Real Estate Investment and Development

DEVELOPMENT.xlsx

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RLV_sheet

Site Name:	Exercise RLV spreadsheet			RESIDUAL LAND VALUATION MODEL
Site Address: Southmead,Bristol	XXXXX			Author: Professor Stephen Walker© adjusted by Ytzen van der Werf
	HOUSING DEVELOPMENT MIX Steve Walker: DEVELOPMENT CONTENT & MIX: This part of the model allows the user to specify the housing content of the proposed development. There are 4 separate sections to record: Market Homes for Sale [B5:B18]; Affordable Homes for Sale [i.e. HomeBuy] [B23:B36]; Affordable Homes for Rent [B42:B55]; and Market Homes for Rent [B60:B64 e.g. Student Housing]. You are advised to describe your development; overwrite the default descriptors to record the proposed housing types and mix.		Gross Internal Floor Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Building Costs			Total p0070441: WARNING. Do not enter data in these cells [H5:H18]. Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.	Sale Price p0070441: SALE PRICE: The sale price is the expected price at which each housing type is to be sold. Data can be accessed from a number of sources including housebuilders, estate agents, and from published sources including local newspapers and The Land Registry (all these can usually be accessed online). There are a number of more specialised online sources that are recommended including www.upmystreet.com and www.yell.com/property. Be aware of the basis of the data you use: there are important differences between transactions; offer prices; transactions only funded with a mortgage.			Years		Gross Development Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N5:N18]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or where necessary it is the capitalised value of the Annual Rental Flow of a particular use.
	Market Homes for Sale	Nos units	m²/unit	£/m² Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (BCIS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	£/unit Steve Walker: WARNING. Do not enter data in these cells (F5:F18). Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).		Costs [£]	/unit [£]			purchase		Value [£]
	3 stories	25	110.0	1200.00	£132,000		£3,300,000	£190,000			0		£4,750,000
	2 bedroom aprtments	25	100.0	1100.00	£110,000		£2,750,000	£250,000			0		£6,250,000
	3 bed room apartments	25	120.0	1100.00	£132,000		£3,300,000	£300,000			0		£7,500,000
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0						£0
					£0		£0						£0
					£0		£0						£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
	Total Market [Numbers]	75		1		Sub-Total	£9,350,000				0	Sub-Total	£18,500,000
	% of Total Scheme	75.00%	8250.00
			Gross Internal Floor Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Building Costs			Total p0070441: WARNING. Do not enter data in these cells (H23:H36). Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.	Sale Price			Years		Gross Development Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N23:N36]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.
	Affordable Homes for Sale	Nos units	m²/unit	£/m² Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (RICS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	£/unit Steve Walker: WARNING. Do not enter data in these cells [F23:F36]. Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).		Costs [£]	/unit [£]			purchase		Value [£]
	2 bedroom aprtments	25	100.0	1100.00	£110,000		£2,750,000	£200,000			0		£5,000,000
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0						£0
					£0		£0						£0
					£0		£0						£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
					£0		£0				0		£0
	Total Affordable Homes for Sale [Numbers]	25		1		Sub-Total	£2,750,000				0	Sub-Total	£5,000,000
	% of Total Scheme	25.00%	2500.00
			Gross Floor Steve Walker: This refers to gross floorarea (in square metres) for each type of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Building	Costs		Total p0070441:	Weekly sr-walker: WEEKLY RENTS: If homes are rented then it is normal to express the rent as a sum paid weekly. It is important that these weekly rents are supported by locally-generated evidence [i.e. from housing needs surveys, from RSLs and government sources]. Affordable rents are typically substantially lower than market levels.	Rents/m² p0070441: RENTS Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column M as gross development value. For principal commercial uses rents per square metre (£) are found in The Propert Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	Initial Yield p0070441: THE YIELD The yield is basically a measure of risk and reward in the market. Thus, if yields rise this signifies that the risk to collecting rents from a property has risen, reflecting that the market conditions have deteriorated in someway (e.g. from higher voids or longer duration of vacancies, or an over supply of similar properties or a fall in consumers' demand). It also means that in demand terms, the value of the property is now worth less. If yields fall this signifies that the risk to collecting the rents from a property has fallen, relecting that the market conditions have improved in someway (e.g. from higher consumer spending, from a reduction in voids and shorter duration of vacancies, or a stronger directive from Government regarding restrictions on future planning opportunities (i.e. PPS6) or the benefit of complementary or autonomous investment locally). These factors usually lead to a rise in capital values. Data on yields is available from the Valuation Office who publish biannually The Property Marklet Report. Other sources to try include managing agents (e.g. usually Chartered Surveyors and Valuers); specialists Chartered Surveying practices publish reports on the different sectors of the market: retailing, offices, industrial/warehousing. The best data for the housing sector is published by the Housing Finance Review and from specialist research companies such as London Residential Research Limited. WARNING. A small change in the yield will result in large change in capital values. If in doubt, and to experiment, model the effect of using two or three different yield levels!	Years	Annual Stephen Walker.: ANNUAL RENTAL INCOME WARNING. Do not enter data into these calls (L33 to L42). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre by the gross Floorarea (adjusted by applyting a 0.9 factor) multiplied by the number of units to be built.	Gross Development Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [M33:M42]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.
			Gross Internal Floor Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Building Costs			Total Ytzen Van Der Werf: WARNING. Do not enter data in these cells (H42:H55). Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.	Weekly Ytzen Van Der Werf: WEEKLY RENTS: If homes are rented then it is normal to express the rent as a sum paid weekly. It is important that these weekly rents are supported by locally-generated evidence [i.e. from housing needs surveys, from Lettings Agencies and government sources]. Market rent levels are higher than affordable rent levels, but the private rental market is heavily influenced by Local Housing Allowances which set the upper limit than central Government will make to a household's weekly rent. These are reviewed on a annual basis.	Rents/m² Ytzen Van Der Werf: RENTS: Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column N as gross development value. For principal commercial uses rents per square metre (£) are found in The Property Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	Initial Yield		Annual Ytzen Van Der Werf: ANNUAL RENTAL INCOME WARNING. Do not enter data into these cells M42:M55). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre by the gross Floorarea (adjusted by applying a 0.9 factor) multiplied by the number of units to be built.	Gross Development Ytzen Van Der Werf: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N42:N55]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.
