ReportReport
GVA 10 Stratton Street London W1J 8JR
CIL Development Viability Study:
Additional Residential Testing &
Analysis
Swindon Borough Council
22 nd March 2013
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k gva.co.uk Swindon Borough Council CIL Economic Viability Study Additional Residential Testing and Analysis
Contents
Foreword ...... 3 1. INTRODUCTION ...... 3 2. URBAN EXTENSIONS ...... 3 ASSUMPTIONS ...... 5 RESULTS ...... 9 CONCLUSIONS ...... 13 3. CIL AS A PERCENTAGE OF VALUE AND COSTS ...... 13 4. LAND REGISTRY DATA ...... 16
Appendix A: Sustainable Urban Extensions Map..…………………………………………. 20 Appendix B: New Build Asking Prices...………………………………………………………. 24
Prepared By Charles Trustram Eve ...... Status . Director ...... Date 2 April 2013
For and on behalf of GVA Grimley Ltd
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Foreword
This Addendum is to be read in conjunction with GVA’s ‘CIL Development Viability Study Swindon Borough Council’ of June 2012.
1. INTRODUCTION
1.1 GVA has been instructed by the Council to carry out further work in respect of the residential testing and analysis to demonstrate the ability of different scales of housing development to potentially contribute to a CIL Charge.
2. URBAN EXTENSIONS
2.1 GVA has been instructed by Swindon Borough Council (SBC) to test the CIL viability levels in regard to the Sustainable Urban Extensions (SUE) in the Swindon area. This report forms an update to initial viability testing conducted as part of the original work for the CIL Development Viability Study 2012. The costs and values assumed in our appraisals for this update reflect market conditions as at March 2013 and follows further research into the asking and sold prices of new build properties in the Swindon area.
2.2 As agreed with Officers, we have tested a large or ‘strategic’ scale development scenario of 1,000 units and 2,000 units. This reflects the fact that much of the housing within the Study Area is to be delivered on SUEs. The Draft Swindon Borough Local Plan 2026 provides for five ‘new communities’ (Policy NC1), ranging in scale from 890 dwellings (Commonhead) to 8,000 dwellings (Eastern Villages).
2.3 Two of the proposed SUEs are to the north of Swindon town; two are located to the south and one larger area to the east made up of a number of existing and proposed villages. All of the five sites are within the administrative boundary of the Borough, see Plan at Appendix A.
2.4 The Table below provides an overview of the SUEs included within The Adopted Swindon Borough Local Plan 2011, which covers the period to 2026:-
Table 1: List of the SUEs Wichelstowe Commonhead Proposed Tadpole Kingsdown Eastern Farm Villages Administration Swindon BC Swindon BC Swindon BC Swindon BC Swindon BC Affordable 30% 30% 30% 35% 35% Policy Dwellings 4,500 890 8,000 1,695 1,650 Employment 12 ha 15 ha 20 ha 5 ha Local
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Wichelstowe Commonhead Proposed Tadpole Kingsdown Eastern Farm Villages Gross Ha 323 115 215 50 50 Persimmon/ Persimmon Crest None at Promoter Barratt/Taylor Homes and Various Nicholson Present Wimpey Redrow Homes
2.5 We have not undertaken an appraisal of any one of the actual sites but have adopted a hypothetical example, the Scheme, which mirrors the characteristics of many of them.
2.6 We have conducted the testing using the residual value model detailed in the main Report. For this purpose we have not taken into account the income derived from selling any employment land that is within the SUE, nor the land for the local centre. The income is likely to be modest relative to that for the housing land, unless a substantial convenience store is proposed.
2.7 Effectively the approach assumes that the sites are to be developed by housebuilders rather than companies who buy, service and then sell land; this mirrors the actual situation. It is usual for developers to seek a profit principally by reference to the end value of the private housing and the cost of the constructing the affordable housing (which is assumed to be transferred to a local Housing Association on a turnkey contract). It is acknowledged that the return on the cost of capital is also an important measure. Given the scale of the costs required to develop such sites, and the cashflow implications of the Enabling Costs, which are usually front loaded, it is our current experience that developers require a profit which effectively acknowledges not just the cost of the housing and the land but also the other costs. We have used a profit margin of 20% of GDV for the private housing and 6% of the affordable housing costs.
