 120 units @ 22,791 £ per dwelling (136,746)

Contingency 14,794,981 @ 5.0% (739,749)

Professional Fees 14,794,981 @ 10.0% (1,479,498)

Disposal Costs - Marketing and Promotion 20,797,200 OMS @ 1.50% (311,958) Residential Sales Agent Costs 20,797,200 OMS @ 1.00% (207,972) Residential Sales Legal Costs 20,797,200 OMS @ 0.50% (103,986)

Interest - 7.50% APR 0.604% pcm (576,369) Interest sense check (only if viable) 2.32% (619,501) Developers Profit - Margin on AH 7,436,974 6.00% on AH values (446,218) Profit on GDV 20,797,200 20.00% (4,159,440) 19,788,492 21.02% on costs (4,159,440) 28,234,174 16.31% blended (4,605,658)

TOTAL DEVELOPMENT COSTS (25,435,128)

BALANCE Surplus/(Deficit) 1,236,245 £ per ha 500,301 £ per acre 2,799,045

SENSITIVITY ANALYSIS

AH - % on site 40% Balance (RLV - TLV) 2,799,045 15% 20% 25% 30% 35% 40% 45% - 4,447,936 4,118,158 3,788,380 3,458,602 3,128,823 2,799,045 2,469,267 2,000 4,197,381 3,867,603 3,537,825 3,208,047 2,878,268 2,548,490 2,218,712 4,000 3,946,826 3,617,048 3,287,270 2,957,491 2,627,713 2,297,935 1,968,157 6,000 3,696,271 3,366,493 3,036,715 2,706,936 2,377,158 2,047,380 1,717,602 8,000 3,445,716 3,115,938 2,786,160 2,456,381 2,126,603 1,796,825 1,467,047 Site Specific S106 10,000 3,195,161 2,865,383 2,535,604 2,205,826 1,876,048 1,546,270 1,216,492 0 12,000 2,944,606 2,614,828 2,285,049 1,955,271 1,625,493 1,295,715 965,937 14,000 2,694,051 2,364,273 2,034,494 1,704,716 1,374,938 1,045,160 715,382 16,000 2,443,496 2,113,718 1,783,939 1,454,161 1,124,383 794,605 464,826 18,000 2,192,941 1,863,162 1,533,384 1,203,606 873,828 544,050 214,271 20,000 1,942,386 1,612,607 1,282,829 953,051 623,273 293,495 (36,284) 22,000 1,691,831 1,362,052 1,032,274 702,496 372,718 42,939 (286,839) 24,000 1,441,276 1,111,497 781,719 451,941 122,163 (207,616) (537,394) 26,000 1,190,720 860,942 531,164 201,386 (128,392) (458,171) (787,949) 28,000 940,165 610,387 280,609 (49,169) (378,947) (708,726) (1,038,504) 30,000 689,610 359,832 30,054 (299,724) (629,503) (959,281) (1,289,059) 32,000 439,055 109,277 (220,501) (550,279) (880,058) (1,209,836) (1,539,614) 34,000 188,500 (141,278) (471,056) (800,834) (1,130,613) (1,460,391) (1,790,169) 36,000 (62,055) (391,833) (721,611) (1,051,389) (1,381,168) (1,710,946) (2,040,724) 38,000 (312,610) (642,388) (972,166) (1,301,945) (1,631,723) (1,961,501) (2,291,279) 40,000 (563,165) (892,943) (1,222,721) (1,552,500) (1,882,278) (2,212,056) (2,541,834)

AH - % on site 40% Balance (RLV - TLV) 2,799,045 15% 20% 25% 30% 35% 40% 45% 80% 8,042,804 7,690,321 7,337,838 6,985,355 6,632,872 6,280,389 5,927,460 85% 7,144,087 6,797,280 6,450,473 6,103,667 5,756,860 5,410,053 5,063,246 90% 6,245,370 5,904,240 5,563,109 5,221,978 4,880,848 4,539,717 4,198,586 95% 5,346,653 5,011,199 4,675,744 4,340,290 4,004,835 3,669,381 3,333,927 Build rate (£psm) 100% 4,447,936 4,118,158 3,788,380 3,458,602 3,128,823 2,799,045 2,469,267 105% 3,549,219 3,225,117 2,901,015 2,576,913 2,252,811 1,928,709 1,604,607 110% 2,650,502 2,332,076 2,013,651 1,695,225 1,376,799 1,058,373 739,948 115% 1,751,785 1,439,036 1,126,286 813,537 500,787 188,037 (124,712) 120% 853,068 545,995 238,922 (68,152) (375,225) (682,299) (989,372)

AH - % on site 40% Balance (RLV - TLV) 2,799,045 15% 20% 25% 30% 35% 40% 45% 80% (160,868) (219,540) (278,212) (336,884) (395,556) (454,229) (512,901) 85% 991,333 864,884 738,436 611,987 485,538 359,090 232,641 90% 2,143,534 1,949,309 1,755,084 1,560,859 1,366,633 1,172,408 978,183 95% 3,295,735 3,033,733 2,771,732 2,509,730 2,247,728 1,985,727 1,723,725 Market units sale values 100% 4,447,936 4,118,158 3,788,380 3,458,602 3,128,823 2,799,045 2,469,267 105% 5,600,137 5,202,583 4,805,028 4,407,473 4,009,918 3,612,364 3,214,809 110% 6,752,338 6,287,007 5,821,676 5,356,345 4,891,013 4,425,682 3,960,351 115% 7,904,540 7,371,432 6,838,324 6,305,216 5,772,108 5,239,000 4,705,893 120% 9,056,741 8,455,856 7,854,972 7,254,088 6,653,203 6,052,319 5,451,434

AH - % on site 40% Balance (RLV - TLV) 2,799,045 15% 20% 25% 30% 35% 40% 45% 80,000 5,179,442 4,849,663 4,519,885 4,190,107 3,860,329 3,530,551 3,200,772 100,000 5,027,788 4,698,010 4,368,232 4,038,453 3,708,675 3,378,897 3,049,119 Page 11/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 120 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 120 Title: 120 Units Notes: Greenfield - higher value

120,000 4,876,135 4,546,356 4,216,578 3,886,800 3,557,022 3,227,243 2,897,465 TLV (per acre) 140,000 4,724,481 4,394,703 4,064,925 3,735,146 3,405,368 3,075,590 2,745,812 176,471 160,000 4,572,827 4,243,049 3,913,271 3,583,493 3,253,715 2,923,936 2,594,158 180,000 4,421,174 4,091,396 3,761,617 3,431,839 3,102,061 2,772,283 2,442,505 200,000 4,269,520 3,939,742 3,609,964 3,280,186 2,950,407 2,620,629 2,290,851 220,000 4,117,867 3,788,088 3,458,310 3,128,532 2,798,754 2,468,976 2,139,197 240,000 3,966,213 3,636,435 3,306,657 2,976,878 2,647,100 2,317,322 1,987,544

AH - % on site 40% Balance (RLV - TLV) 2,799,045 15% 20% 25% 30% 35% 40% 45% 10 (1,305,978) (1,635,756) (1,965,535) (2,295,313) (2,625,091) (2,954,869) (3,284,648) 15 1,058,033 728,255 398,477 68,698 (261,080) (590,858) (920,636) 20 2,240,039 1,910,261 1,580,482 1,250,704 920,926 591,148 261,370 Density dph 25 2,949,242 2,619,464 2,289,686 1,959,908 1,630,129 1,300,351 970,573 53.0 30 3,422,045 3,092,266 2,762,488 2,432,710 2,102,932 1,773,153 1,443,375 35 3,759,760 3,429,982 3,100,204 2,770,426 2,440,648 2,110,869 1,781,091 40 4,013,047 3,683,269 3,353,491 3,023,713 2,693,934 2,364,156 2,034,378 45 4,210,048 3,880,270 3,550,492 3,220,714 2,890,935 2,561,157 2,231,379 50 4,367,649 4,037,871 3,708,093 3,378,314 3,048,536 2,718,758 2,388,980 55 4,496,595 4,166,817 3,837,039 3,507,260 3,177,482 2,847,704 2,517,926 60 4,604,050 4,274,272 3,944,494 3,614,716 3,284,937 2,955,159 2,625,381

AH - % on site 40% Balance (RLV - TLV) 2,799,045 15% 20% 25% 30% 35% 40% 45% 15% 5,921,071 5,504,638 5,088,205 4,671,772 4,255,338 3,838,905 3,422,472 16% 5,626,444 5,227,342 4,828,240 4,429,138 4,030,035 3,630,933 3,231,831 17% 5,331,817 4,950,046 4,568,275 4,186,504 3,804,732 3,422,961 3,041,190 Profit % on GDV 18% 5,037,190 4,672,750 4,308,310 3,943,870 3,579,429 3,214,989 2,850,549 20.00% 19% 4,742,563 4,395,454 4,048,345 3,701,236 3,354,126 3,007,017 2,659,908 20% 4,447,936 4,118,158 3,788,380 3,458,602 3,128,823 2,799,045 2,469,267 21% 4,153,309 3,840,862 3,528,415 3,215,968 2,903,520 2,591,073 2,278,626 22% 3,858,682 3,563,566 3,268,450 2,973,334 2,678,217 2,383,101 2,087,985 23% 3,564,055 3,286,270 3,008,485 2,730,700 2,452,914 2,175,129 1,897,344 24% 3,269,428 3,008,974 2,748,520 2,488,066 2,227,611 1,967,157 1,706,703 25% 2,974,801 2,731,678 2,488,555 2,245,432 2,002,308 1,759,185 1,516,062

Page 12/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 120 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 235 Title: 235 Units Notes: Greenfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 235 Units AH Policy requirement (% Target) 40% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 12.0% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 60% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 49.4 37.8% 35.5 36% 84.9 169.8 3 bed House 40.0% 56.4 27.0% 25.4 35% 81.8 229.0 4 bed House 17.0% 24.0 1.2% 1.1 11% 25.1 87.8 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 11.3 34.0% 32.0 18% 43.2 60.5 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 141.0 100.0% 94.0 100% 235.0 547.1

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 3,553 38,246 2,487 26,772 6,040 65,019 3 bed House 4,850 52,209 2,132 22,948 6,982 75,157 4 bed House 2,637 28,381 109 1,178 2,746 29,559 5 bed House 0 0 0 0 0 0 1 bed Flat 664 7,142 1,880 20,236 2,544 27,378 2 bed Flat 0 0 0 0 0 0 11,704 125,979 6,609 71,134 18,312 197,113 AH % by floor area: 36.09% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 23,342,550 3 bed House 300,000 3,488 324 24,534,000 4 bed House 340,000 3,091 287 8,533,320 5 bed House 0 1 bed Flat 185,000 3,700 344 7,999,400 2 bed Flat 230,000 3,538 329 0 64,409,270 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 49.4 @ 275,000 13,571,250 3 bed House 56.4 @ 300,000 16,920,000 4 bed House 24.0 @ 340,000 8,149,800 5 bed House 0.0 @ 0 - 1 bed Flat 11.3 @ 185,000 2,086,800 2 bed Flat 0.0 @ 230,000 - 141.0 40,727,850 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 21.3 @ 151,250 3,224,529 3 bed House 15.2 @ 165,000 2,512,620 4 bed House 0.7 @ 187,000 126,562 5 bed House 0.0 @ 0 - 1 bed Flat 19.2 @ 101,750 1,951,158 2 bed Flat 0.0 @ 126,500 - Page 13/56 56.4 7,814,869 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 235 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 235 Title: 235 Units Notes: Greenfield - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 3.6 @ 206,250 732,848 3 bed House 2.5 @ 225,000 571,050 4 bed House 0.1 @ 255,000 28,764 5 bed House 0.0 @ 0 - 1 bed Flat 3.2 @ 138,750 443,445 2 bed Flat 0.0 @ 172,500 - 9.4 1,776,107 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 10.7 @ 192,500 2,051,973 3 bed House 7.6 @ 210,000 1,598,940 4 bed House 0.3 @ 238,000 80,539 5 bed House 0.0 @ 0 - 1 bed Flat 9.6 @ 129,500 1,241,646 2 bed Flat 0.0 @ 161,000 - 28.2 4,973,098

Sub-total GDV Residential 235.0 55,291,923 AH on-site cost analysis: £MV less £GDV 9,117,347 498 £ psm (total GIA sqm) 38,797 £ per unit (total units)

Grant 235 @ 0 -

Total GDV 55,291,923

Gross Benchmark Land Value (BLV)

Residential Density 40.0 dph Site Area (Resi) 5.88 ha 14.52 acres Density analysis: 3,117 sqm/ha 13,578 sqft/ac Benchmark Land Value (BLV) 12,355 £ per plot 494,200 £ per ha 200,000 £ net per acre 2,903,425 Gross to net land area 75% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 2,903,425 134,671 29,034 14,517 (3,081,648) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 2,903,425.00 (3,081,648) RLV analysis: 12,355 £ per plot 494,200 £ per ha 200,000 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (120,000) Statutory Planning Fees (Residential) (40,324) CIL 11,704 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (222,780) Zero Carbon 10,000 £ per dwelling (2,350,000) EV charging points (houses) 1,000 £ per dwelling (191,760) Ev charging points (flats) 2,500 £ per flat (108,100) - - - -

- total 235 units @ 0 per unit (2,649,860) - S106 analysis: 4.79% % of GDV 11,276 £ per unit (total units) AH Commuted Sum 18,312 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 14.52 acres @ 0 £ per acre (if brownfield) -

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 14.52 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 6,040 sqm @ 1,277 psm (8,631,789) 3 bed House 6,982 sqm @ 1,277 psm (8,916,423) 4 bed House 2,746 sqm @ 1,277 psm (3,506,790) 5 bed House - sqm @ 1,277 psm - Page1 bed 14/56 Flat 2,544 sqm @ 1,429 psm (3,634,704) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 235 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 235 Title: 235 Units Notes: Greenfield - higher value

2 bed Flat 18,312 - sqm @ 1,429 psm -

External works 24,689,705 @ 15.0% (3,703,456) 15,759 £per unit

Category 2 Housing 95% of All units 235 units @ 1,400 £ per dwelling (312,550) Category 3 Housing 5% of All units 235 units @ 22,791 £ per dwelling (267,794)

Contingency 28,973,505 @ 5.0% (1,448,675)

Professional Fees 28,973,505 @ 10.0% (2,897,351)

Disposal Costs - Marketing and Promotion 40,727,850 OMS @ 1.50% (610,918) Residential Sales Agent Costs 40,727,850 OMS @ 1.00% (407,279) Residential Sales Legal Costs 40,727,850 OMS @ 0.50% (203,639)

Interest - 7.50% APR 0.604% pcm (1,277,453) Interest sense check (only if viable) 2.57% (1,561,626) Developers Profit - Margin on AH 14,564,073 6.00% on AH values (873,844) Profit on GDV 40,727,850 20.00% (8,145,570) 38,851,783 20.97% on costs (8,145,570) 55,291,923 16.31% blended (9,019,414)

TOTAL DEVELOPMENT COSTS (50,952,845)

BALANCE Surplus/(Deficit) 738,567 £ per ha 298,894 £ per acre 4,339,078

SENSITIVITY ANALYSIS

AH - % on site 40% Balance (RLV - TLV) 4,339,078 15% 20% 25% 30% 35% 40% 45% - 7,658,964 6,994,987 6,331,010 5,667,033 5,003,055 4,339,078 3,675,101 2,000 7,176,045 6,512,068 5,848,091 5,184,114 4,520,136 3,856,159 3,192,182 4,000 6,693,126 6,029,149 5,365,172 4,701,195 4,037,217 3,373,240 2,709,263 6,000 6,210,207 5,546,230 4,882,253 4,218,276 3,554,299 2,890,321 2,226,344 8,000 5,727,288 5,063,311 4,399,334 3,735,357 3,071,380 2,407,402 1,743,425 Site Specific S106 10,000 5,244,369 4,580,392 3,916,415 3,252,438 2,588,461 1,924,483 1,260,506 0 12,000 4,761,450 4,097,473 3,433,496 2,769,519 2,105,542 1,441,564 777,587 14,000 4,278,531 3,614,554 2,950,577 2,286,600 1,622,623 958,646 294,668 16,000 3,795,612 3,131,635 2,467,658 1,803,681 1,139,704 475,727 (188,251) 18,000 3,312,693 2,648,716 1,984,739 1,320,762 656,785 (7,192) (671,170) 20,000 2,829,775 2,165,797 1,501,820 837,843 173,866 (490,111) (1,154,088) 22,000 2,346,856 1,682,878 1,018,901 354,924 (309,053) (973,030) (1,637,007) 24,000 1,863,937 1,199,959 535,982 (127,995) (791,972) (1,455,949) (2,119,926) 26,000 1,381,018 717,040 53,063 (610,914) (1,274,891) (1,938,868) (2,602,845) 28,000 898,099 234,122 (429,856) (1,093,833) (1,757,810) (2,421,787) (3,085,764) 30,000 415,180 (248,797) (912,775) (1,576,752) (2,240,729) (2,904,706) (3,568,683) 32,000 (67,739) (731,716) (1,395,694) (2,059,671) (2,723,648) (3,387,625) (4,051,602) 34,000 (550,658) (1,214,635) (1,878,612) (2,542,590) (3,206,567) (3,870,544) (4,534,521) 36,000 (1,033,577) (1,697,554) (2,361,531) (3,025,509) (3,689,486) (4,353,463) (5,017,440) 38,000 (1,516,496) (2,180,473) (2,844,450) (3,508,428) (4,172,405) (4,836,382) (5,500,359) 40,000 (1,999,415) (2,663,392) (3,327,369) (3,991,346) (4,655,324) (5,319,301) (5,983,278)

AH - % on site 40% Balance (RLV - TLV) 4,339,078 15% 20% 25% 30% 35% 40% 45% 80% 14,587,700 13,879,962 13,172,223 12,464,485 11,756,746 11,049,008 10,341,269 85% 12,855,516 12,158,718 11,461,920 10,765,122 10,068,324 9,371,525 8,674,727 90% 11,123,332 10,437,474 9,751,616 9,065,759 8,379,901 7,694,043 7,008,185 95% 9,391,148 8,716,231 8,041,313 7,366,396 6,691,478 6,016,561 5,341,643 Build rate (£psm) 100% 7,658,964 6,994,987 6,331,010 5,667,033 5,003,055 4,339,078 3,675,101 105% 5,926,780 5,273,743 4,620,706 3,967,669 3,314,633 2,661,596 2,008,559 110% 4,194,596 3,552,500 2,910,403 2,268,306 1,626,210 984,113 342,017 115% 2,462,412 1,831,256 1,200,100 568,943 (62,213) (693,369) (1,324,525) 120% 730,228 110,012 (510,204) (1,130,420) (1,750,636) (2,370,851) (2,991,067)

AH - % on site 40% Balance (RLV - TLV) 4,339,078 15% 20% 25% 30% 35% 40% 45% 80% (1,314,336) (1,450,472) (1,586,608) (1,722,744) (1,858,880) (1,995,016) (2,131,152) 85% 928,989 660,892 392,796 124,700 (143,396) (411,493) (679,589) 90% 3,172,314 2,772,257 2,372,201 1,972,144 1,572,088 1,172,031 771,974 95% 5,415,639 4,883,622 4,351,605 3,819,588 3,287,571 2,755,555 2,223,538 Market units sale values 100% 7,658,964 6,994,987 6,331,010 5,667,033 5,003,055 4,339,078 3,675,101 105% 9,902,289 9,106,352 8,310,414 7,514,477 6,718,539 5,922,602 5,126,664 110% 12,145,614 11,217,716 10,289,819 9,361,921 8,434,023 7,506,125 6,578,228 115% 14,388,939 13,329,081 12,269,223 11,209,365 10,149,507 9,089,649 8,029,791 120% 16,632,265 15,440,446 14,248,628 13,056,809 11,864,991 10,673,173 9,481,354

AH - % on site 40% Balance (RLV - TLV) 4,339,078 15% 20% 25% 30% 35% 40% 45% 80,000 10,020,020 9,356,043 8,692,066 8,028,089 7,364,112 6,700,135 6,036,157 100,000 9,626,511 8,962,534 8,298,557 7,634,579 6,970,602 6,306,625 5,642,648 Page 15/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\GF 235 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: GF 235 Title: 235 Units Notes: Greenfield - higher value

120,000 9,233,002 8,569,024 7,905,047 7,241,070 6,577,093 5,913,116 5,249,139 TLV (per acre) 140,000 8,839,492 8,175,515 7,511,538 6,847,561 6,183,584 5,519,606 4,855,629 200,000 160,000 8,445,983 7,782,006 7,118,028 6,454,051 5,790,074 5,126,097 4,462,120 180,000 8,052,473 7,388,496 6,724,519 6,060,542 5,396,565 4,732,588 4,068,610 200,000 7,658,964 6,994,987 6,331,010 5,667,033 5,003,055 4,339,078 3,675,101 220,000 7,265,455 6,601,477 5,937,500 5,273,523 4,609,546 3,945,569 3,281,592 240,000 6,871,945 6,207,968 5,543,991 4,880,014 4,216,037 3,552,059 2,888,082

AH - % on site 40% Balance (RLV - TLV) 4,339,078 15% 20% 25% 30% 35% 40% 45% 10 (4,146,318) (4,810,295) (5,474,272) (6,138,249) (6,802,226) (7,466,204) (8,130,181) 15 1,100,474 436,497 (227,480) (891,457) (1,555,434) (2,219,412) (2,883,389) 20 3,723,870 3,059,893 2,395,916 1,731,939 1,067,961 403,984 (259,993) Density dph 25 5,297,908 4,633,931 3,969,953 3,305,976 2,641,999 1,978,022 1,314,045 40.0 30 6,347,266 5,683,289 5,019,312 4,355,335 3,691,357 3,027,380 2,363,403 35 7,096,808 6,432,831 5,768,853 5,104,876 4,440,899 3,776,922 3,112,945 40 7,658,964 6,994,987 6,331,010 5,667,033 5,003,055 4,339,078 3,675,101 45 8,096,197 7,432,220 6,768,242 6,104,265 5,440,288 4,776,311 4,112,334 50 8,445,983 7,782,006 7,118,028 6,454,051 5,790,074 5,126,097 4,462,120 55 8,732,171 8,068,194 7,404,217 6,740,240 6,076,263 5,412,286 4,748,308 60 8,970,662 8,306,685 7,642,708 6,978,730 6,314,753 5,650,776 4,986,799

AH - % on site 40% Balance (RLV - TLV) 4,339,078 15% 20% 25% 30% 35% 40% 45% 15% 10,543,853 9,710,177 8,876,500 8,042,824 7,209,147 6,375,471 5,541,794 16% 9,966,876 9,167,139 8,367,402 7,567,666 6,767,929 5,968,192 5,168,456 17% 9,389,898 8,624,101 7,858,304 7,092,507 6,326,710 5,560,914 4,795,117 Profit % on GDV 18% 8,812,920 8,081,063 7,349,206 6,617,349 5,885,492 5,153,635 4,421,778 20.00% 19% 8,235,942 7,538,025 6,840,108 6,142,191 5,444,274 4,746,357 4,048,440 20% 7,658,964 6,994,987 6,331,010 5,667,033 5,003,055 4,339,078 3,675,101 21% 7,081,986 6,451,949 5,821,912 5,191,874 4,561,837 3,931,800 3,301,762 22% 6,505,008 5,908,911 5,312,813 4,716,716 4,120,619 3,524,521 2,928,424 23% 5,928,030 5,365,873 4,803,715 4,241,558 3,679,400 3,117,243 2,555,085 24% 5,351,053 4,822,835 4,294,617 3,766,400 3,238,182 2,709,964 2,181,747 25% 4,774,075 4,279,797 3,785,519 3,291,241 2,796,963 2,302,686 1,808,408

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Scheme Ref: BF 10 Title: 10 Units Notes: Brownfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 10 Units AH Policy requirement (% Target) 0% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 0.0% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 100% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 3.5 37.8% 0.0 35% 3.5 7.0 3 bed House 40.0% 4.0 27.0% 0.0 40% 4.0 11.2 4 bed House 17.0% 1.7 1.2% 0.0 17% 1.7 6.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 0.8 34.0% 0.0 8% 0.8 1.1 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 10.0 100.0% 0.0 100% 10.0 25.3

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 252 2,713 0 0 252 2,713 3 bed House 344 3,703 0 0 344 3,703 4 bed House 187 2,013 0 0 187 2,013 5 bed House 0 0 0 0 0 0 1 bed Flat 47 507 0 0 47 507 2 bed Flat 0 0 0 0 0 0 830 8,935 0 0 830 8,935 AH % by floor area: 0.00% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 962,500 3 bed House 300,000 3,488 324 1,200,000 4 bed House 340,000 3,091 287 578,000 5 bed House 0 1 bed Flat 185,000 3,700 344 148,000 2 bed Flat 230,000 3,538 329 0 2,888,500 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 3.5 @ 275,000 962,500 3 bed House 4.0 @ 300,000 1,200,000 4 bed House 1.7 @ 340,000 578,000 5 bed House 0.0 @ 0 - 1 bed Flat 0.8 @ 185,000 148,000 2 bed Flat 0.0 @ 230,000 - 10.0 2,888,500 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 101,750 - 2 bed Flat 0.0 @ 126,500 - Page 17/56 0.0 - Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 10 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 10 Title: 10 Units Notes: Brownfield - higher value

Sub-total GDV Residential 10.0 2,888,500 AH on-site cost analysis: £MV less £GDV 0 0 £ psm (total GIA sqm) 0 £ per unit (total units)

Grant 10 @ 0 -

Total GDV 2,888,500

Gross Benchmark Land Value (BLV)

Residential Density 39.0 dph Site Area (Resi) 0.26 ha 0.63 acres Density analysis: 3,237 sqm/ha 14,102 sqft/ac Benchmark Land Value (BLV) 35,622 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 356,218 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 356,218 7,311 3,562 1,781 (368,872) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 356,218.09 (368,872) RLV analysis: 35,622 £ per plot 1,389,251 £ per ha 562,222 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (10,000) Statutory Planning Fees (Residential) (3,850) CIL 830 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (9,480) 20% reduction in CO2 2,557 £ per dwelling (25,570) EV charging points (houses) 1,000 £ per dwelling (9,200) Ev charging points (flats) 2,500 £ per flat (2,000) - - - -

- total 10 units @ 0 per unit (36,770) - S106 analysis: 1.27% % of GDV 3,677 £ per unit (total units) AH Commuted Sum 830 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 0.63 acres @ 110,000 £ per acre (if brownfield) (69,695)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 0.63 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 252 sqm @ 1,277 psm (321,804) 3 bed House 344 sqm @ 1,277 psm (439,288) 4 bed House 187 sqm @ 1,277 psm (238,799) 5 bed House - sqm @ 1,277 psm - Page1 bed 18/56 Flat 47 sqm @ 1,429 psm (67,247) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 10 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 10 Title: 10 Units Notes: Brownfield - higher value

2 bed Flat 830 - sqm @ 1,429 psm -

External works 1,067,138 @ 10.0% (106,714) 10,671 £per unit

Category 2 Housing 100% of All units 10 units @ 1,400 £ per dwelling (14,000) Category 3 Housing 0% of All units 10 units @ 10,307 £ per dwelling -

Contingency 1,257,547 @ 5.0% (62,877)

Professional Fees 1,257,547 @ 10.0% (125,755)

Disposal Costs - Marketing and Promotion 2,888,500 OMS @ 1.50% (43,328) Residential Sales Agent Costs 2,888,500 OMS @ 1.00% (28,885) Residential Sales Legal Costs 2,888,500 OMS @ 0.50% (14,443)

Interest - 7.50% APR 0.604% pcm (144,039) Interest sense check (only if viable) 5.67% (144,039) Developers Profit - Margin on AH 0 6.00% on AH values - Profit on GDV 2,888,500 20.00% (577,700) 1,736,973 33.26% on costs (577,700) 2,888,500 20.00% blended (577,700)

TOTAL DEVELOPMENT COSTS (2,683,545)

BALANCE Surplus/(Deficit) 799,325 £ per ha 323,482 £ per acre 204,955

SENSITIVITY ANALYSIS

AH - % on site 0% Balance (RLV - TLV) 204,955 0% 5% 10% 15% 20% 25% 30% - 204,955 179,047 153,138 127,229 101,321 75,354 49,360 1,000 194,235 168,327 142,418 116,509 90,563 64,569 38,576 2,000 183,515 157,607 131,698 105,771 79,778 53,784 27,791 3,000 172,795 146,887 120,978 94,986 68,993 43,000 17,006 4,000 162,075 136,167 110,195 84,202 58,208 32,215 6,221 Site Specific S106 5,000 151,355 125,404 99,410 73,417 47,423 21,430 (4,563) 0 6,000 140,612 114,619 88,626 62,632 36,639 10,645 (15,348) 7,000 129,828 103,834 77,841 51,847 25,854 (140) (26,133) 8,000 119,043 93,049 67,056 41,063 15,069 (10,924) (36,918) 9,000 108,258 82,265 56,271 30,278 4,284 (21,709) (47,703) 10,000 97,473 71,480 45,486 19,493 (6,500) (32,494) (58,487) 11,000 86,689 60,695 34,702 8,708 (17,285) (43,279) (69,272) 12,000 75,904 49,910 23,917 (2,077) (28,070) (54,063) (80,057) 13,000 65,119 39,126 13,132 (12,861) (38,855) (64,848) (90,842) 14,000 54,334 28,341 2,347 (23,646) (49,640) (75,633) (101,665) 15,000 43,549 17,556 (8,437) (34,431) (60,424) (86,418) (112,515) 16,000 32,765 6,771 (19,222) (45,216) (71,209) (97,213) (123,365) 17,000 21,980 (4,014) (30,007) (56,000) (81,994) (108,063) (134,215) 18,000 11,195 (14,798) (40,792) (66,785) (92,779) (118,913) (145,065) 19,000 410 (25,583) (51,577) (77,570) (103,611) (129,763) (155,915) 20,000 (10,374) (36,368) (62,361) (88,355) (114,461) (140,613) (166,765)

AH - % on site 0% Balance (RLV - TLV) 204,955 0% 5% 10% 15% 20% 25% 30% 80% 493,723 465,953 438,184 410,414 382,645 354,875 327,106 85% 421,802 394,500 367,199 339,898 312,596 285,295 257,994 90% 349,667 322,817 295,966 269,115 242,264 215,414 188,563 95% 277,311 250,932 224,552 198,172 171,793 145,413 119,033 Build rate (£psm) 100% 204,955 179,047 153,138 127,229 101,321 75,354 49,360 105% 132,528 107,008 81,489 55,969 30,450 4,930 (20,589) 110% 59,734 34,689 9,643 (15,403) (40,448) (65,494) (90,539) 115% (13,059) (37,631) (62,203) (86,774) (111,441) (136,162) (160,883) 120% (85,853) (110,034) (134,278) (158,523) (182,767) (207,012) (231,256)

AH - % on site 0% Balance (RLV - TLV) 204,955 0% 5% 10% 15% 20% 25% 30% 80% (252,397) (255,572) (258,788) (262,035) (265,282) (268,529) (271,776) 85% (137,512) (146,431) (155,350) (164,268) (173,187) (182,106) (191,025) 90% (23,011) (37,588) (52,165) (66,742) (81,319) (95,942) (110,605) 95% 91,155 70,870 50,585 30,299 10,014 (10,271) (30,556) Market units sale values 100% 204,955 179,047 153,138 127,229 101,321 75,354 49,360 105% 318,479 286,894 255,309 223,724 192,140 160,555 128,970 110% 431,952 394,741 357,480 320,220 282,959 245,698 208,437 115% 544,909 502,069 459,229 416,389 373,549 330,709 287,869 120% 657,866 609,379 560,891 512,403 463,915 415,427 366,939

AH - % on site 0% Balance (RLV - TLV) 204,955 0% 5% 10% 15% 20% 25% 30% 350,000 376,552 350,643 324,735 298,826 272,918 247,009 221,101 400,000 336,904 310,996 285,087 259,178 233,270 207,361 181,453 Page 19/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 10 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 10 Title: 10 Units Notes: Brownfield - higher value

450,000 296,235 270,326 244,418 218,509 192,601 166,692 140,783 TLV (per acre) 500,000 255,566 229,657 203,748 177,840 151,931 126,023 100,114 562,222 550,000 214,896 188,988 163,079 137,171 111,262 85,353 59,362 600,000 174,227 148,319 122,410 96,427 70,433 44,440 18,447 650,000 133,492 107,499 81,505 55,512 29,518 3,525 (22,468) 700,000 92,577 66,584 40,590 14,597 (11,397) (37,390) (63,384) 750,000 51,662 25,668 (325) (26,318) (52,312) (78,305) (104,353)