	Affordable Homes for Rent	Nos units	m²/unit	£/m² Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (RICS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	£/unit Steve Walker: WARNING. Do not enter data in these cells [F42:F55]. Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).		Costs [£]	Rent(£)	[£]	%pa	purchase	Rent Flow [£]	Value [£]
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
					£0		£0		0.0		0.00	£0	£0
	Total Affordable Homes for Rent [Numbers]	0		1		Sub-Total	£0			Sub-Total		£0	£0
	% of Total Scheme	0.00%	0.00
			Gross Internal Floor Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Building Costs			Total p0070441: WARNING. Do not enter data in these cells (H60:H64]. Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.	Weekly sr-walker: WEEKLY RENTS: If homes are rented then it is normal to express the rent as a sum paid weekly. It is important that these weekly rents are supported by locally-generated evidence [i.e. from housing needs surveys, from Lettings Agencies and government sources]. Market rent levels are higher than affordable rent levels, but the private rental market is heavily influenced by Local Housing Allowances which set the upper limit than central Government will make to a household's weekly rent. These are reviewed on a annual basis.	Rents/m² p0070441: RENTS Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column M as gross development value. For principal commercial uses rents per square metre (£) are found in The Propert Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	Initial Yield p0070441: THE YIELD The yield is basically a measure of risk and reward in the market. Thus, if yields rise this signifies that the risk to collecting rents from a property has risen, reflecting that the market conditions have deteriorated in someway (e.g. from higher voids or longer duration of vacancies, or an over supply of similar properties or a fall in consumers' demand). It also means that in demand terms, the value of the property is now worth less. If yields fall this signifies that the risk to collecting the rents from a property has fallen, relecting that the market conditions have improved in someway (e.g. from higher consumer spending, from a reduction in voids and shorter duration of vacancies, or a stronger directive from Government regarding restrictions on future planning opportunities (i.e. PPG6) or the benefit of complementary or autonomous investment locally). These factors usually lead to a rise in capital values. Data on yields is available from the Valuation Office who publish biannually The Property Market Report. Other sources to try include managing agents (e.g. usually Chartered Surveyors and Valuers); specialists Chartered Surveying practices publish reports on the different sectors of the market: retailing, offices, industrial/warehousing. The best data for the housing sector is published by the Housing Finance Review and from specialist research companies such as London Residential Research Limited. WARNING. A small change in the yield will result in large changes in capital values. If in doubt, and to experiment, model the effect of using two or three different yield levels!	Years	Annual Stephen Walker.: ANNUAL RENTAL INCOME WARNING. Do not enter data into these cells M60:M64). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre by the gross Floorarea (adjusted by applying a 0.9 factor) multiplied by the number of units to be built.	Gross Development Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N60:N65]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.
	Market Homes for Rent	Nos units Steve Walker: This describes the number of houses, flats or maisonnettes that are to be built.	m²/unit	£/m² Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (RICS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	£/unit Steve Walker: WARNING. Do not enter data in these cells [E47:E51]. Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).		Costs [£]	Rent(£)	[£]	%pa	purchase	Rent Flow [£]	Value [£]
	Market Rent Type A				£0		£0		0.0		0.00	£0	£0
	Market Rent Type B				£0		£0		0.0		0.00	£0	£0
	Market Rent Type C				£0		£0		0.0		0.00	£0	£0
	Market Rent Type D				£0		£0		0.0		0.00	£0	£0
	Market Rent Type E				£0		£0		0.0		0.00	£0	£0
	Total Market Homes for Rent [Numbers]	0				Sub-Total	£0			Sub-Total		£0	£0
	% of Total Scheme	0.00%	0
	Overall Total Housing Numbers	100					£12,100,000				0		£23,500,000
	BUSINESS DEVELOPMENT MIX Steve Walker: DEVELOPMENT CONTENT & MIX: Specify the commercial content of the proposed development in cells [A57:A67] . Simply click on these cells to enter a more accurate description of the proposed development and mix.		Gross Internal Floor Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Net Internal Floor p0070441: NET FLOOR AREA The gross extenal floor area is adjusted by applying an efficiency ratio [see cells K86:K90] to compute net internal, lettable floor area. If you do not apply a rate, the model will automatically apply a 0.9 efficiency ratio. To apply a selected efficiency ratio simply input an =sign, click on the relevant gross floor area, enter * and then click on the chosen efficiency ratio in cells K86 to K90. The model uses the Net Internal Floor Area as one of the variables in calculating annual rental flow (e.g. income) for each business use.		Costs/m²	Total p0070441: TOTAL COSTS WARNING. Do not enter data in these cells (H70:H80). Total costs are automatically generated by the model. These represent the product of the built gross floor area multiplied by the unit costs of building (£).		Rents/m² p0070441: RENTS Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column M as gross development value. For principal commercial uses rents per square metre (£) are found in The Propert Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	Initial Yield p0070441: The yield is basically a measure of risk and reward in the market. If yields rise this signifies that the risk to collecting rents from a property has risen, reflecting that market conditions have deteriorated in someway (e.g. from higher voids or longer duration of vacancies, or an over supply of similar properties or a fall in consumers' demand). It also means that in demand terms, the value of the property is now worth less. If yields fall this signifies that the risk to collecting the rents from a property has fallen, reflecting that market conditions have improved in someway (e.g. from higher consumer spending, from a reduction in voids and shorter duration of vacancies, or a stronger directive from Government regarding restrictions on future planning opportunities (i.e. PPG6) or the benefit of complementary or autonomous investment locally). These factors usually lead to a rise in capital values. Data on yields is available from the Valuation Office who publish biannually The Property Marklet Report. Other sources to try include managing agents (e.g. usually Chartered Surveyors and Valuers); specialists Chatered Surveying practices publish reports on the different sectors of the market: retailing, offices, industrial/warehousing. The best data for the housing sector is published by the Housing Finance Review and from specialist research companies such as London Residential Research Limited. WARNING. A small change in the yield will result in large changes in capital values, and hence on the land bid. If in doubt, and to experiment, model the effect of using two different yields!	Years	Annual Stephen Walker.: WARNING. Do not enter data into these cells (M70:M80). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre (£) by the net floorarea of each land use.	Gross Development Stephen Walker.: WARNING. Do not enter data into these cells (N70:N80]. Development Value is generated automatically by the model. Development Value isa capitalised value based on the product of the reciprocal of the yield (i.e. Year's Purchase)and the Annual Rental Flow (£).