2.8 The assumptions we have made are based on the figures we have adopted for the testing of the other schemes, but also reflect the fact that such developments will inevitably be undertaken by large regional and national developers who benefit from economies of scale. The figures also reflect our experience of dealing with large scale schemes, including Wichelstowe.
2.9 With large sites the Council is faced with a significant challenge in deciding the extent to which it will use CIL, and the extent to which it will seek to continue to operate within the S106 regime. It can be expected that SUEs will generate many S106 requirements for onsite mitigation that are exclusive to the development, and therefore unlikely to be aggregated with S106 Agreements for other schemes. There are, however, some contributions which will almost certainly need detailed thought since they may be collected in common with other schemes, for example for secondary schools and off-site highway improvements. Notwithstanding the likelihood that SUEs can continue to be charged a significant S106, some Councils have decided that they will seek to use CIL in almost all cases, including for SUEs, and therefore that the residual S106 items will be minor in nature and cost. For example, Wiltshire Council has taken account of an expected £1,000 per dwelling to account for S278 and S106 obligations in its Draft
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Charging Schedule viability testing. Similarly, Bristol City Council, whose CIL Charging Schedule came into effect on 1 January 2013, also took into account a £1,000 per dwelling charge in its viability assessment for CIL.
2.10 In discussion with Officers we have agreed that for the purpose of the testing we will illustrate the maximum CIL that would arise if the Councils seek to continue charge for S106 obligations equivalent to:
(a) £6,000 per dwelling (private and affordable); or (b) £10,000 per dwelling (private and affordable);
2.11 In practice, the viability assessment undertaken for a planning application will first factor in the CIL payable and then the necessary S106 obligations. The residual sum will then show how much is available for affordable housing. For the purpose of this testing we have reversed this sequence and sought to illustrate how much is available to pay for CIL once one takes into account an assumed affordable housing requirement together with the adopted S106 payment.
2.12 For ease of reference we have focused only on the housing within the SUEs. In all cases there will also be other buildings that are potentially liable for CIL; however, for the benefit of this residential testing they have not been considered.
ASSUMPTIONS
Private Sales Values
2.13 The costs and values assumed in our current appraisals reflect market conditions as at March 2013 and follows further research into the asking and sold prices of new build properties in the Swindon area. In addition to our work on CIL viability, we have also been advising the Council since November 2012 in regard to the new build development of 4,500 homes in Wichelstowe. During the process of this work we have researched the Swindon new build market.
2.14 We have shown the results of the testing based on the original assumptions in the June 2012 Report together with the testing based on an assumed value based on the most recent research.
Table 2: Private Sale Values 2013 and 2016
Low Value Medium Value High Value 2013 Value
£1,580 per sq m £1,755 per sq m £2,120 per sq m £2,012 per sq m Residential Values (£147 per sq ft) (£163 per sq ft) (£197 per sq ft) (£187 per sq ft)
2.15 The 2013 Value is derived from desktop research relating to achieved and asking prices for a range of new build properties, in a range of developments currently under
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construction or actively selling post completion. These include among others The Sidings, Strata, Marlborough Park, Nightingale Rise, Kingsdown Gate as well as East Wichel and Wichelstowe.
2.16 We have attached a summary of our findings at Appendix B. As can be seen from the research, the average asking price for new build residential properties in Swindon came to £193,160 with an average area for the units sampled of 95.15 sq m, equating to a rate of £2,080 per sq m (£193 p/sq ft). However we also researched the achieved prices for new build properties in Swindon in 2012, which resulted in an average achieved price of £184,998 or £1,945 per sq m (£180 p/sq ft) based on a similar average unit area of 94.15 sq m. This equates to an asking price premium of c 5% based on capital values. We have therefore taken the midpoint of these two averages - £2,012 per sq m (187 p/sq ft) to reflect the fact that the actual sizing of the sold units was not available to analyse.
2.17 It should be noted that the testing for the original Report assumed that the average value for the SUEs was £1,755 per sq m.