AH - % on site 0% Balance (RLV - TLV) 204,955 0% 5% 10% 15% 20% 25% 30% 10 (1,441,547) (1,469,794) (1,498,041) (1,526,289) (1,554,536) (1,582,783) (1,611,031) 15 (687,994) (716,242) (744,489) (772,737) (800,984) (829,231) (857,479) 20 (320,780) (347,066) (373,449) (399,833) (426,216) (452,599) (480,703) Density dph 25 (104,053) (130,205) (156,357) (182,508) (208,660) (234,811) (260,963) 39.0 30 39,610 13,616 (12,377) (38,371) (64,364) (90,357) (116,478) 35 142,193 116,199 90,206 64,213 38,219 12,226 (13,768) 40 218,681 192,773 166,864 140,956 115,047 89,139 63,170 45 278,162 252,254 226,345 200,436 174,528 148,619 122,711 50 325,747 299,838 273,929 248,021 222,112 196,204 170,295 55 364,679 338,771 312,862 286,954 261,045 235,137 209,228 60 396,388 370,491 344,595 318,698 292,802 266,905 241,004

AH - % on site 0% Balance (RLV - TLV) 204,955 0% 5% 10% 15% 20% 25% 30% 15% 349,380 316,250 283,121 249,991 216,861 183,673 150,458 16% 320,495 288,810 257,124 225,438 193,753 162,009 130,238 17% 291,610 261,369 231,128 200,886 170,645 140,345 110,019 Profit % on GDV 18% 262,725 233,928 205,131 176,334 147,537 118,681 89,799 20.00% 19% 233,840 206,487 179,135 151,782 124,429 97,018 69,580 20% 204,955 179,047 153,138 127,229 101,321 75,354 49,360 21% 176,070 151,606 127,142 102,677 78,213 53,690 29,141 22% 147,185 124,165 101,145 78,125 55,105 32,026 8,921 23% 118,300 96,724 75,149 53,573 31,997 10,363 (11,298) 24% 89,415 69,284 49,152 29,020 8,889 (11,301) (31,518) 25% 60,530 41,843 23,156 4,468 (14,219) (32,965) (51,737)

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Scheme Ref: BF 20 Title: 20 Units Notes: Brownfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 20 Units AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 7.5% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 75% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 5.3 37.8% 1.9 36% 7.1 14.3 3 bed House 40.0% 6.0 27.0% 1.4 37% 7.4 20.6 4 bed House 17.0% 2.6 1.2% 0.1 13% 2.6 9.1 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 1.2 34.0% 1.7 15% 2.9 4.1 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 15.0 100.0% 5.0 100% 20.0 48.1

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 378 4,069 132 1,424 510 5,493 3 bed House 516 5,554 113 1,221 629 6,775 4 bed House 281 3,019 6 63 286 3,082 5 bed House 0 0 0 0 0 0 1 bed Flat 71 760 100 1,076 171 1,836 2 bed Flat 0 0 0 0 0 0 1,245 13,402 352 3,784 1,597 17,186 AH % by floor area: 22.02% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 1,963,500 3 bed House 300,000 3,488 324 2,205,000 4 bed House 340,000 3,091 287 887,400 5 bed House 0 1 bed Flat 185,000 3,700 344 536,500 2 bed Flat 230,000 3,538 329 0 5,592,400 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 5.3 @ 275,000 1,443,750 3 bed House 6.0 @ 300,000 1,800,000 4 bed House 2.6 @ 340,000 867,000 5 bed House 0.0 @ 0 - 1 bed Flat 1.2 @ 185,000 222,000 2 bed Flat 0.0 @ 230,000 - 15.0 4,332,750 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 1.1 @ 151,250 171,518 3 bed House 0.8 @ 165,000 133,650 4 bed House 0.0 @ 187,000 6,732 5 bed House 0.0 @ 0 - 1 bed Flat 1.0 @ 101,750 103,785 2 bed Flat 0.0 @ 126,500 - Page 21/56 3.0 415,685 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 20 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 20 Title: 20 Units Notes: Brownfield - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.2 @ 206,250 38,981 3 bed House 0.1 @ 225,000 30,375 4 bed House 0.0 @ 255,000 1,530 5 bed House 0.0 @ 0 - 1 bed Flat 0.2 @ 138,750 23,588 2 bed Flat 0.0 @ 172,500 - 0.5 94,474 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.6 @ 192,500 109,148 3 bed House 0.4 @ 210,000 85,050 4 bed House 0.0 @ 238,000 4,284 5 bed House 0.0 @ 0 - 1 bed Flat 0.5 @ 129,500 66,045 2 bed Flat 0.0 @ 161,000 - 1.5 264,527

Sub-total GDV Residential 20.0 5,107,435 AH on-site cost analysis: £MV less £GDV 484,965 304 £ psm (total GIA sqm) 24,248 £ per unit (total units)

Grant 20 @ 0 -

Total GDV 5,107,435

Gross Benchmark Land Value (BLV)

Residential Density 44.0 dph Site Area (Resi) 0.45 ha 1.12 acres Density analysis: 3,513 sqm/ha 15,301 sqft/ac Benchmark Land Value (BLV) 31,574 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 631,478 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 631,478 21,074 6,315 3,157 (662,024) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 631,477.53 (662,024) RLV analysis: 31,574 £ per plot 1,389,251 £ per ha 562,222 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (20,000) Statutory Planning Fees (Residential) (7,700) CIL 1,245 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (18,960) 20% reduction in CO2 2,557 £ per dwelling (51,140) EV charging points (houses) 1,000 £ per dwelling (17,100) Ev charging points (flats) 2,500 £ per flat (7,250) - - - -

- total 20 units @ 0 per unit (75,490) - S106 analysis: 1.48% % of GDV 3,775 £ per unit (total units) AH Commuted Sum 1,597 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 1.12 acres @ 110,000 £ per acre (if brownfield) (123,550)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 1.12 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 510 sqm @ 1,277 psm (651,653) 3 bed House 629 sqm @ 1,277 psm (803,744) 4 bed House 286 sqm @ 1,277 psm (365,631) 5 bed House - sqm @ 1,277 psm - Page1 bed 22/56 Flat 171 sqm @ 1,429 psm (243,771) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 20 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 20 Title: 20 Units Notes: Brownfield - higher value

2 bed Flat 1,597 - sqm @ 1,429 psm -

External works 2,064,798 @ 10.0% (206,480) 10,324 £per unit

Category 2 Housing 95% of All units 20 units @ 1,400 £ per dwelling (26,600) Category 3 Housing 5% of All units 20 units @ 22,791 £ per dwelling (22,791)

Contingency 2,444,219 @ 5.0% (122,211)

Professional Fees 2,444,219 @ 10.0% (244,422)

Disposal Costs - Marketing and Promotion 4,332,750 OMS @ 1.50% (64,991) Residential Sales Agent Costs 4,332,750 OMS @ 1.00% (43,328) Residential Sales Legal Costs 4,332,750 OMS @ 0.50% (21,664)

Interest - 7.50% APR 0.604% pcm (232,814) Interest sense check (only if viable) 5.02% (232,814) Developers Profit - Margin on AH 774,685 6.00% on AH values (46,481) Profit on GDV 4,332,750 20.00% (866,550) 3,295,799 26.29% on costs (866,550) 5,107,435 17.88% blended (913,031)

TOTAL DEVELOPMENT COSTS (4,870,853)

BALANCE Surplus/(Deficit) 520,479 £ per ha 210,635 £ per acre 236,581

SENSITIVITY ANALYSIS

AH - % on site 25% Balance (RLV - TLV) 236,581 15% 20% 25% 30% 35% 40% 45% - 340,216 288,399 236,581 184,764 132,947 81,022 29,036 1,000 318,776 266,959 215,142 163,324 111,440 59,453 7,466 2,000 297,336 245,519 193,702 141,857 89,870 37,883 (14,104) 3,000 275,896 224,079 172,262 120,287 68,301 16,314 (35,673) 4,000 254,456 202,639 150,705 98,718 46,731 (5,256) (57,243) Site Specific S106 5,000 233,016 181,122 129,135 77,148 25,161 (26,825) (78,812) 0 6,000 211,539 159,553 107,566 55,579 3,592 (48,395) (100,382) 7,000 189,970 137,983 85,996 34,009 (17,978) (69,964) (121,951) 8,000 168,400 116,413 64,427 12,440 (39,547) (91,534) (143,521) 9,000 146,831 94,844 42,857 (9,130) (61,117) (113,104) (165,090) 10,000 125,261 73,274 21,287 (30,699) (82,686) (134,673) (186,660) 11,000 103,692 51,705 (282) (52,269) (104,256) (156,243) (208,342) 12,000 82,122 30,135 (21,852) (73,838) (125,825) (177,812) (230,042) 13,000 60,553 8,566 (43,421) (95,408) (147,395) (199,439) (251,742) 14,000 38,983 (13,004) (64,991) (116,978) (168,964) (221,139) (273,442) 15,000 17,413 (34,573) (86,560) (138,547) (190,536) (242,839) (295,142) 16,000 (4,156) (56,143) (108,130) (160,117) (212,236) (264,539) (316,842) 17,000 (25,726) (77,713) (129,699) (181,686) (233,936) (286,239) (338,542) 18,000 (47,295) (99,282) (151,269) (203,332) (255,636) (307,939) (360,242) 19,000 (68,865) (120,852) (172,838) (225,032) (277,336) (329,639) (381,942) 20,000 (90,434) (142,421) (194,429) (246,732) (299,035) (351,339) (403,642)

AH - % on site 25% Balance (RLV - TLV) 236,581 15% 20% 25% 30% 35% 40% 45% 80% 906,070 850,531 794,992 739,453 683,914 628,375 572,835 85% 765,037 710,435 655,832 601,229 546,627 492,024 437,422 90% 623,987 570,285 516,584 462,882 409,181 355,479 301,778 95% 482,101 429,342 376,583 323,823 271,064 218,305 165,545 Build rate (£psm) 100% 340,216 288,399 236,581 184,764 132,947 81,022 29,036 105% 198,213 147,174 96,135 45,096 (5,943) (56,982) (108,021) 110% 55,470 5,379 (44,712) (94,803) (144,894) (195,016) (245,412) 115% (87,273) (136,416) (185,560) (234,970) (284,412) (333,854) (383,297) 120% (230,249) (278,738) (327,226) (375,715) (424,204) (472,692) (521,585)

AH - % on site 25% Balance (RLV - TLV) 236,581 15% 20% 25% 30% 35% 40% 45% 80% (437,045) (443,394) (449,743) (456,230) (462,724) (469,218) (475,713) 85% (241,740) (259,577) (277,415) (295,252) (313,090) (330,927) (348,765) 90% (47,208) (76,362) (105,516) (134,669) (163,823) (193,065) (222,391) 95% 146,874 106,304 65,734 25,163 (15,407) (55,977) (96,547) Market units sale values 100% 340,216 288,399 236,581 184,764 132,947 81,022 29,036 105% 533,206 470,036 406,867 343,697 280,528 217,358 154,189 110% 725,992 651,608 577,152 502,630 428,109 353,587 279,065 115% 918,020 832,339 746,659 660,979 575,299 489,618 403,938 120% 1,110,047 1,013,071 916,095 819,119 722,143 625,167 528,191

AH - % on site 25% Balance (RLV - TLV) 236,581 15% 20% 25% 30% 35% 40% 45% 350,000 646,104 594,311 542,518 490,725 438,932 387,135 335,318 400,000 574,125 522,308 470,491 418,674 366,857 315,040 263,222 Page 23/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 20 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 20 Title: 20 Units Notes: Brownfield - higher value

450,000 502,030 450,213 398,396 346,578 294,761 242,944 191,127 TLV (per acre) 500,000 429,934 378,117 326,300 274,483 222,666 170,849 119,031 562,222 550,000 357,839 306,022 254,204 202,387 150,570 98,752 46,765 600,000 285,743 233,926 182,109 130,194 78,207 26,221 (25,766) 650,000 213,624 161,637 109,650 57,663 5,676 (46,311) (98,298) 700,000 141,092 89,105 37,119 (14,868) (66,855) (118,842) (170,829) 750,000 68,561 16,574 (35,413) (87,400) (139,386) (191,382) (243,685)

AH - % on site 25% Balance (RLV - TLV) 236,581 15% 20% 25% 30% 35% 40% 45% 10 (3,093,780) (3,150,275) (3,206,770) (3,263,264) (3,319,759) (3,376,254) (3,432,748) 15 (1,586,676) (1,643,171) (1,699,666) (1,756,160) (1,812,655) (1,869,150) (1,925,644) 20 (839,405) (892,172) (946,113) (1,002,608) (1,059,103) (1,115,598) (1,172,092) Density dph 25 (404,517) (456,820) (509,124) (561,631) (614,398) (667,165) (719,961) 44.0 30 (116,005) (167,992) (220,154) (272,457) (324,761) (377,064) (429,367) 35 89,162 37,175 (14,812) (66,799) (118,786) (170,773) (222,960) 40 242,884 191,050 139,063 87,076 35,089 (16,898) (68,885) 45 361,845 310,028 258,211 206,394 154,577 102,759 50,796 50 457,014 405,197 353,380 301,563 249,746 197,928 146,111 55 534,880 483,063 431,245 379,428 327,611 275,794 223,977 60 599,768 547,951 496,133 444,316 392,499 340,682 288,865

AH - % on site 25% Balance (RLV - TLV) 236,581 15% 20% 25% 30% 35% 40% 45% 15% 585,738 519,479 453,219 386,959 320,700 254,332 187,903 16% 536,634 473,263 409,891 346,520 283,149 219,670 156,130 17% 487,529 427,047 366,564 306,081 245,599 185,008 124,356 Profit % on GDV 18% 438,425 380,831 323,236 265,642 208,048 150,346 92,583 20.00% 19% 389,320 334,615 279,909 225,203 170,498 115,684 60,809 20% 340,216 288,399 236,581 184,764 132,947 81,022 29,036 21% 291,111 242,183 193,254 144,325 95,397 46,360 (2,738) 22% 242,007 195,967 149,926 103,886 57,846 11,698 (34,511) 23% 192,902 149,751 106,599 63,447 20,296 (22,964) (66,285) 24% 143,798 103,535 63,271 23,008 (17,255) (57,626) (98,058) 25% 94,693 57,319 19,944 (17,431) (54,805) (92,288) (129,832)

Page 24/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 20 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 65 Title: 65 Units Notes: Brownfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 65 Units AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 7.5% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 75% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 17.1 37.8% 6.1 36% 23.2 46.4 3 bed House 40.0% 19.5 27.0% 4.4 37% 23.9 66.9 4 bed House 17.0% 8.3 1.2% 0.2 13% 8.5 29.7 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 3.9 34.0% 5.5 15% 9.4 13.2 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 48.8 100.0% 16.3 100% 65.0 156.2

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 1,229 13,223 430 4,628 1,658 17,852 3 bed House 1,677 18,051 369 3,967 2,046 22,018 4 bed House 912 9,813 19 204 931 10,016 5 bed House 0 0 0 0 0 0 1 bed Flat 229 2,469 325 3,498 554 5,968 2 bed Flat 0 0 0 0 0 0 4,047 43,557 1,142 12,297 5,189 55,854 AH % by floor area: 22.02% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 6,381,375 3 bed House 300,000 3,488 324 7,166,250 4 bed House 340,000 3,091 287 2,884,050 5 bed House 0 1 bed Flat 185,000 3,700 344 1,743,625 2 bed Flat 230,000 3,538 329 0 18,175,300 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 17.1 @ 275,000 4,692,188 3 bed House 19.5 @ 300,000 5,850,000 4 bed House 8.3 @ 340,000 2,817,750 5 bed House 0.0 @ 0 - 1 bed Flat 3.9 @ 185,000 721,500 2 bed Flat 0.0 @ 230,000 - 48.8 14,081,438 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 3.7 @ 151,250 557,432 3 bed House 2.6 @ 165,000 434,363 4 bed House 0.1 @ 187,000 21,879 5 bed House 0.0 @ 0 - 1 bed Flat 3.3 @ 101,750 337,301 2 bed Flat 0.0 @ 126,500 - Page 25/56 9.8 1,350,975 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 65 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 65 Title: 65 Units Notes: Brownfield - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.6 @ 206,250 126,689 3 bed House 0.4 @ 225,000 98,719 4 bed House 0.0 @ 255,000 4,973 5 bed House 0.0 @ 0 - 1 bed Flat 0.6 @ 138,750 76,659 2 bed Flat 0.0 @ 172,500 - 1.6 307,040 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 1.8 @ 192,500 354,729 3 bed House 1.3 @ 210,000 276,413 4 bed House 0.1 @ 238,000 13,923 5 bed House 0.0 @ 0 - 1 bed Flat 1.7 @ 129,500 214,646 2 bed Flat 0.0 @ 161,000 - 4.9 859,711

Sub-total GDV Residential 65.0 16,599,163 AH on-site cost analysis: £MV less £GDV 1,576,137 304 £ psm (total GIA sqm) 24,248 £ per unit (total units)

Grant 65 @ 0 -

Total GDV 16,599,163

Gross Benchmark Land Value (BLV)

Residential Density 33.0 dph Site Area (Resi) 1.97 ha 4.87 acres Density analysis: 2,634 sqm/ha 11,476 sqft/ac Benchmark Land Value (BLV) 42,099 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 2,736,403 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 2,736,403 126,320 27,364 13,682 (2,903,769) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 2,736,402.62 (2,903,769) RLV analysis: 42,099 £ per plot 1,389,251 £ per ha 562,222 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (60,000) Statutory Planning Fees (Residential) (20,774) CIL 4,047 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (61,620) 20% reduction in CO2 2,557 £ per dwelling (166,205) EV charging points (houses) 1,000 £ per dwelling (55,575) Ev charging points (flats) 2,500 £ per flat (23,563) - - - -

- total 65 units @ 0 per unit (245,343) - S106 analysis: 1.48% % of GDV 3,775 £ per unit (total units) AH Commuted Sum 5,189 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 4.87 acres @ 110,000 £ per acre (if brownfield) (535,383)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 4.87 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 1,658 sqm @ 1,277 psm (2,117,873) 3 bed House 2,046 sqm @ 1,277 psm (2,612,167) 4 bed House 931 sqm @ 1,277 psm (1,188,300) 5 bed House - sqm @ 1,277 psm - Page1 bed 26/56 Flat 554 sqm @ 1,429 psm (792,254) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 65 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 65 Title: 65 Units Notes: Brownfield - higher value

2 bed Flat 5,189 - sqm @ 1,429 psm -

External works 6,710,594 @ 10.0% (671,059) 10,324 £per unit

Category 2 Housing 95% of All units 65 units @ 1,400 £ per dwelling (86,450) Category 3 Housing 5% of All units 65 units @ 22,791 £ per dwelling (74,071)

Contingency 8,077,557 @ 5.0% (403,878)

Professional Fees 8,077,557 @ 10.0% (807,756)

Disposal Costs - Marketing and Promotion 14,081,438 OMS @ 1.50% (211,222) Residential Sales Agent Costs 14,081,438 OMS @ 1.00% (140,814) Residential Sales Legal Costs 14,081,438 OMS @ 0.50% (70,407)

Interest - 7.50% APR 0.604% pcm (980,263) Interest sense check (only if viable) 6.14% (980,263) Developers Profit - Margin on AH 2,517,725 6.00% on AH values (151,064) Profit on GDV 14,081,438 20.00% (2,816,288) 11,079,634 25.42% on costs (2,816,288) 16,599,163 17.88% blended (2,967,351)

TOTAL DEVELOPMENT COSTS (16,950,754)

BALANCE Surplus/(Deficit) (178,500) £ per ha (72,238) £ per acre (351,591)

SENSITIVITY ANALYSIS

AH - % on site 25% Balance (RLV - TLV) (351,591) 15% 20% 25% 30% 35% 40% 45% - (4,631) (178,111) (351,591) (525,071) (699,036) (873,571) (1,048,106) 1,000 (75,601) (249,081) (422,561) (596,041) (770,435) (944,970) (1,119,506) 2,000 (146,572) (320,052) (493,532) (667,300) (841,835) (1,016,370) (1,190,912) 3,000 (217,542) (391,022) (564,502) (738,699) (913,234) (1,087,769) (1,262,743) 4,000 (288,513) (461,992) (635,563) (810,098) (984,634) (1,159,169) (1,334,574) Site Specific S106 5,000 (359,483) (532,963) (706,963) (881,498) (1,056,033) (1,230,568) (1,406,405) 0 6,000 (430,453) (603,933) (778,362) (952,897) (1,127,432) (1,302,324) (1,478,236) 7,000 (501,424) (675,226) (849,762) (1,024,297) (1,198,832) (1,374,155) (1,550,067) 8,000 (572,394) (746,626) (921,161) (1,095,696) (1,270,231) (1,445,986) (1,621,898) 9,000 (643,490) (818,025) (992,561) (1,167,096) (1,341,905) (1,517,817) (1,693,729) 10,000 (714,890) (889,425) (1,063,960) (1,238,495) (1,413,736) (1,589,648) (1,765,572) 11,000 (786,289) (960,824) (1,135,359) (1,309,895) (1,485,567) (1,661,479) (1,837,838) 12,000 (857,689) (1,032,224) (1,206,759) (1,381,486) (1,557,398) (1,733,310) (1,910,103) 13,000 (929,088) (1,103,623) (1,278,158) (1,453,317) (1,629,229) (1,805,141) (1,982,368) 14,000 (1,000,488) (1,175,023) (1,349,558) (1,525,148) (1,701,060) (1,877,021) (2,054,634) 15,000 (1,071,887) (1,246,422) (1,421,067) (1,596,979) (1,772,891) (1,949,286) (2,126,899) 16,000 (1,143,286) (1,317,822) (1,492,898) (1,668,810) (1,844,722) (2,021,552) (2,199,164) 17,000 (1,214,686) (1,389,221) (1,564,729) (1,740,641) (1,916,553) (2,093,817) (2,271,429) 18,000 (1,286,085) (1,460,649) (1,636,561) (1,812,473) (1,988,470) (2,166,082) (2,343,734) 19,000 (1,357,485) (1,532,480) (1,708,392) (1,884,304) (2,060,735) (2,238,347) (2,416,436) 20,000 (1,428,884) (1,604,311) (1,780,223) (1,956,135) (2,133,000) (2,310,613) (2,489,138)

AH - % on site 25% Balance (RLV - TLV) (351,591) 15% 20% 25% 30% 35% 40% 45% 80% 1,860,083 1,675,431 1,490,778 1,306,126 1,121,473 936,821 752,169 85% 1,396,041 1,214,470 1,032,899 851,328 669,346 487,302 305,257 90% 930,678 751,733 572,789 393,844 214,899 35,955 (143,598) 95% 463,831 287,986 111,841 (64,758) (241,357) (417,955) (594,554) Build rate (£psm) 100% (4,631) (178,111) (351,591) (525,071) (699,036) (873,571) (1,048,106) 105% (474,300) (644,801) (816,198) (987,596) (1,158,993) (1,330,919) (1,503,674) 110% (945,912) (1,114,172) (1,282,431) (1,451,303) (1,620,902) (1,790,501) (1,961,288) 115% (1,418,420) (1,584,313) (1,750,756) (1,917,198) (2,084,301) (2,252,386) (2,420,975) 120% (1,893,236) (2,056,521) (2,220,017) (2,384,927) (2,549,836) (2,716,076) (2,882,935)

AH - % on site 25% Balance (RLV - TLV) (351,591) 15% 20% 25% 30% 35% 40% 45% 80% (2,592,992) (2,617,297) (2,641,911) (2,666,524) (2,691,138) (2,715,752) (2,740,366) 85% (1,939,722) (2,001,267) (2,063,479) (2,125,691) (2,187,902) (2,250,679) (2,314,048) 90% (1,290,870) (1,389,929) (1,489,451) (1,588,973) (1,688,495) (1,788,512) (1,889,191) 95% (645,882) (782,477) (919,072) (1,055,667) (1,192,261) (1,329,677) (1,467,394) Market units sale values 100% (4,631) (178,111) (351,591) (525,071) (699,036) (873,571) (1,048,106) 105% 634,191 423,963 213,736 2,772 (208,411) (419,594) (630,777) 110% 1,271,398 1,023,688 775,978 528,268 280,558 32,843 (216,043) 115% 1,905,169 1,621,004 1,336,839 1,052,674 767,834 482,641 197,448 120% 2,538,463 2,217,476 1,896,031 1,574,586 1,253,142 931,697 609,759

AH - % on site 25% Balance (RLV - TLV) (351,591) 15% 20% 25% 30% 35% 40% 45% 350,000 1,362,292 1,189,965 1,017,638 845,311 672,593 499,849 327,104 400,000 1,041,600 868,856 696,111 523,367 350,622 177,878 5,133 Page 27/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 65 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 65 Title: 65 Units Notes: Brownfield - higher value

450,000 719,629 546,884 374,140 201,395 28,463 (145,017) (318,497) TLV (per acre) 500,000 397,657 224,913 51,505 (121,975) (295,455) (468,935) (642,573) 562,222 550,000 74,548 (98,932) (272,412) (445,892) (619,379) (793,914) (968,449) 600,000 (249,370) (422,850) (596,330) (770,719) (945,254) (1,119,790) (1,294,956) 650,000 (573,288) (747,525) (922,060) (1,096,595) (1,271,130) (1,446,890) (1,622,802) 700,000 (898,865) (1,073,400) (1,247,935) (1,422,912) (1,598,824) (1,774,736) (1,951,779) 750,000 (1,224,741) (1,399,276) (1,574,845) (1,750,757) (1,926,669) (2,103,994) (2,281,606)

AH - % on site 25% Balance (RLV - TLV) (351,591) 15% 20% 25% 30% 35% 40% 45% 10 (10,256,920) (10,436,558) (10,616,196) (10,795,835) (10,975,473) (11,155,112) (11,334,750) 15 (5,330,998) (5,510,637) (5,690,275) (5,869,913) (6,049,552) (6,229,190) (6,408,829) 20 (2,870,527) (3,048,140) (3,227,314) (3,406,953) (3,586,591) (3,766,229) (3,945,868) Density dph 25 (1,408,215) (1,583,516) (1,759,428) (1,935,340) (2,112,080) (2,289,692) (2,468,091) 33.0 30 (441,776) (615,255) (789,753) (964,288) (1,138,823) (1,313,783) (1,489,695) 35 245,166 71,686 (101,794) (275,274) (448,754) (622,264) (796,799) 40 757,390 584,646 411,901 239,157 66,412 (107,027) (280,507) 45 1,155,668 982,954 810,210 637,465 464,721 291,976 119,232 50 1,472,400 1,300,073 1,127,746 955,420 783,093 610,623 437,878 55 1,731,544 1,559,218 1,386,891 1,214,564 1,042,237 869,911 697,584 60 1,947,498 1,775,171 1,602,845 1,430,518 1,258,191 1,085,864 913,537

AH - % on site 25% Balance (RLV - TLV) (351,591) 15% 20% 25% 30% 35% 40% 45% 15% 793,317 572,899 352,481 132,063 (88,840) (310,313) (531,787) 16% 633,728 422,697 211,667 636 (210,879) (422,965) (635,051) 17% 474,138 272,495 70,852 (130,790) (332,918) (535,616) (738,314) Profit % on GDV 18% 314,549 122,293 (69,962) (262,217) (454,958) (648,268) (841,578) 20.00% 19% 154,959 (27,909) (210,776) (393,644) (576,997) (760,919) (944,842) 20% (4,631) (178,111) (351,591) (525,071) (699,036) (873,571) (1,048,106) 21% (164,220) (328,313) (492,405) (656,497) (821,075) (986,222) (1,151,370) 22% (323,810) (478,515) (633,219) (787,924) (943,114) (1,098,874) (1,254,634) 23% (483,400) (628,717) (774,034) (919,351) (1,065,153) (1,211,525) (1,357,898) 24% (642,989) (778,919) (914,848) (1,050,778) (1,187,192) (1,324,177) (1,461,162) 25% (802,579) (929,121) (1,055,663) (1,182,204) (1,309,231) (1,436,828) (1,564,425)

Page 28/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 65 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 160 Title: 160 Units Notes: Brownfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 160 Units AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 7.5% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 75% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 35.0% 42.0 37.8% 15.1 36% 57.1 114.2 3 bed House 40.0% 48.0 27.0% 10.8 37% 58.8 164.6 4 bed House 17.0% 20.4 1.2% 0.5 13% 20.9 73.1 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 8.0% 9.6 34.0% 13.6 15% 23.2 32.5 2 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 Total number of units 100.0% 120.0 100.0% 40.0 100% 160.0 384.4

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 3,024 32,550 1,058 11,393 4,082 43,943 3 bed House 4,128 44,433 907 9,765 5,035 54,198 4 bed House 2,244 24,154 47 501 2,291 24,655 5 bed House 0 0 0 0 0 0 1 bed Flat 565 6,078 800 8,611 1,365 14,690 2 bed Flat 0 0 0 0 0 0 9,961 107,216 2,812 30,270 12,773 137,486 AH % by floor area: 22.02% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 2 bed House 275,000 3,819 355 15,708,000 3 bed House 300,000 3,488 324 17,640,000 4 bed House 340,000 3,091 287 7,099,200 5 bed House 0 1 bed Flat 185,000 3,700 344 4,292,000 2 bed Flat 230,000 3,538 329 0 44,739,200 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 42.0 @ 275,000 11,550,000 3 bed House 48.0 @ 300,000 14,400,000 4 bed House 20.4 @ 340,000 6,936,000 5 bed House 0.0 @ 0 - 1 bed Flat 9.6 @ 185,000 1,776,000 2 bed Flat 0.0 @ 230,000 - 120.0 34,662,000 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 9.1 @ 151,250 1,372,140 3 bed House 6.5 @ 165,000 1,069,200 4 bed House 0.3 @ 187,000 53,856 5 bed House 0.0 @ 0 - 1 bed Flat 8.2 @ 101,750 830,280 2 bed Flat 0.0 @ 126,500 - Page 29/56 24.0 3,325,476 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 160 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 160 Title: 160 Units Notes: Brownfield - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 1.5 @ 206,250 311,850 3 bed House 1.1 @ 225,000 243,000 4 bed House 0.0 @ 255,000 12,240 5 bed House 0.0 @ 0 - 1 bed Flat 1.4 @ 138,750 188,700 2 bed Flat 0.0 @ 172,500 - 4.0 755,790 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 4.5 @ 192,500 873,180 3 bed House 3.2 @ 210,000 680,400 4 bed House 0.1 @ 238,000 34,272 5 bed House 0.0 @ 0 - 1 bed Flat 4.1 @ 129,500 528,360 2 bed Flat 0.0 @ 161,000 - 12.0 2,116,212

Sub-total GDV Residential 160.0 40,859,478 AH on-site cost analysis: £MV less £GDV 3,879,722 304 £ psm (total GIA sqm) 24,248 £ per unit (total units)

Grant 160 @ 0 -

Total GDV 40,859,478

Gross Benchmark Land Value (BLV)

Residential Density 50.0 dph Site Area (Resi) 3.20 ha 7.91 acres Density analysis: 3,992 sqm/ha 17,387 sqft/ac Benchmark Land Value (BLV) 31,258 £ per plot 1,562,908 £ per ha 632,500 £ net per acre 5,001,304 Gross to net land area 80% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 5,001,304 239,565 50,013 25,007 (5,315,889) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 5,001,304.00 (5,315,889) RLV analysis: 31,258 £ per plot 1,562,908 £ per ha 632,500 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (100,000) Statutory Planning Fees (Residential) (31,699) CIL 9,961 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (151,680) 20% reduction in CO2 2,557 £ per dwelling (409,120) EV charging points (houses) 1,000 £ per dwelling (136,800) Ev charging points (flats) 2,500 £ per flat (58,000) - - - -

- total 160 units @ 0 per unit (603,920) - S106 analysis: 1.48% % of GDV 3,775 £ per unit (total units) AH Commuted Sum 12,773 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 7.91 acres @ 110,000 £ per acre (if brownfield) (869,792)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 7.91 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House 4,082 sqm @ 1,277 psm (5,213,225) 3 bed House 5,035 sqm @ 1,277 psm (6,429,950) 4 bed House 2,291 sqm @ 1,277 psm (2,925,045) 5 bed House - sqm @ 1,277 psm - Page1 bed 30/56 Flat 1,365 sqm @ 1,429 psm (1,950,165) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 160 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 160 Title: 160 Units Notes: Brownfield - higher value

2 bed Flat 12,773 - sqm @ 1,429 psm -

External works 16,518,385 @ 10.0% (1,651,839) 10,324 £per unit

Category 2 Housing 95% of All units 160 units @ 1,400 £ per dwelling (212,800) Category 3 Housing 5% of All units 160 units @ 22,791 £ per dwelling (182,328)

Contingency 19,435,144 @ 5.0% (971,757)

Professional Fees 19,435,144 @ 10.0% (1,943,514)

