Report on the work of the 2021 Affordable Housing Investment Benchmarks Working Group
Report on the work of the 2021 Affordable Housing Investment Benchmarks Working Group.
Illustrative Examples
The following example relates to an RSL social rent project in a ‘city and urban’ area, with homes having automatic fire suppression systems and zero emissions heating systems:
| Number of units (a) |
6 |
| Number of bedspaces (b) |
22 |
| Average bedspaces (b)/(a) |
3.7 |
|
|
|
| Total proposed grant (c) |
£515,500 |
| Average proposed grant per unit (c)/(a) |
£85,917 |
|
|
|
| Three-person equivalent conversion factor |
106.3 |
| Apply conversion factor to average proposed grant per unit (£85,917 divided by 106.3 multiplied by 100) (d) |
£80,825 |
|
|
|
| Compare (d) with the relevant three-person equivalent Affordable Housing Investment Benchmark of £85,000 per unit (i.e. £78,000 (baseline assumption), plus £3,000 for the installation of automatic fire suppression systems, plus £4,000 for the installation of zero emissions heating systems) |
Project under benchmark at £80,825 per unit and therefore follows a streamlined application and approval process |
The following example relates to a local authority social rent project in a ‘city and urban’ area, with homes having automatic fire suppression systems and zero emissions heating systems:
| Number of units (a) |
6 |
| Number of bedspaces (b) |
22 |
| Average bedspaces (b)/(a) |
3.7 |
|
|
|
| Total proposed grant (c) |
£515,500 |
| Average proposed grant per unit (c)/(a) |
£85,917 |
|
|
|
| Three-person equivalent conversion factor |
106.3 |
| Apply conversion factor to average proposed grant per unit (£85,917 divided by 106.3 multiplied by 100) (d) |
£80,825 |
|
|
|
| Compare (d) with the relevant three-person equivalent Affordable Housing Investment Benchmark of £78,500 per unit (i.e. £71,500 (baseline assumption), plus £3,000 for the installation of automatic fire suppression systems, plus £4,000 for the installation of zero emissions heating systems) |
Project over benchmark at £80,825 per unit and therefore follows a more detailed appraisal approval process |
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