2.18 We are aware that in at least one case (Peterborough) the CIL assessment for a large site has been undertaken on the assumption that sale values will rise during the course of the development at a greater rate than build costs. Whilst we know that developers do sometimes make such assumptions, we are of the opinion that in the current market many are reluctant to enter into contracts on the basis of such assumptions, and funders are most unlikely to provide finance on this basis. Further, it is our experience of developments of the scale being tested that planning viability assessments for planning applications are invariably by reference to current costs and values. We would also note that:-
(a) the Harman Report recommends the use of current costs and values for setting CIL, echoing the guidance of DCLG; and
(b) large schemes are naturally subject to phasing so the CIL payable for later phases will be by reference to the CIL rates that then apply. If it is shown that values have indeed increased by more than build costs, then there is a likelihood that a higher CIL rate will apply.
Other Assumptions
2.19 The assumptions we have adopted are detailed in Tables 4 and 5. These assumptions reflect the fact that the sites will be built by national and large regional developers who benefit from economies of scale.
2.20 For ease of reference we have shown the results for a blended average of the affordable housing, rather than the four different splits; in most cases the difference is less than 1.5% of the combined Gross Development Value.
2.21 As noted above, the BCIS expect build costs to rise over the next few years. In addition, the Building Regulations are to be revised by the end of 2013, and it is expected that this
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will impose a minimum regulatory standard equivalent to Code for Sustainable Homes Level 4 for both private and affordable housing. This assumes that the current review of Building Regulations by DCLG does not change the originally announced intent.
2.22 Additionally, in 2016, it is expected that the Building regulations will be further revised to provide for all new homes to be Zero Carbon. It is not yet known what standard this will mean in practice, and therefore what costs will arise. It is anticipated, however, that the cost of delivering higher standards will fall as the techniques and technology required become more commonplace and familiar.
2.23 The timing of S106 payments have been modelled with reference to the agreements signed with the developers of Commonhead (c 1,000 units) and Tadpole Farm (c 2,000 units) in Swindon. These developments have agreed S106 rates at £6,654 p/unit and £6,245 p/unit respectively, and broadly follow timings of payments as follows:
Table 3: S106 Payment Schedule % of Development 0% 20% 40% 60% 100% % of S106 Paid 2% 40% 30% 23% 5%
2.24 We have adopted the above timings and proportions for both the 1,000 unit scheme and the 2,000 unit scheme.
2.25 We have assumed an average dwelling of c 92.9 sq m (1,000 sq ft). This is slightly higher than that used by BNP for the testing within Wiltshire and Bristol at 88.1 sq m (948 sq ft). However, this assumption provides for the fact that whilst there will be an element of flats within each SUE scheme at Swindon, this will account for a smaller proportion than those assumed by BNP in Wiltshire (10%-30%). Furthermore, on the basis of our recent residential market research, which is attached at Appendix B, the average unit size from the sample data of actual new build properties in the Swindon market was between 90 sq m and 95 sq m.
2.26 The cost of Enabling Works, for example utilities, surface water drainage and the main on-site highway costs, can be very significant for SUEs. The Harman Report, which was published in July 2012, suggests that these costs are typically in the range of £17,000 to £23,000 per dwelling. We have dealt with a number of large schemes and the costs have ranged from c £9,000 per dwelling to in excess of £30,000. We have adopted a cost of £20,000 per dwelling (the midpoint suggested by the Harman Report).
2.27 For the 1,000 unit schemes we have assumed that the Scheme will take c 7-8 years to build and sell and we have allowed for a period of enabling works before construction of the housing can commence. For the 2,000 unit schemes we have assumed that the Scheme will take c 15 years to build and sell, and we have also allowed for a period of enabling works before construction of the housing can commence.
2.28 We appreciate that some developers suggest that sale rates can be assumed to be faster. If a faster rate is assumed then the interest charge is reduced, and the residual
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land value improved. It also significantly assists the prospect for delivery of the scheme since the payback is earlier and the scheme goes cash positive sooner. However, from our conversations with agents during this report we have confirmed that the current rates of sale for private housing, and for affordable market sales e.g. Low Cost Home Ownership, are still low. We therefore consider our assumption to be reflective of market conditions, which are not predicted to materially improve in the short term.