Disposal Costs - Marketing and Promotion 34,662,000 OMS @ 1.50% (519,930) Residential Sales Agent Costs 34,662,000 OMS @ 1.00% (346,620) Residential Sales Legal Costs 34,662,000 OMS @ 0.50% (173,310)

Interest - 7.50% APR 0.604% pcm (2,217,613) Interest sense check (only if viable) 6.01% (2,217,613) Developers Profit - Margin on AH 6,197,478 6.00% on AH values (371,849) Profit on GDV 34,662,000 20.00% (6,932,400) 26,495,188 26.16% on costs (6,932,400) 40,859,478 17.88% blended (7,304,249)

TOTAL DEVELOPMENT COSTS (39,115,325)

BALANCE Surplus/(Deficit) 545,048 £ per ha 220,578 £ per acre 1,744,153

SENSITIVITY ANALYSIS

AH - % on site 25% Balance (RLV - TLV) 1,744,153 15% 20% 25% 30% 35% 40% 45% - 2,634,493 2,189,908 1,744,153 1,298,262 852,371 406,479 (40,726) 1,000 2,458,587 2,013,075 1,567,184 1,121,293 675,402 228,907 (218,765) 2,000 2,281,997 1,836,106 1,390,215 944,324 498,432 50,868 (396,804) 3,000 2,105,028 1,659,137 1,213,246 767,355 320,500 (127,171) (574,842) 4,000 1,928,059 1,482,168 1,036,277 590,133 142,462 (305,210) (753,386) Site Specific S106 5,000 1,751,090 1,305,199 859,308 412,094 (35,577) (483,249) (932,501) 0 6,000 1,574,121 1,128,230 681,727 234,055 (213,616) (661,688) (1,111,616) 7,000 1,397,152 951,261 503,688 56,017 (391,655) (840,803) (1,290,731) 8,000 1,220,183 773,321 325,649 (122,022) (569,990) (1,019,918) (1,469,846) 9,000 1,042,953 595,282 147,610 (300,061) (749,105) (1,199,033) (1,649,761) 10,000 864,914 417,243 (30,428) (478,293) (928,221) (1,378,149) (1,829,959) 11,000 686,876 239,204 (208,467) (657,408) (1,107,336) (1,557,493) (2,010,157) 12,000 508,837 61,165 (386,595) (836,523) (1,286,451) (1,737,691) (2,190,355) 13,000 330,798 (116,873) (565,710) (1,015,638) (1,465,566) (1,917,889) (2,370,593) 14,000 152,759 (294,912) (744,825) (1,194,753) (1,645,423) (2,098,087) (2,551,880) 15,000 (25,280) (474,012) (923,940) (1,373,868) (1,825,621) (2,278,284) (2,733,167) 16,000 (203,318) (653,127) (1,103,055) (1,553,154) (2,005,818) (2,458,572) (2,914,454) 17,000 (382,314) (832,242) (1,282,170) (1,733,352) (2,186,016) (2,639,859) (3,095,741) 18,000 (561,429) (1,011,357) (1,461,285) (1,913,550) (2,366,214) (2,821,146) (3,277,426) 19,000 (740,544) (1,190,472) (1,641,084) (2,093,748) (2,546,551) (3,002,433) (3,459,809) 20,000 (919,659) (1,369,587) (1,821,282) (2,273,946) (2,727,839) (3,183,720) (3,642,192)

AH - % on site 25% Balance (RLV - TLV) 1,744,153 15% 20% 25% 30% 35% 40% 45% 80% 7,233,961 6,761,669 6,289,377 5,817,085 5,344,793 4,872,479 4,399,921 85% 6,097,617 5,632,286 5,166,871 4,701,456 4,236,041 3,770,626 3,305,211 90% 4,952,201 4,493,827 4,035,452 3,577,078 3,118,696 2,659,580 2,200,464 95% 3,798,043 3,346,289 2,893,974 2,441,660 1,989,345 1,537,030 1,084,716 Build rate (£psm) 100% 2,634,493 2,189,908 1,744,153 1,298,262 852,371 406,479 (40,726) 105% 1,464,787 1,026,673 587,380 147,532 (292,315) (732,992) (1,175,049) 110% 288,847 (143,177) (576,429) (1,010,615) (1,444,801) (1,881,161) (2,317,987) 115% (893,408) (1,319,723) (1,747,360) (2,176,267) (2,605,670) (3,037,652) (3,471,196) 120% (2,082,060) (2,503,049) (2,925,497) (3,349,512) (3,775,032) (4,202,558) (4,633,539)

AH - % on site 25% Balance (RLV - TLV) 1,744,153 15% 20% 25% 30% 35% 40% 45% 80% (3,883,114) (3,951,752) (4,020,391) (4,090,190) (4,160,283) (4,230,377) (4,301,934) 85% (2,230,966) (2,394,289) (2,558,931) (2,723,573) (2,888,215) (3,053,466) (3,219,842) 90% (596,179) (854,411) (1,112,644) (1,370,877) (1,630,362) (1,890,126) (2,149,889) 95% 1,025,654 673,283 320,883 (31,516) (383,916) (737,170) (1,091,250) Market units sale values 100% 2,634,493 2,189,908 1,744,153 1,298,262 852,371 406,479 (40,726) 105% 4,233,877 3,696,426 3,158,317 2,619,533 2,080,749 1,541,965 1,002,535 110% 5,820,792 5,191,782 4,562,221 3,932,660 3,302,210 2,671,056 2,039,376 115% 7,395,388 6,675,946 5,956,193 5,235,205 4,514,217 3,792,324 3,069,531 120% 8,961,447 8,151,323 7,341,199 6,530,203 5,718,395 4,906,586 4,092,897

AH - % on site 25% Balance (RLV - TLV) 1,744,153 15% 20% 25% 30% 35% 40% 45% 350,000 5,823,653 5,381,313 4,938,746 4,496,119 4,053,491 3,610,864 3,168,237 400,000 5,265,069 4,822,442 4,379,814 3,936,903 3,493,807 3,050,710 2,607,614 Page 31/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF 160 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF 160 Title: 160 Units Notes: Brownfield - higher value

450,000 4,703,882 4,260,786 3,817,689 3,374,521 2,930,772 2,487,024 2,043,275 TLV (per acre) 500,000 4,140,057 3,696,308 3,252,560 2,808,811 2,364,347 1,919,762 1,475,178 632,500 550,000 3,573,556 3,128,971 2,684,387 2,239,802 1,795,218 1,350,633 905,328 600,000 3,004,427 2,559,842 2,115,258 1,670,432 1,224,541 778,650 332,758 650,000 2,435,297 1,989,645 1,543,754 1,097,862 651,971 205,335 (242,337) 700,000 1,862,966 1,417,075 971,184 524,647 76,975 (370,696) (819,268) 750,000 1,290,397 843,959 396,287 (51,384) (499,055) (948,853) (1,398,781)

AH - % on site 25% Balance (RLV - TLV) 1,744,153 15% 20% 25% 30% 35% 40% 45% 35 (1,033,602) (1,483,530) (1,935,914) (2,388,578) (2,843,164) (3,299,046) (3,758,214) 36 (691,358) (1,141,286) (1,591,600) (2,044,264) (2,496,928) (2,952,650) (3,409,725) 37 (367,612) (817,540) (1,267,468) (1,718,562) (2,171,226) (2,624,979) (3,080,861) Density dph 38 (61,881) (510,835) (960,763) (1,410,691) (1,862,666) (2,315,330) (2,770,436) 50.0 39 227,348 (220,324) (669,785) (1,119,713) (1,569,930) (2,022,593) (2,475,930) 40 502,115 54,444 (393,357) (843,285) (1,293,213) (1,744,494) (2,197,158) 41 763,480 315,808 (131,863) (580,340) (1,030,268) (1,480,196) (1,932,624) 42 1,012,398 564,727 117,055 (330,616) (779,845) (1,229,773) (1,680,687) 43 1,248,757 802,067 354,396 (93,275) (541,070) (990,998) (1,440,926) 44 1,473,948 1,028,057 580,949 133,277 (314,394) (763,076) (1,213,004) 45 1,689,131 1,243,240 797,349 349,761 (97,911) (545,582) (995,212)

AH - % on site 25% Balance (RLV - TLV) 1,744,153 15% 20% 25% 30% 35% 40% 45% 15% 4,598,673 4,038,548 3,477,253 2,915,822 2,354,391 1,792,959 1,230,214 16% 4,205,837 3,668,820 3,130,633 2,592,310 2,053,987 1,515,663 976,026 17% 3,813,001 3,299,092 2,784,013 2,268,798 1,753,583 1,238,367 721,838 Profit % on GDV 18% 3,420,165 2,929,364 2,437,393 1,945,286 1,453,179 961,071 467,650 20.00% 19% 3,027,329 2,559,636 2,090,773 1,621,774 1,152,775 683,775 213,462 20% 2,634,493 2,189,908 1,744,153 1,298,262 852,371 406,479 (40,726) 21% 2,241,657 1,820,180 1,397,533 974,750 551,967 129,183 (294,914) 22% 1,848,821 1,450,452 1,050,913 651,238 251,563 (148,113) (549,102) 23% 1,455,985 1,080,724 704,293 327,726 (48,841) (425,409) (803,290) 24% 1,063,149 710,996 357,673 4,214 (349,245) (702,705) (1,057,478) 25% 670,313 341,268 11,053 (319,298) (649,649) (980,001) (1,311,666)

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Scheme Ref: BF HV F 10 Title: 10 Units Notes: Brownfield Flats - higher value

ASSUMPTIONS - RESIDENTIAL USES

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 3 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 4 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 18.6% 1.9 47.4% 0.0 19% 1.9 2.6 2 bed Flat 81.4% 8.1 52.6% 0.0 81% 8.1 16.3 Total number of units 100.0% 10.0 100.0% 0.0 100% 10.0 18.9

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 0 0 0 0 0 0 3 bed House 0 0 0 0 0 0 4 bed House 0 0 0 0 0 0 5 bed House 0 0 0 0 0 0 1 bed Flat 109 1,178 0 0 109 1,178 2 bed Flat 622 6,700 0 0 622 6,700 732 7,878 0 0 732 7,878 AH % by floor area: 0.00% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 0 2 bed House 275,000 3,819 355 0 3 bed House 300,000 3,488 324 0 4 bed House 340,000 3,091 287 0 5 bed House 0 0 1 bed Flat 185,000 3,700 344 344,100 2 bed Flat 230,000 3,538 329 1,872,200 2,216,300 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 1.9 @ 185,000 344,100 2 bed Flat 8.1 @ 230,000 1,872,200 10.0 2,216,300 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 101,750 - 2 bed Flat 0.0 @ 126,500 - Page 33/56 0.0 - Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 10 LD © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 10 Title: 10 Units Notes: Brownfield Flats - higher value

Sub-total GDV Residential 10.0 2,216,300 AH on-site cost analysis: £MV less £GDV 0 0 £ psm (total GIA sqm) 0 £ per unit (total units)

Grant 10 @ 0 -

Total GDV 2,216,300

Gross Benchmark Land Value (BLV)

Residential Density 83.0 dph Site Area (Resi) 0.12 ha 0.30 acres Density analysis: 6,075 sqm/ha 26,462 sqft/ac Benchmark Land Value (BLV) 16,738 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 167,380 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 167,380 348 1,674 837 (170,238) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 167,379.59 (170,238) RLV analysis: 16,738 £ per plot 1,389,251 £ per ha 562,222 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (10,000) Statutory Planning Fees (Residential) (3,850) CIL 732 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (9,480) 20% reduction in CO2 2,557 £ per dwelling (25,570) EV charging points (flats) 2,500 £ per dwelling (25,000) - - - - -

- total 10 units @ 0 per unit (50,570) - S106 analysis: 2.28% % of GDV 5,057 £ per unit (total units) AH Commuted Sum 732 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 0.30 acres @ 110,000 £ per acre (if brownfield) (32,748)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 0.30 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - Page1 bed 34/56 Flat 109 sqm @ 1,429 psm (156,349) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 10 LD © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 10 Title: 10 Units Notes: Brownfield Flats - higher value

2 bed Flat 732 622 sqm @ 1,429 psm (889,510)

External works 1,045,860 @ 10.0% (104,586) 10,459 £per unit

Category 2 Housing 100% of All units 10 units @ 1,400 £ per dwelling (14,000) Category 3 Housing 0% of All units 10 units @ 10,307 £ per dwelling -

Contingency 1,197,194 @ 5.0% (59,860)

Professional Fees 1,197,194 @ 10.0% (119,719)

Disposal Costs - Marketing and Promotion 2,216,300 OMS @ 1.50% (33,245) Residential Sales Agent Costs 2,216,300 OMS @ 1.00% (22,163) Residential Sales Legal Costs 2,216,300 OMS @ 0.50% (11,082)

Interest - 7.50% APR 0.604% pcm (139,928) Interest sense check (only if viable) 6.57% (139,928) Developers Profit - Margin on AH 0 6.00% on AH values - Profit on GDV 2,216,300 20.00% (443,260) 1,657,090 26.75% on costs (443,260) 2,216,300 20.00% blended (443,260)

TOTAL DEVELOPMENT COSTS (2,270,588)

BALANCE Surplus/(Deficit) (450,588) £ per ha (182,350) £ per acre (54,288)

SENSITIVITY ANALYSIS

AH - % on site 0% Balance (RLV - TLV) (54,288) 0% 5% 10% 15% 20% 25% 30% - (54,288) (67,704) (81,163) (94,659) (108,156) (121,652) (135,149) 1,000 (65,269) (78,714) (92,210) (105,707) (119,204) (132,700) (146,197) 2,000 (76,265) (89,762) (103,258) (116,755) (130,252) (143,748) (157,245) 3,000 (87,313) (100,810) (114,306) (127,803) (141,300) (154,796) (168,293) 4,000 (98,361) (111,858) (125,354) (138,851) (152,347) (165,844) (179,341) Site Specific S106 5,000 (109,409) (122,906) (136,402) (149,899) (163,395) (176,892) (190,389) 0 6,000 (120,457) (133,953) (147,450) (160,947) (174,443) (187,940) (201,437) 7,000 (131,505) (145,001) (158,498) (171,995) (185,491) (198,988) (212,535) 8,000 (142,553) (156,049) (169,546) (183,043) (196,539) (210,036) (223,650) 9,000 (153,601) (167,097) (180,594) (194,090) (207,587) (221,131) (234,765) 10,000 (164,649) (178,145) (191,642) (205,138) (218,635) (232,246) (245,879) 11,000 (175,696) (189,193) (202,690) (216,186) (229,728) (243,361) (256,994) 12,000 (186,744) (200,241) (213,738) (227,234) (240,843) (254,476) (268,109) 13,000 (197,792) (211,289) (224,786) (238,324) (251,957) (265,590) (279,223) 14,000 (208,840) (222,337) (235,833) (249,439) (263,072) (276,705) (290,338) 15,000 (219,888) (233,385) (246,920) (260,554) (274,187) (287,820) (301,453) 16,000 (230,936) (244,433) (258,035) (271,668) (285,301) (298,934) (312,568) 17,000 (241,984) (255,517) (269,150) (282,783) (296,416) (310,049) (323,682) 18,000 (253,032) (266,632) (280,265) (293,898) (307,531) (321,164) (334,805) 19,000 (264,113) (277,746) (291,379) (305,012) (318,645) (332,279) (345,987) 20,000 (275,228) (288,861) (302,494) (316,127) (329,760) (343,393) (357,169)

AH - % on site 0% Balance (RLV - TLV) (54,288) 0% 5% 10% 15% 20% 25% 30% 80% 235,533 220,649 205,766 190,882 175,999 161,115 146,232 85% 163,326 148,815 134,304 119,793 105,283 90,772 76,261 90% 90,999 76,833 62,666 48,500 34,333 20,166 6,000 95% 18,356 4,564 (9,227) (23,019) (36,810) (50,602) (64,393) Build rate (£psm) 100% (54,288) (67,704) (81,163) (94,659) (108,156) (121,652) (135,149) 105% (127,252) (140,371) (153,491) (166,610) (179,729) (192,848) (205,979) 110% (200,335) (213,077) (225,819) (238,604) (251,478) (264,352) (277,226) 115% (273,507) (286,001) (298,496) (310,990) (323,484) (335,978) (348,564) 120% (347,032) (359,146) (371,261) (383,376) (395,644) (407,943) (420,241)

AH - % on site 0% Balance (RLV - TLV) (54,288) 0% 5% 10% 15% 20% 25% 30% 80% (408,031) (403,985) (399,938) (395,891) (391,845) (387,798) (383,751) 85% (319,016) (319,345) (319,674) (320,003) (320,353) (320,775) (321,196) 90% (230,336) (235,086) (239,849) (244,613) (249,377) (254,140) (258,904) 95% (142,253) (151,345) (160,438) (169,530) (178,623) (187,715) (196,818) Market units sale values 100% (54,288) (67,704) (81,163) (94,659) (108,156) (121,652) (135,149) 105% 33,244 15,451 (2,342) (20,135) (37,928) (55,721) (73,514) 110% 120,776 98,607 76,437 54,267 32,098 9,928 (12,242) 115% 207,823 181,374 154,926 128,478 102,030 75,577 49,031 120% 294,862 264,062 233,262 202,462 171,661 140,861 110,061

AH - % on site 0% Balance (RLV - TLV) (54,288) 0% 5% 10% 15% 20% 25% 30% 350,000 25,329 11,913 (1,503) (14,920) (28,336) (41,753) (55,169) 400,000 6,673 (6,744) (20,160) (33,577) (46,993) (60,410) (73,826) Page 35/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 10 LD © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 10 Title: 10 Units Notes: Brownfield Flats - higher value

450,000 (11,984) (25,401) (38,817) (52,234) (65,650) (79,093) (92,590) TLV (per acre) 500,000 (30,641) (44,058) (57,474) (70,891) (84,366) (97,863) (111,359) 562,222 550,000 (49,637) (63,054) (76,484) (89,981) (103,477) (116,974) (130,471) 600,000 (68,662) (82,127) (95,624) (109,120) (122,617) (136,113) (149,610) 650,000 (87,770) (101,266) (114,763) (128,260) (141,756) (155,253) (168,750) 700,000 (106,909) (120,406) (133,903) (147,399) (160,896) (174,392) (187,889) 750,000 (126,049) (139,545) (153,042) (166,539) (180,035) (193,532) (207,046)

AH - % on site 0% Balance (RLV - TLV) (54,288) 0% 5% 10% 15% 20% 25% 30% 70 (102,389) (115,885) (129,382) (142,879) (156,375) (169,872) (183,368) 80 (63,966) (77,403) (90,899) (104,396) (117,892) (131,389) (144,886) 90 (34,215) (47,631) (61,048) (74,465) (87,961) (101,458) (114,955) Density dph 100 (10,687) (24,104) (37,520) (50,937) (64,353) (77,788) (91,285) 83.0 110 8,474 (4,942) (18,359) (31,775) (45,191) (58,608) (72,024) 120 24,442 11,026 (2,391) (15,807) (29,223) (42,640) (56,056) 130 37,954 24,537 11,121 (2,296) (15,712) (29,128) (42,545) 140 49,535 36,119 22,702 9,286 (4,131) (17,547) (30,964) 150 59,572 46,156 32,739 19,323 5,906 (7,510) (20,927) 160 68,354 54,938 41,521 28,105 14,689 1,272 (12,144) 170 76,104 62,687 49,271 35,854 22,438 9,021 (4,395)

AH - % on site 0% Balance (RLV - TLV) (54,288) 0% 5% 10% 15% 20% 25% 30% 15% 56,527 37,570 18,571 (466) (19,504) (38,541) (57,579) 16% 34,364 16,515 (1,376) (19,305) (37,234) (55,163) (73,093) 17% 12,201 (4,540) (21,322) (38,144) (54,965) (71,786) (88,607) Profit % on GDV 18% (9,962) (25,594) (41,269) (56,982) (72,695) (88,408) (104,121) 20.00% 19% (32,125) (46,649) (61,216) (75,821) (90,425) (105,030) (119,635) 20% (54,288) (67,704) (81,163) (94,659) (108,156) (121,652) (135,149) 21% (76,451) (88,759) (101,109) (113,498) (125,886) (138,275) (150,663) 22% (98,614) (109,814) (121,056) (132,336) (143,617) (154,897) (166,177) 23% (120,777) (130,869) (141,003) (151,175) (161,347) (171,519) (181,691) 24% (142,940) (151,924) (160,949) (170,013) (179,077) (188,141) (197,205) 25% (165,103) (172,978) (180,896) (188,852) (196,808) (204,764) (212,720)

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Scheme Ref: BF HV F 10 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

ASSUMPTIONS - RESIDENTIAL USES

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 1.9 @ 185,000 344,100 2 bed Flat 8.1 @ 230,000 1,872,200 10.0 2,216,300 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 101,750 - 2 bed Flat 0.0 @ 126,500 - Page 37/56 0.0 - Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 10 HD © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 10 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

Sub-total GDV Residential 10.0 2,216,300 AH on-site cost analysis: £MV less £GDV 0 0 £ psm (total GIA sqm) 0 £ per unit (total units)

Grant 10 @ 0 -

Total GDV 2,216,300

Gross Benchmark Land Value (BLV)

Residential Density 222.0 dph Site Area (Resi) 0.05 ha 0.11 acres Density analysis: 16,248 sqm/ha 70,777 sqft/ac Benchmark Land Value (BLV) 6,258 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 62,579 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 62,579 0 626 313 (63,518) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 62,578.85 (63,518) RLV analysis: 6,258 £ per plot 1,389,251 £ per ha 562,222 £ per acre

DEVELOPMENT COSTS

- total 10 units @ 0 per unit (50,570) - S106 analysis: 2.28% % of GDV 5,057 £ per unit (total units) AH Commuted Sum 732 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 0.11 acres @ 110,000 £ per acre (if brownfield) (12,244)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 0.11 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - Page1 bed 38/56 Flat 109 sqm @ 1,429 psm (156,349) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 10 HD © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 10 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

2 bed Flat 732 622 sqm @ 1,429 psm (889,510)

External works 1,045,860 @ 10.0% (104,586) 10,459 £per unit

Category 2 Housing 100% of All units 10 units @ 1,400 £ per dwelling (14,000) Category 3 Housing 0% of All units 10 units @ 10,307 £ per dwelling -

Contingency 1,176,690 @ 5.0% (58,834)

Professional Fees 1,176,690 @ 10.0% (117,669)

Disposal Costs - Marketing and Promotion 2,216,300 OMS @ 1.50% (33,245) Residential Sales Agent Costs 2,216,300 OMS @ 1.00% (22,163) Residential Sales Legal Costs 2,216,300 OMS @ 0.50% (11,082)

Interest - 7.50% APR 0.604% pcm (110,795) Interest sense check (only if viable) 5.54% (110,795) Developers Profit - Margin on AH 0 6.00% on AH values - Profit on GDV 2,216,300 20.00% (443,260) 1,604,377 27.63% on costs (443,260) 2,216,300 20.00% blended (443,260)

TOTAL DEVELOPMENT COSTS (2,111,154)

BALANCE Surplus/(Deficit) 2,334,231 £ per ha 944,650 £ per acre 105,146

SENSITIVITY ANALYSIS

AH - % on site 0% Balance (RLV - TLV) 105,146 0% 5% 10% 15% 20% 25% 30% - 105,146 91,729 78,313 64,896 51,480 38,063 24,647 1,000 94,164 80,748 67,331 53,915 40,498 27,082 13,665 2,000 83,182 69,766 56,350 42,933 29,517 16,100 2,684 3,000 72,201 58,784 45,368 31,952 18,535 5,119 (8,298) 4,000 61,219 47,803 34,386 20,970 7,554 (5,863) (19,279) Site Specific S106 5,000 50,238 36,821 23,405 9,988 (3,428) (16,844) (30,261) 0 6,000 39,256 25,840 12,423 (993) (14,410) (27,826) (41,242) 7,000 28,275 14,858 1,442 (11,975) (25,391) (38,808) (52,224) 8,000 17,293 3,877 (9,540) (22,956) (36,373) (49,789) (63,206) 9,000 6,312 (7,105) (20,521) (33,938) (47,354) (60,771) (74,187) 10,000 (4,670) (18,086) (31,503) (44,919) (58,336) (71,752) (85,231) 11,000 (15,651) (29,068) (42,484) (55,901) (69,317) (82,783) (96,279) 12,000 (26,633) (40,049) (53,466) (66,882) (80,334) (93,830) (107,327) 13,000 (37,614) (51,031) (64,447) (77,885) (91,382) (104,878) (118,375) 14,000 (48,596) (62,012) (75,436) (88,933) (102,430) (115,926) (129,423) 15,000 (59,578) (72,994) (86,484) (99,981) (113,478) (126,974) (140,471) 16,000 (70,559) (84,036) (97,532) (111,029) (124,526) (138,022) (151,519) 17,000 (81,587) (95,084) (108,580) (122,077) (135,573) (149,070) (162,567) 18,000 (92,635) (106,132) (119,628) (133,125) (146,621) (160,118) (173,615) 19,000 (103,683) (117,179) (130,676) (144,173) (157,669) (171,166) (184,663) 20,000 (114,731) (128,227) (141,724) (155,221) (168,717) (182,214) (195,710)

AH - % on site 0% Balance (RLV - TLV) 105,146 0% 5% 10% 15% 20% 25% 30% 80% 393,416 378,510 363,604 348,698 333,792 318,886 303,980 85% 321,643 307,107 292,572 278,037 263,501 248,966 234,430 90% 249,594 235,456 221,318 207,180 193,042 178,904 164,766 95% 177,387 163,622 149,857 136,091 122,326 108,561 94,796 Build rate (£psm) 100% 105,146 91,729 78,313 64,896 51,480 38,063 24,647 105% 32,502 19,461 6,419 (6,622) (19,664) (32,705) (45,746) 110% (40,142) (52,808) (65,474) (78,164) (90,905) (103,647) (116,389) 115% (113,020) (125,385) (137,750) (150,114) (162,479) (174,843) (187,208) 120% (186,103) (198,090) (210,078) (222,065) (234,124) (246,238) (258,353)

AH - % on site 0% Balance (RLV - TLV) 105,146 0% 5% 10% 15% 20% 25% 30% 80% (246,344) (242,238) (238,132) (234,026) (229,921) (225,815) (221,709) 85% (158,023) (158,307) (158,591) (158,875) (159,159) (159,443) (159,727) 90% (69,939) (74,628) (79,316) (84,004) (88,692) (93,381) (98,069) 95% 17,613 8,574 (466) (9,506) (18,546) (27,586) (36,626) Market units sale values 100% 105,146 91,729 78,313 64,896 51,480 38,063 24,647 105% 192,219 174,475 156,731 138,986 121,242 103,498 85,754 110% 279,258 257,162 235,066 212,970 190,874 168,777 146,681 115% 366,139 339,724 313,310 286,895 260,481 234,057 207,609 120% 452,744 421,999 391,255 360,510 329,765 299,020 268,276

AH - % on site 0% Balance (RLV - TLV) 105,146 0% 5% 10% 15% 20% 25% 30% 350,000 134,608 121,216 107,823 94,431 81,039 67,647 54,253 400,000 127,675 114,282 100,890 87,498 74,106 60,694 47,278 Page 39/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 10 HD © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 10 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

450,000 120,741 107,349 93,957 80,552 67,135 53,719 40,302 TLV (per acre) 500,000 113,808 100,409 86,993 73,577 60,160 46,744 33,327 562,222 550,000 106,851 93,434 80,018 66,601 53,185 39,768 26,352 600,000 99,875 86,459 73,042 59,626 46,209 32,793 19,377 650,000 92,900 79,484 66,067 52,651 39,234 25,818 12,401 700,000 85,925 72,508 59,092 45,675 32,259 18,842 5,426 750,000 78,949 65,533 52,116 38,700 25,283 11,867 (1,549)

AH - % on site 0% Balance (RLV - TLV) 105,146 0% 5% 10% 15% 20% 25% 30% 70 (102,389) (115,885) (129,382) (142,879) (156,375) (169,872) (183,368) 80 (63,966) (77,403) (90,899) (104,396) (117,892) (131,389) (144,886) 90 (34,215) (47,631) (61,048) (74,465) (87,961) (101,458) (114,955) Density dph 100 (10,687) (24,104) (37,520) (50,937) (64,353) (77,788) (91,285) 222.0 110 8,474 (4,942) (18,359) (31,775) (45,191) (58,608) (72,024) 120 24,442 11,026 (2,391) (15,807) (29,223) (42,640) (56,056) 130 37,954 24,537 11,121 (2,296) (15,712) (29,128) (42,545) 140 49,535 36,119 22,702 9,286 (4,131) (17,547) (30,964) 150 59,572 46,156 32,739 19,323 5,906 (7,510) (20,927) 160 68,354 54,938 41,521 28,105 14,689 1,272 (12,144) 170 76,104 62,687 49,271 35,854 22,438 9,021 (4,395)

AH - % on site 0% Balance (RLV - TLV) 105,146 0% 5% 10% 15% 20% 25% 30% 15% 215,961 197,003 178,046 159,089 140,132 121,175 102,217 16% 193,798 175,948 158,099 140,250 122,401 104,552 86,703 17% 171,635 154,894 138,153 121,412 104,671 87,930 71,189 Profit % on GDV 18% 149,472 133,839 118,206 102,573 86,941 71,308 55,675 20.00% 19% 127,309 112,784 98,259 83,735 69,210 54,686 40,161 20% 105,146 91,729 78,313 64,896 51,480 38,063 24,647 21% 82,983 70,674 58,366 46,058 33,749 21,441 9,133 22% 60,820 49,619 38,419 27,219 16,019 4,819 (6,381) 23% 38,657 28,565 18,473 8,381 (1,711) (11,803) (21,896) 24% 16,494 7,510 (1,474) (10,458) (19,442) (28,426) (37,410) 25% (5,669) (13,545) (21,421) (29,297) (37,172) (45,048) (52,924)

Page 40/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 10 HD © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 25 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 25 Units AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 7.5% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 75% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 3 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 4 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 18.6% 3.5 47.4% 3.0 26% 6.5 9.0 2 bed Flat 81.4% 15.3 52.6% 3.3 74% 18.6 37.1 Total number of units 100.0% 18.8 100.0% 6.3 100% 25.0 46.1

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 0 0 0 0 0 0 3 bed House 0 0 0 0 0 0 4 bed House 0 0 0 0 0 0 5 bed House 0 0 0 0 0 0 1 bed Flat 205 2,208 174 1,876 379 4,084 2 bed Flat 1,167 12,563 236 2,539 1,403 15,102 1,372 14,771 410 4,415 1,782 19,186 AH % by floor area: 23.01% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 0 2 bed House 275,000 3,819 355 0 3 bed House 300,000 3,488 324 0 4 bed House 340,000 3,091 287 0 5 bed House 0 0 1 bed Flat 185,000 3,700 344 1,193,250 2 bed Flat 230,000 3,538 329 4,266,500 5,459,750 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 3.5 @ 185,000 645,188 2 bed Flat 15.3 @ 230,000 3,510,375 18.8 4,155,563 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 1.8 @ 101,750 180,861 2 bed Flat 2.0 @ 126,500 249,521 Page 41/56 3.8 430,382 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 25 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 25 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 206,250 - 3 bed House 0.0 @ 225,000 - 4 bed House 0.0 @ 255,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.3 @ 138,750 41,105 2 bed Flat 0.3 @ 172,500 56,709 0.6 97,814 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 192,500 - 3 bed House 0.0 @ 210,000 - 4 bed House 0.0 @ 238,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.9 @ 129,500 115,093 2 bed Flat 1.0 @ 161,000 158,786 1.9 273,879

Sub-total GDV Residential 25.0 4,957,638 AH on-site cost analysis: £MV less £GDV 502,112 282 £ psm (total GIA sqm) 20,084 £ per unit (total units)

Grant 25 @ 0 -

Total GDV 4,957,638

Gross Benchmark Land Value (BLV)

Residential Density 217.0 dph Site Area (Resi) 0.12 ha 0.28 acres Density analysis: 15,472 sqm/ha 67,397 sqft/ac Benchmark Land Value (BLV) 6,402 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 160,052 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 160,052 201 1,601 800 (162,654) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 160,051.91 (162,654) RLV analysis: 6,402 £ per plot 1,389,251 £ per ha 562,222 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (30,000) Statutory Planning Fees (Residential) (9,625) CIL 1,372 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (23,700) 20% reduction in CO2 2,557 £ per dwelling (63,925) EV charging points (flats) 2,500 £ per dwelling (62,500) - - - - -

- total 25 units @ 0 per unit (126,425) - S106 analysis: 2.55% % of GDV 5,057 £ per unit (total units) AH Commuted Sum 1,782 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 0.28 acres @ 110,000 £ per acre (if brownfield) (31,315)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 0.28 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - Page1 bed 42/56 Flat 379 sqm @ 1,429 psm (542,179) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 25 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 25 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

