Viability Study Refresh Technical Annex Report to …...Viability Study – Refresh Technical Annex Report to Cornwall Council Three Dragons March 2015 Marked set by jmccabe ID.01.CC.3.2.1

________________________________________________________________________Cornwall Council

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Viability Study – Refresh Technical Annex

Report to Cornwall Council

Three Dragons

March 2015

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This report is not a formal land valuation or scheme appraisal. It has been prepared using the Three Dragons toolkit and is based on Unitary County level data supplied by Cornwall Council, its retained consultants, consultation and quoted published data sources. The toolkit provides a review of the development economics of a range of illustrative schemes and the results depend on the data inputs provided. This analysis should not be used for individual scheme appraisal. No responsibility whatsoever is accepted to any third party who may seek to rely on the content of the report unless previously agreed.

___________________________________________________________________________Cornwall Council

3 March 2015

Contents APPENDIX 1 - Development Workshop Notes .......................................................................................... 4

APPENDIX 2 - Testing Assumptions .......................................................................................................... 7

APPENDIX 3 - Case Study and Allocated Site Characteristics ................................................................... 12

APPENDIX 4 - Notional 1ha Tile Results .................................................................................................. 15

APPENDIX 5 - Case Study Results ........................................................................................................... 18

APPENDIX 6 - Allocated Sites Results ..................................................................................................... 21

APPENDIX 7 - ORS House Price Update – July 2014 ................................................................................ 24

APPENDIX 8 - ORS House Price Response To Feedback (October 2014) .................................................. 32


4

APPENDIX 1 - Development Workshop Notes

Private Sector Forum Meeting

5th September 2014

Council Chamber, Carrick House, Truro

Minutes

Present:

Chair Michael Griffin – MA Griffin Associates Louise Dwelly – Cornwall Council

Graham Clark – Sunnybank Homes Andy Stevenson – Cornwall Council

Hollie Nicholls – Laurence Associates Dominic Houston – Three Dragons

Laurence Osborne – Laurence Associates Marcell Venn – Inox Group

Andy Blount – Taylor Lewis Jon Pearson – Pensans Homes

Lin Cousins – Three Dragons Peter Crawford - Wainhomes

Cllr Edwina Hannaford – Cornwall Council Paul Stephens – Poltair Homes

Steve Havers – Cornwall Council John Cox – Randall-Simmonds

Russell Dodge – BLS Ltd. Gwenda Beckley – Help to Buy SW

Paul Britton - HCA

Morwenna Milburn - Cornwall Council

Damien Burley – Walker Developments Andy Boon –

Aster Homes

Simon Williams – Percy Williams Dave Stein – Acorn Blue

Andrew Selleck – Selleck Nicholls

Greg Oldrieve – Vickery Holman

Simon Caklais – Gilbert and Goode

David Ferguson – MBA Consulting

Sharon Bundy - Cornwall Council

Tony Bowden – Gilbert and Goode

Andy Knight – Bibio Ltd.

Apologies:

Anthony Bassett – Taylor Lewis

Mark Salter – Randall Simmonds Ben Couch – Taylor Lewis

Geoff Brown CC Versha Koria – HCA

Peter Marsh – Cornwall Council Chris Towers – Mercian Developments

Terry Grove-White – Cornwall Council Justin Dodge – Westcounty Land

Phil Mason – Cornwall Council Russell Baldwinson – Barratt Homes

Roger Serginson – GP Group Ryan Hosken - Guinness

Shaun Stapleton – Kier Stephen Teagle – Galliford Try

David Worledge – Lowena Homes David Collett – Bouygues Ltd.


5

Introductions and apologies

Welcome from the Chair Michael Griffin (Chair HBF South West) Michael welcomed attendees to the Forum and reiterated the purpose of the Forum was to provide opportunities for a dialogue between private sector housing developers and the Council, encompassing other public bodies such as the HCA. If anyone has any requests for future presentations/agenda items then please contact Michael. 2. Matters arising from meeting held 28.3.14 Andy Stevenson confirmed that no date has yet been given for the SAB process going over to the Council. 3. Update on Local Plan, Steve Havers of Cornwall Council’s Local Plans Team The Council have consulted on the latest draft plan with revised housing targets and policies to protect the open countryside when a local need/land allocation can be evidenced. No other substantial changes since the last revision. The Plan will be sent to the Secretary of State by the end of 2014 with a timetable for examination in Spring/Summer 2015. Information on the housing numbers will be reported to Developers’ Forum when possible. It would be useful to have a dialogue with the Developers’ Forum about evidencing developments being sold to local people. The Allocations DPD is being prepared and going to Full Council by the end f 2014 with a view to consulting in early 2015. Work to test assumptions around viability is currently being undertaken by Three Dragons. CIL – draft schedule of changes has been consulted on. Q&A Q) Is there an update on Town Framework Plans? A) Yes this forms the evidence base of the Allocations DPD. Q) Are transport strategies included in the DPD? A) Not included unless identified as necessary. 4. Update on Strategic Viability Assessment – Three Dragons Lin Cousins and Dominic Houston from Three Dragons gave a presentation on the update to the Strategic Viability Assessment which was originally completed in 2012. The presentation covered an outline of the case studies that will be tested, a summary of the 2014 ORS house value work, build and other development costs, benchmark land values and proposed dwelling space standards. The presentation will be circulated with the minutes. Comments on the assumptions from members of the Developers’ Forum are very welcome and encouraged. A proforma will be circulated asking for comments/evidence of land values with a deadline of 19th September for completion to allow the data to be fed into the study.


6

Discussion around build costs and the impression that smaller schemes are disproportionately expensive (although this can be balanced against higher values for some smaller ‘exclusive’ schemes’). LC explained that BCIS is the source of data for build costs and no systematic evidence of this issue has been raised but will be explored further if developers can provide suitable information. Issues were raised about land values and it was explained that benchmark land values have been derived from premiums over existing use value and then cross checked against title deeds from the Land Registry . LC reiterated that evidence to support this was needed and would be treated in the utmost confidence should developers wish to provide it. 5. Feedback from Highways Workshop held 23/6/14 Papers were circulated showing the actions from the workshop. Proposals for a way forward are very welcome and would like to come back for future discussion at the Forum. Discussions around the ‘nominating contracts’ process and how a conclusion to satisfy both parties is of particular interest. Please contact Andy Stevenson with any proposals. 6. Update from HCA Paul Britton gave a presentation about the HCA’s latest programmes. This is attached to the minutes. 7. Any other business South West Homes are now called ‘Help to Buy South West’ following their recent re-appointment as the Government’s Home Buy agency. Request for Development Management ‘hot topics’ for next Forum in December. Issues around cost and value for money for DWF outsourced instructions were discussed. Louise Dwelly reported that no new legal instructions are going to DWF and all matters are being dealt with internally as the Council’s Legal department are now back to capacity, a fact that was acknowledged with several developers stating that the service had been noticeably better recently. Agreement that Karen Jackson be asked to attend the next Forum in December. Transport policy is inconsistent across the County in terms of cost and that non-adopted policies were asked to be adhered to. Louise Dwelly responded that Officers were directed to negotiate on ‘direction of travel’ policies as these are intended for adoption.


7

APPENDIX 2 - Testing Assumptions


8

Testing Assumptions (v5 updated 12th March 2015) A range of schemes have been tested including:-

1 ha notional site at a range of densities and levels of affordable housing provision.

A range of case studies and allocated sites covering developments from 2 dwellings to 790 dwellings.

The 1ha notional sites have been tested at the following levels of affordable housing:-

Density Zone 1 Zone 2 Zone 3 Zone 4 Zone 5

20 dph 50%, 40% 50%, 40%

30 dph 50%, 40% 50%, 40% 40%, 35%, 30% 40%, 30%, 20% 40%, 30%, 20%

40 dph 50%, 40% 50%, 40% 40%, 35%, 30% 40%, 30%, 20% 40%, 30%, 20%

50 dph 40%, 35%, 30% 40%, 30%, 20% 40%, 30%, 20%

Dwelling sizes

The following range of dwelling sizes has been used.