	Business Uses		Area (m²)	Area (m²)		£ Steve Walker: COSTS PER SQUARE METRE. This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (BCIS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	Costs [£]		[£]	%pa	purchase	Rental Flow [£]	Value [£]
	Office Block 1		2500			1500	£3,750,000		450	6.00	16.7	£1,012,500	£16,875,000
	Office Block 2						£0				0.0	£0	£0
	Retail		2500			1090	£2,725,000		250	6.00	16.7	£531,250	£8,854,167
	Pub/Restaurant						£0				0.0	£0	£0
	Industrial 1						£0				0.0	£0	£0
	Industrial 2						£0				0.0	£0	£0
	B1 Offices						£0				0.0	£0	£0
	B1 Offices						£0				0.0	£0	£0
	Hotel						£0				0.0	£0	£0
	Leisure 1						£0				0.0	£0	£0
	Leisure 2						£0				0.0	£0	£0
	Total Business Uses		5000	0		Sub-Total	£6,475,000			Sub-Total		£1,543,750	£25,729,167
	Overall Totals						£18,575,000						£49,229,167
Preliminaries/Contingency (fixed at 15% of direct Building Costs) p0070441: WARNING. The model automatically enters a value for the cost of preliminaries in cell H83. It is the convention that a site needs to be prepared and that on-site works, infrastructure and contingencies need to be included . Thus, the model adds a 15% figure on the direct costs of building in cell H83.				COSTS>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>			£2,786,250.00
Extra work/facilities p0070441: WARNING do not enter any values in cell H84. The model automatically sums the figures in cells H85 to H89 and this sum is recorded in cell H84. Given increasing emphasis on developing brownfield sites, most development is likely to incur additional costs over and above preliminaries. The model allows the user to describe the kinds of extra works/facilities in cells A85 to A89 and that a lump sum figure should be entered in corresponding cells H85 to H89.				TOTAL EXTRA WORKS >>>>>>>>>>>>>>>>>>>			£50,000
					Type as lump-sum >>>>>>>		£50,000		Efficiency Ratio Professor Stephen Walker: These need to be applied so as to convert gross to net floor area. Gross is used in calculating the construction costs; the net floor area is used in calculating the annual rental flow and ultimately gross development value. The ratios in Cells K86 to K89 are generic for their use class. Alternatively you can insert a specific ratio in cell K90 and use this to calculate the net floor area by multiplying the gross with the selected ratio in Cells D57 to D67.			CALCULATOR
					Type as lump-sum >>>>>>>				Retail	0.85		NUMBER
					Type as lump-sum >>>>>>>				Industrial	0.97		Plus %
					Type as lump-sum >>>>>>>				Offices	0.90		Minus %
					Type as lump-sum >>>>>>>				Housing	1.00		RESULT	0
									Specify other…
Planning Obligations and Other Contributions sr-walker: Planning Requirements [Obligations and Contributions towards Affordable Housing and Infrastructure provision is now typical]. These costs should be seen as part of the "true" and "full" cost of development. The cells [B79: B81 and/or C79:C81 accommodates £per unit or £per m². A lump sum can be inserted cell C82; remember to label this in cell A82 [i.e. simply overwrite the current content].		£Rate/Unit	£Rate/m²	Total Payable	Professional environment
Planning Obligation Contribution [£]		3,000	0	£300,000	Professional fees [%] (architects...)		7.00			Financial Environment
Community Infrastructure Levy [£] on market homes and business development				£0	Legal fees [%] (site acquisition)		2.00			Interest rate (%pa)		6.8	6.8
AH Financial Contribution in Lieu [£]		0	0	£0	Legal fees [%] (sales of all development)		0.50
Other [£] Sustainable Homes Cost Premium [lump sum/unit]		0		£0	Selling Agents' fees [%] (housing)		1.53			Finance Charge Weighting
					Letting Agents' fees [%] (comm./housing)		10.00			Building Costs			0.50
Land					Selling Agents' fees [%] [commercial]		1.53			Professional Fees			0.75
Total Site Area (m²) Steve Walker: This refers to the size of the whole of the site to be developed, measured in square metres.			20,700		Marketing/Advertising fees [%]			<<< either		Marketing/Advertising Fees			1.00
Total Site Area only for Housing (m²) e0191247: This refers to the size of site for housing only, measured in square metres.			15,525		Marketing/Advertising lump sum [£]		£50,000	<<< or		Planning/survey Fees			1.00
Housing Density Steve Walker: WARNING. Do not enter data in cell D100. The model automatically generates the housing density on the site expressed as the number of housing units per hectare. Given that PPS3: Housing [CLG, November 2006] and other influential reports (e.g. Urban Task Force, The Prince's Foundation) now seek to achieve higher densities, this cell reveals how well the development measures up to these new benchmarks [e.g. between 40 an 60 units per hectare rather than 30 units per hectare].	(in housing units per hectare)		64.4		Planning Fees [£] sr-walker: Planning Fees: WARNING: The model automatically generates this value.		£44,751 sr-walker: WARNING: Do not enter data; the model automatically generates the value.			Land Acquisition Legal Fees			1.00
Project duration Steve Walker: This refers to the duration of the project in two ways. Cell D102 refers to the total duration of the project (measured in months) which begins from the developer owning the site through to completion of building and being available for sale and/or occupation. The data in cell C102 will determine the number of months interest is paid for loan finance triggered by the purchase of the land. Cell C103 refers to the duration of the building phase only, which determines the number of months interest is paid for loan finance covering the cost of building the scheme, including relevant fees.					Stamp Duty [%] sr-walker: Stamp Duty Land Tax: Land and real estate transactions are subject to a stamp duty and tax [SDLT]. The rates are set by HMRC and are reviewed annually, normally in the annual Budget. Consult https://www.gov.uk/stamp-duty-land-tax/nonresidential-and-mixed-use-rates for the most recent rules and rates. Simply input the rate as an integer [.i.e. 0, 1, 2, 4, 5,7, 15] and omit the percentage symbol. See the sheet with SDLT calculator for a detailed calculation					Estate Agents Fees			0.00