2 bed Flat 1,782 1,403 sqm @ 1,429 psm (2,004,971)

External works 2,547,150 @ 10.0% (254,715) 10,189 £per unit

Category 2 Housing 100% of All units 25 units @ 1,400 £ per dwelling (35,000) Category 3 Housing 5% of All units 25 units @ 10,307 £ per dwelling (12,884)

Contingency 2,881,064 @ 5.0% (144,053)

Professional Fees 2,881,064 @ 10.0% (288,106)

Disposal Costs - Marketing and Promotion 4,155,563 OMS @ 1.50% (62,333) Residential Sales Agent Costs 4,155,563 OMS @ 1.00% (41,556) Residential Sales Legal Costs 4,155,563 OMS @ 0.50% (20,778)

Interest - 7.50% APR 0.604% pcm (220,875) Interest sense check (only if viable) 4.73% (220,875) Developers Profit - Margin on AH 802,075 6.00% on AH values (48,125) Profit on GDV 4,155,563 20.00% (831,113) 3,848,515 21.60% on costs (831,113) 4,957,638 17.73% blended (879,237)

TOTAL DEVELOPMENT COSTS (4,890,406)

BALANCE Surplus/(Deficit) 583,572 £ per ha 236,169 £ per acre 67,232

SENSITIVITY ANALYSIS

AH - % on site 25% Balance (RLV - TLV) 67,232 0% 5% 10% 15% 20% 25% 30% - 234,938 201,396 167,855 134,314 100,773 67,232 33,691 1,000 207,484 173,943 140,401 106,860 73,319 39,778 6,237 2,000 180,030 146,489 112,948 79,406 45,865 12,324 (21,217) 3,000 152,576 119,035 85,494 51,953 18,411 (15,130) (48,671) 4,000 125,122 91,581 58,040 24,499 (9,042) (42,584) (76,125) Site Specific S106 5,000 97,668 64,127 30,586 (2,955) (36,496) (70,037) (103,579) 0 6,000 70,214 36,673 3,132 (30,409) (63,950) (97,491) (131,032) 7,000 42,761 9,219 (24,322) (57,863) (91,404) (124,945) (158,486) 8,000 15,307 (18,234) (51,776) (85,317) (118,858) (152,399) (185,940) 9,000 (12,147) (45,688) (79,229) (112,771) (146,312) (179,853) (213,553) 10,000 (39,601) (73,142) (106,683) (140,224) (173,766) (207,432) (241,173) 11,000 (67,055) (100,596) (134,137) (167,678) (201,310) (235,051) (268,793) 12,000 (94,509) (128,050) (161,591) (195,188) (228,930) (262,671) (296,413) 13,000 (121,962) (155,504) (189,066) (222,808) (256,549) (290,291) (324,033) 14,000 (149,416) (182,957) (216,686) (250,428) (284,169) (317,911) (351,652) 15,000 (176,870) (210,564) (244,306) (278,048) (311,789) (345,531) (379,272) 16,000 (204,443) (238,184) (271,926) (305,667) (339,409) (373,150) (406,892) 17,000 (232,062) (265,804) (299,546) (333,287) (367,029) (400,770) (434,512) 18,000 (259,682) (293,424) (327,165) (360,907) (394,648) (428,390) (462,132) 19,000 (287,302) (321,044) (354,785) (388,527) (422,268) (456,010) (489,751) 20,000 (314,922) (348,663) (382,405) (416,147) (449,888) (483,630) (517,414)

AH - % on site 25% Balance (RLV - TLV) 67,232 0% 5% 10% 15% 20% 25% 30% 80% 955,949 918,684 881,419 844,154 806,889 769,623 732,358 85% 776,516 740,177 703,838 667,500 631,161 594,823 558,484 90% 596,226 560,881 525,537 490,192 454,847 419,502 384,158 95% 415,708 381,296 346,883 312,470 278,057 243,645 209,232 Build rate (£psm) 100% 234,938 201,396 167,855 134,314 100,773 67,232 33,691 105% 53,329 20,725 (11,878) (44,482) (77,085) (109,689) (142,292) 110% (128,280) (159,946) (191,649) (223,504) (255,359) (287,214) (319,068) 115% (310,646) (341,558) (372,469) (403,381) (434,292) (465,204) (496,115) 120% (493,353) (523,321) (553,289) (583,287) (613,574) (643,860) (674,147)

AH - % on site 25% Balance (RLV - TLV) 67,232 0% 5% 10% 15% 20% 25% 30% 80% (644,124) (633,860) (623,595) (613,331) (603,067) (592,802) (582,538) 85% (423,152) (423,863) (424,573) (425,283) (425,993) (426,703) (427,414) 90% (202,943) (214,664) (226,385) (238,105) (249,826) (261,547) (273,267) 95% 16,107 (6,492) (29,092) (51,692) (74,291) (96,891) (119,490) Market units sale values 100% 234,938 201,396 167,855 134,314 100,773 67,232 33,691 105% 452,789 408,429 364,068 319,707 275,347 230,986 186,626 110% 670,388 615,147 559,907 504,666 449,426 394,185 338,944 115% 887,755 821,719 755,683 689,625 623,504 557,384 491,263 120% 1,104,269 1,027,407 950,545 873,683 796,821 719,959 643,097

AH - % on site 25% Balance (RLV - TLV) 67,232 0% 5% 10% 15% 20% 25% 30% 350,000 310,704 277,223 243,742 210,262 176,742 143,201 109,660 400,000 292,971 259,490 225,985 192,444 158,902 125,361 91,820 Page 43/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 25 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 25 HD Title: 10 Units Low density Notes: Brownfield Flats - higher value

450,000 275,227 241,686 208,145 174,603 141,062 107,521 73,980 TLV (per acre) 500,000 257,387 223,846 190,304 156,763 123,222 89,681 56,140 562,222 550,000 239,384 205,843 172,302 138,761 105,220 71,679 38,137 600,000 221,193 187,652 154,110 120,569 87,028 53,487 19,946 650,000 203,001 169,460 135,919 102,378 68,837 35,295 1,754 700,000 184,809 151,268 117,727 84,186 50,645 17,104 (16,437) 750,000 166,618 133,077 99,536 65,994 32,453 (1,088) (34,629)

AH - % on site 25% Balance (RLV - TLV) 67,232 0% 5% 10% 15% 20% 25% 30% 70 (293,079) (326,821) (360,562) (394,304) (428,045) (461,787) (495,528) 80 (194,561) (228,302) (262,044) (295,786) (329,527) (363,269) (397,010) 90 (118,337) (151,878) (185,419) (219,160) (252,902) (286,643) (320,385) Density dph 100 (57,405) (90,946) (124,487) (158,028) (191,601) (225,343) (259,085) 217.0 110 (7,551) (41,092) (74,634) (108,175) (141,716) (175,257) (208,930) 120 33,993 452 (33,089) (66,630) (100,171) (133,713) (167,254) 130 69,146 35,605 2,064 (31,477) (65,018) (98,559) (132,101) 140 99,206 65,665 32,124 (1,417) (34,958) (68,499) (102,041) 150 124,707 91,166 57,625 24,084 (9,457) (42,998) (76,540) 160 147,021 113,480 79,938 46,397 12,856 (20,685) (54,226) 170 166,709 133,168 99,627 66,086 32,544 (997) (34,538)

AH - % on site 25% Balance (RLV - TLV) 67,232 0% 5% 10% 15% 20% 25% 30% 15% 511,975 464,582 417,189 369,796 322,403 275,010 227,617 16% 456,568 411,945 367,322 322,700 278,077 233,454 188,832 17% 401,160 359,308 317,456 275,603 233,751 191,899 150,046 Profit % on GDV 18% 345,753 306,671 267,589 228,507 189,425 150,343 111,261 20.00% 19% 290,345 254,034 217,722 181,411 145,099 108,787 72,476 20% 234,938 201,396 167,855 134,314 100,773 67,232 33,691 21% 179,530 148,759 117,989 87,218 56,447 25,676 (5,095) 22% 124,123 96,122 68,122 40,121 12,121 (15,879) (43,880) 23% 68,715 43,485 18,255 (6,975) (32,205) (57,435) (82,665) 24% 13,308 (9,152) (31,612) (54,071) (76,531) (98,991) (121,450) 25% (42,100) (61,789) (81,478) (101,168) (120,857) (140,546) (160,236)

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Scheme Ref: BF HV F 190 Title: 190 Units Notes: Brownfield Flats - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 190 Units AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 7.5% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 75% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 3 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 4 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 18.6% 26.5 47.4% 22.5 26% 49.0 68.6 2 bed Flat 81.4% 116.0 52.6% 25.0 74% 141.0 282.0 Total number of units 100.0% 142.5 100.0% 47.5 100% 190.0 350.6

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 0 0 0 0 0 0 3 bed House 0 0 0 0 0 0 4 bed House 0 0 0 0 0 0 5 bed House 0 0 0 0 0 0 1 bed Flat 1,559 16,782 1,324 14,256 2,884 31,038 2 bed Flat 8,870 95,478 1,793 19,300 10,663 114,778 10,429 112,260 3,117 33,556 13,547 145,816 AH % by floor area: 23.01% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 0 2 bed House 275,000 3,819 355 0 3 bed House 300,000 3,488 324 0 4 bed House 340,000 3,091 287 0 5 bed House 0 0 1 bed Flat 185,000 3,700 344 9,068,700 2 bed Flat 230,000 3,538 329 32,425,400 41,494,100 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 26.5 @ 185,000 4,903,425 2 bed Flat 116.0 @ 230,000 26,678,850 142.5 31,582,275 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 13.5 @ 101,750 1,374,541 2 bed Flat 15.0 @ 126,500 1,896,362 Page 45/56 28.5 3,270,902 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 190 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 190 Title: 190 Units Notes: Brownfield Flats - higher value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 206,250 - 3 bed House 0.0 @ 225,000 - 4 bed House 0.0 @ 255,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 2.3 @ 138,750 312,396 2 bed Flat 2.5 @ 172,500 430,991 4.8 743,387 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 192,500 - 3 bed House 0.0 @ 210,000 - 4 bed House 0.0 @ 238,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 6.8 @ 129,500 874,708 2 bed Flat 7.5 @ 161,000 1,206,776 14.3 2,081,483

Sub-total GDV Residential 190.0 37,678,047 AH on-site cost analysis: £MV less £GDV 3,816,053 282 £ psm (total GIA sqm) 20,084 £ per unit (total units)

Grant 190 @ 0 -

Total GDV 37,678,047

Gross Benchmark Land Value (BLV)

Residential Density 144.0 dph Site Area (Resi) 1.32 ha 3.26 acres Density analysis: 10,267 sqm/ha 44,724 sqft/ac Benchmark Land Value (BLV) 10,854 £ per plot 1,562,908 £ per ha 632,500 £ net per acre 2,062,170 Gross to net land area 80% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 2,062,170 92,608 20,622 10,311 (2,185,711) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 2,062,169.62 (2,185,711) RLV analysis: 10,854 £ per plot 1,562,908 £ per ha 632,500 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (110,000) Statutory Planning Fees (Residential) (35,149) CIL 10,429 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (180,120) 20% reduction in CO2 2,557 £ per dwelling (485,830) EV charging points (flats) 2,500 £ per dwelling (475,000) - - - - -

- total 190 units @ 0 per unit (960,830) - S106 analysis: 2.55% % of GDV 5,057 £ per unit (total units) AH Commuted Sum 13,547 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 3.26 acres @ 110,000 £ per acre (if brownfield) (358,638)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 3.26 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - Page1 bed 46/56 Flat 2,884 sqm @ 1,429 psm (4,120,564) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 190 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 190 Title: 190 Units Notes: Brownfield Flats - higher value

2 bed Flat 13,547 10,663 sqm @ 1,429 psm (15,237,780)

External works 19,358,344 @ 10.0% (1,935,834) 10,189 £per unit

Category 2 Housing 95% of All units 190 units @ 1,400 £ per dwelling (252,700) Category 3 Housing 5% of All units 190 units @ 22,791 £ per dwelling (216,515)

Contingency 22,122,031 @ 5.0% (1,106,102)

Professional Fees 22,122,031 @ 10.0% (2,212,203)

Disposal Costs - Marketing and Promotion 31,582,275 OMS @ 1.50% (473,734) Residential Sales Agent Costs 31,582,275 OMS @ 1.00% (315,823) Residential Sales Legal Costs 31,582,275 OMS @ 0.50% (157,911)

Interest - 7.50% APR 0.604% pcm (2,024,227) Interest sense check (only if viable) 5.54% (2,024,227) Developers Profit - Margin on AH 6,095,772 6.00% on AH values (365,746) Profit on GDV 31,582,275 20.00% (6,316,455) 29,698,129 21.27% on costs (6,316,455) 37,678,047 17.73% blended (6,682,201)

TOTAL DEVELOPMENT COSTS (38,566,041)

BALANCE Surplus/(Deficit) (673,006) £ per ha (272,362) £ per acre (887,994)

SENSITIVITY ANALYSIS

AH - % on site 25% Balance (RLV - TLV) (887,994) 0% 5% 10% 15% 20% 25% 30% - 556,196 267,775 (20,646) (309,068) (598,200) (887,994) (1,177,787) 1,000 338,177 49,756 (238,666) (527,745) (817,538) (1,107,331) (1,397,124) 2,000 120,157 (168,264) (457,289) (747,082) (1,036,875) (1,326,668) (1,617,641) 3,000 (97,862) (386,833) (676,626) (966,419) (1,256,213) (1,546,777) (1,838,304) 4,000 (316,377) (606,170) (895,963) (1,185,757) (1,475,913) (1,767,440) (2,058,967) Site Specific S106 5,000 (535,714) (825,508) (1,115,301) (1,405,094) (1,696,576) (1,988,103) (2,279,868) 0 6,000 (755,052) (1,044,845) (1,334,638) (1,625,712) (1,917,239) (2,208,766) (2,501,865) 7,000 (974,389) (1,264,182) (1,554,848) (1,846,376) (2,137,903) (2,430,238) (2,723,863) 8,000 (1,193,726) (1,483,985) (1,775,512) (2,067,039) (2,358,610) (2,652,235) (2,945,860) 9,000 (1,413,121) (1,704,648) (1,996,175) (2,287,702) (2,580,607) (2,874,232) (3,168,515) 10,000 (1,633,784) (1,925,311) (2,216,838) (2,508,979) (2,802,604) (3,096,229) (3,391,854) 11,000 (1,854,447) (2,145,974) (2,437,501) (2,730,976) (3,024,601) (3,319,104) (3,615,193) 12,000 (2,075,111) (2,366,638) (2,659,349) (2,952,973) (3,246,598) (3,542,443) (3,838,532) 13,000 (2,295,774) (2,587,721) (2,881,346) (3,174,971) (3,469,693) (3,765,782) (4,062,983) 14,000 (2,516,437) (2,809,718) (3,103,343) (3,396,968) (3,693,032) (3,989,121) (4,287,673) 15,000 (2,738,090) (3,031,715) (3,325,340) (3,620,282) (3,916,371) (4,213,440) (4,512,362) 16,000 (2,960,087) (3,253,712) (3,547,532) (3,843,621) (4,139,710) (4,438,129) (4,737,295) 17,000 (3,182,084) (3,475,709) (3,770,871) (4,066,960) (4,363,897) (4,662,819) (4,963,343) 18,000 (3,404,081) (3,698,121) (3,994,210) (4,290,299) (4,588,586) (4,887,508) (5,189,390) 19,000 (3,626,079) (3,921,460) (4,217,549) (4,514,354) (4,813,275) (5,113,313) (5,415,437) 20,000 (3,848,710) (4,144,800) (4,440,889) (4,739,043) (5,037,964) (5,339,360) (5,642,247)

AH - % on site 25% Balance (RLV - TLV) (887,994) 0% 5% 10% 15% 20% 25% 30% 80% 6,234,668 5,918,499 5,602,331 5,286,163 4,969,995 4,653,827 4,337,659 85% 4,830,822 4,522,507 4,214,191 3,905,876 3,597,561 3,289,246 2,980,930 90% 3,416,783 3,115,703 2,814,622 2,513,234 2,211,766 1,910,297 1,608,829 95% 1,992,024 1,697,213 1,402,403 1,107,592 812,782 517,971 223,161 Build rate (£psm) 100% 556,196 267,775 (20,646) (309,068) (598,200) (887,994) (1,177,787) 105% (889,958) (1,172,260) (1,454,834) (1,738,824) (2,022,815) (2,306,872) (2,592,915) 110% (2,346,554) (2,623,644) (2,902,104) (3,180,565) (3,460,065) (3,740,898) (4,022,601) 115% (3,814,136) (4,087,340) (4,360,545) (4,635,191) (4,911,091) (5,188,557) (5,467,521) 120% (5,293,827) (5,562,052) (5,831,545) (6,102,788) (6,375,721) (6,650,352) (6,928,555)

AH - % on site 25% Balance (RLV - TLV) (887,994) 0% 5% 10% 15% 20% 25% 30% 80% (6,648,246) (6,585,192) (6,522,678) (6,460,164) (6,397,650) (6,335,136) (6,272,621) 85% (4,811,485) (4,837,257) (4,863,414) (4,890,462) (4,917,511) (4,944,559) (4,972,923) 90% (3,001,308) (3,115,274) (3,229,549) (3,344,780) (3,460,011) (3,575,243) (3,691,420) 95% (1,212,900) (1,414,447) (1,616,723) (1,818,999) (2,021,276) (2,223,698) (2,427,494) Market units sale values 100% 556,196 267,775 (20,646) (309,068) (598,200) (887,994) (1,177,787) 105% 2,310,704 1,936,257 1,561,207 1,186,156 811,106 436,056 59,869 110% 4,050,926 3,591,127 3,131,328 2,670,493 2,209,446 1,748,399 1,287,352 115% 5,780,326 5,235,163 4,690,001 4,144,838 3,598,484 3,052,013 2,505,542 120% 7,499,503 6,870,028 6,239,978 5,609,927 4,979,166 4,347,785 3,716,404

AH - % on site 25% Balance (RLV - TLV) (887,994) 0% 5% 10% 15% 20% 25% 30% 350,000 1,958,248 1,670,839 1,383,430 1,096,021 808,612 521,203 233,794 400,000 1,710,501 1,423,092 1,135,683 848,274 560,865 273,077 (15,344) Page 47/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 190 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF HV F 190 Title: 190 Units Notes: Brownfield Flats - higher value

450,000 1,462,754 1,175,345 887,936 600,527 312,254 23,833 (264,588) TLV (per acre) 500,000 1,215,007 927,598 639,852 351,431 63,009 (225,412) (513,833) 632,500 550,000 967,260 679,029 390,607 102,186 (186,235) (474,656) (764,047) 600,000 718,205 429,784 141,363 (147,058) (435,480) (725,005) (1,014,799) 650,000 468,961 180,539 (107,882) (396,303) (685,963) (975,757) (1,265,550) 700,000 219,716 (68,705) (357,128) (646,921) (936,715) (1,226,508) (1,516,875) 750,000 (29,529) (318,086) (607,879) (897,673) (1,187,466) (1,477,614) (1,769,142)

AH - % on site 25% Balance (RLV - TLV) (887,994) 0% 5% 10% 15% 20% 25% 30% 100 (1,080,535) (1,370,328) (1,661,636) (1,953,163) (2,244,690) (2,537,670) (2,831,295) 110 (592,152) (881,946) (1,171,739) (1,461,828) (1,753,355) (2,044,882) (2,336,991) 120 (185,460) (474,960) (764,754) (1,054,547) (1,344,340) (1,635,437) (1,926,964) Density dph 130 156,843 (131,578) (420,381) (710,175) (999,968) (1,289,761) (1,580,510) 144.0 140 450,245 161,824 (126,597) (415,018) (704,792) (994,585) (1,284,378) 150 704,528 416,106 127,685 (160,736) (449,157) (738,766) (1,028,559) 160 927,024 638,603 350,182 61,761 (226,661) (515,082) (804,717) 170 1,122,218 834,809 546,503 258,081 (30,340) (318,761) (607,210) 180 1,295,677 1,008,268 720,859 432,589 144,168 (144,254) (432,675) 190 1,450,877 1,163,468 876,059 588,650 300,306 11,885 (276,537) 200 1,590,557 1,303,148 1,015,739 728,330 440,830 152,409 (136,012)

AH - % on site 25% Balance (RLV - TLV) (887,994) 0% 5% 10% 15% 20% 25% 30% 15% 2,661,681 2,267,986 1,874,290 1,480,595 1,086,188 691,120 296,053 16% 2,240,584 1,867,944 1,495,303 1,122,662 749,310 375,297 1,285 17% 1,819,487 1,467,901 1,116,316 764,730 412,432 59,475 (293,483) Profit % on GDV 18% 1,398,390 1,067,859 737,328 406,797 75,555 (256,348) (588,251) 20.00% 19% 977,293 667,817 358,341 48,865 (261,323) (572,171) (883,019) 20% 556,196 267,775 (20,646) (309,068) (598,200) (887,994) (1,177,787) 21% 135,099 (132,267) (399,634) (667,000) (935,078) (1,203,816) (1,472,555) 22% (285,998) (532,309) (778,621) (1,024,932) (1,271,956) (1,519,639) (1,767,323) 23% (707,095) (932,351) (1,157,608) (1,382,865) (1,608,833) (1,835,462) (2,062,091) 24% (1,128,192) (1,332,394) (1,536,595) (1,740,797) (1,945,711) (2,151,285) (2,356,859) 25% (1,549,289) (1,732,436) (1,915,583) (2,098,730) (2,282,588) (2,467,107) (2,651,626)

Page 48/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF HV F 190 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 12 Title: 12 Units Notes: Brownfield Flats - lower value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 12 Units AH Policy requirement (% Target) 0% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 0.0% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 100% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 3 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 4 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 18.6% 2.2 47.4% 0.0 19% 2.2 3.1 2 bed Flat 81.4% 9.8 52.6% 0.0 81% 9.8 19.5 Total number of units 100.0% 12.0 100.0% 0.0 100% 12.0 22.7

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 0 0 0 0 0 0 3 bed House 0 0 0 0 0 0 4 bed House 0 0 0 0 0 0 5 bed House 0 0 0 0 0 0 1 bed Flat 131 1,413 0 0 131 1,413 2 bed Flat 747 8,040 0 0 747 8,040 878 9,453 0 0 878 9,453 AH % by floor area: 0.00% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 0 2 bed House 275,000 3,819 355 0 3 bed House 300,000 3,488 324 0 4 bed House 340,000 3,091 287 0 5 bed House 0 0 1 bed Flat 145,000 2,900 269 323,640 2 bed Flat 170,000 2,615 243 1,660,560 1,984,200 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 79,750 1,595 55% 108,750 2,175 75% 101,500 2,030 70% 2 bed Flat 93,500 1,533 55% 127,500 2,090 75% 119,000 1,951 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 2.2 @ 145,000 323,640 2 bed Flat 9.8 @ 170,000 1,660,560 12.0 1,984,200 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 79,750 - 2 bed Flat 0.0 @ 93,500 - Page 49/56 0.0 - Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF LV F 12 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 12 Title: 12 Units Notes: Brownfield Flats - lower value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 206,250 - 3 bed House 0.0 @ 225,000 - 4 bed House 0.0 @ 255,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 108,750 - 2 bed Flat 0.0 @ 127,500 - 0.0 - First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 192,500 - 3 bed House 0.0 @ 210,000 - 4 bed House 0.0 @ 238,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.0 @ 101,500 - 2 bed Flat 0.0 @ 119,000 - 0.0 -

Sub-total GDV Residential 12.0 1,984,200 AH on-site cost analysis: £MV less £GDV 0 0 £ psm (total GIA sqm) 0 £ per unit (total units)

Grant 12 @ 0 -

Total GDV 1,984,200

Gross Benchmark Land Value (BLV)

Residential Density 206.0 dph Site Area (Resi) 0.06 ha 0.14 acres Density analysis: 15,077 sqm/ha 65,676 sqft/ac Benchmark Land Value (BLV) 6,744 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 80,927 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 80,927 0 809 405 (82,141) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 80,927.22 (82,141) RLV analysis: 6,744 £ per plot 1,389,251 £ per ha 562,222 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (10,000) Statutory Planning Fees (Residential) (4,620) CIL 878 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (11,376) 20% reduction in CO2 2,557 £ per dwelling (30,684) EV charging points (flats) 2,500 £ per dwelling (30,000) - - - - -

- total 12 units @ 0 per unit (60,684) - S106 analysis: 3.06% % of GDV 5,057 £ per unit (total units) AH Commuted Sum 878 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 0.14 acres @ 110,000 £ per acre (if brownfield) (15,834)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 0.14 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - Page1 bed 50/56 Flat 131 sqm @ 1,429 psm (187,619) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF LV F 12 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 12 Title: 12 Units Notes: Brownfield Flats - lower value

2 bed Flat 878 747 sqm @ 1,429 psm (1,067,413)

External works 1,255,032 @ 10.0% (125,503) 10,459 £per unit

Category 2 Housing 100% of All units 12 units @ 1,400 £ per dwelling (16,800) Category 3 Housing 0% of All units 12 units @ 10,307 £ per dwelling -

Contingency 1,413,169 @ 5.0% (70,658)

Professional Fees 1,413,169 @ 10.0% (141,317)

Disposal Costs - Marketing and Promotion 1,984,200 OMS @ 1.50% (29,763) Residential Sales Agent Costs 1,984,200 OMS @ 1.00% (19,842) Residential Sales Legal Costs 1,984,200 OMS @ 0.50% (9,921)

Interest - 7.50% APR 0.604% pcm (150,968) Interest sense check (only if viable) 6.71% (351,057) Developers Profit - Margin on AH 0 6.00% on AH values - Profit on GDV 1,984,200 20.00% (396,840) 1,922,318 20.64% on costs (396,840) 1,984,200 20.00% blended (396,840)

TOTAL DEVELOPMENT COSTS (2,401,300)

BALANCE Surplus/(Deficit) (7,160,209) £ per ha (2,897,697) £ per acre (417,100)

SENSITIVITY ANALYSIS

AH - % on site 0% Balance (RLV - TLV) (417,100) 0% 5% 10% 15% 20% 25% 30% - (417,100) (426,186) (435,273) (444,359) (453,446) (462,533) (471,619) 1,000 (430,518) (439,604) (448,691) (457,778) (466,864) (475,951) (485,038) 2,000 (443,936) (453,023) (462,109) (471,196) (480,283) (489,369) (498,456) 3,000 (457,354) (466,441) (475,528) (484,614) (493,701) (502,787) (511,874) 4,000 (470,773) (479,859) (488,946) (498,033) (507,119) (516,206) (525,292) Site Specific S106 5,000 (484,191) (493,278) (502,364) (511,451) (520,537) (529,624) (538,711) 0 6,000 (497,609) (506,696) (515,782) (524,869) (533,956) (543,042) (552,129) 7,000 (511,027) (520,114) (529,201) (538,287) (547,374) (556,461) (565,547) 8,000 (524,446) (533,532) (542,619) (551,706) (560,792) (569,879) (578,965) 9,000 (537,864) (546,951) (556,037) (565,124) (574,210) (583,297) (592,384) 10,000 (551,282) (560,369) (569,456) (578,542) (587,629) (596,715) (605,802) 11,000 (564,701) (573,787) (582,874) (591,960) (601,047) (610,134) (619,220) 12,000 (578,119) (587,205) (596,292) (605,379) (614,465) (623,552) (632,639) 13,000 (591,537) (600,624) (609,710) (618,797) (627,884) (636,970) (646,057) 14,000 (604,955) (614,042) (623,129) (632,215) (641,302) (650,388) (659,475) 15,000 (618,374) (627,460) (636,547) (645,634) (654,720) (663,807) (672,893) 16,000 (631,792) (640,879) (649,965) (659,052) (668,138) (677,225) (686,312) 17,000 (645,210) (654,297) (663,383) (672,470) (681,557) (690,643) (699,730) 18,000 (658,628) (667,715) (676,802) (685,888) (694,975) (704,062) (713,148) 19,000 (672,047) (681,133) (690,220) (699,307) (708,393) (717,480) (726,566) 20,000 (685,465) (694,552) (703,638) (712,725) (721,811) (730,898) (739,985)

AH - % on site 0% Balance (RLV - TLV) (417,100) 0% 5% 10% 15% 20% 25% 30% 80% (65,073) (75,709) (86,352) (96,995) (107,638) (118,281) (128,924) 85% (152,766) (162,956) (173,146) (183,336) (193,526) (203,792) (214,092) 90% (240,519) (250,364) (260,209) (270,054) (279,899) (289,744) (299,593) 95% (328,748) (338,138) (347,527) (356,972) (366,516) (376,061) (385,606) Build rate (£psm) 100% (417,100) (426,186) (435,273) (444,359) (453,446) (462,533) (471,619) 105% (505,862) (514,491) (523,119) (531,747) (540,376) (549,004) (557,632) 110% (594,625) (602,795) (610,965) (619,135) (627,305) (635,475) (643,645) 115% (683,388) (691,099) (698,811) (706,523) (714,235) (721,946) (729,658) 120% (772,150) (779,404) (786,657) (793,911) (801,164) (808,418) (815,671)

AH - % on site 0% Balance (RLV - TLV) (417,100) 0% 5% 10% 15% 20% 25% 30% 80% (737,122) (730,208) (723,293) (716,379) (709,464) (702,550) (695,635) 85% (657,117) (654,202) (651,288) (648,374) (645,460) (642,545) (639,631) 90% (577,111) (578,197) (579,283) (580,369) (581,455) (582,541) (583,627) 95% (497,105) (502,192) (507,278) (512,364) (517,451) (522,537) (527,623) Market units sale values 100% (417,100) (426,186) (435,273) (444,359) (453,446) (462,533) (471,619) 105% (337,572) (350,476) (363,380) (376,355) (389,442) (402,528) (415,615) 110% (258,166) (275,041) (291,915) (308,790) (325,664) (342,538) (359,611) 115% (179,286) (199,947) (220,607) (241,295) (262,139) (282,984) (303,829) 120% (100,427) (125,030) (149,634) (174,237) (198,841) (223,444) (248,245)

AH - % on site 0% Balance (RLV - TLV) (417,100) 0% 5% 10% 15% 20% 25% 30% 350,000 (378,227) (387,201) (396,287) (405,374) (414,461) (423,547) (432,634) 400,000 (387,356) (396,386) (405,472) (414,559) (423,646) (432,732) (441,819) Page 51/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF LV F 12 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 12 Title: 12 Units Notes: Brownfield Flats - lower value

450,000 (396,486) (405,571) (414,657) (423,744) (432,831) (441,917) (451,004) TLV (per acre) 500,000 (405,669) (414,756) (423,843) (432,929) (442,016) (451,102) (460,189) 562,222 550,000 (414,854) (423,941) (433,028) (442,114) (451,201) (460,287) (469,374) 600,000 (424,039) (433,126) (442,213) (451,299) (460,386) (469,473) (478,559) 650,000 (433,224) (442,311) (451,398) (460,484) (469,571) (478,658) (487,744) 700,000 (442,410) (451,496) (460,583) (469,669) (478,756) (487,843) (496,929) 750,000 (451,595) (460,681) (469,768) (478,855) (487,941) (497,028) (506,114)

AH - % on site 0% Balance (RLV - TLV) (417,100) 0% 5% 10% 15% 20% 25% 30% 70 (662,219) (671,305) (680,392) (689,479) (698,565) (707,652) (716,738) 80 (615,479) (624,566) (633,653) (642,739) (651,826) (660,912) (669,999) 90 (579,127) (588,213) (597,300) (606,386) (615,473) (624,560) (633,646) Density dph 100 (550,044) (559,131) (568,218) (577,304) (586,391) (595,477) (604,564) 206.0 110 (526,250) (535,336) (544,423) (553,510) (562,596) (571,683) (580,770) 120 (506,699) (515,786) (524,873) (533,959) (543,046) (552,133) (561,219) 130 (490,190) (499,277) (508,363) (517,450) (526,537) (535,623) (544,710) 140 (476,039) (485,126) (494,212) (503,299) (512,386) (521,472) (530,559) 150 (463,775) (472,861) (481,948) (491,035) (500,121) (509,208) (518,295) 160 (453,044) (462,130) (471,217) (480,304) (489,390) (498,477) (507,563) 170 (443,575) (452,662) (461,748) (470,835) (479,922) (489,008) (498,095)