House Type Affordable (sq m) Market (sq m)

1 bed flat 50 (55 inc common areas allowance Note 1)

45 (50 inc common areas allowance Note 1)

2 bed flat 70 (77 inc common areas allowance Note 1)

56 (62 inc common areas allowance Note 1)

2 bed terrace 70 65

3 bed terrace 95 80

4 bed terrace 105 95

5 bed terrace 110 100

3 bed semi 95 95

4 bed semi 105 100

3 bed detached 100 105



1 bed bungalow 60 60



Note 1: An additional 10% floor area has been allowed for the 1 and 2 bed flats to ensure that the construction costs of the common areas (stairs, circulation space etc) are allowed for.

Dwelling Mix

The following range of development mixes has been used for the market element of the schemes tested:

20 dph 25 dph 30 dph 35 dph 40 dph 45 dph 50 dph 60 dph

1 bed flat 10% 10% 10% 10%

2 bed flat 10% 10% 15% 20%

2 bed terrace 15% 15% 15% 15% 25% 40%

3 bed terrace 15% 25% 30% 35% 25% 10%

3 bed semi 35% 10%

4 bed semi 15% 10%


9

20 dph 25 dph 30 dph 35 dph 40 dph 45 dph 50 dph 60 dph

3 bed detached

10% 25% 30% 25% 20% 10%

4 bed detached

60% 55% 25% 20% 5% 10%

5 bed detached

20% 10% 20% 10% 5%

2 bed bungalow

10%

Total 100% 100% 100% 100% 100% 100% 100% 100%

The following development mix has been used for the affordable housing element of each scheme:

Affordable Tenure Affordable Rent Intermediate (S/O)

Housetype

1 bed flat 33.5% 5%

2 bed flat 14% 15%

2 bed terrace 30.5% 45%

3 bed terrace 12% 35%

4 bed terrace 4%

5 bed terrace 1%

1 bed bungalow 1.5%

2 bed bungalow 2.5%

3 bed bungalow 1%

Selling Prices

Five market areas have been identified.

Market Value Zone 1 2 3 4 5

St Austell (Case

Study 5 only)

1 bed flat £200,000 £170,000 £140,000 £115,000 £100,000 £115,000

2 bed flat £230,000 £190,000 £160,000 £130,000 £110,000 £130,000

2 bed terrace house £245,000 £205,000 £165,000 £145,000 £130,000 £130,000



3 bed semi-detached house £290,000 £235,000 £195,000 £180,000 £165,000 £165,000

4 bed semi-detached house £420,000 £335,000 £275,000 £250,000 £210,000 n/a

3 bed detached house £400,000 £320,000 £265,000 £240,000 £200,000 £240,000



2 bed bungalow £360,000 £290,000 £240,000 £220,000 £180,000 n/a


10

Affordable Housing Affordable housing has been tested at the following levels of provision:-

1ha notional sites – 50% affordable homes in Market Value Zones 1 and 2, and 40% affordable

homes in Market Value Zones 3, 4 and 5.

Case Study and Allocated Sites – affordable housing provision for the case studies is noted on the

case study characteristics.

4 alternative tests have been completed with varying affordable housing tenures 1. Affordable housing split 70% rented: 30% intermediate / shared ownership, with a 40% share

purchased.

2. affordable housing split 30% rented: 70% intermediate/ shared ownership, with a 40% share

purchased.

3. Affordable housing provided as serviced sites

4. Subsidy required should affordable housing be provided as 100% affordable rent tenure.

Affordable Rents

Rents shown in the table below are net of service charges - £10/week/flat, £3/week/house.

Zone 1 bed flat 2 bed flat

1 bed bungalow

2 bed house/

bungalow

3 bed house/

bungalow 4 bed house

1 £87 £101 £94 £117 £135 £157

2 £79 £92 £86 £107 £124 £144

3 £79 £92 £86 £107 £124 £144

4 £75 £87 £82 £107 £118 £137

5 £75 £87 £82 £102 £118 £137

Affordable Housing costs

Affordable rent Management and maintenance £900 per annum Void/ bad debts 3% gross rent Repairs reserve £500 per annum Capitalisation 6.25% of net rent Shared Ownership Share purchased 40% Rental factor 2.5% of share Capitalisation factor 6.25% of net rent Development Rate

The following development rates have been applied:

1ha notional site – development completed in one year

Case Studies – developments of 40 units or less are assumed to be completed in one year or under.

Other schemes are generally developed at the rate of 40 units per annum with one developer, or 60

units per annum with 2 developers.

Build Costs (including 15% uplift for external works)

Build costs are based on BCIS Build Costs downloaded during September 2014. An uplift of 15% has been applied to the BCIS costs to allow for external works. A further uplift of 5% (shown italicised below) has been allowed on small sites of 5 units or less to reflect the higher costs of developing smaller sites.

Houses £1,086/sq m plus 5% - £1,140/sq m

Flats (1-2 storeys) £1,250/sq m plus 5% - £1,313/sq m


11

Flats (3-5 storeys) £1,378/sq m plus 5% - £1,447/sq m

Bungalows £1,309/sq m plus 5% - £1,313/sq m

Other Costs

An allowance of £75 per affordable dwelling (£750 for 10% affordable dwellings) to allow for

Lifetime Homes standards.

Other Development Costs

Professional Fees 10% of build costs

Finance (market and affordable) 6.25% of total costs

Marketing 3% of revenue (market units)

Developer return 20% of revenue (market units)

Contractor return 6% of affordable build costs

Agents Fees (on acquisition) 1.5% of land purchase price

Legal Fees (on acquisition) 0.5% of land purchase price

Discounted Cash Flow

Annual Debit Interest Rate 6.25% (as per Finance Costs)

Annual Credit Interest Rate 2%

Annual Discount Rate (PV/ NPV) 3.5%

Exceptional Development Costs

1ha notional sites – it is assumed that there are no exceptional development costs. Case Studies – opening up costs have been allowed on a site specific basis Planning Obligations

An allowance of £2,000 per dwelling has been made for residual s106 payments for the notional sites and smaller case study sites. The larger, allocated sites have been tested using S106 costs calculated from Cornwall Council contributions for transport, education and open space provision and improvement. These higher contributions have been calculated on a site specific basis.


12

APPENDIX 3 - Case Study and Allocated Site Characteristics


13 March 2015

Figure 1 - Case Study Characteristics

Type Dwgs

Price

Zone

Gross

site ha

Net

site ha

Gross

to net Dph % AH

s106/

dwg

Opening

up/net

ha

Mkt -

1bf

Mkt -2

bf

Mkt -

2bt

Mkt -

3bt

Mkt -

3bs

Mkt -

3bd

Mkt -

4bd

Mkt -

5bd

Aff

Rent -

1bf

Aff

Rent -

2bf

Aff

Rent -

2bt

Aff

Rent -

3bt

Aff

Rent -

4bt

Aff

Rent -

5bt

Aff

Rent -

1bb

Aff

Rent -

2bb

Aff

Rent -

3bb

Int -

1bf

Int -

2bf

Int -

2bt

Int -

3bt

Small infill 2 3 0.1 0.07 100% 30 40% £2,000 £0 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Small infill 3 3 0.1 0.08 100% 40 40% £2,000 £0 10% 10% 15% 30% 25% 5% 5% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Town/village windfall 10 3 0.3 0.33 100% 30 40% £2,000 £0 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%


Town/village windfall 120 3 3.4 2.91 85% 35 40% £2,000 £100,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Urban high density 30 3 0.5 0.5 100% 60 40% £2,000 £50,000 55% 45% 100% 100%

Small infill 2 4 0.1 0.07 100% 30 40% £2,000 £0 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Small infill 3 4 0.1 0.08 100% 40 40% £2,000 £0 10% 10% 15% 30% 25% 5% 5% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%





Small infill 2 5 0.1 0.07 100% 30 40% £2,000 £0 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Small infill 3 5 0.1 0.08 100% 40 40% £2,000 £0 10% 10% 15% 30% 25% 5% 5% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%