Total development period (months) (total of initial, design and building phases)		30.0	30.0							Stamp Duty Land Tax			1.00
Total building period (months)		24.0	24.0							Obligations, Contributions & Other Levies			1.00
					PROFIT RATE					Legal Fees on Sales			0.00
					Housing: Market Sector [% of Gross Development Value]			12.50
Local Cost Adjustment Steve Walker: The model default is set to 1.00, which is the Building Cost UK Average according to Tender Prices provided through Building Cost Information Service (BCIS). Costs are largely found to be aspatial and therefore cost variations are largely due to particular site conditions, abnormalities and design specifications. BCIS provides an index of local cost adjustment factors for each local authority area. Variations in costs are based on tender prices and are therefore a good guide on the level of costs of building locally.			1.00		Housing: AH Sector [% of Gross Development Value]			4.50
					Commercial Sector [% of Gross Development Value]			22.00
MODELLING INPUT Market%		1
AH%		0			Housing: Market Sector [% on Total Costs]			14.29	<<<<Equivalent
AH RATIO -Social Rent [e.g 18/25]		0.72			Housing: AH Sector [% on Total costs]			4.71
AH RATIO -Homebuy [10/25]		0.28			Commercial Sector [% on Total costs]			28.21
	(general) House Price Change Professor Stephen Walker: This allows you to analyse the impact of house price changes on the RLV. For a price increase of, say, 10% just input 10 in cell C113. Cell D113 will record the multiplier affecting house prices. Similarly, modelling a fall in house price, just input a minus sign in front of the house price change to be modelled.	0	1.00				CAPITAL PROFITS
	(general) Building Cost Change Professor Stephen Walker: This allows you to model the impact of changes in build costs on the RLV. For example, to model the impact of a rise in buld costs of 10%, simply input 10 into Cell C114. For a fall in build costs, input a minus sign in front of the sum to be modelled.	0	1.00					£8,197,917
	Output of the Residual Land Valuation
BUILDING COSTS Steve Walker: WARNING. Do not enter values in cells C118/C119 and D120 to D122. The model automatically generates these values. Building Costs relate to the direct costs of building the particular development, with a sum to cover the costs of preparing the site for development. This model automatically adds a 15% uplift on the direct costs to cover preliminaries, site preparation costs and predictable contingency items. The figure in cell D122 includes an allowance for professional fees and to cover the costs of financing all costs, based upon the principle that only half of these costs are borrowed from a "third party" at any one point in time.					LAND BUDGET [Gross]
Building construction costs		21,361,250			LAND + FINANCE + FEES			14,803,518		Programme mix		Numbers	Gross Internal Floor Area
Professional Fees		1,495,288			Finance (interests on loans)			2,245,046		Market Housing Sale		75.00	8,250.00
SUB-TOTAL BUILDING			22,856,538		LAND + FEES			12,558,472		Market Housing Rent		- 0	- 0
Finance (interests on loans)			1,702,434		Legal Fees			246,245		Affordable Housing Sale		25.00	2,500.00
TOTAL BUILDING COSTS			£24,558,971		Stamp Duty Land Tax			- 0		Affordable Housing Rent		- 0	- 0
					NET LAND BID [£]		>>>>>>>	£12,312,228		Commercial Property		n/a	5,000.00
EXTRA WORKS					Net land bid/m² [£]			£594.79		Total		100.00	15,750.00
Extra Works			50,000
Professional Fees			3,500
Finance (interest on loans)			7,657				LAND BID /HECTARE [£]			Effect of changes		RLV	multiplier
TOTAL EXTRA WORKS			£61,157				Future Use Value/ha	£5,947,936		original
							Existing Use Value /ha	£3,200,000		current RLV		£12,312,228	1.86
FEES for MARKETING, PLANNING & LETTINGS Steve Walker: MARKETING COSTS The model automatically generates the data in these cells. These covers all costs relating to planning, promoting, selling, letting and marketing the development, and the finance costs directly related to these "marketing" costs.	Steve Walker: DEVELOPMENT CONTENT & MIX: This part of the model allows the user to specify the housing content of the proposed development. There are 4 separate sections to record: Market Homes for Sale [B5:B18]; Affordable Homes for Sale [i.e. HomeBuy] [B23:B36]; Affordable Homes for Rent [B42:B55]; and Market Homes for Rent [B60:B64 e.g. Student Housing]. You are advised to describe your development; overwrite the default descriptors to record the proposed housing types and mix.		Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.					Stephen Walker.: WARNING: Do not enter any values in Cell I128.The model automatically generates this value. It expresses the land bid price (i.e. Cells H110 or H111) in the more familiar/useful way in terms of £ per hectare. Further, the model divides the future land value/ha by the current land value/ha (to be inserted in I129) and displays it as a multiplier (I130). Multiplier > 1 indicates a viable development which creates added value to the site.	Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (BCIS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	Steve Walker: WARNING. Do not enter data in these cells (F5:F18). Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).		p0070441: WARNING. Do not enter data in these cells [H5:H18]. Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.	p0070441: SALE PRICE: The sale price is the expected price at which each housing type is to be sold. Data can be accessed from a number of sources including housebuilders, estate agents, and from published sources including local newspapers and The Land Registry (all these can usually be accessed online). There are a number of more specialised online sources that are recommended including www.upmystreet.com and www.yell.com/property. Be aware of the basis of the data you use: there are important differences between transactions; offer prices; transactions only funded with a mortgage.	Uplift Multiplier	1.86		Effect of changes	£12,312,228	1.86
Marketing/Advertising			50,000							effect as %		ERROR:#DIV/0!	ERROR:#DIV/0!