Table 4: Assumptions for 1,000 unit scheme
Assumptions
No of dwellings 1,000 Gross site area 56.7 ha (140 acres) Net residential area 28.6 ha (71 acres) Density 35 dwellings per hectare Affordable Housing Split 20%, 30%, and 40%
Tenure Split 70:30 social rent: Intermediate 70:30 affordable rent: Intermediate
Grant Assumption No grant
Enabling Costs £20,000 per unit
Contingency 3%
Professional Fees 10%
Sales Costs 2.5%
Finance Rate 6.75%
Profit 20% profit on Private GDV 6% profit on Affordable Cost Residential Build Costs £940 per sq m CSH 3 £1,000 per sq m CSH 4
Table 5: Assumptions for 2,000 unit scheme
Assumptions
No of dwellings 2,000 Gross site area 113.3 ha (280 acres) Net residential area 57.1 ha (141 acres) Density 35 dwellings per hectare Affordable Housing Split 20%, 30%, and 40%
Tenure Split 70:30 social rent: Intermediate 70:30 affordable rent: Intermediate
Grant Assumption No grant
Enabling Costs £20,000 per unit
Contingency 3%
Professional Fees 10%
Sales Costs 2.5%
Finance Rate 6.75%
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Assumptions
Profit 20% profit on Private GDV 6% profit on Affordable Cost Residential Build Costs £940 per sq m CSH 3 £1,000 per sq m CSH 4
Base Land Value
2.29 We have adopted a Base Land Value of c £14 million based on a 1,000 unit scheme with a gross area of 56.7 hectares (140 acres), equating to £250,000 per gross hectare. For the 2,000 unit scheme we have adopted a Base Land Value of c £28 million based on a scheme with a gross area of 113.3 hectares (280 acres), equating to £250,000 per gross hectare.
2.30 Clearly there may be circumstances where either lower or higher figures are contracted by the developer, but we believe that the rate is a fair reflection of what a reasonable and willing landowner would require. We note that in its testing for Wiltshire BNP adopted £350,000 per hectare, but seemingly a lower cost for the enabling works, c £15,000 per plot.
RESULTS
2.31 In line with our testing for other authorities, we have shown results that are up to 20% below the Base Land Value as Marginal, and those that are worse as Not Viable. We have adopted a traffic light system as per our previous testing reports.
Table 6: Scheme viability benchmarks 1,000 Units 2,000 Units Viability Residual land Value Residual land Value £0 -11.4m £0 - 22.4m Not Viable £11.4 - £14m £22.4 – 28m Marginal >£14m >£28m Viable
2.32 The Tables below show the results of the testing, including the consequences of applying different assumptions in respect of the Base Build Costs, Sales Values, S106 Costs, Tenure Split and Affordable Housing.
2.33 It should be noted that the figures show the maximum CIL, and make no allowance for headroom. It would be expected that the actual CIL rate would therefore be less.
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Table 7: 1,000 Dwellings, £6,000 S106 per dwelling, Code for Sustainable Homes 3 Enabling Costs S106 Base 20% Affordable 22% Affordable 30% Affordable 35% Affordable 40% Affordable Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £6,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 Mid Value £6,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 High Value £6,000 £14.00 £17.90 £80 £16.10 £66 £15.40 £65 £14.60 £52 £12.70 £23 2013 Value £6,000 £14.00 £12.80 £19 £11.10 -£1 £10.40 -£12 £9.70 -£23 £8.00 -£49
Table 8: 1,000 Dwellings, £10,000 S106 per dwelling, Code for Sustainable Homes 3 S106 Base 20% Affordable 22% Affordable 30% Affordable 35% Affordable 40% Affordable Enabling Costs Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £10,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 Mid Value £10,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 High Value £10,000 £14.00 £14.80 £43 £13.00 £24 £12.30 £17 £11.40 £3 £9.60 -£25 2013 Value £10,000 £14.00 £9.60 -£19 £8.00 -£43 £7.30 -£60 £6.60 -£71 £4.90 -£97
Table 9: 1,000 Dwellings, £6,000 S106 per dwelling, Code for Sustainable Homes 4 Enabling Costs S106 Base 20% Affordable 22% Affordable 30% Affordable 35% Affordable 40% Affordable Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £6,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 Mid Value £6,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 High Value £6,000 £14.00 £13.60 £29 £11.80 £8 £11.00 -£3 £10.20 -£15 £8.40 -£43 2013 Value £6,000 £14.00 £8.40 -£33 £6.70 -£61 £6.10 -£78 £5.40 -£89 £3.60 -£117
