BASE HEADER

Gwrthwynebu

ID sylw: 63283

Derbyniwyd: 26/07/2013

Ymatebydd: Home Builders Federation Ltd

The viability assessment appears to use a reduced profit margin of 6% for the affordable housing. The validity of this is questionable and suggests that a figure of 20% of GDV is reasonable.
On land values the Harman Report recommends a premium over current value, plus the use of a viability cushion. The appropriate premium is to be determined locally. The premium used by BNP Paribas is 20% above CUV.
The Harman Report recognises that green field and strategic sites will necessitate the greater use of benchamarks. The correct benchmarking of land values is critical given that 66% of the RDS is green field.