AH - % on site 0% Balance (RLV - TLV) (417,100) 0% 5% 10% 15% 20% 25% 30% 15% (317,890) (331,937) (345,984) (360,031) (374,078) (388,125) (402,172) 16% (337,732) (350,787) (363,842) (376,897) (389,952) (403,007) (416,062) 17% (357,574) (369,636) (381,699) (393,762) (405,825) (417,888) (429,951) Profit % on GDV 18% (377,416) (388,486) (399,557) (410,628) (421,699) (432,770) (443,840) 20.00% 19% (397,258) (407,336) (417,415) (427,494) (437,572) (447,651) (457,730) 20% (417,100) (426,186) (435,273) (444,359) (453,446) (462,533) (471,619) 21% (436,942) (445,036) (453,131) (461,225) (469,320) (477,414) (485,509) 22% (456,784) (463,886) (470,988) (478,091) (485,193) (492,296) (499,398) 23% (476,626) (482,736) (488,846) (494,957) (501,067) (507,177) (513,287) 24% (496,468) (501,586) (506,704) (511,822) (516,940) (522,059) (527,177) 25% (516,310) (520,436) (524,562) (528,688) (532,814) (536,940) (541,066)

Page 52/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF LV F 12 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 100 Title: 100 Units Notes: Brownfield Flats - lower value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 100 Units AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 7.5% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 75% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 3 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 4 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 18.6% 14.0 47.4% 11.9 26% 25.8 36.1 2 bed Flat 81.4% 61.1 52.6% 13.2 74% 74.2 148.4 Total number of units 100.0% 75.0 100.0% 25.0 100% 100.0 184.5

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 0 0 0 0 0 0 3 bed House 0 0 0 0 0 0 4 bed House 0 0 0 0 0 0 5 bed House 0 0 0 0 0 0 1 bed Flat 821 8,833 697 7,503 1,518 16,336 2 bed Flat 4,669 50,252 944 10,158 5,612 60,410 5,489 59,084 1,641 17,661 7,130 76,745 AH % by floor area: 23.01% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 0 2 bed House 275,000 3,819 355 0 3 bed House 300,000 3,488 324 0 4 bed House 340,000 3,091 287 0 5 bed House 0 0 1 bed Flat 145,000 2,900 269 3,741,000 2 bed Flat 170,000 2,615 243 12,614,000 16,355,000 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 55% 0 75% 0 70% 1 bed Flat 79,750 1,595 55% 108,750 2,175 75% 101,500 2,030 70% 2 bed Flat 93,500 1,533 55% 127,500 2,090 75% 119,000 1,951 70%

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 14.0 @ 145,000 2,022,750 2 bed Flat 61.1 @ 170,000 10,378,500 75.0 12,401,250 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 7.1 @ 79,750 567,023 2 bed Flat 7.9 @ 93,500 737,715 Page 53/56 15.0 1,304,738 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF LV F 100 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 100 Title: 100 Units Notes: Brownfield Flats - lower value

LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 206,250 - 3 bed House 0.0 @ 225,000 - 4 bed House 0.0 @ 255,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 1.2 @ 108,750 128,869 2 bed Flat 1.3 @ 127,500 167,663 2.5 296,531 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 192,500 - 3 bed House 0.0 @ 210,000 - 4 bed House 0.0 @ 238,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 3.6 @ 101,500 360,833 2 bed Flat 3.9 @ 119,000 469,455 7.5 830,288

Sub-total GDV Residential 100.0 14,832,806 AH on-site cost analysis: £MV less £GDV 1,522,194 213 £ psm (total GIA sqm) 15,222 £ per unit (total units)

Grant 100 @ 0 -

Total GDV 14,832,806

Gross Benchmark Land Value (BLV)

Residential Density 271.0 dph Site Area (Resi) 0.37 ha 0.91 acres Density analysis: 19,322 sqm/ha 84,168 sqft/ac Benchmark Land Value (BLV) 5,428 £ per plot 1,470,972 £ per ha 595,294 £ net per acre 542,794 Gross to net land area 85% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 542,794 16,640 5,428 2,714 (567,576) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 542,794.01 (567,576) RLV analysis: 5,428 £ per plot 1,470,972 £ per ha 595,294 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (70,000) Statutory Planning Fees (Residential) (24,799) CIL 5,489 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (94,800) 20% reduction in CO2 2,557 £ per dwelling (255,700) EV charging points (flats) 2,500 £ per dwelling (250,000) - - - - -

- total 100 units @ 0 per unit (505,700) - S106 analysis: 3.41% % of GDV 5,057 £ per unit (total units) AH Commuted Sum 7,130 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 0.91 acres @ 110,000 £ per acre (if brownfield) (100,299)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 0.91 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - Page1 bed 54/56 Flat 1,518 sqm @ 1,429 psm (2,168,718) Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF LV F 100 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 100 Title: 100 Units Notes: Brownfield Flats - lower value

2 bed Flat 7,130 5,612 sqm @ 1,429 psm (8,019,884)

External works 10,188,602 @ 10.0% (1,018,860) 10,189 £per unit

Category 2 Housing 100% of All units 100 units @ 1,400 £ per dwelling (140,000) Category 3 Housing 5% of All units 100 units @ 22,791 £ per dwelling (113,955)

Contingency 11,561,716 @ 5.0% (578,086)

Professional Fees 11,561,716 @ 10.0% (1,156,172)

Disposal Costs - Marketing and Promotion 12,401,250 OMS @ 1.50% (186,019) Residential Sales Agent Costs 12,401,250 OMS @ 1.00% (124,013) Residential Sales Legal Costs 12,401,250 OMS @ 0.50% (62,006)

Interest - 7.50% APR 0.604% pcm (684,235) Interest sense check (only if viable) 3.90% (21,128,959) Developers Profit - Margin on AH 2,431,556 6.00% on AH values (145,893) Profit on GDV 12,401,250 20.00% (2,480,250) 15,047,545 16.48% on costs (2,480,250) 14,832,806 17.70% blended (2,626,143)

TOTAL DEVELOPMENT COSTS (18,241,264)

BALANCE Surplus/(Deficit) (9,236,920) £ per ha (3,738,130) £ per acre (3,408,457)

SENSITIVITY ANALYSIS

AH - % on site 25% Balance (RLV - TLV) (3,408,457) 0% 5% 10% 15% 20% 25% 30% - (2,982,416) (3,067,624) (3,152,833) (3,238,041) (3,323,249) (3,408,457) (3,493,666) 1,000 (3,086,874) (3,172,082) (3,257,291) (3,342,499) (3,427,707) (3,512,916) (3,598,124) 2,000 (3,191,332) (3,276,541) (3,361,749) (3,446,957) (3,532,166) (3,617,374) (3,702,582) 3,000 (3,295,790) (3,380,999) (3,466,207) (3,551,415) (3,636,624) (3,721,832) (3,807,040) 4,000 (3,400,249) (3,485,457) (3,570,665) (3,655,874) (3,741,082) (3,826,290) (3,911,499) Site Specific S106 5,000 (3,504,707) (3,589,915) (3,675,123) (3,760,332) (3,845,540) (3,930,748) (4,015,957) 0 6,000 (3,609,165) (3,694,373) (3,779,582) (3,864,790) (3,949,998) (4,035,207) (4,120,415) 7,000 (3,713,623) (3,798,831) (3,884,040) (3,969,248) (4,054,456) (4,139,665) (4,224,873) 8,000 (3,818,081) (3,903,290) (3,988,498) (4,073,706) (4,158,915) (4,244,123) (4,329,331) 9,000 (3,922,539) (4,007,748) (4,092,956) (4,178,164) (4,263,373) (4,348,581) (4,433,789) 10,000 (4,026,998) (4,112,206) (4,197,414) (4,282,623) (4,367,831) (4,453,039) (4,538,248) 11,000 (4,131,456) (4,216,664) (4,301,872) (4,387,081) (4,472,289) (4,557,497) (4,642,706) 12,000 (4,235,914) (4,321,122) (4,406,331) (4,491,539) (4,576,747) (4,661,956) (4,747,164) 13,000 (4,340,372) (4,425,580) (4,510,789) (4,595,997) (4,681,205) (4,766,414) (4,851,622) 14,000 (4,444,830) (4,530,039) (4,615,247) (4,700,455) (4,785,664) (4,870,872) (4,956,080) 15,000 (4,549,289) (4,634,497) (4,719,705) (4,804,913) (4,890,122) (4,975,330) (5,060,538) 16,000 (4,653,747) (4,738,955) (4,824,163) (4,909,372) (4,994,580) (5,079,788) (5,164,997) 17,000 (4,758,205) (4,843,413) (4,928,621) (5,013,830) (5,099,038) (5,184,246) (5,269,455) 18,000 (4,862,663) (4,947,871) (5,033,080) (5,118,288) (5,203,496) (5,288,705) (5,373,913) 19,000 (4,967,121) (5,052,330) (5,137,538) (5,222,746) (5,307,954) (5,393,163) (5,478,371) 20,000 (5,071,579) (5,156,788) (5,241,996) (5,327,204) (5,412,413) (5,497,621) (5,582,829)

AH - % on site 25% Balance (RLV - TLV) (3,408,457) 0% 5% 10% 15% 20% 25% 30% 80% (218,426) (317,905) (417,385) (516,864) (616,343) (715,822) (815,301) 85% (909,424) (1,005,335) (1,101,247) (1,197,158) (1,293,070) (1,388,981) (1,484,893) 90% (1,600,421) (1,692,765) (1,785,109) (1,877,452) (1,969,796) (2,062,140) (2,154,484) 95% (2,291,418) (2,380,195) (2,468,971) (2,557,747) (2,646,523) (2,735,299) (2,824,075) Build rate (£psm) 100% (2,982,416) (3,067,624) (3,152,833) (3,238,041) (3,323,249) (3,408,457) (3,493,666) 105% (3,673,413) (3,755,054) (3,836,695) (3,918,335) (3,999,976) (4,081,616) (4,163,257) 110% (4,364,411) (4,442,484) (4,520,557) (4,598,629) (4,676,702) (4,754,775) (4,832,848) 115% (5,055,408) (5,129,913) (5,204,419) (5,278,924) (5,353,429) (5,427,934) (5,502,439) 120% (5,746,406) (5,817,343) (5,888,281) (5,959,218) (6,030,155) (6,101,093) (6,172,030)

AH - % on site 25% Balance (RLV - TLV) (3,408,457) 0% 5% 10% 15% 20% 25% 30% 80% (5,523,920) (5,482,053) (5,440,186) (5,398,319) (5,356,453) (5,314,586) (5,272,719) 90% (4,253,168) (4,274,839) (4,296,509) (4,318,180) (4,339,851) (4,361,522) (4,383,192) 100% (2,982,416) (3,067,624) (3,152,833) (3,238,041) (3,323,249) (3,408,457) (3,493,666) 110% (1,711,664) (1,860,410) (2,009,156) (2,157,902) (2,306,648) (2,455,393) (2,604,139) Market units sale values 120% (440,912) (653,195) (865,479) (1,077,762) (1,290,046) (1,502,329) (1,714,613) 130% 829,840 554,019 278,198 2,377 (273,444) (549,265) (825,086) 140% 2,100,592 1,761,234 1,421,875 1,082,516 743,158 403,799 64,440 150% 3,371,345 2,968,448 2,565,552 2,162,656 1,759,759 1,356,863 953,967 160% 4,642,097 4,175,663 3,709,229 3,242,795 2,776,361 2,309,927 1,843,493

AH - % on site 25% Balance (RLV - TLV) (3,408,457) 0% 5% 10% 15% 20% 25% 30% 100,000 (2,385,135) (2,470,344) (2,555,552) (2,640,760) (2,725,968) (2,811,177) (2,896,385) 200,000 (2,502,316) (2,587,524) (2,672,733) (2,757,941) (2,843,149) (2,928,357) (3,013,566) Page 55/56 Printed: 26/01/2021 15:59 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210119_Hastings Residential appraisal_revised_amends v5\BF LV F 100 © Copyright Aspinall Verdi Limited 210119_Hastings Residential appraisal_revised_amends v5

Scheme Ref: BF LV F 100 Title: 100 Units Notes: Brownfield Flats - lower value

300,000 (2,621,864) (2,707,072) (2,792,280) (2,877,489) (2,962,697) (3,047,905) (3,133,114) TLV (per acre) 400,000 (2,743,963) (2,829,171) (2,914,380) (2,999,588) (3,084,796) (3,170,005) (3,255,213) 595,294 500,000 (2,866,062) (2,951,271) (3,036,479) (3,121,687) (3,206,896) (3,292,104) (3,377,312) 600,000 (2,988,162) (3,073,370) (3,158,578) (3,243,787) (3,328,995) (3,414,203) (3,499,412) 700,000 (3,110,261) (3,195,469) (3,280,678) (3,365,886) (3,451,094) (3,536,303) (3,621,511) 800,000 (3,232,360) (3,317,569) (3,402,777) (3,487,985) (3,573,194) (3,658,402) (3,743,610) 900,000 (3,354,460) (3,439,668) (3,524,876) (3,610,085) (3,695,293) (3,780,501) (3,865,710)

AH - % on site 25% Balance (RLV - TLV) (3,408,457) 0% 5% 10% 15% 20% 25% 30% 70 (5,461,806) (5,547,015) (5,632,223) (5,717,431) (5,802,640) (5,887,848) (5,973,056) 80 (5,043,949) (5,129,157) (5,214,366) (5,299,574) (5,384,782) (5,469,991) (5,555,199) 90 (4,718,949) (4,804,157) (4,889,365) (4,974,574) (5,059,782) (5,144,990) (5,230,199) Density dph 100 (4,458,949) (4,544,157) (4,629,365) (4,714,573) (4,799,782) (4,884,990) (4,970,198) 271.0 110 (4,246,221) (4,331,429) (4,416,638) (4,501,846) (4,587,054) (4,672,263) (4,757,471) 120 (4,068,948) (4,154,157) (4,239,365) (4,324,573) (4,409,781) (4,494,990) (4,580,198) 130 (3,918,948) (4,004,156) (4,089,365) (4,174,573) (4,259,781) (4,344,990) (4,430,198) 140 (3,790,377) (3,875,585) (3,960,793) (4,046,001) (4,131,210) (4,216,418) (4,301,626) 150 (3,678,948) (3,764,156) (3,849,365) (3,934,573) (4,019,781) (4,104,989) (4,190,198) 160 (3,581,448) (3,666,656) (3,751,864) (3,837,073) (3,922,281) (4,007,489) (4,092,698) 170 (3,495,418) (3,580,627) (3,665,835) (3,751,043) (3,836,252) (3,921,460) (4,006,668)

AH - % on site 25% Balance (RLV - TLV) (3,408,457) 0% 5% 10% 15% 20% 25% 30% 15% (2,155,666) (2,282,212) (2,408,758) (2,535,303) (2,661,849) (2,788,395) (2,914,941) 16% (2,321,016) (2,439,294) (2,557,573) (2,675,851) (2,794,129) (2,912,407) (3,030,686) 17% (2,486,366) (2,596,377) (2,706,388) (2,816,398) (2,926,409) (3,036,420) (3,146,431) Profit % on GDV 18% (2,651,716) (2,753,459) (2,855,203) (2,956,946) (3,058,689) (3,160,432) (3,262,176) 20.00% 19% (2,817,066) (2,910,542) (3,004,018) (3,097,493) (3,190,969) (3,284,445) (3,377,921) 20% (2,982,416) (3,067,624) (3,152,833) (3,238,041) (3,323,249) (3,408,457) (3,493,666) 21% (3,147,766) (3,224,707) (3,301,648) (3,378,588) (3,455,529) (3,532,470) (3,609,411) 22% (3,313,116) (3,381,789) (3,450,463) (3,519,136) (3,587,809) (3,656,482) (3,725,156) 23% (3,478,466) (3,538,872) (3,599,278) (3,659,683) (3,720,089) (3,780,495) (3,840,901) 24% (3,643,816) (3,695,954) (3,748,093) (3,800,231) (3,852,369) (3,904,507) (3,956,646) 25% (3,809,166) (3,853,037) (3,896,908) (3,940,778) (3,984,649) (4,028,520) (4,072,391)

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Appendix 6 – Elderly Accommodation Appraisal

210119_Hastings Elderly accomodation appraisal_revised amends

Scheme Ref: GF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 50 Units AH Policy requirement (% Target) 40% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 12.0% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 60% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 3 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 4 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 18.6% 5.6 47.4% 9.5 30% 15.1 21.1 2 bed Flat 81.4% 24.4 52.6% 10.5 70% 34.9 69.9 Total number of units 100.0% 30.0 100.0% 20.0 100% 50.0 91.0

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 0 0 0 0 0 0 3 bed House 0 0 0 0 0 0 4 bed House 0 0 0 0 0 0 5 bed House 0 0 0 0 0 0 1 bed Flat 372 4,004 632 6,803 1,004 10,807 2 bed Flat 2,279 24,533 856 9,210 3,135 33,743 2,651 28,537 1,488 16,013 4,139 44,550 AH % by floor area: 35.94% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 0 2 bed House 275,000 3,819 355 0 3 bed House 300,000 3,488 324 0 4 bed House 340,000 3,091 287 0 5 bed House 0 0 1 bed Flat 210,000 4,200 390 3,162,600 2 bed Flat 280,000 4,000 372 9,783,200 12,945,800 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 #DIV/0! 55% 0 75% 0 70% 1 bed Flat 115,500 2,310 55% 157,500 3,150 75% 147,000 2,940 70% 2 bed Flat 154,000 2,525 55% 210,000 3,443 75% 196,000 3,213 70%

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Scheme Ref: GF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 5.6 @ 210,000 1,171,800 2 bed Flat 24.4 @ 280,000 6,837,600 30.0 8,009,400 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 5.7 @ 115,500 656,964 2 bed Flat 6.3 @ 154,000 972,048 12.0 1,629,012 LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 206,250 - 3 bed House 0.0 @ 225,000 - 4 bed House 0.0 @ 255,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.9 @ 157,500 149,310 2 bed Flat 1.1 @ 210,000 220,920 2.0 370,230 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 192,500 - 3 bed House 0.0 @ 210,000 - 4 bed House 0.0 @ 238,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 2.8 @ 147,000 418,068 2 bed Flat 3.2 @ 196,000 618,576 6.0 1,036,644

Sub-total GDV Residential 50.0 11,045,286 AH on-site cost analysis: £MV less £GDV 1,900,514 459 £ psm (total GIA sqm) 38,010 £ per unit (total units)

Grant 50 @ 0 -

Total GDV 11,045,286

Gross Benchmark Land Value (BLV)

Residential Density 100.0 dph Site Area (Resi) 0.50 ha 1.24 acres Density analysis: 8,278 sqm/ha 36,058 sqft/ac Benchmark Land Value (BLV) 2,746 £ per plot 274,555 £ per ha 111,111 £ net per acre 137,278 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 137,278 0 1,373 686 (139,337) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 137,277.64 (139,337) RLV analysis: 2,746 £ per plot 274,555 £ per ha 111,111 £ per acre

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Scheme Ref: GF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (60,000) Statutory Planning Fees (Residential) (19,250) CIL 2,651 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (47,400) Zero Carbon 10,000 £ per dwelling (500,000) EV charging points (houses) 1,000 £ per dwelling - Ev charging points (flats) 2,500 £ per flat (125,000) - - - -

- total 50 units @ 0 per unit (625,000) - S106 analysis: 5.66% % of GDV 12,500 £ per unit (total units) AH Commuted Sum 4,139 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 1.24 acres @ 0 £ per acre (if brownfield) -

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 1.24 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - 1 bed Flat 1,004 sqm @ 1,429 psm (1,434,716) 2 bed Flat 4,139 3,135 sqm @ 1,429 psm (4,479,667)

External works 5,914,383 @ 15.0% (887,157) 17,743 £per unit

Category 2 Housing 95% of All units 50 units @ 1,400 £ per dwelling (66,500) Category 3 Housing 5% of All units 50 units @ 22,791 £ per dwelling (56,978)

Contingency 6,925,018 @ 5.0% (346,251)

Professional Fees 6,925,018 @ 10.0% (692,502)

Disposal Costs - Marketing and Promotion 8,009,400 OMS @ 5.00% (400,470) Residential Sales Agent Costs 8,009,400 OMS @ 1.00% (80,094) Residential Sales Legal Costs 8,009,400 OMS @ 0.50% (40,047)

Interest - 7.50% APR 0.604% pcm (623,494) Interest sense check (only if viable) 5.59% (665,054) Developers Profit - Margin on AH 3,035,886 6.00% on AH values (182,153) Profit on GDV 8,009,400 20.00% (1,601,880) 9,859,526 16.25% on costs (1,601,880) 11,045,286 16.15% blended (1,784,033)

TOTAL DEVELOPMENT COSTS (11,782,896)

BALANCE Surplus/(Deficit) (1,475,220) £ per ha (597,013) £ per acre (737,610)

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Scheme Ref: GF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

SENSITIVITY ANALYSIS

AH - % on site 40% Balance (RLV - TLV) (737,610) 15% 20% 25% 30% 35% 40% 45% - (633,436) (654,271) (675,106) (695,941) (716,775) (737,610) (758,445) 2,000 (746,611) (767,446) (788,281) (809,115) (829,950) (850,785) (871,620) 4,000 (859,786) (880,621) (901,456) (922,290) (943,125) (963,960) (984,795) 6,000 (972,961) (993,796) (1,014,630) (1,035,465) (1,056,300) (1,077,135) (1,097,970) 8,000 (1,086,136) (1,106,971) (1,127,805) (1,148,640) (1,169,475) (1,190,310) (1,211,145) Site Specific S106 10,000 (1,199,311) (1,220,145) (1,240,980) (1,261,815) (1,282,650) (1,303,485) (1,324,319) 0 12,000 (1,312,486) (1,333,320) (1,354,155) (1,374,990) (1,395,825) (1,416,660) (1,437,494) 14,000 (1,425,660) (1,446,495) (1,467,330) (1,488,165) (1,509,000) (1,529,834) (1,550,669) 16,000 (1,538,835) (1,559,670) (1,580,505) (1,601,340) (1,622,175) (1,643,009) (1,663,844) 18,000 (1,652,010) (1,672,845) (1,693,680) (1,714,515) (1,735,349) (1,756,184) (1,777,019) 20,000 (1,765,185) (1,786,020) (1,806,855) (1,827,690) (1,848,524) (1,869,359) (1,890,194) 22,000 (1,878,360) (1,899,195) (1,920,030) (1,940,864) (1,961,699) (1,982,534) (2,003,369) 24,000 (1,991,535) (2,012,370) (2,033,205) (2,054,039) (2,074,874) (2,095,709) (2,116,544) 26,000 (2,104,710) (2,125,545) (2,146,379) (2,167,214) (2,188,049) (2,208,884) (2,229,719) 28,000 (2,217,885) (2,238,720) (2,259,554) (2,280,389) (2,301,224) (2,322,059) (2,342,893) 30,000 (2,331,060) (2,351,894) (2,372,729) (2,393,564) (2,414,399) (2,435,234) (2,456,068) 32,000 (2,444,235) (2,465,069) (2,485,904) (2,506,739) (2,527,574) (2,548,408) (2,569,243) 34,000 (2,557,409) (2,578,244) (2,599,079) (2,619,914) (2,640,749) (2,661,583) (2,682,418) 36,000 (2,670,584) (2,691,419) (2,712,254) (2,733,089) (2,753,923) (2,774,758) (2,795,593) 38,000 (2,783,759) (2,804,594) (2,825,429) (2,846,264) (2,867,098) (2,887,933) (2,908,768) 40,000 (2,896,934) (2,917,769) (2,938,604) (2,959,438) (2,980,273) (3,001,108) (3,021,943)

AH - % on site 40% Balance (RLV - TLV) (737,610) 15% 20% 25% 30% 35% 40% 45% 80% 1,211,837 1,176,039 1,140,241 1,104,443 1,068,644 1,032,846 997,048 85% 750,519 718,461 686,404 654,347 622,290 590,232 558,175 90% 289,200 260,884 232,567 204,251 175,935 147,618 119,302 95% (172,118) (196,694) (221,269) (245,845) (270,420) (294,996) (319,572) Build rate (£psm) 100% (633,436) (654,271) (675,106) (695,941) (716,775) (737,610) (758,445) 105% (1,094,754) (1,111,848) (1,128,942) (1,146,036) (1,163,130) (1,180,224) (1,197,318) 110% (1,556,073) (1,569,426) (1,582,779) (1,596,132) (1,609,485) (1,622,838) (1,636,191) 115% (2,017,391) (2,027,003) (2,036,616) (2,046,228) (2,055,840) (2,065,452) (2,075,065) 120% (2,478,709) (2,484,581) (2,490,452) (2,496,324) (2,502,195) (2,508,067) (2,513,938)

AH - % on site 40% Balance (RLV - TLV) (737,610) 15% 20% 25% 30% 35% 40% 45% 80% (2,341,477) (2,261,838) (2,182,200) (2,102,562) (2,022,924) (1,943,286) (1,863,648) 85% (1,914,466) (1,859,947) (1,805,427) (1,750,907) (1,696,387) (1,641,867) (1,587,347) 90% (1,487,456) (1,458,055) (1,428,653) (1,399,251) (1,369,850) (1,340,448) (1,311,046) 95% (1,060,446) (1,056,163) (1,051,879) (1,047,596) (1,043,312) (1,039,029) (1,034,746) Market units sale values 100% (633,436) (654,271) (675,106) (695,941) (716,775) (737,610) (758,445) 105% (206,426) (252,379) (298,332) (344,285) (390,238) (436,191) (482,144) 110% 220,584 149,513 78,442 7,370 (63,701) (134,772) (205,844) 115% 647,594 551,405 455,215 359,026 262,836 166,647 70,457 120% 1,074,604 953,297 831,989 710,681 589,373 468,065 346,758

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Scheme Ref: GF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

AH - % on site 40% Balance (RLV - TLV) (737,610) 15% 20% 25% 30% 35% 40% 45% 80,000 (583,786) (604,621) (625,456) (646,291) (667,126) (687,960) (708,795) 100,000 (615,704) (636,539) (657,374) (678,209) (699,043) (719,878) (740,713) 120,000 (647,622) (668,457) (689,292) (710,126) (730,961) (751,796) (772,631) TLV (per acre) 140,000 (680,125) (700,959) (721,794) (742,629) (763,464) (784,299) (805,133) 111,111 160,000 (712,671) (733,506) (754,341) (775,176) (796,010) (816,845) (837,680) 180,000 (745,218) (766,053) (786,888) (807,722) (828,557) (849,392) (870,227) 200,000 (777,765) (798,600) (819,434) (840,269) (861,104) (881,939) (902,774) 220,000 (811,144) (831,979) (852,814) (873,649) (894,483) (915,318) (936,153) 240,000 (844,634) (865,469) (886,304) (907,139) (927,974) (948,808) (969,643)

AH - % on site 40% Balance (RLV - TLV) (737,610) 15% 20% 25% 30% 35% 40% 45% 10 (2,303,315) (2,324,150) (2,344,985) (2,365,820) (2,386,654) (2,407,489) (2,428,324) 15 (1,683,128) (1,703,962) (1,724,797) (1,745,632) (1,766,467) (1,787,302) (1,808,136) 20 (1,373,034) (1,393,869) (1,414,703) (1,435,538) (1,456,373) (1,477,208) (1,498,043) Density dph 25 (1,186,978) (1,207,812) (1,228,647) (1,249,482) (1,270,317) (1,291,152) (1,311,986) 100.0 30 (1,062,940) (1,083,775) (1,104,610) (1,125,444) (1,146,279) (1,167,114) (1,187,949) 35 (974,342) (995,177) (1,016,011) (1,036,846) (1,057,681) (1,078,516) (1,099,351) 40 (907,893) (928,728) (949,563) (970,398) (991,232) (1,012,067) (1,032,902) 45 (856,211) (877,046) (897,880) (918,715) (939,550) (960,385) (981,220) 50 (814,865) (835,700) (856,535) (877,369) (898,204) (919,039) (939,874) 55 (781,052) (801,887) (822,722) (843,556) (864,391) (885,226) (906,061) 60 (753,656) (774,491) (795,325) (816,160) (836,995) (857,830) (878,665)

AH - % on site 40% Balance (RLV - TLV) (737,610) 15% 20% 25% 30% 35% 40% 45% 15% (66,104) (120,311) (174,518) (228,726) (282,933) (337,140) (391,347) 16% (179,570) (227,103) (274,636) (322,169) (369,701) (417,234) (464,767) 17% (293,037) (333,895) (374,753) (415,612) (456,470) (497,328) (538,186) Profit % on GDV 18% (406,503) (440,687) (474,871) (509,055) (543,238) (577,422) (611,606) 20.00% 19% (519,970) (547,479) (574,988) (602,498) (630,007) (657,516) (685,025) 20% (633,436) (654,271) (675,106) (695,941) (716,775) (737,610) (758,445) 21% (746,903) (761,063) (775,223) (789,384) (803,544) (817,704) (831,864) 22% (860,369) (867,855) (875,341) (882,827) (890,312) (897,798) (905,284) 23% (973,836) (974,647) (975,458) (976,270) (977,081) (977,892) (978,703) 24% (1,087,302) (1,081,439) (1,075,576) (1,069,713) (1,063,849) (1,057,986) (1,052,123) 25% (1,200,769) (1,188,231) (1,175,693) (1,163,156) (1,150,618) (1,138,080) (1,125,542)

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Scheme Ref: BF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

ASSUMPTIONS - RESIDENTIAL USES

Total number of units in scheme 50 Units AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared ownership 10% First Homes 30% 7.5% % of total (>10% for HWP (Feb 2017)) Open Market Sale (OMS) housing 75% 100% CIL Rate (£ psm) 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Occupancy rate 1 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 2 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 3 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 4 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 5 bed House 0.0% 0.0 0.0% 0.0 0% 0.0 0.0 1 bed Flat 18.6% 7.0 47.4% 5.9 26% 12.9 18.1 2 bed Flat 81.4% 30.5 52.6% 6.6 74% 37.1 74.2 Total number of units 100.0% 37.5 100.0% 12.5 100% 50.0 92.3

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) 1 bed House 0 0 0 0 0 0 2 bed House 0 0 0 0 0 0 3 bed House 0 0 0 0 0 0 4 bed House 0 0 0 0 0 0 5 bed House 0 0 0 0 0 0 1 bed Flat 465 5,005 395 4,252 860 9,257 2 bed Flat 2,849 30,666 535 5,756 3,384 36,423 3,314 35,672 930 10,008 4,244 45,680 AH % by floor area: 21.91% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) 1 bed House 0 0 2 bed House 275,000 3,819 355 0 3 bed House 300,000 3,488 324 0 4 bed House 340,000 3,091 287 0 5 bed House 0 0 1 bed Flat 210,000 4,200 390 2,709,000 2 bed Flat 280,000 4,000 372 10,388,000 13,097,000 Affordable Housing values (£) - Aff. Rent £ £psm % of MV Shared ownership £ £psm % of MV First Homes £ £psm % of MV 1 bed House 0 55% 0 75% 0 70% 2 bed House 151,250 2,161 55% 206,250 2,946 75% 192,500 2,750 70% 3 bed House 165,000 1,964 55% 225,000 2,679 75% 210,000 2,500 70% 4 bed House 187,000 1,928 55% 255,000 2,629 75% 238,000 2,454 70% 5 bed House 0 #DIV/0! 55% 0 75% 0 70% 1 bed Flat 115,500 2,310 55% 157,500 3,150 75% 147,000 2,940 70% 2 bed Flat 154,000 2,525 55% 210,000 3,443 75% 196,000 3,213 70%

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Scheme Ref: BF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 275,000 - 3 bed House 0.0 @ 300,000 - 4 bed House 0.0 @ 340,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 7.0 @ 210,000 1,464,750 2 bed Flat 30.5 @ 280,000 8,547,000 37.5 10,011,750 Affordable Rent GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 151,250 - 3 bed House 0.0 @ 165,000 - 4 bed House 0.0 @ 187,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 3.6 @ 115,500 410,603 2 bed Flat 3.9 @ 154,000 607,530 7.5 1,018,133 LCHO GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 206,250 - 3 bed House 0.0 @ 225,000 - 4 bed House 0.0 @ 255,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 0.6 @ 157,500 93,319 2 bed Flat 0.7 @ 210,000 138,075 1.3 231,394 First Homes GDV - 1 bed House 0.0 @ 0 - 2 bed House 0.0 @ 192,500 - 3 bed House 0.0 @ 210,000 - 4 bed House 0.0 @ 238,000 - 5 bed House 0.0 @ 0 - 1 bed Flat 1.8 @ 147,000 261,293 2 bed Flat 2.0 @ 196,000 386,610 3.8 647,903

Sub-total GDV Residential 50.0 11,909,179 AH on-site cost analysis: £MV less £GDV 1,187,821 280 £ psm (total GIA sqm) 23,756 £ per unit (total units)

Grant 50 @ 0 -

Total GDV 11,909,179

Gross Benchmark Land Value (BLV)