Higher value small infill 2 2 0.1 0.07 100% 30 50% £2,000 £0 20% 25% 25% 30% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

higher value town/village windfall10 2 0.3 0.33 100% 30 50% £2,000 £0 20% 25% 25% 30% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Policy 9 site 4 1 0.11 0.11 100% 35 75% £2,000 £0 10% 15% 40% 35% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Policy 9 site 30 1 0.86 0.86 100% 35 65% £2,000 £0 10% 15% 40% 35% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Policy 9 site 4 3 0.11 0.11 100% 35 60% £2,000 £0 10% 15% 15% 30% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Policy 9 site 30 3 0.86 0.86 100% 35 55% £2,000 £0 10% 15% 15% 30% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Policy 9 site 4 5 0.11 0.11 100% 35 50% £2,000 £0 10% 15% 40% 35% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Policy 9 site 30 5 0.86 0.86 100% 35 50% £2,000 £0 10% 15% 40% 35% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%


14

Figure 2 - Allocated / Strategic Site Characteristics

Area/ Town Dwgs

Price

Zone

Gross

site ha

Net

site ha

Gross

to net Dph

Years to

first

completi

on

Nr of

develop

ers

Delive

ry pa % AH

Opening

up/net

ha

Exceptiona

l Costs 1bf 2 bf 2bt 3bt 3bs 3bd 4bd 5bd

Aff

Rent -

1bf

Aff

Rent -

2bf

Aff

Rent -

2bt

Aff

Rent -

3bt

Aff

Rent -

4bt

Aff

Rent -

5bt

Aff

Rent -

3 bed

semi

Aff

Rent -

3 bd

detach

ed

Aff

Rent -

4 bd

detach

ed

Aff

Rent -

5 bd

detach

ed

Aff

Rent -

1bb

Aff

Rent -

2bb

Aff

Rent -

3bb

Int -

1bf

Int -

2bf

Int -

2bt

Int -

3bt

Launceston Withnoe 375 4 15.3 10.7 70% 35 1 1 40 40% £125,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Bodmin Callywith Urban Village 600 4 29.0 20.3 70% 30 1 1 40 40% £175,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Bodmin St Lawrences UE 790 4 32.2 22.6 70% 35 1 2 60 40% £175,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Bodmin Castle St 250 4 10.2 7.1 70% 35 1 1 40 40% £125,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

St Austell Trewiddle 540 4 22.1 15.5 70% 35 1 1 40 40% £175,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Falmouth Falmouth North 350 3 14.0 10.0 71% 35 1 1 40 40% £125,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Falmouth College Valley (Penryn) 255 3 10.4 7.3 70% 35 1 1 40 40% £125,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

CPIR Tolgus (Phase 2) 280 5 10.7 8.0 75% 35 1 1 40 40% £125,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Helston Clodgey Lane 500 5 20.5 14.3 70% 35 1 1 40 40% £125,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Hayle Penpol 220 4 9.6 5.7 60% 38 1 1 40 40% £125,000 10% 10% 15% 35% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Penzance Heamoor 510 4 23.3 15.6 67% 33 1 1 40 40% £175,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Penzance Longrock 170 4 8.0 4.8 60% 35 1 1 40 40% £100,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Penzance Polmennor Road 40 4 1.5 1.0 70% 39 1 1 30 40% £0 10% 10% 15% 30% 25% 5% 5% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%

Penzance Trannack 290 4 14.9 9.7 65% 30 1 1 40 40% £125,000 £1,500,000 15% 25% 30% 20% 10% 34% 14% 31% 12% 4% 1% 2% 3% 1% 5% 15% 45% 35%


15 March 2015

APPENDIX 4 - Notional 1ha Tile Results


16 March 2015

Figure 3 - Notional 1ha Tile Results - Zones 1 – 3

Housing

Market

Area DPH

Market

%

Afford

able %

Total Mkt

Sq m

Benchmark

per ha RV

RV less

benchmark

Theoretical

Max CIL/sq

m RV

RV less

benchmark

Theoretical

Max CIL/sq

m RV

RV less

benchmark

Theoretical

Max CIL/sq

m

No of

Affordable

Rent Units Build Cost

Contractor

Return Prof Fees

Lifetime

Homes

Allowance

Residual

S106

Total (Exc

Finance

Costs)

Finance

Costs

Total (Inc

Finance

Costs)

Affordable

Rent

Revenue

Zone 1 20 50% 50% 1,235.0 £1,300,000 £1,690,000 £390,000 £316 £2,026,000 £726,000 £588 £1,791,000 £491,000 £398 10.0 £824,101 £49,446 £82,410 £750 £20,000 £976,707 £51,553 £1,028,260 £653,000

Zone 1 30 50% 50% 1,638.8 £1,300,000 £2,262,000 £962,000 £587 £2,765,000 £1,465,000 £894 £2,412,000 £1,112,000 £679 15.0 £1,236,151 £74,169 £123,615 £1,125 £30,000 £1,465,060 £77,330 £1,542,390 £980,000

Zone 1 40 50% 50% 1,699.0 £1,300,000 £2,261,000 £961,000 £566 £2,932,000 £1,632,000 £961 £2,461,000 £1,161,000 £683 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,307,000

Zone 1 20 60% 40% 1,482.0 £1,300,000 £2,069,000 £769,000 £519 £2,338,000 £1,038,000 £700 £2,149,000 £849,000 £573 8.0 £659,280 £39,557 £65,928 £600 £16,000 £781,365 £41,243 £822,608 £523,000

Zone 1 30 60% 40% 1,966.5 £1,300,000 £2,774,000 £1,474,000 £750 £3,179,000 £1,879,000 £956 £2,896,000 £1,596,000 £812 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £784,000

Zone 1 40 60% 40% 2,038.8 £1,300,000 £2,792,000 £1,492,000 £732 £3,330,000 £2,030,000 £996 £2,953,000 £1,653,000 £811 16.0 £1,318,561 £79,114 £131,856 £1,200 £32,000 £1,562,731 £82,485 £1,645,216 £1,045,000

Zone 2 20 50% 50% 1,235.0 £1,300,000 £889,000 -£411,000 -£333 £1,151,000 -£149,000 -£121 £1,118,000 -£182,000 -£147 10.0 £824,101 £49,446 £82,410 £750 £20,000 £976,707 £51,553 £1,028,260 £577,000

Zone 2 30 50% 50% 1,638.8 £1,300,000 £1,200,000 -£100,000 -£61 £1,593,000 £293,000 £179 £1,543,000 £243,000 £148 15.0 £1,236,151 £74,169 £123,615 £1,125 £30,000 £1,465,060 £77,330 £1,542,390 £866,000

Zone 2 40 50% 50% 1,699.0 £1,300,000 £1,156,000 -£144,000 -£85 £1,678,000 £378,000 £222 £1,613,000 £313,000 £184 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,154,000

Zone 2 20 60% 40% 1,482.0 £1,300,000 £1,157,000 -£143,000 -£96 £1,368,000 £68,000 £46 £1,341,000 £41,000 £28 8.0 £659,280 £39,557 £65,928 £600 £16,000 £781,365 £41,243 £822,608 £462,000

Zone 2 30 60% 40% 1,966.5 £1,300,000 £1,579,000 £279,000 £142 £1,893,000 £593,000 £302 £1,852,000 £552,000 £281 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £693,000

Zone 2 40 60% 40% 2,038.8 £1,300,000 £1,570,000 £270,000 £132 £1,988,000 £688,000 £337 £1,936,000 £636,000 £312 16.0 £1,318,561 £79,114 £131,856 £1,200 £32,000 £1,562,731 £82,485 £1,645,216 £923,000

Zone 3 30 60% 40% 1,966.5 £750,000 £769,000 £19,000 £10 £973,000 £223,000 £113 £1,125,000 £375,000 £191 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £693,000

Zone 3 40 60% 40% 2,038.8 £750,000 £687,000 -£63,000 -£31 £959,000 £209,000 £103 £1,162,000 £412,000 £202 16.0 £1,318,561 £79,114 £131,856 £1,200 £32,000 £1,562,731 £82,485 £1,645,216 £923,000

Zone 3 50 60% 40% 2,281.5 £750,000 £790,000 £40,000 £18 £1,129,000 £379,000 £166 £1,384,000 £634,000 £278 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,154,000

