Publication - Corporate report

Report on the work of the 2021 Affordable Housing Investment Benchmarks Working Group

Published: 10 Sep 2021

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
Annex E

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