Selling Agents' fees [for housing]			359,550
Letting Agents' fees [%] (comm./housing)			154,375
Selling Agents' fees [%] [commercial]			393,656
Planning Fees			44,751
Sales' Legal Fees			246,146
Finance (interests on loans)			16,938
TOTAL FEES for MARKETING, PLANNING, SALES, etc			£1,265,416
PLANNING OBLIGATIONS & OTHER CONTRIBUTIONS sr-walker: Planning Obligations & Contributions: The model automatically generates these values. These are "costs" that are triggered by the needs arising from developments and are paid to overcome these impacts; the contributions for affordable housing are justified as a positive planning goal according to PPS3 Housing [DCLG, 2006]. A Community Infrastructure Levy [CIL] is expected to be operational in April 2010, but further details are needed regarding its operation.
													Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N5:N18]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or where necessary it is the capitalised value of the Annual Rental Flow of a particular use.	Planning Obligations			300,000
Community Infrastructure Levy			- 0
Affordable Housing Contribution in Lieu			- 0
Other Contributions			- 0
Finance [interest on loans]			42,187
TOTAL OBLIGATIONS & CONTRIBUTIONS			£342,187
All Scheme Costs [net of all land costs]			£26,227,732
TOTAL SCHEME COSTS [including profit] Steve Walker: WARNING. Do not enter data in Cell D150 The model automatically generates this value. Total Scheme Costs includes Land Costs (Cell I118), Total Building Costs (Cell D122), Marketing Costs (Cell D138), and Planning Obligations and other costs [Cell D146].			Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (RICS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	£34,425,648
Gross Land Budget			£14,803,518
GROSS DEVELOPMENT VALUE		Steve Walker: WARNING. Do not enter data into Cell C123. The model automatically generates this value. Gross Development Value [M69] is the summation of all the development values in Cells M15; M29; M43; M52 and M68.			Steve Walker: WARNING. Do not enter data in these cells [F23:F36]. Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).		p0070441: WARNING. Do not enter data in these cells (H23:H36). Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.						Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N23:N36]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.	Steve Walker: This refers to gross floorarea (in square metres) for each type of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (RICS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.		p0070441:	Steve Walker: WARNING. Do not enter data in these cells [F42:F55]. Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).	sr-walker: WEEKLY RENTS: If homes are rented then it is normal to express the rent as a sum paid weekly. It is important that these weekly rents are supported by locally-generated evidence [i.e. from housing needs surveys, from RSLs and government sources]. Affordable rents are typically substantially lower than market levels.	Ytzen Van Der Werf: WARNING. Do not enter data in these cells (H42:H55). Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.	p0070441: RENTS Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column M as gross development value. For principal commercial uses rents per square metre (£) are found in The Propert Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	Ytzen Van Der Werf: WEEKLY RENTS: If homes are rented then it is normal to express the rent as a sum paid weekly. It is important that these weekly rents are supported by locally-generated evidence [i.e. from housing needs surveys, from Lettings Agencies and government sources]. Market rent levels are higher than affordable rent levels, but the private rental market is heavily influenced by Local Housing Allowances which set the upper limit than central Government will make to a household's weekly rent. These are reviewed on a annual basis.	p0070441: THE YIELD The yield is basically a measure of risk and reward in the market. Thus, if yields rise this signifies that the risk to collecting rents from a property has risen, reflecting that the market conditions have deteriorated in someway (e.g. from higher voids or longer duration of vacancies, or an over supply of similar properties or a fall in consumers' demand). It also means that in demand terms, the value of the property is now worth less. If yields fall this signifies that the risk to collecting the rents from a property has fallen, relecting that the market conditions have improved in someway (e.g. from higher consumer spending, from a reduction in voids and shorter duration of vacancies, or a stronger directive from Government regarding restrictions on future planning opportunities (i.e. PPS6) or the benefit of complementary or autonomous investment locally). These factors usually lead to a rise in capital values. Data on yields is available from the Valuation Office who publish biannually The Property Marklet Report. Other sources to try include managing agents (e.g. usually Chartered Surveyors and Valuers); specialists Chartered Surveying practices publish reports on the different sectors of the market: retailing, offices, industrial/warehousing. The best data for the housing sector is published by the Housing Finance Review and from specialist research companies such as London Residential Research Limited. WARNING. A small change in the yield will result in large change in capital values. If in doubt, and to experiment, model the effect of using two or three different yield levels!	Ytzen Van Der Werf: RENTS: Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column N as gross development value. For principal commercial uses rents per square metre (£) are found in The Property Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	Stephen Walker.: ANNUAL RENTAL INCOME WARNING. Do not enter data into these calls (L33 to L42). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre by the gross Floorarea (adjusted by applyting a 0.9 factor) multiplied by the number of units to be built.	Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [M33:M42]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.	Ytzen Van Der Werf: ANNUAL RENTAL INCOME WARNING. Do not enter data into these cells M42:M55). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre by the gross Floorarea (adjusted by applying a 0.9 factor) multiplied by the number of units to be built.	Ytzen Van Der Werf: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N42:N55]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.	Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	Steve Walker: This describes the number of houses, flats or maisonnettes that are to be built.	