Zone 3 30 65% 35% 2,130.4 £750,000 £906,000 £156,000 £73 £1,086,000 £336,000 £158 £1,218,000 £468,000 £220 10.5 £865,463 £51,928 £86,546 £788 £21,000 £1,025,725 £54,141 £1,079,866 £606,000

Zone 3 40 65% 35% 2,208.7 £750,000 £844,000 £94,000 £43 £1,080,000 £330,000 £149 £1,259,000 £509,000 £230 14.0 £1,153,741 £69,224 £115,374 £1,050 £28,000 £1,367,390 £72,174 £1,439,564 £808,000

Zone 3 50 65% 35% 2,471.6 £750,000 £978,000 £228,000 £92 £1,277,000 £527,000 £213 £1,499,000 £749,000 £303 17.5 £1,442,333 £86,540 £144,233 £1,313 £35,000 £1,709,419 £90,228 £1,799,647 £1,010,000

Zone 3 30 70% 30% 2,294.3 £750,000 £1,045,000 £295,000 £129 £1,198,000 £448,000 £195 £1,312,000 £562,000 £245 9.0 £741,690 £44,501 £74,169 £675 £18,000 £879,035 £46,398 £925,433 £519,000

Zone 3 40 70% 30% 2,378.6 £750,000 £1,000,000 £250,000 £105 £1,203,000 £453,000 £190 £1,318,000 £568,000 £239 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £693,000

Zone 3 50 70% 30% 2,661.8 £750,000 £1,169,000 £419,000 £157 £1,424,000 £674,000 £253 £1,614,000 £864,000 £325 15.0 £1,236,151 £74,169 £123,615 £1,125 £30,000 £1,465,060 £77,330 £1,542,390 £866,000

Test 1 - 70%AR/30%SO Test 2 - 30%AR/70%SO Test 3 - AH as serviced site Test 4 - Subsidy Required for AH as 100% ARNotional Site Details


17

Figure 4 - Notional 1ha Tile Results - Zones 4, 5 and St Austell

Housing

Market

Area DPH

Market

%

Afford

able %

Total Mkt

Sq m

Benchmark

per ha RV

RV less

benchmark

Theoretical

Max CIL/sq

m RV

RV less

benchmark

Theoretical

Max CIL/sq

m RV

RV less

benchmark

Theoretical

Max CIL/sq

m

No of

Affordable


Contractor

Return Prof Fees

Lifetime

Homes

Allowance

Residual

S106

Total (Exc

Finance

Costs)

Finance

Costs

Total (Inc

Finance

Costs)

Affordable

Rent

Revenue

Zone 4 30 60% 40% 1,966.5 £350,000 £359,000 £9,000 £5 £502,000 £152,000 £77 £783,000 £433,000 £220 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £661,000

Zone 4 40 60% 40% 2,038.8 £350,000 £157,000 -£193,000 -£95 £353,000 £3,000 £1 £723,000 £373,000 £183 16.0 £1,318,561 £79,114 £131,856 £1,200 £32,000 £1,562,731 £82,485 £1,645,216 £882,000

Zone 4 50 60% 40% 2,281.5 £350,000 £142,000 -£208,000 -£91 £388,000 £38,000 £17 £851,000 £501,000 £220 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,102,000

Zone 4 30 70% 30% 2,294.3 £350,000 £592,000 £242,000 £105 £704,000 £354,000 £154 £914,000 £564,000 £246 9.0 £741,690 £44,501 £74,169 £675 £18,000 £879,035 £46,398 £925,433 £496,000

Zone 4 40 70% 30% 2,378.6 £350,000 £420,000 £70,000 £29 £564,000 £214,000 £90 £844,000 £494,000 £208 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £661,000

Zone 4 50 70% 30% 2,661.8 £350,000 £463,000 £113,000 £42 £643,000 £293,000 £110 £993,000 £643,000 £242 15.0 £1,236,151 £74,169 £123,615 £1,125 £30,000 £1,465,060 £77,330 £1,542,390 £827,000

Zone 4 30 80% 20% 2,622.0 £350,000 £830,000 £480,000 £183 £903,000 £553,000 £211 £1,043,000 £693,000 £264 6.0 £494,460 £29,668 £49,446 £450 £12,000 £586,024 £30,932 £616,956 £331,000

Zone 4 40 80% 20% 2,718.4 £350,000 £679,000 £329,000 £121 £777,000 £427,000 £157 £946,000 £596,000 £219 8.0 £659,280 £39,557 £65,928 £600 £16,000 £781,365 £41,243 £822,608 £441,000

Zone 4 50 80% 20% 3,042.0 £350,000 £779,000 £429,000 £141 £901,000 £551,000 £181 £1,135,000 £785,000 £258 10.0 £824,101 £49,446 £82,410 £750 £20,000 £976,707 £51,553 £1,028,260 £551,000

Zone 5 30 60% 40% 1,966.5 £350,000 -£180,000 -£530,000 -£270 £65,000 -£285,000 -£145 £307,000 -£43,000 -£22 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £645,000

Zone 5 40 60% 40% 2,038.8 £350,000 -£368,000 -£718,000 -£352 -£214,000 -£564,000 -£277 £287,000 -£63,000 -£31 16.0 £1,318,561 £79,114 £131,856 £1,200 £32,000 £1,562,731 £82,485 £1,645,216 £860,000

Zone 5 50 60% 40% 2,281.5 £350,000 -£440,000 -£790,000 -£346 -£249,000 -£599,000 -£263 £377,000 £27,000 £12 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,075,000

Zone 5 30 70% 30% 2,294.3 £350,000 £0 -£350,000 -£153 £83,000 -£267,000 -£116 £357,000 £7,000 £3 9.0 £741,690 £44,501 £74,169 £675 £18,000 £879,035 £46,398 £925,433 £484,000

Zone 5 40 70% 30% 2,378.6 £350,000 -£150,000 -£500,000 -£210 -£35,000 -£385,000 -£162 £335,000 -£15,000 -£6 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £645,000

Zone 5 50 70% 30% 2,661.8 £350,000 -£165,000 -£515,000 -£193 -£22,000 -£372,000 -£140 £440,000 £90,000 £34 15.0 £1,236,151 £74,169 £123,615 £1,125 £30,000 £1,465,060 £77,330 £1,542,390 £807,000

Zone 5 30 80% 20% 2,622.0 £350,000 £175,000 -£175,000 -£67 £230,000 -£120,000 -£46 £409,000 £59,000 £23 6.0 £494,460 £29,668 £49,446 £450 £12,000 £586,024 £30,932 £616,956 £323,000

Zone 5 40 80% 20% 2,718.4 £350,000 £67,000 -£283,000 -£104 £141,000 -£209,000 -£77 £383,000 £33,000 £12 8.0 £659,280 £39,557 £65,928 £600 £16,000 £781,365 £41,243 £822,608 £430,000

Zone 5 50 80% 20% 3,042.0 £350,000 £107,000 -£243,000 -£80 £200,000 -£150,000 -£49 £498,000 £148,000 £49 10.0 £824,101 £49,446 £82,410 £750 £20,000 £976,707 £51,553 £1,028,260 £538,000

Zone 5 30 100% 0% 3,277.5 £350,000 £506,000 £156,000 £48 £506,000 £156,000 £48 £506,000 £156,000 £48 0.0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Zone 5 40 100% 0% 3,398.0 £350,000 £473,000 £123,000 £36 £473,000 £123,000 £36 £473,000 £123,000 £36 0.0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Zone 5 50 100% 0% 3,802.5 £350,000 £622,000 £272,000 £72 £622,000 £272,000 £72 £622,000 £272,000 £72 0.0 £0 £0 £0 £0 £0 £0 £0 £0 £0

St Austell 30 60% 40% 1,966.5 £350,000 £263,000 -£87,000 -£44 £383,000 £33,000 £17 £724,000 £374,000 £190 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £645,000

St Austell 40 60% 40% 2,038.8 £350,000 -£14,000 -£364,000 -£179 £150,000 -£200,000 -£98 £606,000 £256,000 £126 16.0 £1,318,561 £79,114 £131,856 £1,200 £32,000 £1,562,731 £82,485 £1,645,216 £860,000