Residential Density 100.0 dph Site Area (Resi) 0.50 ha 1.24 acres Density analysis: 8,488 sqm/ha 36,972 sqft/ac Benchmark Land Value (BLV) 13,893 £ per plot 1,389,251 £ per ha 562,222 £ net per acre 694,625 Gross to net land area 90% Acquisition Agent Acquisition Legal SDLT Gross BLV fees fees HMR Rates 1% 0.50% Phased land payment Phase 1 694,625 24,231 6,946 3,473 (729,276) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 694,625.28 (729,276) RLV analysis: 13,893 £ per plot 1,389,251 £ per ha 562,222 £ per acre

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Scheme Ref: BF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (60,000) Statutory Planning Fees (Residential) (19,250) CIL 3,314 sqm 0.00 £ psm - CIL analysis: 0.00% % of GDV 0 £ per unit (total units) Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (47,400) 20% reduction in CO2 2,557 £ per dwelling (127,850) EV charging points (flats) 2,500 £ per dwelling (125,000) - - - - -

- total 50 units @ 0 per unit (252,850) - S106 analysis: 2.12% % of GDV 5,057 £ per unit (total units) AH Commuted Sum 4,244 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 1.24 acres @ 110,000 £ per acre (if brownfield) (135,905)

Infrastructure costs - Year 1 0 per dewlling - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 1.24 acres @ per acre - - Infra. Costs analysis: 0.00% % of GDV 0 £ per unit (total units) 1 bed House - sqm @ 1,277 psm - 2 bed House - sqm @ 1,277 psm - 3 bed House - sqm @ 1,277 psm - 4 bed House - sqm @ 1,277 psm - 5 bed House - sqm @ 1,277 psm - 1 bed Flat 860 sqm @ 1,429 psm (1,228,940) 2 bed Flat 4,244 3,384 sqm @ 1,429 psm (4,835,403)

External works 6,064,343 @ 10.0% (606,434) 12,129 £per unit

Category 2 Housing 100% of All units 50 units @ 1,400 £ per dwelling (70,000) Category 3 Housing 5% of All units 50 units @ 10,307 £ per dwelling (25,768)

Contingency 6,902,449 @ 5.0% (345,122)

Professional Fees 6,902,449 @ 10.0% (690,245)

Disposal Costs - Marketing and Promotion 10,011,750 OMS @ 5.00% (500,588) Residential Sales Agent Costs 10,011,750 OMS @ 1.00% (100,118) Residential Sales Legal Costs 10,011,750 OMS @ 0.50% (50,059)

Interest - 7.50% APR 0.604% pcm (834,390) Interest sense check (only if viable) 7.06% (921,544) Developers Profit - Margin on AH 1,897,429 6.00% on AH values (113,846) Profit on GDV 10,011,750 20.00% (2,002,350) 9,802,470 20.43% on costs (2,002,350) 11,909,179 17.77% blended (2,116,196)

TOTAL DEVELOPMENT COSTS (12,647,942)

BALANCE Surplus/(Deficit) (1,477,526) £ per ha (597,947) £ per acre (738,763)

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Scheme Ref: BF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

SENSITIVITY ANALYSIS

AH - % on site 25% Balance (RLV - TLV) (738,763) 0% 5% 10% 15% 20% 25% 30% - (608,905) (634,877) (660,848) (686,820) (712,792) (738,763) (764,735) 1,000 (664,815) (690,786) (716,758) (742,729) (768,701) (794,673) (820,644) 2,000 (720,724) (746,696) (772,667) (798,639) (824,611) (850,582) (876,554) 3,000 (776,633) (802,605) (828,577) (854,548) (880,520) (906,492) (932,463) 4,000 (832,543) (858,515) (884,486) (910,458) (936,429) (962,401) (988,373) Site Specific S106 5,000 (888,452) (914,424) (940,396) (966,367) (992,339) (1,018,311) (1,044,282) 0 6,000 (944,362) (970,334) (996,305) (1,022,277) (1,048,248) (1,074,220) (1,100,192) 7,000 (1,000,271) (1,026,243) (1,052,215) (1,078,186) (1,104,158) (1,130,130) (1,156,101) 8,000 (1,056,181) (1,082,152) (1,108,124) (1,134,096) (1,160,067) (1,186,039) (1,212,011) 9,000 (1,112,090) (1,138,062) (1,164,034) (1,190,005) (1,215,977) (1,241,948) (1,267,920) 10,000 (1,168,000) (1,193,971) (1,219,943) (1,245,915) (1,271,886) (1,297,858) (1,323,830) 11,000 (1,223,909) (1,249,881) (1,275,852) (1,301,824) (1,327,796) (1,353,767) (1,379,739) 12,000 (1,279,819) (1,305,790) (1,331,762) (1,357,734) (1,383,705) (1,409,677) (1,435,648) 13,000 (1,335,728) (1,361,700) (1,387,671) (1,413,643) (1,439,615) (1,465,586) (1,491,558) 14,000 (1,391,638) (1,417,609) (1,443,581) (1,469,553) (1,495,524) (1,521,496) (1,547,467) 15,000 (1,447,547) (1,473,519) (1,499,490) (1,525,462) (1,551,434) (1,577,405) (1,603,377) 16,000 (1,503,457) (1,529,428) (1,555,400) (1,581,371) (1,607,343) (1,633,315) (1,659,286) 17,000 (1,559,366) (1,585,338) (1,611,309) (1,637,281) (1,663,253) (1,689,224) (1,715,196) 18,000 (1,615,276) (1,641,247) (1,667,219) (1,693,190) (1,719,162) (1,745,134) (1,771,105) 19,000 (1,671,185) (1,697,157) (1,723,128) (1,749,100) (1,775,072) (1,801,043) (1,827,015) 20,000 (1,727,094) (1,753,066) (1,779,038) (1,805,009) (1,830,981) (1,856,953) (1,882,924)

AH - % on site 25% Balance (RLV - TLV) (738,763) 0% 5% 10% 15% 20% 25% 30% 80% 1,177,415 1,137,302 1,097,190 1,057,077 1,016,964 976,851 936,738 85% 730,835 694,258 657,680 621,103 584,525 547,947 511,370 90% 284,255 251,213 218,171 185,128 152,086 119,044 86,002 95% (162,325) (191,832) (221,339) (250,846) (280,353) (309,860) (339,367) Build rate (£psm) 100% (608,905) (634,877) (660,848) (686,820) (712,792) (738,763) (764,735) 105% (1,055,485) (1,077,921) (1,100,358) (1,122,794) (1,145,230) (1,167,667) (1,190,103) 110% (1,502,065) (1,520,966) (1,539,867) (1,558,768) (1,577,669) (1,596,570) (1,615,471) 115% (1,948,645) (1,964,011) (1,979,377) (1,994,742) (2,010,108) (2,025,474) (2,040,840) 120% (2,395,225) (2,407,056) (2,418,886) (2,430,717) (2,442,547) (2,454,377) (2,466,208)

AH - % on site 25% Balance (RLV - TLV) (738,763) 0% 5% 10% 15% 20% 25% 30% 80% (2,601,888) (2,528,210) (2,454,533) (2,380,855) (2,307,178) (2,233,500) (2,159,823) 85% (2,103,642) (2,054,877) (2,006,112) (1,957,346) (1,908,581) (1,859,816) (1,811,051) 90% (1,605,396) (1,581,544) (1,557,691) (1,533,838) (1,509,985) (1,486,132) (1,462,279) 95% (1,107,151) (1,108,210) (1,109,269) (1,110,329) (1,111,388) (1,112,447) (1,113,507) Market units sale values 100% (608,905) (634,877) (660,848) (686,820) (712,792) (738,763) (764,735) 105% (110,659) (161,543) (212,427) (263,311) (314,195) (365,079) (415,963) 110% 387,586 311,790 235,994 160,198 84,402 8,605 (67,191) 115% 885,832 785,124 684,415 583,707 482,998 382,290 281,581 120% 1,384,078 1,258,457 1,132,836 1,007,215 881,595 755,974 630,353

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Scheme Ref: BF HV 50 Eld Title: 50 Units Elderly accomodation Notes: Brownfield - higher value

AH - % on site 25% Balance (RLV - TLV) (738,763) 0% 5% 10% 15% 20% 25% 30% 350,000 (257,795) (283,767) (309,739) (335,710) (361,682) (387,653) (413,625) 400,000 (340,518) (366,489) (392,461) (418,432) (444,404) (470,376) (496,347) 450,000 (423,240) (449,212) (475,183) (501,155) (527,126) (553,098) (579,070) TLV (per acre) 500,000 (505,962) (531,934) (557,905) (583,877) (609,849) (635,820) (661,792) 562,222 550,000 (588,684) (614,656) (640,628) (666,599) (692,571) (718,543) (744,514) 600,000 (671,407) (697,378) (723,350) (749,322) (775,293) (801,265) (827,237) 650,000 (754,129) (780,101) (806,072) (832,044) (858,016) (883,987) (909,959) 700,000 (836,851) (862,823) (888,795) (914,766) (940,738) (966,709) (992,681) 750,000 (919,574) (945,545) (971,517) (997,488) (1,023,460) (1,049,432) (1,075,403)

AH - % on site 25% Balance (RLV - TLV) (738,763) 0% 5% 10% 15% 20% 25% 30% 70 (1,085,855) (1,111,827) (1,137,798) (1,163,770) (1,189,742) (1,215,713) (1,241,685) 80 (887,126) (913,098) (939,069) (965,041) (991,012) (1,016,984) (1,042,956) 90 (732,559) (758,530) (784,502) (810,474) (836,445) (862,417) (888,389) Density dph 100 (608,905) (634,877) (660,848) (686,820) (712,792) (738,763) (764,735) 100.0 110 (507,734) (533,705) (559,677) (585,649) (611,620) (637,592) (663,564) 120 (423,425) (449,396) (475,368) (501,339) (527,311) (553,283) (579,254) 130 (352,086) (378,057) (404,029) (430,001) (455,972) (481,944) (507,916) 140 (290,938) (316,910) (342,882) (368,853) (394,825) (420,797) (446,768) 150 (237,944) (263,916) (289,887) (315,859) (341,830) (367,802) (393,774) 160 (191,574) (217,545) (243,517) (269,489) (295,460) (321,432) (347,404) 170 (150,659) (176,631) (202,602) (228,574) (254,545) (280,517) (306,489)

AH - % on site 25% Balance (RLV - TLV) (738,763) 0% 5% 10% 15% 20% 25% 30% 15% 58,545 (799) (60,143) (119,487) (178,832) (238,176) (297,520) 16% (74,945) (127,615) (180,284) (232,954) (285,624) (338,293) (390,963) 17% (208,435) (254,430) (300,425) (346,420) (392,416) (438,411) (484,406) Profit % on GDV 18% (341,925) (381,246) (420,566) (459,887) (499,208) (538,528) (577,849) 20.00% 19% (475,415) (508,061) (540,707) (573,353) (606,000) (638,646) (671,292) 20% (608,905) (634,877) (660,848) (686,820) (712,792) (738,763) (764,735) 21% (742,395) (761,692) (780,989) (800,286) (819,584) (838,881) (858,178) 22% (875,885) (888,508) (901,130) (913,753) (926,376) (938,998) (951,621) 23% (1,009,375) (1,015,323) (1,021,271) (1,027,219) (1,033,168) (1,039,116) (1,045,064) 24% (1,142,865) (1,142,139) (1,141,412) (1,140,686) (1,139,960) (1,139,233) (1,138,507) 25% (1,276,355) (1,268,954) (1,261,553) (1,254,152) (1,246,752) (1,239,351) (1,231,950)

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Appendix 7 – Retail Appraisals

200915 Hastings Commercial appraisals v5 BF Conv_retail_Exp

SCHEME DETAILS - ASSUMPTIONS Convenience retail - express format - Brownfield

Floor areas: NIA (sqm) NIA (sqft) Net to Gross % GIA (sqm) NIA (sqft) Convenience retail - express format - Brownfield 350 3,767 100.0% 350.0 3,767 area 2 0 area 3 0 area 4 0 area 5 0 area 6 0 total floor area 350 3,767 100.0% 350 3,767

GROSS DEVELOPMENT VALUE sqft £ psf £ Convenience retail - express format - Brownfield 3,767 @ 23.00 86,649 area 2 0 @ 0.00 - area 3 0 @ 0.00 - area 4 0 @ 0.00 - area 5 0 @ 0.00 - area 6 0 @ 0.00 -

Estimated Gross Rental Value per annum 86,649

Yield @ 5.75% capitalised rent 1,506,947 less Rent Free / Void allowance 9 months rent (64,987) Purchasers costs @ 5.76% (78,533) 1,363,427

GDV 1,363,427

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees and reports (5,390) Statutory Planning Fees (1,797) Combined CIL 350 sqm @ 0.00 £ psm - Site Specific S106/278 -

Construction Costs - Demolition and Site Clearance (allowance) 0.43 acres @ 110,000 per acre (47,567)

Convenience retail - express format - Brownfield 350.00 sqm @ 1,490.00 psm (521,500) Electric Charging points per unit DM 22 Transport plan 350.00 sqm @ £ psm - DM 22 Transport plan monitoring deposit - sqm @ £ per scheme - Biodiversity offset - sqm @ £ per gross hectare - - sqm @ psm -

External works 521,500 @ 10% (52,150) Contingency 621, 217 @ 5% (31,061)

Professional Fees 652,278 @ 10% (65,228)

Disposal Costs - Letting Agents Costs 86,649 ERV @ 10.00% (8,665) Letting Legal Costs 86,649 ERV @ 5.00% (4,332) Investment Sale Agents Costs 1,363,427 GDV @ 1.00% (13,634) Investment Sale Legal Costs 1,363,427 GDV @ 0.50% (6,817) Marketing and Promotion 1,363,427 GDV @ 1.00% (13,634)

Finance Costs -

Interest (cashflow basis incl. land) 7.50% APR 0.604% pcm (32,222)

Developers Profit 1,136,144 @ 20.00% on costs 1,363,427 @ 16.67% on GDV (227,283)

TOTAL COSTS (1,031,281)

RESIDUAL LAND VALUE Residual Land Value (gross) 332,146 SDLT (HMRC % rates) 332,146 @ (9,964) Acquisition Agent fees 332,146 @ 1% (3,321) Acquisition Legal fees 332,146 @ 0.5% (1,661) Interest on Land 332,146 @ 7.5% (24,911) Residual Land Value (net) 292,289

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THRESHOLD LAND VALUE Site density 2,000 sqm per hectare 0.20 Site Area 0.175 ha 0.43 acres 2,000 sqm/ha 8,712 sqft/ac Threshold Land Value 1,263,007 £ per ha 511,111 £ per acre 1,750 20.00% 221,017 Gross to net 90.00%

BALANCE Surplus/(Deficit) 71,272

SENSITIVITY ANALYSIS

GDV Balance 71,272 85% 90% 95% 100% 105% 110% 115% 0 (70,863) (21,271) 22,781 71,272 119,762 168,253 216,743 25 (79,964) (30,371) 13,883 62,373 110,864 159,354 207,845 50 (89,064) (39,472) 4,984 53,475 101,965 150,456 198,947 75 (98,165) (48,572) 1,020 44,577 93,067 141,558 190,048 100 (107,266) (57,673) (8,080) 35,678 84,169 132,659 181,150 CIL £psm / Section 106 125 (116,366) (66,773) (17,181) 26,780 75,271 123,761 172,252 150 (125,467) (75,874) (26,281) 17,882 66,372 114,863 163,353 175 (134,567) (84,975) (35,382) 8,983 57,474 105,964 154,455 200 (143,668) (94,075) (44,483) 85 48,576 97,066 145,557 225 (152,768) (103,176) (53,583) (3,990) 39,677 88,168 136,658 250 (161,869) (112,276) (62,684) (13,091) 30,779 79,270 127,760 275 (170,969) (121,377) (71,784) (22,192) 21,881 70,371 118,862 300 (180,070) (130,477) (80,885) (31,292) 12,982 61,473 109,963

Build costs Balance 71,272 85% 90% 95% 100% 105% 110% 115% 0 162,244 131,920 101,596 71,272 40,947 10,623 (15,126) 25 153,346 123,022 92,697 62,373 32,049 1,725 (24,226) 50 144,447 114,123 83,799 53,475 23,151 (2,313) (33,327) 75 135,549 105,225 74,901 44,577 14,252 (11,414) (42,427) 100 126,651 96,327 66,002 35,678 5,354 (20,514) (51,528) CIL £psm / Section 106 125 117,752 87,428 57,104 26,780 1,398 (29,615) (60,628) 150 108,854 78,530 48,206 17,882 (7,702) (38,715) (69,729) 175 99,956 69,632 39,308 8,983 (16,803) (47,816) (78,829) 200 91,057 60,733 30,409 85 (25,903) (56,917) (87,930) 225 82,159 51,835 21,511 (3,990) (35,004) (66,017) (97,030) 250 73,261 42,937 12,613 (13,091) (44,104) (75,118) (106,131) 275 64,363 34,038 3,714 (22,192) (53,205) (84,218) (115,232) 300 55,464 25,140 (279) (31,292) (62,305) (93,319) (124,332)

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SCHEME DETAILS - ASSUMPTIONS Convenience retail - budget format - Brownfield

Floor areas: NIA (sqm) NIA (sqft) Net to Gross % GIA (sqm) NIA (sqft) Convenience retail - budget format - Brownfield 2,000 21,528 100.0% 2,000.0 21,528 area 2 0 area 3 0 area 4 0 area 5 0 area 6 0 total floor area 2,000 21,528 100.0% 2,000 21,528

GROSS DEVELOPMENT VALUE sqft £ psf £ Convenience retail - budget format - Brownfield 21,528 @ 21.00 452,084 area 2 0 @ 0.00 - area 3 0 @ 0.00 - area 4 0 @ 0.00 - area 5 0 @ 0.00 - area 6 0 @ 0.00 -

Estimated Gross Rental Value per annum 452,084

Yield @ 5.5% capitalised rent 8,219,713 less Rent Free / Void allowance 9 months rent (339,063) Purchasers costs @ 5.76% (429,203) 7,451,447

GDV 7,451,447

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees and reports (30,800) Statutory Planning Fees (10,267) Combined CIL 2,000 sqm @ 0.00 £ psm - Site Specific S106/278 -

Construction Costs - Demolition and Site Clearance (allowance) 2.47 acres @ 110,000 per acre (271,810)

Convenience retail - budget format - Brownfield 2,000.00 sqm @ 1,490.00 psm (2,980,000) Electric Charging points per unit DM 22 Transport plan 2,000.00 sqm @ £ psm - DM 22 Transport plan monitoring deposit - sqm @ £ per scheme - Biodiversity offset - sqm @ £ per gross hectare - - sqm @ psm -

External works 2,980,000 @ 10% (298,000) Contingency 3, 549,810 @ 5% (177,491)

Professional Fees 3,727,301 @ 10% (372,730)

Disposal Costs - Letting Agents Costs 452,084 ERV @ 10.00% (45,208) Letting Legal Costs 452,084 ERV @ 5.00% (22,604) Investment Sale Agents Costs 7,451,447 GDV @ 1.00% (74,514) Investment Sale Legal Costs 7,451,447 GDV @ 0.50% (37,257) Marketing and Promotion 7,451,447 GDV @ 1.00% (74,514)

Finance Costs -

Interest (cashflow basis incl. land) 7.50% APR 0.604% pcm (184,127)

Developers Profit 6,209,290 @ 20.00% on costs 7,451,447 @ 16.67% on GDV (1,242,156)

TOTAL COSTS (5,821,479)

RESIDUAL LAND VALUE Residual Land Value (gross) 1,629,968 SDLT (HMRC % rates) 1,629,968 @ (65,199) Acquisition Agent fees 1,629,968 @ 1% (16,300) Acquisition Legal fees 1,629,968 @ 0.5% (8,150) Interest on Land 1,629,968 @ 7.5% (122,248) Residual Land Value (net) 1,418,072

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THRESHOLD LAND VALUE Site density 2,000 sqm per hectare 0.20 Site Area 1. 000 ha 2.47 acres 2,000 sqm/ha 8,712 sqft/ac Threshold Land Value 1,337,301 £ per ha 541,176 £ per acre 10,000 20.00% 1,337,247 Gross to net 85.00%

BALANCE Surplus/(Deficit) 80,825

SENSITIVITY ANALYSIS

GDV Balance 80,825 85% 90% 95% 100% 105% 110% 115% 0 (705,177) (443,177) (181,176) 80,825 342,825 604,826 866,827 25 (755,447) (493,446) (231,446) 30,555 292,556 554,556 816,557 50 (805,717) (543,716) (281,715) (19,715) 242,286 504,287 766,287 75 (855,986) (593,986) (331,985) (69,984) 192,016 454,017 716,018 100 (901,302) (644,255) (382,255) (120,254) 141,747 403,747 665,748 CIL £psm / Section 106 125 (952,150) (694,525) (432,524) (170,524) 91,477 353,478 615,478 150 (1,002,997) (744,795) (482,794) (220,793) 41,207 303,208 565,209 175 (1,053,845) (795,064) (533,064) (271,063) (9,062) 252,938 514,939 200 (1,104,692) (845,334) (583,333) (321,333) (59,332) 202,669 464,669 225 (1,151,410) (895,604) (633,603) (371,602) (109,602) 152,399 414,400 250 (1,203,413) (941,375) (683,873) (421,872) (159,871) 102,129 364,130 275 (1,255,416) (992,222) (734,143) (472,142) (210,141) 51,860 313,860 300 (1,307,419) (1,043,070) (784,412) (522,412) (260,411) 1,590 263,591

Build costs Balance 80,825 85% 90% 95% 100% 105% 110% 115% 0 594,760 423,448 252,136 80,825 (90,487) (261,799) (433,110) 25 544,490 373,178 201,867 30,555 (140,757) (312,068) (483,380) 50 494,221 322,909 151,597 (19,715) (191,026) (362,338) (533,650) 75 443,951 272,639 101,327 (69,984) (241,296) (412,608) (583,920) 100 393,681 222,369 51,058 (120,254) (291,566) (462,877) (634,189) CIL £psm / Section 106 125 343,411 172,100 788 (170,524) (341,835) (513,147) (684,459) 150 293,142 121,830 (49,482) (220,793) (392,105) (563,417) (734,729) 175 242,872 71,560 (99,751) (271,063) (442,375) (613,687) (784,998) 200 192,602 21,291 (150,021) (321,333) (492,644) (663,956) (835,268) 225 142,333 (28,979) (200,291) (371,602) (542,914) (714,226) (885,538) 250 92,063 (79,249) (250,560) (421,872) (593,184) (764,496) (931,193) 275 41,793 (129,518) (300,830) (472,142) (643,454) (814,765) (982,041) 300 (8,476) (179,788) (351,100) (522,412) (693,723) (865,035) (1,032,888)

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SCHEME DETAILS - ASSUMPTIONS Comparison retail town centre - small

Floor areas: NIA (sqm) NIA (sqft) Net to Gross % GIA (sqm) NIA (sqft) Comparison retail town centre - small 150 1,615 100.0% 150.0 1,615 area 2 0 area 3 0 area 4 0 area 5 0 area 6 0 total floor area 150 1,615 100.0% 150 1,615

GROSS DEVELOPMENT VALUE sqft £ psf £ Comparison retail town centre - small 1,615 @ 20.00 32,292 area 2 0 @ 20.00 - area 3 0 @ 20.00 - area 4 0 @ 20.00 - area 5 0 @ 20.00 - area 6 0 @ 20.00 -

Estimated Gross Rental Value per annum 32,292

Yield @ 10.0% capitalised rent 322,917 less Rent Free / Void allowance 36 months rent (96,875) Purchasers costs @ 5.76% (12,311) 213,731

GDV 213,731

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees and reports (2,310) Statutory Planning Fees (770) Combined CIL 150 sqm @ 0.00 £ psm - Site Specific S106/278 -

Construction Costs - Demolition and Site Clearance (allowance) 0.05 acres @ 110,000 per acre (5,096)

Comparison retail town centre - small 150.00 sqm @ 2,136.00 psm (320,400) Electric Charging points per unit DM 22 Transport plan 150.00 sqm @ £ psm - DM 22 Transport plan monitoring deposit - sqm @ £ per scheme - Biodiversity offset - sqm @ £ per gross hectare - - sqm @ psm -

External works 320,400 @ 10% (32,040) Contingency 357, 536 @ 5% (17,877)

Professional Fees 375,413 @ 10% (37,541)

Disposal Costs - Letting Agents Costs 32,292 ERV @ 10.00% (3,229) Letting Legal Costs 32,292 ERV @ 5.00% (1,615) Investment Sale Agents Costs 213,731 GDV @ 1.00% (2,137) Investment Sale Legal Costs 213,731 GDV @ 0.50% (1,069) Marketing and Promotion 213,731 GDV @ 1.00% (2,137)

Finance Costs -

Interest (cashflow basis incl. land) 7.50% APR 0.604% pcm (17,314)

Developers Profit 178,102 @ 20.00% on costs 213,731 @ 16.67% on GDV (35,629)

TOTAL COSTS (479,165)

RESIDUAL LAND VALUE Residual Land Value (gross) (265,434) SDLT (HMRC % rates) - @ - Acquisition Agent fees - @ 1% - Acquisition Legal fees - @ 0.5% - Interest on Land - @ 7.5% - Residual Land Value (net) (265,434)

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THRESHOLD LAND VALUE Site density 8,000 sqm per hectare 0.80 Site Area 0.019 ha 0.05 acres 8,000 sqm/ha 34,849 sqft/ac Threshold Land Value 1,263,007 £ per ha 511,111 £ per acre 188 80.00% 23,680 Gross to net 90.00%

BALANCE Surplus/(Deficit) (289,114)

SENSITIVITY ANALYSIS

GDV Balance (289,114) 85% 90% 95% 100% 105% 110% 115% 0 (315,028) (306,390) (297,752) (289,114) (280,476) (271,838) (263,200) 20 (318,495) (309,857) (301,219) (292,581) (283,943) (275,305) (266,667) 40 (321,962) (313,324) (304,686) (296,048) (287,410) (278,772) (270,134) 60 (325,429) (316,791) (308,153) (299,515) (290,877) (282,239) (273,601) 80 (328,895) (320,257) (311,620) (302,982) (294,344) (285,706) (277,068) CIL £psm / Section 106 100 (332,362) (323,724) (315,086) (306,448) (297,811) (289,173) (280,535) 120 (335,829) (327,191) (318,553) (309,915) (301,277) (292,639) (284,001) 140 (339,296) (330,658) (322,020) (313,382) (304,744) (296,106) (287,468) 160 (342,763) (334,125) (325,487) (316,849) (308,211) (299,573) (290,935) 180 (346,230) (337,592) (328,954) (320,316) (311,678) (303,040) (294,402) 200 (349,697) (341,059) (332,421) (323,783) (315,145) (306,507) (297,869) 220 (353,164) (344,526) (335,888) (327,250) (318,612) (309,974) (301,336) 240 (356,630) (347,992) (339,355) (330,717) (322,079) (313,441) (304,803)

GDV Balance (289,114) 100% 125% 150% 175% 200% 225% 250% 50% (77,403) (34,213) 5,711 44,582 83,453 122,323 161,194 60% (119,745) (76,555) (33,366) 6,474 45,344 84,215 123,086 70% (162,087) (118,898) (75,708) (32,518) 7,236 46,107 84,978 80% (204,430) (161,240) (118,050) (74,860) (31,671) 7,999 46,870 90% (246,772) (203,582) (160,392) (117,203) (74,013) (30,823) 8,762 Build costs 100% (289,114) (245,924) (202,735) (159,545) (116,355) (73,165) (29,976) 110% (331,456) (288,267) (245,077) (201,887) (158,697) (115,508) (72,318) 120% (373,799) (330,609) (287,419) (244,229) (201,040) (157,850) (114,660) 130% (416,141) (372,951) (329,761) (286,572) (243,382) (200,192) (157,002) 140% (458,483) (415,293) (372,104) (328,914) (285,724) (242,534) (199,345) 150% (500,825) (457,636) (414,446) (371,256) (328,066) (284,877) (241,687) 160% (543,168) (499,978) (456,788) (413,598) (370,409) (327,219) (284,029) 170% (585,510) (542,320) (499,130) (455,941) (412,751) (369,561) (326,372)

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SCHEME DETAILS - ASSUMPTIONS Comparison retail town centre - large

Floor areas: NIA (sqm) NIA (sqft) Net to Gross % GIA (sqm) NIA (sqft) Comparison retail town centre - large 500 5,382 100.0% 500.0 5,382 area 2 area 3 area 4 area 5 area 6 total floor area 500 5,382 100.0% 500 5,382

GROSS DEVELOPMENT VALUE sqft £ psf £ Comparison retail town centre - large 5,382 @ 19.00 102,257 area 2 0 @ 19.00 - area 3 0 @ 19.00 - area 4 0 @ 19.00 - area 5 0 @ 19.00 - area 6 0 @ 19.00 -

Estimated Gross Rental Value per annum 102,257

Yield @ 9.0% capitalised rent 1,136,191 less Rent Free / Void allowance 30 months rent (255,643) Purchasers costs @ 5.76% (47,957) 832,590

GDV 832,590

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees and reports (7,700) Statutory Planning Fees (2,567) Combined CIL 500 sqm @ 0.00 £ psm - Site Specific S106/278 -

Construction Costs - Demolition and Site Clearance (allowance) 0.31 acres @ 110,000 per acre (33,976)

Comparison retail town centre - large 500.00 sqm @ 2,136.00 psm (1,068,000) Electric Charging points per unit DM 22 Transport plan 500.00 sqm @ £ psm - DM 22 Transport plan monitoring deposit - sqm @ £ per scheme - Biodiversity offset - sqm @ £ per gross hectare - - sqm @ psm -

External works 1,068,000 @ 10% (106,800) Contingency 1,208,776 @ 5% (60,439)

Professional Fees 1, 269,215 @ 10% (126,922)

Disposal Costs - Letting Agents Costs 102,257 ERV @ 10.00% (10,226) Letting Legal Costs 102,257 ERV @ 5.00% (5,113) Investment Sale Agents Costs 832,590 GDV @ 1.00% (8,326) Investment Sale Legal Costs 832,590 GDV @ 0.50% (4,163) Marketing and Promotion 832,590 GDV @ 1.00% (8,326)

Finance Costs -

Interest (cashflow basis incl. land) 7.50% APR 0.604% pcm (59,316)

Developers Profit 693,798 @ 20.00% on costs 832,590 @ 16.67% on GDV (138,793)

TOTAL COSTS (1,640,665)

RESIDUAL LAND VALUE Residual Land Value (gross) (808,075) SDLT (HMRC % rates) - @ - Acquisition Agent fees - @ 1% - Acquisition Legal fees - @ 0.5% - Interest on Land - @ 7.5% - Residual Land Value (net) (808,075)

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THRESHOLD LAND VALUE Site density 4,000 sqm per hectare 0.40 Site Area 0. 125 ha 0.31 acres 4,000 sqm/ha 17,424 sqft/ac Threshold Land Value 1,263,007 £ per ha 511,111 £ per acre 1,250 40.00% 157,869 Gross to net 90.00%

BALANCE Surplus/(Deficit) (965,944)

SENSITIVITY ANALYSIS

GDV Balance (965,944) 85% 90% 95% 100% 105% 110% 115% 0 (1,066,892) (1,033,242) (999,593) (965,944) (932,295) (898,646) (864,997) 20 (1,078,448) (1,044,799) (1,011,150) (977,500) (943,851) (910,202) (876,553) 40 (1,090,004) (1,056,355) (1,022,706) (989,057) (955,407) (921,758) (888,109) 60 (1,101,560) (1,067,911) (1,034,262) (1,000,613) (966,964) (933,315) (899,665) 80 (1,113,117) (1,079,467) (1,045,818) (1,012,169) (978,520) (944,871) (911,222) CIL £psm / Section 106 100 (1,124,673) (1,091,024) (1,057,375) (1,023,725) (990,076) (956,427) (922,778) 120 (1,136,229) (1,102,580) (1,068,931) (1,035,282) (1,001,632) (967,983) (934,334) 140 (1,147,785) (1,114,136) (1,080,487) (1,046,838) (1,013,189) (979,540) (945,890) 160 (1,159,342) (1,125,692) (1,092,043) (1,058,394) (1,024,745) (991,096) (957,447) 180 (1,170,898) (1,137,249) (1,103,600) (1,069,950) (1,036,301) (1,002,652) (969,003) 200 (1,182,454) (1,148,805) (1,115,156) (1,081,507) (1,047,857) (1,014,208) (980,559) 220 (1,194,010) (1,160,361) (1,126,712) (1,093,063) (1,059,414) (1,025,765) (992,115) 240 (1,205,567) (1,171,917) (1,138,268) (1,104,619) (1,070,970) (1,037,321) (1,003,672)