Steve Walker: This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (RICS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	Steve Walker: WARNING. Do not enter data in these cells [E47:E51]. Costs per Unit is a sum generated by the model. Unit Costs(£) are a product of the Gross Floorspace of a particular type of housing multiplied by its specific Costs per m² (£).	p0070441: WARNING. Do not enter data in these cells (H60:H64]. Total costs are automatically generated by the model. They represent the product of the number of units to be built multiplied by the unit cost of building the particular housing type.	sr-walker: WEEKLY RENTS: If homes are rented then it is normal to express the rent as a sum paid weekly. It is important that these weekly rents are supported by locally-generated evidence [i.e. from housing needs surveys, from Lettings Agencies and government sources]. Market rent levels are higher than affordable rent levels, but the private rental market is heavily influenced by Local Housing Allowances which set the upper limit than central Government will make to a household's weekly rent. These are reviewed on a annual basis.	p0070441: RENTS Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column M as gross development value. For principal commercial uses rents per square metre (£) are found in The Propert Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	p0070441: THE YIELD The yield is basically a measure of risk and reward in the market. Thus, if yields rise this signifies that the risk to collecting rents from a property has risen, reflecting that the market conditions have deteriorated in someway (e.g. from higher voids or longer duration of vacancies, or an over supply of similar properties or a fall in consumers' demand). It also means that in demand terms, the value of the property is now worth less. If yields fall this signifies that the risk to collecting the rents from a property has fallen, relecting that the market conditions have improved in someway (e.g. from higher consumer spending, from a reduction in voids and shorter duration of vacancies, or a stronger directive from Government regarding restrictions on future planning opportunities (i.e. PPG6) or the benefit of complementary or autonomous investment locally). These factors usually lead to a rise in capital values. Data on yields is available from the Valuation Office who publish biannually The Property Market Report. Other sources to try include managing agents (e.g. usually Chartered Surveyors and Valuers); specialists Chartered Surveying practices publish reports on the different sectors of the market: retailing, offices, industrial/warehousing. The best data for the housing sector is published by the Housing Finance Review and from specialist research companies such as London Residential Research Limited. WARNING. A small change in the yield will result in large changes in capital values. If in doubt, and to experiment, model the effect of using two or three different yield levels!	Steve Walker: DEVELOPMENT CONTENT & MIX: Specify the commercial content of the proposed development in cells [A57:A67] . Simply click on these cells to enter a more accurate description of the proposed development and mix.	Steve Walker: DEVELOPMENT CONTENT & MIX: Specify the commercial content of the proposed development in cells [A57:A67] . Simply click on these cells to enter a more accurate description of the proposed development and mix.	Stephen Walker.: ANNUAL RENTAL INCOME WARNING. Do not enter data into these cells M60:M64). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre by the gross Floorarea (adjusted by applying a 0.9 factor) multiplied by the number of units to be built.	Stephen Walker.: DEVELOPMENT VALUE WARNING. Do not enter data into these cells [N60:N65]. Development Value is generated automatically by the model. Development Value is the product of the Sale Price and Number of Units or the capitalised value of the Annual Rental Flow of a particular use.	Steve Walker: This refers to gross floorarea (in square metres) for each unit of housing. This is based on the internal dimensions of the property (measured in metres) multiplied by the number of storeys. In collecting data on housing, the Valuation Office adopts a standard specification for a detached, semi-detached, terraced houses and flats and maisonettes. Consult the Valuation Office's bi-annual "Property Market Report", which gives more detail on each type. Additionally, other data can also be accessed from housebuilders' websites, where they usually provide information on site and housing layouts, dimension of rooms, etc.	p0070441: NET FLOOR AREA The gross extenal floor area is adjusted by applying an efficiency ratio [see cells K86:K90] to compute net internal, lettable floor area. If you do not apply a rate, the model will automatically apply a 0.9 efficiency ratio. To apply a selected efficiency ratio simply input an =sign, click on the relevant gross floor area, enter * and then click on the chosen efficiency ratio in cells K86 to K90. The model uses the Net Internal Floor Area as one of the variables in calculating annual rental flow (e.g. income) for each business use.	p0070441: TOTAL COSTS WARNING. Do not enter data in these cells (H70:H80). Total costs are automatically generated by the model. These represent the product of the built gross floor area multiplied by the unit costs of building (£).	Steve Walker: COSTS PER SQUARE METRE. This refers to the average costs of building this type of property, expressed in £'s per square metre. A good source of data can be accessed from Building Cost Information Service (BCIS) and from Spon's Builders' and Architects' Price Book. Both are normally available from Central Libraries, from University Libraries, as well as direct from their publishers. If the user is a member of the RICS or is employed by an organisation subscribing to either sources/services, these can be accessed on-line.	p0070441: RENTS Rents per square metre are typically used to measure the price or value of commercial uses only. The model will automatically calculate a building's value as an equivalent capital sum by multiplying the product of annual rents per square metre by the net floor area and applying a capitalising factor based on the reciprocal of the yield. This is reported in column M as gross development value. For principal commercial uses rents per square metre (£) are found in The Propert Market Report (published bi-annually by the Valuation Office). Other evidence can be accessed from local estate agents and Chartered Surveying practices, who also publish indices and more specialised sector reports. See for example, the IPD Index.	