Economic Appraisal Tool

The HCA's economic appraisal tool helps development partners demonstrate how grants from the National Affordable Housing Programme (NAHP) will help them deliver more affordable housing over and above the level that can be supported from planning obligations alone. The tool can also assist Local Planning Authorities and developers negotiate and agree the viability of planning obligations generally.

Aligning our investment with planning obligations

Through our Single Conversation model we will join up and co-ordinate investment from all sources. For instance we align our NAHP investment with planning obligations for both affordable housing and the infrastructure needed to support communities.

Under national planning policy guidance (PPS3) local authorities are expected to maximise affordable housing delivery through the use of developer contributions. Such contributions require a developer to provide affordable housing at a discounted price to an affordable housing provider - usually a housing association. The HCA looks to ensure that grants it provides through the NAHP will deliver affordable housing over and above above that which can be supported from developer contributions alone.

Uses of the economic appraisal tool

The economic appraisal tool will help grant seekers to demonstrate a validated financial assessment of the whole site that supports the affordable housing planning obligations. This in turn will help align the HCA investment to ensure it leads to the delivery of further affordable housing.

The tool can also be used collaboratively by Local Planning Authorities and developers to help establish the viability of proposed levels of affordable housing obligations at an early stage.

The appraisal tool consists of an Excel spreadsheet and a separate PDF user manual.

Questions and feedback

Please send any questions about the tool to EATenquiries@hca.gsx.gov.uk

Please note: The HCA does not provide support to external users of the model, other than providing the user manual. Questions and feedback on the use of the model will be directed to the HCA's consultants, from whom further advice and support may be obtained on terms to be agreed between the parties. Our consultants are:

  • GVA Grimley - planning and viability advice
  • Bespoke Property Group - affordable housing, scheme evaluation and s 106 negotiations

Last updated: 22 September 2009

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