St Austell 30 70% 30% 2,294.3 £350,000 £496,000 £146,000 £64 £584,000 £234,000 £102 £845,000 £495,000 £216 9.0 £741,690 £44,501 £74,169 £675 £18,000 £879,035 £46,398 £925,433 £484,000

St Austell 40 70% 30% 2,378.6 £350,000 £245,000 -£105,000 -£44 £365,000 £15,000 £6 £707,000 £357,000 £150 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £645,000

St Austell 30 80% 20% 2,622.0 £350,000 £733,000 £383,000 £146 £793,000 £443,000 £169 £965,000 £615,000 £235 6.0 £494,460 £29,668 £49,446 £450 £12,000 £586,024 £30,932 £616,956 £323,000

St Austell 40 80% 20% 2,718.4 £350,000 £498,000 £148,000 £54 £577,000 £227,000 £84 £808,000 £458,000 £168 8.0 £659,280 £39,557 £65,928 £600 £16,000 £781,365 £41,243 £822,608 £430,000

St Austell 30 100% 0% 3,277.5 £350,000 £1,207,000 £857,000 £261 £1,207,000 £857,000 £261 £1,207,000 £857,000 £261 0.0 £0 £0 £0 £0 £0 £0 £0 £0 £0

St Austell 40 100% 0% 3,398.0 £350,000 £1,009,000 £659,000 £194 £1,009,000 £659,000 £194 £1,009,000 £659,000 £194 0.0 £0 £0 £0 £0 £0 £0 £0 £0 £0

Test 1 - 70%AR/30%SO Test 2 - 30%AR/70%SO Test 3 - AH as serviced site Test 4 - Subsidy Required for AH as 100% ARNotional Site Details


18 March 2015

APPENDIX 5 - Case Study Results


19 March 2015

Figure 5 - Case Study Results – Zone 2

Figure 6 - Case Study Results - Zone 3


Case Study Details Test 1 - 70%AR/30%SO

Price

Zone Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross %

Afforda

ble %

Opening

Up costs

per net ha

Benchmark

per gross ha

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

No of

Affordab

le Rent

Units Build Cost

Contractor

Return

Professional

Fees

Lifetime

Homes

Allowance

Residual

S106

Total (Exc

Finance

Costs)

Finance

Costs

Total (Inc

Finance

Costs)

Affordable

Rent

Revenue

2 Higher value small infil l 2 0.07 0.07 100% 50% £0 £1,300,000 £628,571 -£671,429 -£498 £1,028,571 -£271,429 -£201 £1,042,857 -£257,143 -£191 1.0 £86,532 £5,192 £8,653 £75 £2,000 £102,452 £5,413 £107,865 £58,000

2 Higher value small infil l 2 0.07 0.07 100% 40% £0 £1,300,000 £928,571 -£371,429 -£230 £1,242,857 -£57,143 -£35 £1,257,143 -£42,857 -£27 0.8 £69,226 £4,154 £6,923 £60 £1,600 £81,962 £4,330 £86,292 £46,000

2 Higher value small infil l 2 0.07 0.07 100% 30% £0 £1,300,000 £1,214,286 -£85,714 -£45 £1,442,857 £142,857 £76 £1,471,429 £171,429 £91 0.6 £51,919 £3,115 £5,192 £45 £1,200 £61,471 £3,248 £64,719 £35,000

2 higher value town/village windfall 10 0.33 0.33 100% 50% £0 £1,300,000 £815,152 -£484,848 -£339 £1,215,152 -£84,848 -£59 £1,163,636 -£136,364 -£95 5.0 £412,050 £24,723 £41,205 £375 £10,000 £488,353 £25,777 £514,130 £289,000

2 higher value town/village windfall 10 0.33 0.33 100% 40% £0 £1,300,000 £1,121,212 -£178,788 -£104 £1,439,394 £139,394 £81 £1,400,000 £100,000 £58 4.0 £329,640 £19,778 £32,964 £300 £8,000 £390,682 £20,621 £411,303 £231,000

Test 2 - 30%AR/70%SO Test 3 - AH as serviced site Test 4 - Subsidy Required for AH as 100% AR


Price

Zone Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross %

Afforda

ble %

Opening

Up costs

per net ha

Benchmark

per gross ha

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

No of

Affordab

le Rent

Units Build Cost

Contractor

Return

Professional

Fees

Lifetime

Homes

Allowance

Residual

S106

Total (Exc

Finance

Costs)

Finance

Costs

Total (Inc

Finance

Costs)

Affordable

Rent

Revenue

3 Small infil l 2 0.07 0.07 100% 40% £0 £750,000 £510,000 -£240,000 -£132 £750,000 £0 £0 £960,000 £210,000 £115 0.8 £69,226 £4,154 £6,923 £60 £1,600 £81,962 £4,330 £86,292 £46,000

3 Small infil l 3 0.08 0.08 100% 40% £0 £750,000 £506,667 -£243,333 -£119 £786,667 £36,667 £18 £1,080,000 £330,000 £162 1.2 £103,839 £6,230 £10,384 £90 £2,400 £122,943 £6,496 £129,439 £69,000

3 Town/village windfall 10 0.33 0.33 100% 40% £0 £750,000 £699,000 -£51,000 -£28 £891,000 £141,000 £77 £1,044,000 £294,000 £161 4.0 £329,640 £19,778 £32,964 £300 £8,000 £390,682 £20,621 £411,303 £231,000

3 Town/village windfall 50 1.29 1.43 90% 40% £0 £750,000 £925,739 £175,739 £81 £1,150,913 £400,913 £185 £1,258,433 £508,433 £235 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,154,000

3 Town/village windfall 120 2.91 3.43 85% 40% £100,000 £750,000 £808,861 £58,861 £28 £1,024,993 £274,993 £129 £1,129,218 £379,218 £178 48.0 £3,955,682 £237,341 £395,568 £3,600 £96,000 £4,688,191 £247,455 £4,935,646 £2,770,000

3 Urban high density 30 0.50 0.50 100% 40% £50,000 £750,000 £786,000 £36,000 £14 £1,280,000 £530,000 £205 £1,414,000 £664,000 £257 12.0 £825,000 £49,500 £82,500 £900 £24,000 £981,900 £51,619 £1,033,519 £496,000



Price

Zone Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross %

Afforda

ble %

Opening

Up costs

per net ha

Benchmark

per gross ha

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

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RV less

benchmark

Theoretic

al Max

CIL/sq m

No of

Affordab

le Rent

Units Build Cost

Contractor

Return

Professional

Fees

Lifetime

Homes

Allowance

Residual

S106

Total (Exc

Finance

Costs)

Finance

Costs

Total (Inc

Finance

Costs)

Affordable

Rent

Revenue

4 Small infi l l 2 0.07 0.07 100% 40% £0 £350,000 £120,000 -£230,000 -£126 £270,000 -£80,000 -£44 £615,000 £265,000 £145 0.8 £69,226 £4,154 £6,923 £60 £1,600 £81,962 £4,330 £86,292 £44,000

4 Small infi l l 2 0.07 0.07 100% 30% £0 £350,000 £360,000 £10,000 £5 £465,000 £115,000 £54 £735,000 £385,000 £181 0.6 £51,919 £3,115 £5,192 £45 £1,200 £61,471 £3,248 £64,719 £33,000

4 Small infi l l 3 0.08 0.08 100% 40% £0 £350,000 -£66,667 -£416,667 -£204 £160,000 -£190,000 -£93 £626,667 £276,667 £136 1.2 £103,839 £6,230 £10,384 £90 £2,400 £122,943 £6,496 £129,439 £66,000

4 Small infi l l 3 0.08 0.08 100% 30% £0 £350,000 £240,000 -£110,000 -£46 £373,333 £23,333 £10 £733,333 £383,333 £161 0.9 £78,044 £4,683 £7,804 £68 £1,800 £92,399 £4,882 £97,281 £50,000