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Table 10: 1,000 Dwellings, £10,000 S106 per dwelling, Code for Sustainable Homes 4 Enabling Costs S106 Base 20% Affordable 22% Affordable 30% Affordable 35% Affordable 40% Affordable Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £10,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 Mid Value £10,000 £14.00 £0.00 -£134 £0.00 -£151 £0.00 -£172 £0.00 -£172 £0.00 -£172 High Value £10,000 £14.00 £10.50 -£8 £8.70 -£34 £7.90 -£51 £7.10 -£63 £5.30 -£91 2013 Value £10,000 £14.00 £5.30 -£71 £3.60 -£102 £3.00 -£126 £2.30 -£137 £0.50 -£165
Table 11: 2,000 Dwellings, £6,000 S106 per dwelling, Code for Sustainable Homes 3 Enabling Costs S106 Base 20% Affordable 25% Affordable 30% Affordable 35% Affordable 40% Affordable Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £6,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 Mid Value £6,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 High Value £6,000 £28.00 £34.00 £139 £31.00 £116 £28.20 £89 £27.80 £83 £24.70 £35 2013 Value £6,000 £28.00 £25.40 £36 £22.60 £3 £21.20 £19.70 £16.90
Table 12: 2,000 Dwellings, £10,000 S106 per dwelling, Code for Sustainable Homes 3 Enabling Costs S106 Base 20% Affordable 25% Affordable 30% Affordable 35% Affordable 40% Affordable Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £10,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 Mid Value £10,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 High Value £10,000 £28.00 £29.30 £83 £26.30 £52 £24.70 £35 £23.10 £11 £20.00 2013 Value £10,000 £28.00 £20.60 £17.80 £16.40 £15.00 £12.20
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Table 13: 2,000 Dwellings, £6,000 S106 per dwelling, Code for Sustainable Homes 4 Enabling Costs S106 Base 20% Affordable 25% Affordable 30% Affordable 35% Affordable 40% Affordable Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £6,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 Mid Value £6,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 High Value £6,000 £28.00 £26.90 £54 £23.90 £20 £22.30 £20.70 £17.60 2013 Value £6,000 £28.00 £18.20 £15.50 £14.10 £12.60 £9.80
Table 14: 2,000 Dwellings, £10,000 S106 per dwelling, Code for Sustainable Homes 4 Enabling Costs S106 Base 20% Affordable 25% Affordable 30% Affordable 35% Affordable 40% Affordable Costs Land Residual Max Residual Max Residual Max Residual Max Residual Max Value Land CIL Land CIL Land CIL Land CIL Land CIL Value Value Value Value Value £m Per dwell £m £m £m £m £m £m Low Value £10,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 Mid Value £10,000 £28.00 £0.00 £0.00 £0.00 £0.00 £0.00 High Value £10,000 £28.00 £22.20 £19.20 £17.60 £16.00 £12.90 2013 Value £10,000 £28.00 £13.50 £10.70 £9.30 £7.80 £5.00
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CONCLUSIONS
2.34 The above table show that the challenges and costs facing the development of SUEs mean that viability can easily be called into question through the application of a CIL rate. Whether one applies CSH Level 3 or 4 has, in practice, little bearing, as shown by the majority of schemes in Tables 7 to 14. Effectively, the residual land values generated by these appraisals do not show sufficient margin compared to the Baseline Land Value to be able to provide a CIL rate on top of the S106 obligations and other costs assumed.
2.35 There may be a case for seeking to apply a different CIL for some of the SUEs to reflect the fact that there is likely to be a significant difference between them in terms of the sales values that can be achieved. However, even the highest adopted sales value shows little viability and we do not consider that such values are likely to be generated within the urban extensions. Second, this is considered to be impractical and the DCLG Guidance cautions against adopting multiple charging zones. Moreover the viability of each SUE will only in part be determined by the sales prices, and the scale of the Enabling Costs is likely to differ in each case, as may the requirements of the landowner(s).
