The build costs have also accounted for the revised unit sizes, as discussed earlier. these new build cost data are an update using the same source (BCIS) as was used for the September 2015 report (EBD. 2), we would accept this change and the results are shown in Table 6.1 below. Sales costs applied only to market housing Gross Development Value We would agree with the requested change because the affordable housing stock is usually transferred over to a Registered Provider partner. The results are included in Table 6.1 below. Updated infrastructure/s106 on strategic sites The infrastructure S106 costs have been updated and are listed in Appendix D. Those items in the updated list which have been costed as S106 items have been applied to the GLH and LMA schemes as follows. For GLH, the updated infrastructure costs are split at the same proportion and time as the previously appraised infrastructure costs that were informed by the PBA April 2014 Strategic Sites study (EBD.21). For the LMA site, we have considered the infrastructure trajectory thresholds presented in Long Marston Airfield Garden Village Expression of Interest (July 2016, p.35) document. This shows trigger points for large infrastructure like the South Western Relief Road and the new secondary school to occur throughout the whole life of the project, and therefore we have spread the cost equally during the whole build out period. Since these costs are relying on the latest estimates, we would agree with this change and the results are included in Table 6.1 below. Land purchase costs / fees: Surveyors fees @ 1%, legal fees @ 0.8%, SDLT at latest HMRC rate Surveyors’ fee at 1% has already been tested in the PBA September 2015 reported findings, so we would agree to continue applying this assumption. The stamp duty rates have changed since the PBA September 2015 report was published and therefore we would accept this update to the model. We do not with increasing legal fees from 0.75% to 0.8% of land value to allow for VAT, as argued by Turley. This is due to treating all costs as exclusive of VAT being standard practise in development appraisals. This is because VAT on goods and services is reclaimed from the development companies’ VAT bills. Nonetheless we have sensitivity tested this increase and the results are shown in Table 6.1 below.
The build costs have also accounted for the revised unit sizes, as discussed earlier. these new build cost data are an update using the same source (BCIS) as was used for the September 2015 report (EBD. 2), we would accept this change and the results are shown in Table 6.1 below. Sales costs applied only to market housing Gross Development Value We would agree with the requested change because the affordable housing stock is usually transferred over to a Registered Provider partner. The results are included in Table 6.1 below. Updated infrastructure/s106 on strategic sites The infrastructure S106 costs have been updated and are listed in Appendix D. Those items in the updated list which have been costed as S106 items have been applied to the GLH and LMA schemes as follows. For GLH, the updated infrastructure costs are split at the same proportion and time as the previously appraised infrastructure costs that were informed by the PBA April 2014 Strategic Sites study (EBD.21). For the LMA site, we have considered the infrastructure trajectory thresholds presented in Long Marston Airfield Garden Village Expression of Interest (July 2016, p.35) document. This shows trigger points for large infrastructure like the South Western Relief Road and the new secondary school to occur throughout the whole life of the project, and therefore we have spread the cost equally during the whole build out period. Since these costs are relying on the latest estimates, we would agree with this change and the results are included in Table 6.1 below. Land purchase costs / fees: Surveyors fees @ 1%, legal fees @ 0.8%, SDLT at latest HMRC rate Surveyors’ fee at 1% has already been tested in the PBA September 2015 reported findings, so we would agree to continue applying this assumption. The stamp duty rates have changed since the PBA September 2015 report was published and therefore we would accept this update to the model. We do not with increasing legal fees from 0.75% to 0.8% of land value to allow for VAT, as argued by Turley. This is due to treating all costs as exclusive of VAT being standard practise in development appraisals. This is because VAT on goods and services is reclaimed from the development companies’ VAT bills. Nonetheless we have sensitivity tested this increase and the results are shown in Table 6.1 below.
PBA%20Review%20of%20Values%20Scenario%20Testing%20FINAL.docx