What is Affordable Housing?
Although there are several definitions of affordable housing the National Planning Policy Framework (NPPF) published in July 2018 defines affordable housing as;
“Affordable housing: housing for sale or rent, for those whose needs are not met by the market (including housing that provides a subsidised route to home ownership and/or is for essential local workers); and which complies with one or more of the following definitions:”NPPF (2018), Annex 2: Glossary
How is Affordable Housing Valued?
How affordable housing is valued depends on the tenure. Unlike market housing which is valued without regard to income many tenures of affordable housing are valued on a cashflow basis. This means that it is not just as simple as discounting from an equivalent market housing property. Many factors need to be taken into consideration to arrive at an accurate market value for affordable housing such as the management and maintenance costs for units, annual rent increases and “staircasing” for shared ownership units.
How Can Pointe Michel Help With Your Affordable Housing Valuations?
At Pointe Michel I can help you to:
- Decide which affordable tenures are most appropriate for your development
- Provide a valuation of the affordable tenures which can then be plugged into your own development appraisal model.
- Assist you in finding the right balance of affordable housing provision for your scheme (conduct a development viability assessment)
Affordable Housing valuations start at just £625+VAT per tenure and unit type. If you would like to get in touch about your affordable housing valuation needs please contact me.
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