2.36 Whilst a CIL that is set by current build costs could in many instances be higher, the long term timescale of the SUEs means that most of the development will take place following the revision of Building Regulations; albeit it is at present uncertain what changes will arise.
2.37 Our assumption as to the general level of Enabling Cost is in line with our own experience and the Harman Report, which was published after our Main Report.
2.38 We have tested two different levels of S106 residual payment. We note that whilst the results for the lower level, £6,000, show an ability for the Council to charge a larger CIL it makes no practical difference to the results of the testing given that the majority of results are not viable even at the lower S106 figure.
2.39 The best solution, in our opinion, for both the authorities and also the developers in Swindon would be to seek to continue charging with reference to S106 obligations.
3. CIL AS A PERCENTAGE OF VALUE AND COSTS
3.1 The following Tables show what different levels of residential CIL would equate to as a percentage of the Gross Development Value (the sum of the receipts for private and affordable housing) and the costs excluding profit and the land. This analysis is of the testing undertaken for the main Report, June 2012.
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Table 15: High Sale Values & 20% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 1.6% 2.1% 2.6% 3.1% 3.5% 4.0% Scheme 2 1.4% 1.9% 2.3% 2.7% 3.1% 3.5% Scheme 3 1.5% 1.9% 2.3% 2.8% 3.2% 3.6% Scheme 4 1.5% 1.9% 2.3% 2.7% 3.1% 3.6% Scheme 5 1.5% 1.9% 2.3% 2.7% 3.1% 3.6%
Table 16: High Sale Values & 30% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 1.6% 2.1% 2.6% 3.1% 3.5% 4.0% Scheme 2 1.3% 1.7% 2.1% 2.4% 2.8% 3.2% Scheme 3 1.4% 1.8% 2.1% 2.5% 2.9% 3.3% Scheme 4 1.3% 1.7% 2.1% 2.5% 2.9% 3.3% Scheme 5 1.5% 1.9% 2.3% 2.7% 3.1% 3.5%
Table 17: High Sale Values & 40% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 1.6% 2.1% 2.6% 3.1% 3.5% 4.0% Scheme 2 1.2% 1.6% 1.9% 2.2% 2.6% 2.9% Scheme 3 1.1% 1.4% 1.7% 2.1% 2.4% 2.7% Scheme 4 1.2% 1.6% 1.9% 2.3% 2.6% 2.9% Scheme 5 1.2% 1.6% 1.9% 2.3% 2.6% 2.9%
Table 18: Medium Sale Values & 20% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 2.0% 2.6% 3.1% 3.7% 4.3% 4.9% Scheme 2 1.7% 2.2% 2.7% 3.2% 3.7% 4.2% Scheme 3 1.8% 2.3% 2.8% 3.3% 3.8% 4.3% Scheme 4 1.8% 2.3% 2.8% 3.3% 3.8% 4.3% Scheme 5 1.8% 2.3% 2.8% 3.3% 3.8% 4.3%
Table 19: Medium Sale Values & 30% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 2.2% 2.8% 3.4% 4.0% 4.6% 5.3% Scheme 2 1.6% 2.0% 2.5% 2.9% 3.4% 3.8% Scheme 3 1.6% 2.1% 2.6% 3.0% 3.5% 4.0% Scheme 4 1.6% 2.1% 2.5% 3.0% 3.5% 3.9% Scheme 5 1.6% 2.1% 2.5% 3.0% 3.5% 3.9%
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Table 20: Medium Sale Values & 40% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 2.0% 2.6% 3.1% 3.7% 4.3% 4.9% Scheme 2 1.4% 1.9% 2.3% 2.7% 3.1% 3.5% Scheme 3 1.3% 1.7% 2.0% 2.4% 2.8% 3.1% Scheme 4 1.5% 1.9% 2.3% 2.7% 3.1% 3.5% Scheme 5 1.5% 1.9% 2.3% 2.7% 3.1% 3.5%
Table 21: Low Sale Values & 20% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 2.5% 3.2% 4.0% 4.7% 5.4% 6.1% Scheme 2 2.0% 2.6% 3.2% 3.8% 4.3% 4.9% Scheme 3 2.0% 2.5% 3.1% 3.7% 4.2% 4.8% Scheme 4 1.9% 2.5% 3.1% 3.6% 4.2% 4.7% Scheme 5 2.0% 2.5% 3.1% 3.6% 4.2% 4.7%