4 Town/village windfall 10 0.33 0.33 100% 40% £0 £350,000 £285,000 -£65,000 -£36 £438,000 £88,000 £48 £726,000 £376,000 £206 4.0 £329,640 £19,778 £32,964 £300 £8,000 £390,682 £20,621 £411,303 £220,000

4 Town/village windfall 50 1.29 1.43 90% 40% £0 £350,000 £486,189 £136,189 £63 £649,786 £299,786 £139 £897,341 £547,341 £253 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,102,000

4 Town/village windfall 120 2.91 3.43 85% 40% £100,000 £350,000 £386,961 £36,961 £17 £543,989 £193,989 £91 £782,626 £432,626 £203 48.0 £3,955,682 £237,341 £395,568 £3,600 £96,000 £4,688,191 £247,455 £4,935,646 £2,645,000

4 Urban high density 30 0.50 0.50 100% 40% £50,000 £350,000 £60,000 -£290,000 -£112 £480,000 £130,000 £50 £842,000 £492,000 £190 12.0 £825,000 £49,500 £82,500 £900 £24,000 £981,900 £51,619 £1,033,519 £458,000



20


Figure 9 - Case Study Results - Policy 9 sites in Zones 1, 3 and 5


Price

Zone Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross %

Afforda

ble %

Opening

Up costs

per net ha

Benchmark

per gross ha

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

No of

Affordabl

e Rent

Units Build Cost

Contractor

Return

Professional

Fees

Lifetime

Homes

Allowance

Residual

S106

Total (Exc

Finance

Costs)

Finance

Costs

Total (Inc

Finance

Costs)

Affordable

Rent

Revenue

5 Small infi l l 2 0.07 0.07 100% 40% £0 £350,000 -£390,000 -£740,000 -£406 -£270,000 -£620,000 -£340 £180,000 -£170,000 -£93 0.8 £69,226 £4,154 £6,923 £60 £1,600 £81,962 £4,330 £86,292 £43,000

5 Small infi l l 2 0.07 0.07 100% 30% £0 £350,000 -£210,000 -£560,000 -£263 -£120,000 -£470,000 -£221 £210,000 -£140,000 -£66 0.6 £51,919 £3,115 £5,192 £45 £1,200 £61,471 £6,248 £67,719 £32,000

5 Small infi l l 2 0.07 0.07 100% 20% £0 £350,000 -£45,000 -£395,000 -£163 £15,000 -£335,000 -£138 £240,000 -£110,000 -£45 0.4 £34,613 £2,077 £3,461 £30 £800 £40,981 £2,165 £43,146 £22,000

5 Small infi l l 2 0.07 0.07 100% 0% £0 £350,000 £300,000 -£50,000 -£16 £300,000 -£50,000 -£16 £300,000 -£50,000 -£16 - £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Small infi l l 3 0.08 0.08 100% 40% £0 £350,000 -£573,333 -£923,333 -£453 -£440,000 -£790,000 -£388 £173,333 -£176,667 -£87 1.2 £103,839 £6,230 £10,384 £90 £2,400 £122,943 £6,496 £129,439 £65,000

5 Small infi l l 3 0.08 0.08 100% 30% £0 £350,000 -£360,000 -£710,000 -£298 -£240,000 -£590,000 -£248 Not Tested Not Tested £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Small infi l l 3 0.08 0.08 100% 20% £0 £350,000 -£146,667 -£496,667 -£183 -£66,667 -£416,667 -£153 Not Tested Not Tested £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Small infi l l 3 0.08 0.08 100% 0% £0 £350,000 £280,000 -£70,000 -£21 £280,000 -£70,000 -£21 £280,000 -£70,000 -£21 - £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Town/village windfall 10 0.33 0.33 100% 40% £0 £350,000 -£204,000 -£554,000 -£304 -£90,000 -£440,000 -£241 £291,000 -£59,000 -£32 4.0 £329,640 £19,778 £32,964 £300 £8,000 £390,682 £20,621 £411,303 £215,000

5 Town/village windfall 10 0.33 0.33 100% 20% £0 £350,000 £141,000 -£209,000 -£86 £198,000 -£152,000 -£63 Not Tested Not Tested £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Town/village windfall 10 0.33 0.33 100% 0% £0 £350,000 £480,000 £130,000 £43 £480,000 £130,000 £43 £480,000 £130,000 £43 - £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Town/village windfall 50 1.29 1.43 90% 40% £0 £350,000 -£29,300 -£379,300 -£175 £95,601 -£254,399 -£118 £432,570 £82,570 £38 20.0 £1,648,201 £98,892 £164,820 £1,500 £40,000 £1,953,413 £103,106 £2,056,519 £1,075,000

5 Town/village windfall 50 1.29 1.43 90% 20% £0 £350,000 £346,692 -£3,308 -£1 £406,827 £56,827 £20 £576,759 £226,759 £80 10.0 £824,101 £49,446 £82,410 £750 £20,000 £976,707 £51,553 £1,028,260 £538,000

5 Town/village windfall 50 1.29 1.43 90% 0% £0 £350,000 £720,950 £370,950 £105 £720,950 £370,950 £105 £720,950 £370,950 £105 - £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Town/village windfall 120 2.91 3.43 85% 40% £100,000 £350,000 -£112,844 -£462,844 -£218 £9,663 -£340,337 -£160 £336,517 -£13,483 -£6 48.0 £3,955,682 £237,341 £395,568 £3,600 £96,000 £4,688,191 £247,755 £4,935,946 £2,581,000

5 Town/village windfall 120 2.91 3.43 85% 20% £100,000 £350,000 £253,066 -£96,934 -£34 £310,786 -£39,214 -£14 £474,406 £124,406 £44 24.0 £1,977,841 £118,670 £197,784 £1,800 £48,000 £2,344,096 £123,778 £2,467,874 £1,291,000

5 Town/village windfall 120 2.91 3.43 85% 0% £100,000 £350,000 £612,295 £262,295 £74 £612,295 £262,295 £74 £612,295 £262,295 £74 - £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Urban high density 30 0.50 0.50 100% 40% £50,000 £350,000 -£420,000 -£770,000 -£298 -£74,000 -£424,000 -£164 £456,000 £106,000 £41 12.0 £825,000 £49,500 £82,500 £900 £24,000 £981,900 £51,619 £1,033,519 £458,000

5 Urban high density 30 0.50 0.50 100% 20% £50,000 £350,000 £194,000 -£156,000 -£45 £360,000 £10,000 £3 £612,000 £262,000 £76 6.0 £412,500 £24,750 £41,250 £450 £12,000 £490,950 £25,809 £516,759 £229,000

5 Urban high density 30 0.50 0.50 100% 0% £50,000 £350,000 £776,000 £426,000 £99 £776,000 £426,000 £99 £776,000 £426,000 £99 - £0 £0 £0 £0 £0 £0 £0 £0 £0



Price

Zone Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross %

Afforda

ble %

Opening

Up costs

per net ha

Benchmark

per gross ha

RV per gross

ha

RV less

benchmark

Theoretic

al Max

CIL/sq m

RV per gross

ha

RV less

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Theoretic

al Max

CIL/sq m

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ha

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Theoretic

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CIL/sq m

No of

Affordabl

e Rent

Units Build Cost

Contractor

Return

Professional

Fees

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Homes

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Residual

S106

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Costs)

Finance

Costs

Total (Inc

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Affordable

Rent

Revenue

1 Policy 9 site 4 0.11 0.11 100% 75% £0 £1,300,000 £656,250 -£643,750 -£734 £1,566,250 £266,250 £303 £1,067,500 -£232,500 -£265 3.0 £259,596 £15,576 £25,960 £225 £6,000 £307,356 £16,239 £323,595 £196,000

1 Policy 9 site 30 0.86 0.86 100% 65% £0 £1,300,000 £1,275,167 -£24,833 -£20 £2,040,500 £740,500 £603 £1,502,667 £202,667 £165 19.5 £1,607,153 £96,429 £160,715 £1,463 £39,000 £1,904,760 £100,539 £2,005,299 £1,274,000

3 Policy 9 site 4 0.11 0.11 100% 60% £0 £750,000 -£236,250 -£986,250 -£77 £148,750 -£601,250 -£47 £525,000 -£225,000 -£17 2.4 £207,677 £12,461 £20,768 £180 £4,800 £245,885 £12,991 £258,876 £139,000