p0070441: The yield is basically a measure of risk and reward in the market. If yields rise this signifies that the risk to collecting rents from a property has risen, reflecting that market conditions have deteriorated in someway (e.g. from higher voids or longer duration of vacancies, or an over supply of similar properties or a fall in consumers' demand). It also means that in demand terms, the value of the property is now worth less. If yields fall this signifies that the risk to collecting the rents from a property has fallen, reflecting that market conditions have improved in someway (e.g. from higher consumer spending, from a reduction in voids and shorter duration of vacancies, or a stronger directive from Government regarding restrictions on future planning opportunities (i.e. PPG6) or the benefit of complementary or autonomous investment locally). These factors usually lead to a rise in capital values. Data on yields is available from the Valuation Office who publish biannually The Property Marklet Report. Other sources to try include managing agents (e.g. usually Chartered Surveyors and Valuers); specialists Chatered Surveying practices publish reports on the different sectors of the market: retailing, offices, industrial/warehousing. The best data for the housing sector is published by the Housing Finance Review and from specialist research companies such as London Residential Research Limited. WARNING. A small change in the yield will result in large changes in capital values, and hence on the land bid. If in doubt, and to experiment, model the effect of using two different yields!	Stephen Walker.: WARNING. Do not enter data into these cells (M70:M80). The annual rental flow is automatically generated by the model. The annual rental flow is the product of multiplying the Rent per square metre (£) by the net floorarea of each land use.	Stephen Walker.: WARNING. Do not enter data into these cells (N70:N80]. Development Value is generated automatically by the model. Development Value isa capitalised value based on the product of the reciprocal of the yield (i.e. Year's Purchase)and the Annual Rental Flow (£).	p0070441: WARNING. The model automatically enters a value for the cost of preliminaries in cell H83. It is the convention that a site needs to be prepared and that on-site works, infrastructure and contingencies need to be included . Thus, the model adds a 15% figure on the direct costs of building in cell H83.	p0070441: WARNING do not enter any values in cell H84. The model automatically sums the figures in cells H85 to H89 and this sum is recorded in cell H84. Given increasing emphasis on developing brownfield sites, most development is likely to incur additional costs over and above preliminaries. The model allows the user to describe the kinds of extra works/facilities in cells A85 to A89 and that a lump sum figure should be entered in corresponding cells H85 to H89.	sr-walker: Planning Requirements [Obligations and Contributions towards Affordable Housing and Infrastructure provision is now typical]. These costs should be seen as part of the "true" and "full" cost of development. The cells [B79: B81 and/or C79:C81 accommodates £per unit or £per m². A lump sum can be inserted cell C82; remember to label this in cell A82 [i.e. simply overwrite the current content].	Professor Stephen Walker: These need to be applied so as to convert gross to net floor area. Gross is used in calculating the construction costs; the net floor area is used in calculating the annual rental flow and ultimately gross development value. The ratios in Cells K86 to K89 are generic for their use class. Alternatively you can insert a specific ratio in cell K90 and use this to calculate the net floor area by multiplying the gross with the selected ratio in Cells D57 to D67.	Steve Walker: Fees: There are a number of fees and costs that are an essential part of any development. The model covers professional fees (cell H92); legal fees (cell H93); selling fees for housing (cell H94); selling fees for business uses (cell H95); and advertising fees either as a proportion of costs (cell H96) or as a lump sum (cell H97). Information on the level of fees is available from a number of published sources, direct contact with Agents and from newspaper and advertising media groups. For example, Spon's Architects' and Builders' Price Book provides extensive information on the range of professional fees that are charged when development is commissioned: e.g. Architects, Engineers, Surveyors. NOTE: Omit the percentage sign [%], just insert number	Steve Walker: This refers to the size of the whole of the site to be developed, measured in square metres.	e0191247: This refers to the size of site for housing only, measured in square metres.	Steve Walker: WARNING. Do not enter data in cell D100. The model automatically generates the housing density on the site expressed as the number of housing units per hectare. Given that PPS3: Housing [CLG, November 2006] and other influential reports (e.g. Urban Task Force, The Prince's Foundation) now seek to achieve higher densities, this cell reveals how well the development measures up to these new benchmarks [e.g. between 40 an 60 units per hectare rather than 30 units per hectare].	Steve Walker: This refers to the duration of the project in two ways. Cell D102 refers to the total duration of the project (measured in months) which begins from the developer owning the site through to completion of building and being available for sale and/or occupation. The data in cell C102 will determine the number of months interest is paid for loan finance triggered by the purchase of the land. Cell C103 refers to the duration of the building phase only, which determines the number of months interest is paid for loan finance covering the cost of building the scheme, including relevant fees.	Steve Walker: INTEREST RATES The model's design is based on the fact that a development is entirely funded through a loan. This reflects a key economic concept of the opportunity cost of capital, which means that irrespective of the source of funding (including retained profits), a proper account is made of the true costs of capital (i.e. in foregone benefits). Whilst some developers rely upon loans from their banks, others rely on internal financing from their parent companies. The model therefore takes account of these different funding circumstances. Information on the cost of funding is available from a number of sources including: commercial banks (i.e. high street banks) which also own merchant banks (who specialise in company financing);The Financial Times newspaper regularly publishes information on interest rates. As a rule of thumb, publicly quoted companies are likely to be able to access funds at a lower rate of interest than a privately owned company. In addition, interest rates will vary according to the type of development, size of loan and loan to value ratios as well as overall market conditions. For example, for speculative and pre-let commercial developments and residential new build and conversion projects, loans of upto £15m in value are available with a limit of 70% of value of the completed project. The loan period is the building period plus a contingency for letting and or sales, and the rate of interest will be around 3 to 4% above LIBOR (i.e. London Inter-Bank Offer Rate). The rate will vary according to Finance House base rate. The terms of repayment are based upon whether the development is to be sold or retained using a long term mortgage.	