Table 22: Low Sale Values & 30% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 2.7% 3.5% 4.3% 5.1% 5.9% 6.6% Scheme 2 1.8% 2.3% 2.9% 3.4% 3.9% 4.4% Scheme 3 1.8% 2.3% 2.8% 3.3% 3.8% 4.3% Scheme 4 1.8% 2.3% 2.8% 3.3% 3.8% 4.3% Scheme 5 1.8% 2.3% 2.8% 3.3% 3.8% 4.3%
Table 23: Low Sale Values & 40% Affordable – CIL as a Percentage of GDV
Scheme CIL @ £35 £45 £55 £65 £75 £85 Scheme 1 2.5% 3.2% 4.0% 4.7% 5.4% 6.1% Scheme 2 1.6% 2.1% 2.6% 3.1% 3.5% 4.0% Scheme 3 1.6% 2.0% 2.5% 2.9% 3.4% 3.9% Scheme 4 1.6% 2.0% 2.5% 2.9% 3.4% 3.9% Scheme 5 1.6% 2.0% 2.5% 2.9% 3.4% 3.9%
2 April 2013 | gva.co.uk 15 Swindon Borough Council CIL Economic Viability Study Additional Residential Testing and Analysis
4. LAND REGISTRY DATA
4.1 The Council has acquired data from Land Registry for all sales within its boundary for the period January 2011 to December 2012. The following plans illustrate the data, and show the distribution of sale prices achieved throughout the town and the surrounding areas.
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Land Registry Sales - All sales Northern Area
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Land Registry Sales - All sales Central Area
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Land Registry Sales - All sales Southern Area
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Land Registry Sales – New Build Sales
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Land Registry Sales – Weighted average
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4.2 The data shows that the distribution of sale prices within the urban area is fairly consistent, and would suggest that a single rate should be applied. Within the main settlements around the town there is a range of values. However, the majority of new development is to occur within new settlements, and the values achieved do not necessarily match those that prevail within the existing villages, see Appendix A. We therefore conclude that the Council is well advised to consider adopting a single charge across the existing settlements to include the town.
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Appendices
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Appendix A
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Appendix B
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Swindon New Build Asking Prices 11 March 2013 Price Asking Area Developer Development Type Name per sq Price (sq m) m 3-Bed Hutchins (Plot 22) £185,700 81.57 £2,277 House 3-Bed Hutchins (Plot 23) £185,700 81.57 £2,277 House 3-Bed Fairway (Plot 29) £196,000 95.13 £2,060 House 3-Bed Fairway (plot 31) £196,000 95.13 £2,060 House 3-Bed Fairway (Plot 30) £197,000 95.13 £2,071 House David Wilson 3-Bed The Sidings Fairway (Plot 32) £198,000 95.13 £2,081 Homes House 3-Bed Durrington (Plot 3) £226,000 123.65 £1,828 House 3-Bed Leeman (Plot 1) £229,000 132.29 £1,731 House 3-Bed Leeman (Plot 2) £229,000 132.29 £1,731 House 3-Bed Houghton (Plot 187) £235,000 131.46 £1,788 House 3-Bed Houghton (Plot 188) £235,000 135.64 £1,733 House 2-Bed Flat Stanton £126,995 61.13 £2,077 2-Bed Flat Bourton £127,995 62.71 £2,041 2-Bed Flat Farringdon £128,995 62.06 £2,079 2-Bed Flat Kembrey £134,995 56.49 £2,390 Bellway Strata 2-Bed Flat Ashbury £144,995 61.97 £2,340 5-Bed Andover £224,995 107.49 £2,093 House 4-Bed Pembroke B £229,995 105.44 £2,181 House 2-Bed Flat Plot 6 £157,000 72.46 £2,167 2-Bed Flat Plot 16 £161,000 77.95 £2,066 Marlborough Places for People 2-Bed Flat Plot 10 £160,000 77.76 £2,058 Park 2-Bed Flat Plot 13 £145,000 63.17 £2,295 2-Bed Flat Lowry (Plot 185) £152,000 60.02 £2,533 Carriage House (Plot 1-Bed Flat £86,995 38.46 £2,262 190) Carriage House (Plot 1-Bed Flat £86,995 38.46 £2,262 191) Nightingale 3-Bed Barratt Homes Brandon (Plot 186) £153,995 65.22 £2,361 Rise House 3-Bed Maidstone (Plot 179) £171,995 77.3 £2,225 House 4-Bed Woodcote (Plot 98) £199,995 110.55 £1,809 House
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Price Asking Area Developer Development Type Name per sq Price (sq m) m 4-Bed Grassmere (Plot 35) £221,995 123.75 £1,794 Kingsdown House Gate 4-Bed Bromley (Plot 37) £224,995 99.31 £2,266 House 1-Bed Flat Melbury (Plot 20) £99,995 46.08 £2,170 Wichelstowe 5-Bed Hayeswater (Plot 31) £304,995 169.64 £1,798 House 3-Bed Barwick (Plot 4) £179,995 77.67 £2,318 House 3-Bed Barwick Special (Plot £179,995 77.67 £2,318 House 7) 3-Bed Morpeth (Plot 14) £195,995 88.82 £2,207 House The Sidings 3-Bed Farringdon (Plot 9) £202,995 101.91 £1,992 House 3-Bed Portbury (Plot 1) £219,995 123.65 £1,779 House 3-Bed Chadwick (Plot 2) £222,995 125.23 £1,781 House 2-Bed Flat Eden (5) (Plot 99) £124,995 73.21 £1,707 Matthew Homes Eagle Heights 5-Bed Russel (V1) (Plot 109) £320,000 203.74 £1,571 House 3-Bed Patney (Plot 1) £154,396 82.96 £1,861 House 3-Bed Patney (Plot 12) £194,995 82.96 £2,350 House 3-Bed Patney (Plot 15) £153,596 82.96 £1,851 House 3-Bed Patney (Plot 37) £153,596 82.96 £1,851 Permission House Wichelstowe Homes 3-Bed Patney (Plot 38) £153,596 82.96 £1,851 House 4-Bed Wadswick (Plot 4) £239,995 110.28 £2,176 House 4-Bed Neston (Plot 9) £199,995 111.2 £1,798 House 5-Bed Westlecot (Plot 36) £329,995 164.62 £2,005 House 2-Bed Flat Dunham (Plot 135) £129,995 55.83 £2,328 3-Bed Brancaster (Plot 91) £205,950 83.61 £2,463 House 3-Bed Brancaster (Plot 161) £215,950 83.61 £2,583 House 4-Bed Chatsworth (Plot 87) £269,950 129.04 £2,092 Wainhomes Moulden View House 4-Bed Longshaw (Plot 136) £210,000 117.52 £1,787 House 4-Bed Longshaw (Plot 137) £210,000 117.52 £1,787 House 4-Bed Wren (Plot 36) £249,950 103.4 £2,417 House
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Price Asking Area Developer Development Type Name per sq Price (sq m) m 1-Bed Flat Latimer £95,995 45.52 £2,109 Bovis Homes Windsor Gate 2-Bed Flat Latimer £112,995 62.99 £1,794 3-Bed Flatford £195,000 80.45 £2,424 House 4-Bed Portland £335,000 158.4 £2,115 House 4-Bed Petford £249,000 115.94 £2,148 House 3-Bed Taylor Wimpey Wichelstowe Crofton £210,000 111.3 £1,887 House 3-Bed Easedale £200,000 86.49 £2,312 House 2-Bed Belford £165,000 62.8 £2,627 House 5-Bed Thame £322,000 165.18 £1,949 House Average £193,160 95.14 £2,080
Averages
Average Average Average Type Frequency Asking Area (sq Price per Price m) sq m Studio 0 1-Bed Flat 4 £92,495 41 £2,231 2-Bed Flat 13 £138,997 65.57 £2,204 2-Bed House 1 £165,000 62.8 £2,627 3-Bed Flat 0 3-Bed House 29 £195,774 96.44 £2,071 4-Bed House 12 £236,739 116.86 £2,031 5-Bed House 5 £300,397 162.13 £1,883 Total/Average 64 £188,234 90.8 £2,175
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