This guidance note aims to assist practitioners in the approach to the valuation of affordable housing development land. The focus is on the valuation of land for housing and flats but the principles are broadly adaptable for other types of affordable housing, such as special needs and sheltered housing accommodation.
This guidance note applies only in England and Wales. It was written specifically with regard to practice in England where affordable housing provision is governed through the planning system. Where it differs, the practice in Wales is noted separately. In Scotland and Northern Ireland affordable housing provision is governed through housing policy. Although provisions there may differ in detail, the valuation approach is essentially the same and this guidance note may be adapted as necessary.
What's covered?
- What is affordable housing?
- Establishing the facts
- Assessing development potential
- Valuing by the comparison method
- Valuing by the residual method
- Establishing the GDV
- External subsidies
- Section 106 affordable units
- Internal and cross subsidy
- Establishing the development costs
- Affordable housing delivered outside the HCA’s regulatory framework
- Establishing the land value
- Reporting the valuation
Published date: 27 April 2016