GDV Balance (965,944) 100% 125% 150% 175% 200% 225% 250% 50% (260,240) (98,582) 52,840 196,213 338,563 484,937 631,311 60% (401,381) (233,135) (74,187) 72,009 220,066 362,145 508,518 70% (542,521) (374,276) (206,030) (49,793) 95,862 243,918 385,726 80% (683,662) (515,417) (347,171) (178,925) (25,399) 119,714 267,770 90% (824,803) (656,558) (488,312) (320,066) (152,425) (1,004) 143,566 Build costs 100% (965,944) (797,698) (629,453) (461,207) (292,961) (128,031) 23,390 110% (1,107,085) (938,839) (770,594) (602,348) (434,102) (265,856) (103,637) 120% (1,248,226) (1,079,980) (911,734) (743,489) (575,243) (406,997) (238,752) 130% (1,389,367) (1,221,121) (1,052,875) (884,630) (716,384) (548,138) (379,893) 140% (1,530,508) (1,362,262) (1,194,016) (1,025,771) (857,525) (689,279) (521,033) 150% (1,671,649) (1,503,403) (1,335,157) (1,166,911) (998,666) (830,420) (662,174) 160% (1,812,789) (1,644,544) (1,476,298) (1,308,052) (1,139,807) (971,561) (803,315) 170% (1,953,930) (1,785,685) (1,617,439) (1,449,193) (1,280,947) (1,112,702) (944,456)

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Appendix 8 – Employment Space Appraisals

200915 Hastings Commercial appraisals v5 Offices GF

SCHEME DETAILS - ASSUMPTIONS Offices

Floor areas: NIA (sqm) NIA (sqft) Net to Gross % GIA (sqm) NIA (sqft) Offices 1,500 16,146 85.0% 1,764.7 18,995 area 2 area 3 area 4 area 5 area 6 total floor area 1,500 16,146 85.0% 1,765 18,995

GROSS DEVELOPMENT VALUE sqft £ psf £ Offices 16,146 @ 18.00 290,626 area 2 0 @ 18.00 - area 3 0 @ 18.00 - area 4 0 @ 18.00 - area 5 0 @ 18.00 - area 6 0 @ 18.00 -

Estimated Gross Rental Value per annum 290,626

Yield @ 10.0% capitalised rent 2,906,256 less Rent Free / Void allowance 12 months rent (290,626) Purchasers costs @ 5.76% (142,455) 2,473,175

GDV 2,473,175

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees and reports (27,176) Statutory Planning Fees (9,059) Combined CIL 1,765 sqm @ 0.00 £ psm - Site Specific S106/278 -

Construction Costs - Demolition and Site Clearance (allowance) 0.18 acres @ 110,000 per acre (19,986)

Offices 1,764.71 sqm @ 2,139.00 psm (3,774,706) Electric Charging points per unit DM 22 Transport plan 1,764.71 sqm @ £ psm - DM 22 Transport plan monitoring deposit - sqm @ £ per scheme - Biodiversity offset - sqm @ £ per gross hectare - - sqm @ psm -

External works 3,774,706 @ 10% (377,471) Contingency 4,172,163 @ 5% (208,608)

Professional Fees 4, 380,771 @ 10% (438,077)

Disposal Costs - Letting Agents Costs 290,626 ERV @ 10.00% (29,063) Letting Legal Costs 290,626 ERV @ 5.00% (14,531) Investment Sale Agents Costs 2,473,175 GDV @ 1.00% (24,732) Investment Sale Legal Costs 2,473,175 GDV @ 0.50% (12,366) Marketing and Promotion 2,473,175 GDV @ 1.00% (24,732)

Finance Costs -

Interest (cashflow basis incl. land) 7.50% APR 0.604% pcm (200,199)

Developers Profit 2,060,897 @ 20.00% on costs 2,473,175 @ 16.67% on GDV (412,278)

TOTAL COSTS (5,572,983)

RESIDUAL LAND VALUE Residual Land Value (gross) (3,099,808) SDLT (HMRC % rates) - @ - Acquisition Agent fees - @ 1% - Acquisition Legal fees - @ 0.5% - Interest on Land - @ 7.5% - Residual Land Value (net) (3,099,808)

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THRESHOLD LAND VALUE Site density 24,000 sqm per hectare Site Area 0.074 ha 0.18 acres 24,000 sqm/ha 104,546 sqft/ac Threshold Land Value 1,263,007 £ per ha 511,111 £ per acre 735 204.00% 92,864 Gross to net 90.00%

BALANCE Surplus/(Deficit) (3,192,672)

SENSITIVITY ANALYSIS

GDV Balance (3,192,672) 100% 125% 150% 175% 200% 175% 200% 0 (3,192,672) (2,692,906) (2,193,139) (1,693,372) (1,193,605) (1,693,372) (1,193,605) 20 (3,233,459) (2,733,692) (2,233,925) (1,734,159) (1,234,392) (1,734,159) (1,234,392) 40 (3,274,246) (2,774,479) (2,274,712) (1,774,945) (1,275,178) (1,774,945) (1,275,178) 60 (3,315,033) (2,815,266) (2,315,499) (1,815,732) (1,315,965) (1,815,732) (1,315,965) 80 (3,355,819) (2,856,053) (2,356,286) (1,856,519) (1,356,752) (1,856,519) (1,356,752) CIL £psm / Section 106 100 (3,396,606) (2,896,839) (2,397,072) (1,897,306) (1,397,539) (1,897,306) (1,397,539) 120 (3,437,393) (2,937,626) (2,437,859) (1,938,092) (1,438,325) (1,938,092) (1,438,325) 140 (3,478,180) (2,978,413) (2,478,646) (1,978,879) (1,479,112) (1,978,879) (1,479,112) 160 (3,518,967) (3,019,200) (2,519,433) (2,019,666) (1,519,899) (2,019,666) (1,519,899) 180 (3,559,753) (3,059,986) (2,560,220) (2,060,453) (1,560,686) (2,060,453) (1,560,686) 200 (3,600,540) (3,100,773) (2,601,006) (2,101,239) (1,601,473) (2,101,239) (1,601,473) 220 (3,641,327) (3,141,560) (2,641,793) (2,142,026) (1,642,259) (2,142,026) (1,642,259) 240 (3,682,114) (3,182,347) (2,682,580) (2,182,813) (1,683,046) (2,182,813) (1,683,046)

GDV Balance (3,192,672) 100% 125% 150% 175% 200% 225% 250% 50% (698,453) (198,686) 253,808 684,665 1,119,462 1,554,260 1,989,057 60% (1,197,297) (697,530) (197,763) 254,620 685,468 1,120,265 1,555,063 70% (1,696,141) (1,196,374) (696,607) (196,840) 255,432 686,271 1,121,068 80% (2,194,985) (1,695,218) (1,195,451) (695,684) (195,917) 256,244 687,074 90% (2,693,828) (2,194,062) (1,694,295) (1,194,528) (694,761) (194,994) 257,056 Build costs 100% (3,192,672) (2,692,906) (2,193,139) (1,693,372) (1,193,605) (693,838) (194,071) 110% (3,691,516) (3,191,749) (2,691,983) (2,192,216) (1,692,449) (1,192,682) (692,915) 120% (4,190,360) (3,690,593) (3,190,827) (2,691,060) (2,191,293) (1,691,526) (1,191,759) 130% (4,689,204) (4,189,437) (3,689,670) (3,189,904) (2,690,137) (2,190,370) (1,690,603) 140% (5,188,048) (4,688,281) (4,188,514) (3,688,747) (3,188,981) (2,689,214) (2,189,447) 150% (5,686,892) (5,187,125) (4,687,358) (4,187,591) (3,687,825) (3,188,058) (2,688,291) 160% (6,185,736) (5,685,969) (5,186,202) (4,686,435) (4,186,668) (3,686,902) (3,187,135) 170% (6,684,580) (6,184,813) (5,685,046) (5,185,279) (4,685,512) (4,185,745) (3,685,979)

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SCHEME DETAILS - ASSUMPTIONS B1c / B2 small

Floor areas: NIA (sqm) NIA (sqft) Net to Gross % GIA (sqm) NIA (sqft) B1c / B2 small 150 1,615 100.0% 150.0 1,615 area 2 area 3 area 4 area 5 area 6 total floor area 150 1,615 100.0% 150 1,615

GROSS DEVELOPMENT VALUE sqft £ psf £ B1c / B2 small 1,615 @ 7.50 12,109 area 2 0 @ - area 3 0 @ - area 4 0 @ - area 5 0 @ - area 6 0 @ -

Estimated Gross Rental Value per annum 12,109

Yield @ 7.5% capitalised rent 161,459 less Rent Free / Void allowance 12 months rent (12,109) Purchasers costs @ 5.76% (8,134) 141,215

GDV 141,215

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees and reports (2,310) Statutory Planning Fees (770) Combined CIL 150 sqm @ 0.00 £ psm - Site Specific S106/278 -

Construction Costs - Demolition and Site Clearance (allowance) 0.09 acres @ 110,000 per acre (10,193)

B1c / B2 small 150.00 sqm @ 818.00 psm (122,700) Electric Charging points per unit DM 22 Transport plan 150.00 sqm @ £ psm - DM 22 Transport plan monitoring deposit - sqm @ £ per scheme - Biodiversity offset - sqm @ £ per gross hectare - - sqm @ psm -

External works 122,700 @ 10% (12,270) Contingency 145,163 @ 5% (7,258)

Professional Fees 152, 421 @ 10% (15,242)

Disposal Costs - Letting Agents Costs 12,109 ERV @ 10.00% (1,211) Letting Legal Costs 12,109 ERV @ 5.00% (605) Investment Sale Agents Costs 141,215 GDV @ 1.00% (1,412) Investment Sale Legal Costs 141,215 GDV @ 0.50% (706) Marketing and Promotion 141,215 GDV @ 1.00% (1,412)

Finance Costs -

Interest (cashflow basis incl. land) 7.50% APR 0.604% pcm (7,703)

Developers Profit 117,675 @ 20.00% on costs 141,215 @ 16.67% on GDV (23,541)

TOTAL COSTS (207,334)

RESIDUAL LAND VALUE Residual Land Value (gross) (66,119) SDLT (HMRC % rates) - @ - Acquisition Agent fees - @ 1% - Acquisition Legal fees - @ 0.5% - Interest on Land - @ 7.5% - Residual Land Value (net) (66,119)

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THRESHOLD LAND VALUE Site density 4,000 sqm per hectare 0.40 Site Area 0. 038 ha 0.09 acres 4,000 sqm/ha 17,424 sqft/ac Threshold Land Value 1,263,007 £ per ha 511,111 £ per acre 375 40.00% 47,361 Gross to net 90.00%

BALANCE Surplus/(Deficit) (113,479)

SENSITIVITY ANALYSIS

GDV Balance (113,479) 85% 90% 95% 100% 105% 110% 115% 0 (130,601) (124,894) (119,187) (113,479) (107,772) (102,065) (96,358) 20 (134,068) (128,361) (122,654) (116,946) (111,239) (105,532) (99,825) 40 (137,535) (131,828) (126,120) (120,413) (114,706) (108,999) (103,292) 60 (141,002) (135,294) (129,587) (123,880) (118,173) (112,466) (106,758) 80 (144,469) (138,761) (133,054) (127,347) (121,640) (115,932) (110,225) CIL £psm / Section 106 100 (147,935) (142,228) (136,521) (130,814) (125,107) (119,399) (113,692) 120 (151,402) (145,695) (139,988) (134,281) (128,573) (122,866) (117,159) 140 (154,869) (149,162) (143,455) (137,748) (132,040) (126,333) (120,626) 160 (158,336) (152,629) (146,922) (141,214) (135,507) (129,800) (124,093) 180 (161,803) (156,096) (150,389) (144,681) (138,974) (133,267) (127,560) 200 (165,270) (159,563) (153,855) (148,148) (142,441) (136,734) (131,027) 220 (168,737) (163,029) (157,322) (151,615) (145,908) (140,201) (134,493) 240 (172,204) (166,496) (160,789) (155,082) (149,375) (143,667) (137,960)

GDV Balance (113,479) 100% 125% 150% 175% 200% 225% 250% 50% (33,899) (8,216) 17,466 43,149 68,831 94,514 120,196 60% (48,618) (22,810) 2,873 28,555 54,238 79,920 105,602 70% (64,833) (37,404) (11,721) 13,961 39,644 65,326 91,009 80% (81,049) (52,513) (26,315) (633) 25,050 50,732 76,415 90% (97,264) (68,728) (40,909) (15,226) 10,456 36,139 61,821 Build costs 100% (113,479) (84,943) (56,407) (29,820) (4,138) 21,545 47,227 110% (129,695) (101,159) (72,623) (44,414) (18,732) 6,951 32,633 120% (145,910) (117,374) (88,838) (60,302) (33,325) (7,643) 18,040 130% (162,125) (133,589) (105,053) (76,517) (47,981) (22,237) 3,446 140% (178,341) (149,805) (121,269) (92,733) (64,197) (36,830) (11,148) 150% (194,556) (166,020) (137,484) (108,948) (80,412) (51,876) (25,742) 160% (210,771) (182,235) (153,699) (125,163) (96,627) (68,091) (40,336) 170% (226,987) (198,451) (169,915) (141,379) (112,843) (84,306) (55,770)

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SCHEME DETAILS - ASSUMPTIONS B1c / B2 mid

Floor areas: NIA (sqm) NIA (sqft) Net to Gross % GIA (sqm) NIA (sqft) B1c / B2 mid 500 5,382 100.0% 500.0 5,382 area 2 0 0 100.0% 0.0 0 area 3 0 0 100.0% 0.0 0 area 4 0 0 100.0% 0.0 0 area 5 0 0 100.0% 0.0 0 area 6 0 0 100.0% 0.0 0 total floor area 500 5,382 100.0% 500 5,382

GROSS DEVELOPMENT VALUE sqft £ psf £ B1c / B2 mid 5,382 @ 5.50 29,601 area 2 0 @ 5.50 - area 3 0 @ 5.50 - area 4 0 @ 5.50 - area 5 0 @ 5.50 - area 6 0 @ 5.50 -

Estimated Gross Rental Value per annum 29,601

Yield @ 7.00% capitalised rent 422,868 less Rent Free / Void allowance 6 months rent (14,800) Purchasers costs @ 5.76% (22,225) 385,843

GDV 385,843

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees and reports (7,700) Statutory Planning Fees (2,567) Combined CIL 500 sqm @ 0.00 £ psm - Site Specific S106/278 -

Construction Costs - Demolition and Site Clearance (allowance) 0.31 acres @ 110,000 per acre (33,976)

B1c / B2 mid 500.00 sqm @ 818.00 psm (409,000) Electric Charging points per unit DM 22 Transport plan 500.00 sqm @ £ psm - DM 22 Transport plan monitoring deposit - sqm @ £ per scheme - Biodiversity offset - sqm @ £ per gross hectare - - sqm @ psm -

External works 409,000 @ 10% (40,900) Contingency 483,876 @ 5% (24,194)

Professional Fees 508,070 @ 10% (50,807)

Disposal Costs - Letting Agents Costs 29,601 ERV @ 10.00% (2,960) Letting Legal Costs 29,601 ERV @ 5.00% (1,480) Investment Sale Agents Costs 385,843 GDV @ 1.00% (3,858) Investment Sale Legal Costs 385,843 GDV @ 0.50% (1,929) Marketing and Promotion 385,843 GDV @ 1.00% (3,858)

Finance Costs -

Interest (cashflow basis incl. land) 7.50% APR 0.604% pcm (25,678)

Developers Profit 321,523 @ 20.00% on costs 385,843 @ 16.67% on GDV (64,320)

TOTAL COSTS (673,228)

RESIDUAL LAND VALUE Residual Land Value (gross) (287,385) SDLT (HMRC % rates) - @ - Acquisition Agent fees - @ 1% - Acquisition Legal fees - @ 0.5% - Interest on Land - @ 7.5% - Residual Land Value (net) (287,385)

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BALANCE Surplus/(Deficit) (445,254)

SENSITIVITY ANALYSIS

GDV Balance (445,254) 85% 90% 95% 100% 105% 110% 115% 0 (492,036) (476,442) (460,848) (445,254) (429,660) (414,067) (398,473) 10 (497,814) (482,220) (466,626) (451,032) (435,439) (419,845) (404,251) 20 (503,592) (487,998) (472,404) (456,811) (441,217) (425,623) (410,029) 30 (509,370) (493,776) (478,182) (462,589) (446,995) (431,401) (415,807) 40 (515,148) (499,554) (483,961) (468,367) (452,773) (437,179) (421,585) CIL £psm / Section 106 50 (520,926) (505,333) (489,739) (474,145) (458,551) (442,957) (427,363) 60 (526,705) (511,111) (495,517) (479,923) (464,329) (448,735) (433,141) 70 (532,483) (516,889) (501,295) (485,701) (470,107) (454,513) (438,920) 80 (538,261) (522,667) (507,073) (491,479) (475,885) (460,292) (444,698) 90 (544,039) (528,445) (512,851) (497,257) (481,664) (466,070) (450,476) 100 (549,817) (534,223) (518,629) (503,036) (487,442) (471,848) (456,254) 110 (555,595) (540,001) (524,407) (508,814) (493,220) (477,626) (462,032) 120 (561,373) (545,779) (530,186) (514,592) (498,998) (483,404) (467,810)

GDV Balance (445,254) 100% 125% 150% 175% 200% 225% 250% 50% (174,999) (103,113) (32,941) 37,231 101,509 170,121 238,734 60% (229,050) (151,759) (81,587) (11,415) 58,758 122,556 191,169 70% (283,101) (205,132) (130,233) (60,061) 10,111 74,991 143,604 80% (337,152) (259,183) (181,214) (108,707) (38,535) 31,638 96,039 90% (391,203) (313,234) (235,265) (157,353) (87,181) (17,008) 53,164 Build costs 100% (445,254) (367,285) (289,316) (211,347) (135,827) (65,654) 4,518 110% (499,305) (421,336) (343,367) (265,398) (187,429) (114,300) (44,128) 120% (553,357) (475,387) (397,418) (319,449) (241,480) (163,510) (92,774) 130% (607,408) (529,438) (451,469) (373,500) (295,531) (217,562) (141,420) 140% (661,459) (583,490) (505,520) (427,551) (349,582) (271,613) (193,644) 150% (715,510) (637,541) (559,572) (481,602) (403,633) (325,664) (247,695) 160% (769,561) (691,592) (613,623) (535,653) (457,684) (379,715) (301,746) 170% (823,612) (745,643) (667,674) (589,705) (511,735) (433,766) (355,797)

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Appendix 9 – Individual Site Appraisals

210121_Hastings mixed use appraisal _amends v4

Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: lower Development Scenario: Brownfield Notes:

ASSUMPTIONS - RESIDENTIAL SALE USES

Total number of units in scheme 150 Units Percentage of BTR 0% Total number of sale units 150 Total number of BTR 0

AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared Ownership 10% First Homes 30% 7.5% Open Market Sale (OMS) housing 75% 100%

CIL Rate (£ psm) - blended across uses 0.00 £ psm

Unit mix - Mkt Units mix% MV # units AH mix% AH # units Overall mix% Total # units Studio 0.0% 0.0 0.0% 0.0 0% 0.0 1 bed Flat 18.6% 20.9 47.4% 17.775000 26% 38.7 2 bed Flat 81.4% 91.6 52.6% 19.7 74% 111.3 3 bed Flat 0.0% 0.0 0.0% 0.0 0% 0.0 4 bed flat 0.0% 0.0 0.0% 0.0 0% 0.0 [ blank spare ] 0.0% 0.0 0.0% 0.0 0% 0.0 [ blank spare ] 0.0% 0.0 0.0% 0.0 0% 0.0 Total number of units 100.0% 112.5 100.0% 37.5 100% 150.0

Net area per unit Net to Gross % Gross (GIA) per unit OMS Unit Floor areas - (sqm) (sqft) % (sqm) (sqft) Studio 0 85.0% 0.0 0 1 bed Flat 50.0 538 85.0% 58.8 633 2 bed Flat 65.0 700 85.0% 76.5 823 3 bed Flat 0 85.0% 0.0 0 4 bed flat 0 85.0% 0.0 0 [ blank spare ] 0 85.0% 0.0 0 [ blank spare ] 0 85.0% 0.0 0

Net area per unit Net to Gross % Gross (GIA) per unit AH Unit Floor areas - (sqm) (sqft) % (sqm) (sqft) Studio 0 85.0% 0.0 0 1 bed Flat 50.0 538 85.0% 58.8 633 2 bed Flat 61.0 657 85.0% 71.8 772 3 bed Flat 0 85.0% 0.0 0 4 bed flat 0 85.0% 0.0 0 [ blank spare ] 0 85.0% 0.0 0 [ blank spare ] 0 85.0% 0.0 0

Mkt Units GIA AH units GIA Total GIA (all units) Total Gross Floor areas - (sqm) (sqft) (sqm) (sqft) (sqm) (sqft) Studio 0 0 0 0 0 0 1 bed Flat 1,231 13,249 1,046 11,255 2,276 24,504 2 bed Flat 7,003 75,377 1,416 15,237 8,418 90,614 3 bed Flat 0 0 0 0 0 0 4 bed flat 0 0 0 0 0 0 [ blank spare ] 0 0 0 0 0 0 [ blank spare ] 0 0 0 0 0 0 8,234 88,627 2,461 26,492 10,695 115,118 AH % by floor area: 23.01% AH % by floor area due to mix

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) Studio 0 1 bed Flat 145,000 2,900 269 5,611,500 2 bed Flat 170,000 2,615 243 18,921,000 3 bed Flat 0 4 bed flat 0 [ blank spare ] 0 [ blank spare ] 0 24,532,500 Affordable Housing values (£) - Aff. Rent £ £psm % of MVared ownership £ £psm % of MV First Homes £ £psm % of MV Studio 0 55% 0 75% 0 70% 1 bed Flat 79,750 1,595 55% 108,750 2,175 75% 101,500 2,030 70% 2 bed Flat 93,500 1,533 55% 127,500 2,090 75% 119,000 1,951 70% 3 bed Flat 0 55% 0 75% 0 70% 4 bed flat 0 55% 0 75% 0 70% [ blank spare ] 0 55% 0 75% 0 70% [ blank spare ] 0 55% 0 75% 0 70%

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: lower Development Scenario: Brownfield Notes:

ASSUMPTIONS - BTR AND COMMERCIAL USES

Units - # Com. Units % mix # Units # Mkt Resi Units # AH Units Studio BTR 1 Bed - Market 0.0% 0 0.0 BTR 1 Bed - Market 18.6% 0 0 BTR 2 Bed - Market 81.4% 0 0 BTR 3 Bed - Market 0.0% 0 0 BTR 4 Bed - Market 0.0% 0 0 BTR Studio - Discounted Mkt Rent 0.0% 0.0 0 BTR 1 Bed - Discounted Mkt Rent 47.4% 0 0 BTR 2 Bed - Discounted Mkt Rent 52.6% 0 0 BTR 3 Bed - Discounted Mkt Rent 0.0% 0 0 BTR 4 Bed - Discounted Mkt Rent 0.0% 0 0 Convenience Retail 1 Comparison Retsil 2

[ blank spare ] 3 0 0 0 13%

Net area per unit Net to Gross % Gross (GIA) per unit Unit Floor areas - NIA (sqm) NIA (sqft) % GIA (sqm) GIA (sqft) Studio BTR 1 Bed - Market 0 85.0% 0 0 BTR 1 Bed - Market 0 85.0% 0 0 BTR 2 Bed - Market 0 85.0% 0 0 BTR 3 Bed - Market 0 85.0% 0 0 BTR 4 Bed - Market 0 85.0% 0 0 BTR Studio - Discounted Mkt Rent 0 85.0% 0 0 BTR 1 Bed - Discounted Mkt Rent 0 85.0% 0 0 BTR 2 Bed - Discounted Mkt Rent 0 85.0% 0 0 BTR 3 Bed - Discounted Mkt Rent 0 85.0% 0 0 BTR 4 Bed - Discounted Mkt Rent 0 85.0% 0 0 Convenience Retail 350 3,767 100.0% 350 3,767 Comparison Retsil 150 1,615 85.0% 176 1,900 0 0 0 85.0% 0 0 [ blank spare ]

Total Floor areas - NIA (sqm) NIA (sqft) GIA (sqm) GIA (sqft) Studio BTR 1 Bed - Market 0 0 0 0 BTR 1 Bed - Market 0 0 0 0 BTR 2 Bed - Market 0 0 0 0 BTR 3 Bed - Market 0 0 0 0 BTR 4 Bed - Market 0 0 0 0 BTR Studio - Discounted Mkt Rent 0 0 0 0 BTR 1 Bed - Discounted Mkt Rent 0 0 0 0 BTR 2 Bed - Discounted Mkt Rent 0 0 0 0 BTR 3 Bed - Discounted Mkt Rent 0 0 0 0 BTR 4 Bed - Discounted Mkt Rent 0 0 0 0 Convenience Retail 350 3,767 350 3,767 Comparison Retsil 300 3,229 353 3,799 0 0 0 0 0 [ blank spare ] 650 6,997 703 7,566

BTR Rent* (£ pcm) Unit Rent (£ pa) Man. Cost % Cap Yield (%) Studio BTR 1 Bed - Market - 25.8% 0 3.75% BTR 1 Bed - Market - 25.8% 0 3.75% BTR 2 Bed - Market - 25.8% 0 3.75% BTR 3 Bed - Market - 25.8% 0 3.75% BTR 4 Bed - Market - 25.8% 0 3.75% BTR Studio - Discounted Mkt Rent - 25.8% 0 3.75% BTR 1 Bed - Discounted Mkt Rent - 25.8% 0 3.75% BTR 2 Bed - Discounted Mkt Rent - 25.8% 0 3.75% BTR 3 Bed - Discounted Mkt Rent - 25.8% 0 3.75% BTR 4 Bed - Discounted Mkt Rent - 25.8% 0 3.75%

Commercial Values - Rent per annum Rent £ psf T Incentive* Convenience Retail 86,649 23.00 12% 9 per unit 5.75% Comparison Retsil 32,292 20.00 12% 36 per unit 10.00% 0 - 0.00 12% per unit [ blank spare ] * as applicable *Total Incentive including Rent Free & Void allowance (months)

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: lower Development Scenario: Brownfield Notes:

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) Studio 0.0 @ 0 - 1 bed Flat 20.9 @ 145,000 3,034,125 2 bed Flat 91.6 @ 170,000 15,567,750 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 112.5 18,601,875 Affordable Rent GDV - Studio 0.0 @ 0 - 1 bed Flat 10.665000 @ 79,750 850,534 2 bed Flat 11.8 @ 93,500 1,106,573 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 22.5 1,957,106 LCHO GDV - Studio 0.0 @ 0 - 1 bed Flat 1.8 @ 108,750 193,303 2 bed Flat 2.0 @ 127,500 251,494 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 3.8 444,797 Discounted home ownership GDV - Studio 0.0 @ 0 - 1 bed Flat 5.3 @ 101,500 541,249 2 bed Flat 5.9 @ 119,000 704,183 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 11.3 1,245,431

Sub-total GDV Residential Sale 138.8 22,249,209

BTR GDV rental basis Gross Rent £PA less Man. Net Rent £PA @ capitalisation £ Studio BTR 1 Bed - Market unit - 25.8% - 3.75% - BTR 1 Bed - Market unit - 25.8% - 3.75% - BTR 2 Bed - Market unit - 25.8% - 3.75% - BTR 3 Bed - Market unit - 25.8% - 3.75% - BTR 4 Bed - Market unit - 25.8% - 3.75% - BTR Studio - Discounted Mkt Rent unit - 25.8% - 3.75% - BTR 1 Bed - Discounted Mkt Rent unit - 25.8% - 3.75% - BTR 2 Bed - Discounted Mkt Rent unit - 25.8% - 3.75% - BTR 3 Bed - Discounted Mkt Rent unit - 25.8% - 3.75% - BTR 4 Bed - Discounted Mkt Rent unit - 25.8% - 3.75% -

less RF/Void Purchasers Costs % PC £ £ Studio BTR 1 Bed - Market - - 5.76% - - BTR 1 Bed - Market - - 5.76% - - BTR 2 Bed - Market - - 5.76% - - BTR 3 Bed - Market - - 5.76% - - BTR 4 Bed - Market - - 5.76% - - BTR Studio - Discounted Mkt Rent - - 5.76% - - BTR 1 Bed - Discounted Mkt Rent - - 5.76% - - BTR 2 Bed - Discounted Mkt Rent - - 5.76% - - BTR 3 Bed - Discounted Mkt Rent - - 5.76% - - BTR 4 Bed - Discounted Mkt Rent - - 5.76% - - Sub-total GDV BTR - Sub-total NDV BTR -

Commercial GDV Convenience Retail £ psf 86,649 12.0% 76,252 5.75% 1,326,114 Comparison Retsil £ psf 64,583 12.0% 56,833 10.00% 568,334 [ blank spare ] 133,085 1,894,448

Convenience Retail (64,987) 1,261,127 5.76% (68,685) 1,192,442 Comparison Retsil (193,750) 374,584 5.76% (20,401) 354,183 5.76% - [ blank spare ] Sub-total NDV Commercial 1,546,625

Grant 150 @ 0 -

Total NDV 23,795,834

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: lower Development Scenario: Brownfield Notes:

Gross Benchmark Land Value (BLV)

Site Area Gross 1.00 ha 2.47 acres Net 0.80 1.98 acres Density analysis: 11,398 sqm/ha 118,180 sqft/ac Benchmark Land Value 1,250,326 £ per ha 506,000 £ per acre 1,250,326 Gross to net land area 80.0% SDLT Acquisition Agent fees Acquisition Legal fees Gross BLV HMR Rates 1% 0.50% Phased land payment Phase 1 1,250,326 52,016 12,503 6,252 (1,321,097) Phase 2 0 Phase 3 0 Phase 4 0 Phase 5 0 Phase 6 0 Phase 7 0 Phase 8 0 Phase 9 0 Phase 10 0 total 1,250,326.00 (1,321,097) RLV analysis: 8,336 £ per plot 1,250,326 £ per ha 632,500 £ per acre

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (90,000) Statutory Planning Fees (Residential) (30,549) CIL 8,937 sqm (gross) 0.00 £ psm - CIL analysis: 0.00% % of GDV Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (142,200) 20% reduction in CO2 2,557 £per unit (383,550) - Ev charging points (flats) 2,500 £ per dwelling (375,000) - - - - - total 150 units @ 0 per unit (900,750) - S106 analysis: 3.79% % of GDV 6,005 £ per unit (total units) AH Commuted Sum 11,398 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 2.47 acres @ 110,000 £ per acre (if brownfield) (271,810)

Infrastructure costs - Year 1 0% build costs - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 2.47 acres @ per acre - -

Studio Market sale - sqm @ psm - 1 bed Flat Market sale 2,276 sqm @ 1,429 psm (3,253,076) 2 bed Flat Market sale 8,418 sqm @ 1,429 psm (12,029,826) 3 bed Flat Market sale - sqm @ psm - 4 bed flat Market sale - sqm @ psm - Studio BTR - sqm @ psm - 1 bed Flat BTR - sqm @ psm - 2 bed Flat BTR - sqm @ psm - 3 bed Flat BTR - sqm @ psm - 4 bed flat BTR - sqm @ psm - Convenience Retail 350 sqm @ 1,490 psm (521,500) Comparison Retsil 353 sqm @ 2,136 psm (753,882) 0 - sqm @ psm - [ blank spare ] - sqm @ psm - 11,398 External works 16,558,285 @ 10.0% (1,655,829)

M4(2) Category 2 Housing Aff units 38 units @ 100% @ 1,400 £ per dwelling (52,500) M4(3) Category 3 Housing Aff units 38 units @ 5% @ 22,791 £ per dwelling (42,733) M4(2) Category 2 Housing Mrkt units 113 units @ 100% @ 1,400 £ per dwelling (157,500) M4(3) Category 3 Housing Mrkt units 113 units @ 5% @ 22,791 £ per dwelling (128,199) Water Efficiency additional cost 150 units @ 0 £ per dwelling -

Contingency 18,866,856 @ 5.0% (943,343)

Professional Fees 18,866,856 @ 10.0% (1,886,686)

Disposal Costs - Marketing and Promotion (sale units) 18,601,875 OMS @ 1.50% (279,028) Residential Sales Agent Costs 18,601,875 OMS @ 1.00% (186,019) Residential Sales Legal Costs 18,601,875 OMS @ 0.50% (93,009)

Commercial Letting Agents Costs 133,085 ERV @ 10.00% (13,308) Commercial Letting Legal Costs 133,085 ERV @ 5.00% (6,654) Investment Sale Agents Costs 1,546,625 NDV @ 1.00% (15,466) Investment Sale Legal Costs 1,546,625 NDV @ 0.50% (7,733) Marketing and Promotion (commercial and BTR) 1,546,625 NDV @ 1.50% (23,199)

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: lower Development Scenario: Brownfield Notes:

Interest (on Development Costs) - 7.50% APR 0.604% pcm (4,803,281)

Developers Profit - Overall margin (blended on NDV) 24,143,658 16.85% (4,068,206) Overall margin (on total costs incl. benchmark land value) TOTAL COSTS (33,535,186)

BALANCE Surplus/(Deficit) (9,739,352) £ per ha (3,941,462) £ per acre (9,739,352)

SENSITIVITY ANALYSIS The following sensitivity tables show the balance of the appraisal (RLV-BLV) for changes in appraisal input assumptions above. Where the surplus is positive (green) the policy is viable. Where the surplus is negative (red) the policy is not viable.