3 Policy 9 site 30 0.86 0.86 100% 55% £0 £750,000 £85,167 -£664,833 -£459 £414,167 -£335,833 -£232 £653,333 -£96,667 -£67 16.5 £1,359,923 £81,595 £135,992 £1,238 £33,000 £1,611,748 £85,073 £1,696,821 £952,000

5 Policy 9 site 4 0.11 0.11 100% 50% £0 £350,000 -£778,750 -£1,128,750 -£643 -£612,500 -£962,500 -£549 £43,750 -£306,250 -£175 2.0 £173,064 £10,384 £17,306 £150 £4,000 £204,904 £10,826 £215,730 £108,000

5 Policy 9 site 30 0.86 0.86 100% 50% £0 £350,000 -£576,333 -£926,333 -£528 -£409,500 -£759,500 -£433 £151,667 -£198,333 -£113 15.0 £1,236,151 £74,169 £123,615 £1,125 £30,000 £1,465,060 £77,330 £1,542,390 £807,000



21 March 2015

APPENDIX 6 - Allocated Sites Results


22 March 2015

Figure 10 - Allocated Sites Results – Penzance

Figure 11 - Allocated Sites Results - CPR, Helston and Hayle

Figure 12 - Allocated Sites Results - Launceston, St Austell and Falmouth

Case Study Details

Price

Zone Area Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross % %AH

Opening

Up costs

per net ha

Benchmark

per gross

ha

RV per

gross ha

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Contractor

Return

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Lifetime

Homes

Allowance Residual S106

Total (Exc

Finance Costs) Finance Costs

Total (Inc

Finance Costs)

Affordable

Rent Revenue

4 Penzance, Heamoor CC allocated site 510 15.61 23.30 67% 40% £150,000 £250,000 £93,668 -£156,332 -£118 £177,321 -£72,679 -£55 £303,566 £53,566 £40 204.0 £16,811,650 £1,008,699 £1,681,165 £15,300 £408,000 £19,924,814 £1,051,684 £20,976,498 £11,241,000

4 Penzance, Heamoor CC allocated site 510 15.61 23.30 67% 30% £150,000 £250,000 £213,346 -£36,654 -£24 £276,086 £26,086 £17 £370,770 £120,770 £78 153.0 £12,608,738 £756,524 £1,260,874 £11,475 £306,000 £14,943,611 £788,763 £15,732,374 £8,431,000

4 Penzance, Longrock CC allocated site 170 4.80 8.00 60% 40% £100,000 £250,000 £177,228 -£72,772 -£56 £270,515 £20,515 £16 £409,469 £159,469 £124 68.0 £5,603,883 £336,233 £560,388 £5,100 £136,000 £6,641,604 £350,561 £6,992,165 £3,747,000

4 Penzance, Polmennor Road CC allocated site 40 1.02 1.45 70% 40% £0 £350,000 £171,053 -£178,947 -£127 £301,566 -£48,434 -£34 £494,150 £144,150 £103 16.0 £1,318,561 £79,114 £131,856 £1,200 £32,000 £1,562,731 £82,485 £1,645,216 £882,000

4 Penzance, Polmennor Road CC allocated site 40 1.02 1.45 70% 30% £0 £350,000 £330,361 -£19,639 -£12 £427,237 £77,237 £47 £576,509 £226,509 £138 12.0 £988,921 £59,335 £98,892 £900 £24,000 £1,172,048 £61,864 £1,233,912 £661,000

4 Penzance, Polmennor Road CC allocated site 40 1.02 1.45 70% 20% £0 £350,000 £491,433 £141,433 £75 £556,017 £206,017 £110 £658,867 £308,867 £165 8.0 £659,280 £39,557 £65,928 £600 £16,000 £781,365 £41,243 £822,608 £441,000

4 Penzance, Trannack CC allocated site 290 9.70 14.90 65% 40% £125,000 £250,000 £45,686 -£204,314 -£173 £120,572 -£129,428 -£109 £237,416 -£12,584 -£11 116.0 £9,559,566 £573,574 £955,957 £8,700 £232,000 £11,329,797 £598,017 £11,927,814 £6,694,000

4 Penzance, Trannack CC allocated site 290 9.70 14.90 65% 30% £125,000 £250,000 £159,971 -£90,029 -£65 £216,139 -£33,861 -£25 £303,773 £53,773 £39 87.0 £7,169,674 £430,180 £716,967 £6,525 £174,000 £8,497,347 £448,512 £8,945,859 £5,021,000

4 Penzance, Trannack CC allocated site 290 9.70 14.90 65% 20% £125,000 £250,000 £274,261 £24,261 £15 £311,707 £61,707 £39 £370,129 £120,129 £76 58.0 £4,779,783 £286,787 £477,978 £4,350 £116,000 £5,664,898 £299,008 £5,963,906 £3,347,000

4 Penzance, Trannack CC allocated site 290 9.70 14.90 65% 0% £125,000 £250,000 £502,843 £252,843 £128 £502,843 £252,843 £128 £502,843 £252,843 £128 - £0 £0 £0 £0 £0 £0 £0 £0 £0

Test 1 - 70%AR/30%SO Test 2 - 30%AR/70%SO Test 3 - AH as serviced site Test 4 - Subsidy Required for AH as 100% AR

Case Study Details

Price

Zone Area Type Dwgs

Net

Area ha

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Area ha

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Opening

Up costs

per net ha

Benchmark

per gross

ha

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5 CPIR, Tolgus (Phase 2) CC allocated site 280 8.00 10.68 75% 40% £125,000 £250,000 -£219,826 -£469,826 -£295 -£133,855 -£383,855 -£241 £101,659 -£148,341 -£93 112.0 £9,229,926 £553,796 £922,993 £8,400 £224,000 £10,939,114 £577,395 £11,516,509 £6,023,000

5 CPIR, Tolgus (Phase 2) CC allocated site 280 8.00 10.68 75% 30% £125,000 £250,000 -£105,738 -£355,738 -£191 -£41,259 -£291,259 -£157 £131,876 -£118,124 -£64 84.0 £6,922,444 £415,347 £692,244 £6,300 £168,000 £8,204,335 £433,047 £8,637,382 £4,517,000

5 CPIR, Tolgus (Phase 2) CC allocated site 280 8.00 10.68 75% 20% £125,000 £250,000 £8,184 -£241,816 -£114 £48,297 -£201,703 -£95 £162,092 -£87,908 -£41 56.0 £4,614,963 £276,898 £461,496 £4,200 £112,000 £5,469,557 £288,698 £5,758,255 £3,011,000

5 CPIR, Tolgus (Phase 2) CC allocated site 280 8.00 10.68 75% 0% £125,000 £250,000 £222,525 -£27,475 -£10 £222,525 -£27,475 -£10 £222,525 -£27,475 -£10 - £0 £0 £0 £0 £0 £0 £0 £0 £0

5 Helston, Clodgey Lane CC allocated site 500 14.30 20.52 70% 40% £125,000 £250,000 -£147,613 -£397,613 -£269 -£74,559 -£324,559 -£219 £121,096 -£128,904 -£87 200.0 £16,482,010 £988,921 £1,648,201 £15,000 £400,000 £19,534,132 £1,031,063 £20,565,195 £10,754,000

5 Helston, Clodgey Lane CC allocated site 500 14.30 20.52 70% 30% £125,000 £250,000 -£43,953 -£293,953 -£170 £10,515 -£239,485 -£139 £153,627 -£96,373 -£56 150.0 £12,361,508 £741,690 £1,236,151 £11,250 £300,000 £14,650,599 £773,297 £15,423,896 £8,066,000

5 Helston, Clodgey Lane CC allocated site 500 14.30 20.52 70% 20% £125,000 £250,000 £56,173 -£193,827 -£98 £90,538 -£159,462 -£81 £186,158 -£63,842 -£32 100.0 £8,241,005 £494,460 £824,101 £7,500 £200,000 £9,767,066 £515,532 £10,282,598 £5,377,000