sr-walker: Planning Fees: WARNING: The model automatically generates this value.	sr-walker: Stamp Duty Land Tax: Land and real estate transactions are subject to a stamp duty and tax [SDLT]. The rates are set by HMRC and are reviewed annually, normally in the annual Budget. Consult https://www.gov.uk/stamp-duty-land-tax/nonresidential-and-mixed-use-rates for the most recent rules and rates. Simply input the rate as an integer [.i.e. 0, 1, 2, 4, 5,7, 15] and omit the percentage symbol. See the sheet with SDLT calculator for a detailed calculation	Steve Walker: The model default is set to 1.00, which is the Building Cost UK Average according to Tender Prices provided through Building Cost Information Service (BCIS). Costs are largely found to be aspatial and therefore cost variations are largely due to particular site conditions, abnormalities and design specifications. BCIS provides an index of local cost adjustment factors for each local authority area. Variations in costs are based on tender prices and are therefore a good guide on the level of costs of building locally.	Ytzen van der Werf: Ytzen van der Werf: Essentially these numbers determine when the payment of those fees is due. Building costs will be paid throughout the entire development/building period, where professional fees will be due earlier and marketing fees at the start of the development.	sr-walker: WARNING: Do not enter data; the model automatically generates the value.	Steve Walker: PROFITS The goal of risk taking is to generate profits. This model requires that a particular rate of profit (expressed as a%) is specified as an input. In this respect, the profit is a separate "cost" of the development. Profit can be expressed either as a percentage of development value (in Cell H92) or as a percentage of investment or in this case the Total Scheme Costs (in Cell H93), but not both.	Professor Stephen Walker: This allows you to analyse the impact of house price changes on the RLV. For a price increase of, say, 10% just input 10 in cell C113. Cell D113 will record the multiplier affecting house prices. Similarly, modelling a fall in house price, just input a minus sign in front of the house price change to be modelled.	Professor Stephen Walker: This allows you to model the impact of changes in build costs on the RLV. For example, to model the impact of a rise in buld costs of 10%, simply input 10 into Cell C114. For a fall in build costs, input a minus sign in front of the sum to be modelled.	Steve Walker: WARNING. Do not enter values in cells C118/C119 and D120 to D122. The model automatically generates these values. Building Costs relate to the direct costs of building the particular development, with a sum to cover the costs of preparing the site for development. This model automatically adds a 15% uplift on the direct costs to cover preliminaries, site preparation costs and predictable contingency items. The figure in cell D122 includes an allowance for professional fees and to cover the costs of financing all costs, based upon the principle that only half of these costs are borrowed from a "third party" at any one point in time.	Stephen Walker.: WARNING: Do not enter any values in Cells I108 to I110. The model automatically generates these percentages. Capital Profits are the actual profits expressed in £sterling.	Steve Walker: WARNING. Do not enter data in Cells I118 to I122. The model automatically generates the values in these cells. The prime purpose of this model is to calculate the maximum bid price for land (I125), which is a residual sum having calculated the development's value and subtracting all relevant costs (i.e.building costs, marketing costs, profits and finance and fees too).	£49,229,167
All Market Housing Development Value			£18,500,000
All Affordable Housing Development Value			£5,000,000
All Commercial Development Value			£25,729,167
SUMMARY DETAILS		£	% of GDV
Land Bid		£12,312,228	25.01
Building Construction Costs + Extra Works		£21,411,250	43.49
Professional Fees [ Legal, Planning, Marketing , SDLTax]		£2,993,510	6.08
Planning Obligations & Other Contributions		£300,000	0.61
Interest on Loans		£4,014,262	8.15
Capital Profits		£8,197,917	16.65
Gross Development Value (GDV)		£49,229,167	100.0
		£	% of Total Costs
Return on All Capital Employed [ROCE]		£8,197,917	20.1

Breakdown of Gross Development Value [% of GDV]

% of GDV Land Bid Building Construction Costs + Extra Works Professional Fees [ Legal, Planning, Marketing , SDLTax ] Planning Obligations & Other Contributions Interest on Loans Capital Profits 25.010027108473636 43.49301735082522 6.0807649094991394 0.6093948370715192 8.1542354894330789 16.652560304697417

SDLT calculator

Use this sheet to calculate the exact SDLT based on your own RLV.
It will need a bit of trial and error, since if you start with 0 (in cell H101) you will find a SDLT on this sheet,. Inserting that SDLT% in your RLV will give a different RLV, leading to possibly a different SDLT% etc etc. But you will get there in 2 or 3 steps!
Stamp duty land tax (non residential or mixed use)
min	max	percentage		SDLT	Our net land budget -/-	12,312,228	link this cell to I123 on your RLV sheet
- 0	150,000	0%		- 0
150,000	250,000	2%		2,000
250,000	999,999,999	5%		603,111
			total	605,111		4.9147%	of Net Land budget (use this % in cell H101 if MIXED USE)
OR
Stamp duty Land Tax (Only Residential)
					Our net land budget -/-	12,312,228	link this cell to I123 on your RLV sheet
min	max	percentage		SDLT
- 0	125,000	3%		3,750
125,000	250,000	5%		6,250
250,000	925,000	8%		54,000
925,000	1,500,000	13%		74,750
1,500,000	999,999,999	15%		1,621,834
			total	1,760,584		14.2995%	of Net Land budget (use this % in cell H101 if RESIDENTIAL)

CIL calculator

	Area (GEA)	CIL rate	CIL amount
Total market housing	8,250	- 0	- 0
Total social housing (often exempt!)	2,500	- 0	- 0
Total commercial (could be split in different categories)	5,000	50	250,000
	15,750		250,000	15.87	average rate per sqm