TABLE 1 Affordable Housing - % on site 25% Balance (RLV - BLV) (9,739,352) 0% 5% 10% 15% 20% 25% 30% 0 (9,211,564) (9,317,122) (9,422,679) (9,528,237) (9,633,794) (9,739,352) (9,844,909) 25 (9,641,040) (9,726,416) (9,811,792) (9,897,168) (9,982,544) (10,067,920) (10,153,295) 50 (10,070,515) (10,135,710) (10,200,904) (10,266,098) (10,331,293) (10,396,487) (10,461,682) 75 (10,499,991) (10,545,004) (10,590,016) (10,635,029) (10,680,042) (10,725,055) (10,770,068) 100 (10,929,466) (10,954,298) (10,979,129) (11,003,960) (11,028,792) (11,053,623) (11,078,454) CIL £psm/S106/Infrastucutre 125 (11,358,942) (11,363,591) (11,368,241) (11,372,891) (11,377,541) (11,382,191) (11,386,841) 0.00 150 (11,788,417) (11,772,885) (11,757,354) (11,741,822) (11,726,290) (11,710,759) (11,695,227) 175 (12,217,893) (12,182,179) (12,146,466) (12,110,753) (12,075,040) (12,039,326) (12,003,613) 200 (12,647,368) (12,591,473) (12,535,579) (12,479,684) (12,423,789) (12,367,894) (12,311,999) 225 (13,076,844) (13,000,767) (12,924,691) (12,848,615) (12,772,538) (12,696,462) (12,620,386) 250 (13,506,319) (13,410,061) (13,313,803) (13,217,546) (13,121,288) (13,025,030) (12,928,772) 275 (13,935,795) (13,819,355) (13,702,916) (13,586,476) (13,470,037) (13,353,597) (13,237,158) 300 (14,365,270) (14,228,649) (14,092,028) (13,955,407) (13,818,786) (13,682,165) (13,545,544) 325 (14,794,746) (14,637,943) (14,481,141) (14,324,338) (14,167,536) (14,010,733) (13,853,931) 350 (15,224,221) (15,047,237) (14,870,253) (14,693,269) (14,516,285) (14,339,301) (14,162,317) 375 (15,653,697) (15,456,531) (15,259,366) (15,062,200) (14,865,034) (14,667,869) (14,470,703) 400 (16,083,172) (15,865,825) (15,648,478) (15,431,131) (15,213,784) (14,996,436) (14,779,089) 425 (16,512,648) (16,275,119) (16,037,590) (15,800,062) (15,562,533) (15,325,004) (15,087,476) 450 (16,942,123) (16,684,413) (16,426,703) (16,168,993) (15,911,282) (15,653,572) (15,395,862) 475 (17,371,599) (17,093,707) (16,815,815) (16,537,923) (16,260,032) (15,982,140) (15,704,248) 500 (17,801,074) (17,503,001) (17,204,928) (16,906,854) (16,608,781) (16,310,708) (16,012,634) 525 (18,230,550) (17,912,295) (17,594,040) (17,275,785) (16,957,530) (16,639,275) (16,321,021) 550 (18,660,025) (18,321,589) (17,983,152) (17,644,716) (17,306,280) (16,967,843) (16,629,407) 575 (19,089,501) (18,730,883) (18,372,265) (18,013,647) (17,655,029) (17,296,411) (16,937,793) 600 (19,518,976) (19,140,177) (18,761,377) (18,382,578) (18,003,778) (17,624,979) (17,246,179)

TABLE 2 Build costs 100% (where 110% is a 10% increase etc.) Balance (RLV - TLV) (9,739,352) 50% 60% 70% 80% 90% 100% 110% - 3,347,843 730,404 (1,887,035) (4,504,474) (7,121,913) (9,739,352) (12,356,791) 25 3,019,275 401,836 (2,215,603) (4,833,042) (7,450,481) (10,067,920) (12,685,358) 50 2,690,707 73,268 (2,544,171) (5,161,610) (7,779,048) (10,396,487) (13,013,926) 75 2,362,139 (255,300) (2,872,739) (5,490,177) (8,107,616) (10,725,055) (13,342,494) 100 2,033,571 (583,867) (3,201,306) (5,818,745) (8,436,184) (11,053,623) (13,671,062) CIL £psm/S106/Infrastucutre 125 1,705,004 (912,435) (3,529,874) (6,147,313) (8,764,752) (11,382,191) (13,999,630) 0 150 1,376,436 (1,241,003) (3,858,442) (6,475,881) (9,093,320) (11,710,759) (14,328,197) 175 1,047,868 (1,569,571) (4,187,010) (6,804,449) (9,421,887) (12,039,326) (14,656,765) 200 719,300 (1,898,139) (4,515,577) (7,133,016) (9,750,455) (12,367,894) (14,985,333) 225 390,732 (2,226,706) (4,844,145) (7,461,584) (10,079,023) (12,696,462) (15,313,901) 250 62,165 (2,555,274) (5,172,713) (7,790,152) (10,407,591) (13,025,030) (15,642,469) 275 (266,403) (2,883,842) (5,501,281) (8,118,720) (10,736,159) (13,353,597) (15,971,036) 300 (594,971) (3,212,410) (5,829,849) (8,447,288) (11,064,726) (13,682,165) (16,299,604) 325 (923,539) (3,540,978) (6,158,416) (8,775,855) (11,393,294) (14,010,733) (16,628,172) 350 (1,252,107) (3,869,545) (6,486,984) (9,104,423) (11,721,862) (14,339,301) (16,956,740) 375 (1,580,674) (4,198,113) (6,815,552) (9,432,991) (12,050,430) (14,667,869) (17,285,308) 400 (1,909,242) (4,526,681) (7,144,120) (9,761,559) (12,378,998) (14,996,436) (17,613,875) 425 (2,237,810) (4,855,249) (7,472,688) (10,090,127) (12,707,565) (15,325,004) (17,942,443) 450 (2,566,378) (5,183,817) (7,801,255) (10,418,694) (13,036,133) (15,653,572) (18,271,011) 475 (2,894,946) (5,512,384) (8,129,823) (10,747,262) (13,364,701) (15,982,140) (18,599,579) 500 (3,223,513) (5,840,952) (8,458,391) (11,075,830) (13,693,269) (16,310,708) (18,928,147) 525 (3,552,081) (6,169,520) (8,786,959) (11,404,398) (14,021,837) (16,639,275) (19,256,714) 550 (3,880,649) (6,498,088) (9,115,527) (11,732,966) (14,350,404) (16,967,843) (19,585,282) 575 (4,209,217) (6,826,656) (9,444,094) (12,061,533) (14,678,972) (17,296,411) (19,913,850) 600 (4,537,784) (7,155,223) (9,772,662) (12,390,101) (15,007,540) (17,624,979) (20,242,418)

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: lower Development Scenario: Brownfield Notes:

TABLE 3 GDV 100% (where 110% is a 10% increase etc.) Balance (RLV - TLV) (9,739,352) 120% 130% 140% 150% 160% 170% 180% - (6,377,071) (4,695,931) (3,014,791) (1,333,651) 347,489 2,028,630 3,709,770 25 (6,705,639) (5,024,499) (3,343,359) (1,662,219) 18,922 1,700,062 3,381,202 50 (7,034,207) (5,353,067) (3,671,927) (1,990,786) (309,646) 1,371,494 3,052,634 75 (7,362,775) (5,681,635) (4,000,494) (2,319,354) (638,214) 1,042,926 2,724,066 100 (7,691,343) (6,010,202) (4,329,062) (2,647,922) (966,782) 714,358 2,395,499 CIL £psm/S106/Infrastucutre 125 (8,019,910) (6,338,770) (4,657,630) (2,976,490) (1,295,350) 385,791 2,066,931 0 150 (8,348,478) (6,667,338) (4,986,198) (3,305,058) (1,623,917) 57,223 1,738,363 175 (8,677,046) (6,995,906) (5,314,766) (3,633,625) (1,952,485) (271,345) 1,409,795 200 (9,005,614) (7,324,474) (5,643,333) (3,962,193) (2,281,053) (599,913) 1,081,227 225 (9,334,182) (7,653,041) (5,971,901) (4,290,761) (2,609,621) (928,481) 752,660 250 (9,662,749) (7,981,609) (6,300,469) (4,619,329) (2,938,189) (1,257,048) 424,092 275 (9,991,317) (8,310,177) (6,629,037) (4,947,897) (3,266,756) (1,585,616) 95,524 300 (10,319,885) (8,638,745) (6,957,605) (5,276,464) (3,595,324) (1,914,184) (233,044) 325 (10,648,453) (8,967,312) (7,286,172) (5,605,032) (3,923,892) (2,242,752) (561,612) 350 (10,977,020) (9,295,880) (7,614,740) (5,933,600) (4,252,460) (2,571,320) (890,179) 375 (11,305,588) (9,624,448) (7,943,308) (6,262,168) (4,581,028) (2,899,887) (1,218,747) 400 (11,634,156) (9,953,016) (8,271,876) (6,590,736) (4,909,595) (3,228,455) (1,547,315) 425 (11,962,724) (10,281,584) (8,600,443) (6,919,303) (5,238,163) (3,557,023) (1,875,883) 450 (12,291,292) (10,610,151) (8,929,011) (7,247,871) (5,566,731) (3,885,591) (2,204,451) 475 (12,619,859) (10,938,719) (9,257,579) (7,576,439) (5,895,299) (4,214,159) (2,533,018) 500 (12,948,427) (11,267,287) (9,586,147) (7,905,007) (6,223,866) (4,542,726) (2,861,586) 525 (13,276,995) (11,595,855) (9,914,715) (8,233,574) (6,552,434) (4,871,294) (3,190,154) 550 (13,605,563) (11,924,423) (10,243,282) (8,562,142) (6,881,002) (5,199,862) (3,518,722) 575 (13,934,131) (12,252,990) (10,571,850) (8,890,710) (7,209,570) (5,528,430) (3,847,290) 600 (14,262,698) (12,581,558) (10,900,418) (9,219,278) (7,538,138) (5,856,997) (4,175,857)

TABLE 4 Profit 16.85% % of GDV Balance (RLV - TLV) (9,739,352) 13.75% 14.75% 15.75% 16.75% 17.75% 18.75% 19.75% - (8,990,898) (9,232,335) (9,473,771) (9,715,208) (9,956,645) (10,198,081) (10,439,518) 25 (9,319,466) (9,560,903) (9,802,339) (10,043,776) (10,285,212) (10,526,649) (10,768,086) 50 (9,648,034) (9,889,471) (10,130,907) (10,372,344) (10,613,780) (10,855,217) (11,096,653) 75 (9,976,602) (10,218,038) (10,459,475) (10,700,911) (10,942,348) (11,183,785) (11,425,221) CIL £psm/S106/Infrastucutre 100 (10,305,170) (10,546,606) (10,788,043) (11,029,479) (11,270,916) (11,512,352) (11,753,789) 0 125 (10,633,737) (10,875,174) (11,116,610) (11,358,047) (11,599,484) (11,840,920) (12,082,357) 150 (10,962,305) (11,203,742) (11,445,178) (11,686,615) (11,928,051) (12,169,488) (12,410,925) 175 (11,290,873) (11,532,309) (11,773,746) (12,015,183) (12,256,619) (12,498,056) (12,739,492) 200 (11,619,441) (11,860,877) (12,102,314) (12,343,750) (12,585,187) (12,826,624) (13,068,060) 225 (11,948,009) (12,189,445) (12,430,882) (12,672,318) (12,913,755) (13,155,191) (13,396,628) 250 (12,276,576) (12,518,013) (12,759,449) (13,000,886) (13,242,323) (13,483,759) (13,725,196) 275 (12,605,144) (12,846,581) (13,088,017) (13,329,454) (13,570,890) (13,812,327) (14,053,764) 300 (12,933,712) (13,175,148) (13,416,585) (13,658,022) (13,899,458) (14,140,895) (14,382,331) 325 (13,262,280) (13,503,716) (13,745,153) (13,986,589) (14,228,026) (14,469,463) (14,710,899) 350 (13,590,847) (13,832,284) (14,073,721) (14,315,157) (14,556,594) (14,798,030) (15,039,467) 375 (13,919,415) (14,160,852) (14,402,288) (14,643,725) (14,885,162) (15,126,598) (15,368,035) 400 (14,247,983) (14,489,420) (14,730,856) (14,972,293) (15,213,729) (15,455,166) (15,696,603) 425 (14,576,551) (14,817,987) (15,059,424) (15,300,861) (15,542,297) (15,783,734) (16,025,170) 450 (14,905,119) (15,146,555) (15,387,992) (15,629,428) (15,870,865) (16,112,302) (16,353,738) 475 (15,233,686) (15,475,123) (15,716,560) (15,957,996) (16,199,433) (16,440,869) (16,682,306) 500 (15,562,254) (15,803,691) (16,045,127) (16,286,564) (16,528,001) (16,769,437) (17,010,874) 525 (15,890,822) (16,132,259) (16,373,695) (16,615,132) (16,856,568) (17,098,005) (17,339,442) 550 (16,219,390) (16,460,826) (16,702,263) (16,943,700) (17,185,136) (17,426,573) (17,668,009) 575 (16,547,958) (16,789,394) (17,030,831) (17,272,267) (17,513,704) (17,755,141) (17,996,577) 600 (16,876,525) (17,117,962) (17,359,399) (17,600,835) (17,842,272) (18,083,708) (18,325,145)

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: higher Development Scenario: Brownfield Notes:

ASSUMPTIONS - RESIDENTIAL SALE USES

Total number of units in scheme 150 Units Percentage of BTR 0% Total number of sale units 150 Total number of BTR 0

AH Policy requirement (% Target) 25% AH tenure split % Affordable Rent: 60% Shared Ownership 10% First Homes 30% 7.5% Open Market Sale (OMS) housing 75% 100%

CIL Rate (£ psm) - blended across uses 0.00 £ psm

Open Market Sales values (£) - £ OMS (per unit) £psm £psf total MV £ (no AH) Studio 0 1 bed Flat 185,000 3,700 344 7,159,500 2 bed Flat 230,000 3,538 329 25,599,000 3 bed Flat 0 4 bed flat 0 [ blank spare ] 0 [ blank spare ] 0 32,758,500 Affordable Housing values (£) - Aff. Rent £ £psm % of MVared ownership £ £psm % of MV First Homes £ £psm % of MV Studio 0 55% 0 75% 0 70% 1 bed Flat 101,750 2,035 55% 138,750 2,775 75% 129,500 2,590 70% 2 bed Flat 126,500 2,074 55% 172,500 2,828 75% 161,000 2,639 70% 3 bed Flat 0 55% 0 75% 0 70% 4 bed flat 0 55% 0 75% 0 70% [ blank spare ] 0 55% 0 75% 0 70% [ blank spare ] 0 55% 0 75% 0 70%

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: higher Development Scenario: Brownfield Notes:

ASSUMPTIONS - BTR AND COMMERCIAL USES

[ blank spare ] 3 0 0 0 13%

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: higher Development Scenario: Brownfield Notes:

GROSS DEVELOPMENT VALUE

OMS GDV - (part houses due to % mix) Studio 0.0 @ 0 - 1 bed Flat 20.9 @ 185,000 3,871,125 2 bed Flat 91.6 @ 230,000 21,062,250 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 112.5 24,933,375 Affordable Rent GDV - Studio 0.0 @ 0 - 1 bed Flat 10.665000 @ 101,750 1,085,164 2 bed Flat 11.8 @ 126,500 1,497,128 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 22.5 2,582,291 LCHO GDV - Studio 0.0 @ 0 - 1 bed Flat 1.8 @ 138,750 246,628 2 bed Flat 2.0 @ 172,500 340,256 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 3.8 586,884 Discounted home ownership GDV - Studio 0.0 @ 0 - 1 bed Flat 5.3 @ 129,500 690,559 2 bed Flat 5.9 @ 161,000 952,718 3 bed Flat 0.0 @ 0 - 4 bed flat 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - [ blank spare ] 0.0 @ 0 - 11.3 1,643,276

Sub-total GDV Residential Sale 138.8 29,745,827

Commercial GDV Convenience Retail £ psf 86,649 12.0% 76,252 5.75% 1,326,114 Comparison Retsil £ psf 64,583 12.0% 56,833 10.00% 568,334 [ blank spare ] 133,085 1,894,448

Convenience Retail (64,987) 1,261,127 5.76% (68,685) 1,192,442 Comparison Retsil (193,750) 374,584 5.76% (20,401) 354,183 5.76% - [ blank spare ] Sub-total NDV Commercial 1,546,625

Grant 150 @ 0 -

Total NDV 31,292,452

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: higher Development Scenario: Brownfield Notes:

Gross Benchmark Land Value (BLV)

DEVELOPMENT COSTS

Initial Payments - Planning Application Professional Fees, Surveys and reports (90,000) Statutory Planning Fees (Residential) (30,549) CIL 8,937 sqm (gross) 0.00 £ psm - CIL analysis: 0.00% % of GDV Site Specific S106 Contributions Biodiversity net gain 948 £ per dwelling (142,200) 20% reduction in CO2 2,557 £per unit (383,550) - Ev charging points (flats) 2,500 £ per dwelling (375,000) - - - - - total 150 units @ 0 per unit (900,750) - S106 analysis: 2.88% % of GDV 6,005 £ per unit (total units) AH Commuted Sum 11,398 sqm (total) £ psm - Comm. Sum analysis: 0.00% % of GDV Construction Costs - Site Clearance and Demolition 2.47 acres @ 110,000 £ per acre (if brownfield) (271,810)

Infrastructure costs - Year 1 0% build costs - Year 2 - Year 3 - Year 4 - Year 5 - Year 6 - Year 7 - Year 8 - Year 9 - Year 10 - total 2.47 acres @ per acre - -

Contingency 18,866,856 @ 5.0% (943,343)

Professional Fees 18,866,856 @ 10.0% (1,886,686)

Disposal Costs - Marketing and Promotion (sale units) 24,933,375 OMS @ 1.50% (374,001) Residential Sales Agent Costs 24,933,375 OMS @ 1.00% (249,334) Residential Sales Legal Costs 24,933,375 OMS @ 0.50% (124,667)

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: higher Development Scenario: Brownfield Notes:

Interest (on Development Costs) - 7.50% APR 0.604% pcm (4,374,182)

Developers Profit - Overall margin (blended on NDV) 31,640,275 16.85% (5,331,386) Overall margin (on total costs incl. benchmark land value) TOTAL COSTS (34,559,212)

BALANCE Surplus/(Deficit) (3,266,760) £ per ha (1,322,040) £ per acre (3,266,760)

TABLE 1 Affordable Housing - % on site 25% Balance (RLV - BLV) (3,266,760) 0% 5% 10% 15% 20% 25% 30% 0 (2,259,195) (2,460,708) (2,662,221) (2,863,734) (3,065,247) (3,266,760) (3,468,273) 25 (2,688,670) (2,870,002) (3,051,333) (3,232,665) (3,413,996) (3,595,328) (3,776,659) 50 (3,118,146) (3,279,296) (3,440,446) (3,601,596) (3,762,746) (3,923,896) (4,085,046) 75 (3,547,621) (3,688,590) (3,829,558) (3,970,527) (4,111,495) (4,252,463) (4,393,432) 100 (3,977,097) (4,097,884) (4,218,671) (4,339,457) (4,460,244) (4,581,031) (4,701,818) CIL £psm/S106/Infrastucutre 125 (4,406,572) (4,507,178) (4,607,783) (4,708,388) (4,808,994) (4,909,599) (5,010,204) 0.00 150 (4,836,048) (4,916,472) (4,996,895) (5,077,319) (5,157,743) (5,238,167) (5,318,591) 175 (5,265,523) (5,325,766) (5,386,008) (5,446,250) (5,506,492) (5,566,735) (5,626,977) 200 (5,694,999) (5,735,060) (5,775,120) (5,815,181) (5,855,242) (5,895,302) (5,935,363) 225 (6,124,474) (6,144,354) (6,164,233) (6,184,112) (6,203,991) (6,223,870) (6,243,749) 250 (6,553,950) (6,553,647) (6,553,345) (6,553,043) (6,552,740) (6,552,438) (6,552,136) 275 (6,983,425) (6,962,941) (6,942,458) (6,921,974) (6,901,490) (6,881,006) (6,860,522) 300 (7,412,901) (7,372,235) (7,331,570) (7,290,905) (7,250,239) (7,209,574) (7,168,908) 325 (7,842,376) (7,781,529) (7,720,682) (7,659,835) (7,598,988) (7,538,141) (7,477,294) 350 (8,271,852) (8,190,823) (8,109,795) (8,028,766) (7,947,738) (7,866,709) (7,785,681) 375 (8,701,327) (8,600,117) (8,498,907) (8,397,697) (8,296,487) (8,195,277) (8,094,067) 400 (9,130,803) (9,009,411) (8,888,020) (8,766,628) (8,645,236) (8,523,845) (8,402,453) 425 (9,560,278) (9,418,705) (9,277,132) (9,135,559) (8,993,986) (8,852,413) (8,710,839) 450 (9,989,754) (9,827,999) (9,666,245) (9,504,490) (9,342,735) (9,180,980) (9,019,226) 475 (10,419,229) (10,237,293) (10,055,357) (9,873,421) (9,691,484) (9,509,548) (9,327,612) 500 (10,848,705) (10,646,587) (10,444,469) (10,242,352) (10,040,234) (9,838,116) (9,635,998) 525 (11,278,180) (11,055,881) (10,833,582) (10,611,282) (10,388,983) (10,166,684) (9,944,384) 550 (11,707,656) (11,465,175) (11,222,694) (10,980,213) (10,737,732) (10,495,252) (10,252,771) 575 (12,137,131) (11,874,469) (11,611,807) (11,349,144) (11,086,482) (10,823,819) (10,561,157) 600 (12,566,607) (12,283,763) (12,000,919) (11,718,075) (11,435,231) (11,152,387) (10,869,543)

TABLE 2 Build costs 100% (where 110% is a 10% increase etc.) Balance (RLV - TLV) (3,266,760) 80% 85% 90% 95% 100% 105% 110% - 1,968,118 659,398 (649,321) (1,958,041) (3,266,760) (4,575,479) (5,884,199) 25 1,639,550 330,830 (977,889) (2,286,608) (3,595,328) (4,904,047) (6,212,767) 50 1,310,982 2,263 (1,306,457) (2,615,176) (3,923,896) (5,232,615) (6,541,335) 75 982,414 (326,305) (1,635,025) (2,943,744) (4,252,463) (5,561,183) (6,869,902) 100 653,847 (654,873) (1,963,592) (3,272,312) (4,581,031) (5,889,751) (7,198,470) CIL £psm/S106/Infrastucutre 125 325,279 (983,441) (2,292,160) (3,600,880) (4,909,599) (6,218,318) (7,527,038) 0 150 (3,289) (1,312,009) (2,620,728) (3,929,447) (5,238,167) (6,546,886) (7,855,606) 175 (331,857) (1,640,576) (2,949,296) (4,258,015) (5,566,735) (6,875,454) (8,184,173) 200 (660,425) (1,969,144) (3,277,864) (4,586,583) (5,895,302) (7,204,022) (8,512,741) 225 (988,992) (2,297,712) (3,606,431) (4,915,151) (6,223,870) (7,532,590) (8,841,309) 250 (1,317,560) (2,626,280) (3,934,999) (5,243,719) (6,552,438) (7,861,157) (9,169,877) 275 (1,646,128) (2,954,847) (4,263,567) (5,572,286) (6,881,006) (8,189,725) (9,498,445) 300 (1,974,696) (3,283,415) (4,592,135) (5,900,854) (7,209,574) (8,518,293) (9,827,012) 325 (2,303,264) (3,611,983) (4,920,703) (6,229,422) (7,538,141) (8,846,861) (10,155,580) 350 (2,631,831) (3,940,551) (5,249,270) (6,557,990) (7,866,709) (9,175,429) (10,484,148) 375 (2,960,399) (4,269,119) (5,577,838) (6,886,558) (8,195,277) (9,503,996) (10,812,716) 400 (3,288,967) (4,597,686) (5,906,406) (7,215,125) (8,523,845) (9,832,564) (11,141,284) 425 (3,617,535) (4,926,254) (6,234,974) (7,543,693) (8,852,413) (10,161,132) (11,469,851) 450 (3,946,103) (5,254,822) (6,563,542) (7,872,261) (9,180,980) (10,489,700) (11,798,419) 475 (4,274,670) (5,583,390) (6,892,109) (8,200,829) (9,509,548) (10,818,268) (12,126,987) 500 (4,603,238) (5,911,958) (7,220,677) (8,529,397) (9,838,116) (11,146,835) (12,455,555) 525 (4,931,806) (6,240,525) (7,549,245) (8,857,964) (10,166,684) (11,475,403) (12,784,123) 550 (5,260,374) (6,569,093) (7,877,813) (9,186,532) (10,495,252) (11,803,971) (13,112,690) 575 (5,588,942) (6,897,661) (8,206,380) (9,515,100) (10,823,819) (12,132,539) (13,441,258) 600 (5,917,509) (7,226,229) (8,534,948) (9,843,668) (11,152,387) (12,461,107) (13,769,826)

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Scheme Ref: Mixed use - resi and retial No Units: 150 Location / Value Zone: higher Development Scenario: Brownfield Notes:

TABLE 3 GDV 100% (where 110% is a 10% increase etc.) Balance (RLV - TLV) (3,266,760) 100% 105% 110% 115% 120% 125% 130% - (3,266,760) (2,165,476) (1,064,192) 37,092 1,138,376 2,239,660 3,340,944 25 (3,595,328) (2,494,044) (1,392,760) (291,476) 809,808 1,911,092 3,012,376 50 (3,923,896) (2,822,612) (1,721,328) (620,044) 481,240 1,582,524 2,683,808 75 (4,252,463) (3,151,179) (2,049,896) (948,612) 152,672 1,253,956 2,355,240 100 (4,581,031) (3,479,747) (2,378,463) (1,277,179) (175,895) 925,389 2,026,672 CIL £psm/S106/Infrastucutre 125 (4,909,599) (3,808,315) (2,707,031) (1,605,747) (504,463) 596,821 1,698,105 0 150 (5,238,167) (4,136,883) (3,035,599) (1,934,315) (833,031) 268,253 1,369,537 175 (5,566,735) (4,465,451) (3,364,167) (2,262,883) (1,161,599) (60,315) 1,040,969 200 (5,895,302) (4,794,018) (3,692,735) (2,591,451) (1,490,167) (388,883) 712,401 225 (6,223,870) (5,122,586) (4,021,302) (2,920,018) (1,818,734) (717,450) 383,833 250 (6,552,438) (5,451,154) (4,349,870) (3,248,586) (2,147,302) (1,046,018) 55,266 275 (6,881,006) (5,779,722) (4,678,438) (3,577,154) (2,475,870) (1,374,586) (273,302) 300 (7,209,574) (6,108,290) (5,007,006) (3,905,722) (2,804,438) (1,703,154) (601,870) 325 (7,538,141) (6,436,857) (5,335,573) (4,234,290) (3,133,006) (2,031,722) (930,438) 350 (7,866,709) (6,765,425) (5,664,141) (4,562,857) (3,461,573) (2,360,289) (1,259,006) 375 (8,195,277) (7,093,993) (5,992,709) (4,891,425) (3,790,141) (2,688,857) (1,587,573) 400 (8,523,845) (7,422,561) (6,321,277) (5,219,993) (4,118,709) (3,017,425) (1,916,141) 425 (8,852,413) (7,751,129) (6,649,845) (5,548,561) (4,447,277) (3,345,993) (2,244,709) 450 (9,180,980) (8,079,696) (6,978,412) (5,877,129) (4,775,845) (3,674,561) (2,573,277) 475 (9,509,548) (8,408,264) (7,306,980) (6,205,696) (5,104,412) (4,003,128) (2,901,844) 500 (9,838,116) (8,736,832) (7,635,548) (6,534,264) (5,432,980) (4,331,696) (3,230,412) 525 (10,166,684) (9,065,400) (7,964,116) (6,862,832) (5,761,548) (4,660,264) (3,558,980) 550 (10,495,252) (9,393,968) (8,292,684) (7,191,400) (6,090,116) (4,988,832) (3,887,548) 575 (10,823,819) (9,722,535) (8,621,251) (7,519,968) (6,418,684) (5,317,400) (4,216,116) 600 (11,152,387) (10,051,103) (8,949,819) (7,848,535) (6,747,251) (5,645,967) (4,544,683)

TABLE 4 Profit 16.85% % of GDV Balance (RLV - TLV) (3,266,760) 13.75% 14.75% 15.75% 16.75% 17.75% 18.75% 19.75% - (2,285,912) (2,602,314) (2,918,717) (3,235,120) (3,551,523) (3,867,925) (4,184,328) 25 (2,614,479) (2,930,882) (3,247,285) (3,563,688) (3,880,090) (4,196,493) (4,512,896) 50 (2,943,047) (3,259,450) (3,575,853) (3,892,255) (4,208,658) (4,525,061) (4,841,464) 75 (3,271,615) (3,588,018) (3,904,420) (4,220,823) (4,537,226) (4,853,629) (5,170,031) CIL £psm/S106/Infrastucutre 100 (3,600,183) (3,916,585) (4,232,988) (4,549,391) (4,865,794) (5,182,196) (5,498,599) 0 125 (3,928,750) (4,245,153) (4,561,556) (4,877,959) (5,194,361) (5,510,764) (5,827,167) 150 (4,257,318) (4,573,721) (4,890,124) (5,206,527) (5,522,929) (5,839,332) (6,155,735) 175 (4,585,886) (4,902,289) (5,218,692) (5,535,094) (5,851,497) (6,167,900) (6,484,303) 200 (4,914,454) (5,230,857) (5,547,259) (5,863,662) (6,180,065) (6,496,468) (6,812,870) 225 (5,243,022) (5,559,424) (5,875,827) (6,192,230) (6,508,633) (6,825,035) (7,141,438) 250 (5,571,589) (5,887,992) (6,204,395) (6,520,798) (6,837,200) (7,153,603) (7,470,006) 275 (5,900,157) (6,216,560) (6,532,963) (6,849,366) (7,165,768) (7,482,171) (7,798,574) 300 (6,228,725) (6,545,128) (6,861,531) (7,177,933) (7,494,336) (7,810,739) (8,127,142) 325 (6,557,293) (6,873,696) (7,190,098) (7,506,501) (7,822,904) (8,139,307) (8,455,709) 350 (6,885,861) (7,202,263) (7,518,666) (7,835,069) (8,151,472) (8,467,874) (8,784,277) 375 (7,214,428) (7,530,831) (7,847,234) (8,163,637) (8,480,039) (8,796,442) (9,112,845) 400 (7,542,996) (7,859,399) (8,175,802) (8,492,205) (8,808,607) (9,125,010) (9,441,413) 425 (7,871,564) (8,187,967) (8,504,370) (8,820,772) (9,137,175) (9,453,578) (9,769,981) 450 (8,200,132) (8,516,535) (8,832,937) (9,149,340) (9,465,743) (9,782,146) (10,098,548) 475 (8,528,700) (8,845,102) (9,161,505) (9,477,908) (9,794,311) (10,110,713) (10,427,116) 500 (8,857,267) (9,173,670) (9,490,073) (9,806,476) (10,122,878) (10,439,281) (10,755,684) 525 (9,185,835) (9,502,238) (9,818,641) (10,135,043) (10,451,446) (10,767,849) (11,084,252) 550 (9,514,403) (9,830,806) (10,147,209) (10,463,611) (10,780,014) (11,096,417) (11,412,820) 575 (9,842,971) (10,159,374) (10,475,776) (10,792,179) (11,108,582) (11,424,985) (11,741,387) 600 (10,171,539) (10,487,941) (10,804,344) (11,120,747) (11,437,150) (11,753,552) (12,069,955)

Page 12/12 Printed: 26/01/2021 15:27 L:\_Client Projects\2002 Hastings WPV_Hastings Borough Council\_Appraisals\2101 Final revisons\210121_Hastings mixed use appraisal _amends v4\Mixed use Higher © Copyright Aspinall Verdi Limited Local Plan Viability Study Hastings Borough Council January 2021