5 Helston, Clodgey Lane CC allocated site 500 14.30 20.52 70% 0% £125,000 £250,000 £251,221 £1,221 £0 £251,221 £1,221 £0 £251,221 £1,221 £0 - £0 £0 £0 £0 £0 £0 £0 £0 £0

4 Hayle, Penpol CC allocated site 220 5.75 9.58 60% 40% £125,000 £250,000 £22,056 -£227,944 -£201 £120,115 -£129,885 -£114 £266,879 £16,879 £15 88.0 £7,252,084 £435,125 £725,208 £6,600 £176,000 £8,595,017 £453,668 £9,048,685 £4,849,000

4 Hayle, Penpol CC allocated site 220 5.75 9.58 60% 30% £125,000 £250,000 £135,241 -£114,759 -£87 £209,287 -£40,713 -£31 £321,902 £71,902 £54 66.0 £5,439,063 £326,344 £543,906 £4,950 £132,000 £6,446,263 £340,251 £6,786,514 £3,637,000

4 Hayle, Penpol CC allocated site 220 5.75 9.58 60% 20% £125,000 £250,000 £249,095 -£905 -£1 £298,459 £48,459 £32 £376,925 £126,925 £84 44.0 £3,626,042 £217,563 £362,604 £3,300 £88,000 £4,297,509 £226,834 £4,524,343 £2,425,000


Case Study Details

Price

Zone Area Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross % %AH

Opening

Up costs

per net ha

Benchmark

per gross

ha

RV per

gross ha

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RV per

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RV less

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No of

Affordable


Contractor

Return

Professional

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Lifetime

Homes


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Affordable

Rent Revenue

4 Launceston, Withnoe CC allocated site 375 10.71 15.30 70% 40% £125,000 £250,000 £165,622 -£84,378 -£57 £264,512 £14,512 £10 £441,614 £191,614 £129 150.0 £12,361,508 £741,690 £1,236,151 £11,250 £300,000 £14,650,599 £773,297 £15,423,896 £8,266,000

4 Launceston, Withnoe CC allocated site 375 10.71 15.30 70% 30% £125,000 £250,000 £306,393 £56,393 £32 £392,325 £142,325 £82 £548,248 £298,248 £172 112.5 £9,271,288 £556,277 £927,129 £8,438 £225,000 £10,988,132 £579,983 £11,568,115 £6,199,000

SA St Austell, Trewiddle CC allocated site 540 15.47 22.10 70% 40% £175,000 £250,000 £37,645 -£212,355 -£143 £108,464 -£141,536 -£95 £282,458 £32,458 £22 216.0 £17,800,571 £1,068,034 £1,780,057 £16,200 £432,000 £21,096,862 £1,113,548 £22,210,410 £11,902,000

SA St Austell, Trewiddle CC allocated site 540 15.47 22.10 70% 30% £175,000 £250,000 £163,324 -£86,676 -£50 £216,438 -£33,562 -£19 £346,934 £96,934 £56 162.0 £13,350,428 £801,026 £1,335,043 £12,150 £324,000 £15,822,646 £835,161 £16,657,807 £8,927,000

SA St Austell, Trewiddle CC allocated site 540 15.47 22.10 70% 20% £175,000 £250,000 £289,003 £39,003 £20 £324,412 £74,412 £38 £411,409 £161,409 £82 108.0 £8,900,285 £534,017 £890,029 £8,100 £216,000 £10,548,431 £556,774 £11,105,205 £5,951,000

3 Falmouth, Falmouth North CC allocated site 350 10.00 14.00 71% 40% £125,000 £300,000 £453,098 £153,098 £101 £593,361 £293,361 £193 £655,260 £355,260 £234 140.0 £11,537,407 £692,244 £1,153,741 £10,500 £280,000 £13,673,892 £721,744 £14,395,636 £8,080,000

3 Falmouth, College Valley CC allocated site 255 7.30 10.40 70% 40% £125,000 £300,000 £468,174 £168,174 £113 £611,188 £311,188 £209 £673,881 £373,881 £251 102.0 £8,405,825 £504,350 £840,583 £7,650 £204,000 £9,962,407 £525,842 £10,488,249 £5,887,000



23

Figure 13 - Allocated Sites Results - Bodmin

Case Study Details

Price

Zone Area Type Dwgs

Net

Area ha

Gross

Area ha

Net to

Gross % %AH

Opening

Up costs

per net ha

Benchmark

per gross

ha

RV per

gross ha

RV less

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Theoretical

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RV per

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Contractor

Return

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Rent Revenue

4 Bodmin, Callywith Urban VillageCC allocated site 600 20.30 29.00 70% 40% £175,000 £250,000 £26,890 -£223,110 -£178 £103,209 -£146,791 -£117 £214,769 -£35,231 -£28 240.0 £19,778,412 £1,186,705 £1,977,841 £18,000 £480,000 £23,440,958 £1,237,276 £24,678,234 £13,225,000

4 Bodmin, Callywith Urban VillageCC allocated site 600 20.30 29.00 70% 30% £175,000 £250,000 £127,020 -£122,980 -£84 £184,259 -£65,741 -£45 £267,930 £17,930 £12 180.0 £14,833,809 £890,029 £1,483,381 £13,500 £360,000 £17,580,718 £927,957 £18,508,675 £9,919,000

4 Bodmin, Callywith Urban VillageCC allocated site 600 20.30 29.00 70% 20% £175,000 £250,000 £227,150 -£22,850 -£14 £265,310 £15,310 £9 £321,090 £71,090 £42 120.0 £9,889,206 £593,352 £988,921 £9,000 £240,000 £11,720,479 £618,638 £12,339,117 £6,612,000

4 Bodmin, Callywith Urban VillageCC allocated site 600 20.30 29.00 70% 0% £175,000 £250,000 £427,411 £177,411 £85 £427,411 £177,411 £85 £427,411 £177,411 £85 - £0 £0 £0 £0 £0 £0 £0 £0 £0

4 Bodmin, St Lawrences UE CC allocated site 790 22.57 32.20 70% 40% £175,000 £250,000 £59,874 -£190,126 -£128 £153,025 -£96,975 -£65 £288,912 £38,912 £26 316.0 £26,041,576 £1,562,495 £2,604,158 £23,700 £632,000 £30,863,928 £1,629,080 £32,493,008 £17,413,000

4 Bodmin, St Lawrences UE CC allocated site 790 22.57 32.20 70% 30% £175,000 £250,000 £182,565 -£67,435 -£39 £252,428 £2,428 £1 £354,476 £104,476 £60 237.0 £19,531,182 £1,171,871 £1,953,118 £17,775 £474,000 £23,147,946 £1,221,810 £24,369,756 £13,060,000

4 Bodmin, St Lawrences UE CC allocated site 790 22.57 32.20 70% 20% £175,000 £250,000 £305,521 £55,521 £28 £352,096 £102,096 £51 £420,040 £170,040 £86 158.0 £13,020,788 £781,247 £1,302,079 £11,850 £316,000 £15,431,964 £814,540 £16,246,504 £8,706,000

4 Bodmin, Castle St CC allocated site 250 7.14 10.20 70% 40% £125,000 £250,000 £127,256 -£122,744 -£82 £231,347 -£18,653 -£13 £382,079 £132,079 £89 100.0 £8,241,005 £494,460 £824,101 £7,500 £200,000 £9,767,066 £515,532 £10,282,598 £5,510,000

4 Bodmin, Castle St CC allocated site 250 7.14 10.20 70% 30% £125,000 £250,000 £266,976 £16,976 £10 £345,044 £95,044 £55 £458,093 £208,093 £120 75.0 £6,180,754 £370,845 £618,075 £5,625 £150,000 £7,325,300 £386,649 £7,711,949 £4,133,000



24 March 2015

APPENDIX 7 - ORS House Price Update – July 2014


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APPENDIX 8 - ORS House Price Response To Feedback (October 2014)


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Documents

Viability Study Refresh Technical Annex Report to …...Viability Study – Refresh Technical Annex Report to Cornwall Council Three Dragons March 2015 Marked set by jmccabe ID.01.CC.3.2.1