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Social housing...costs.


Sha
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The recent article on the news pages re social housing gives the cost for 9 two bedroom apartments and 2 houses as ?1,287,464. This is if the land is sold to Arena housing for ?35,000. So, minus the cost of land the cost of building these housing units will be

?1,252,464 that's almost ?114K per unit!

 

Yet at planning committee, when developers have been asked to contribute ???s rather than affordable housing, I've seen it negotiated at ?70k per unit,which is supposed to be the building costs with no profit. (note, they always get away with no contribution for land costs!)

As Arena are getting the land for ?35k and the building costs, at ?70k per unit amount to ?840,000 (for 11 units) the total cost should be ?875,000.

Does anyone know what the extra ?412,464 is for?

 

Somebody seems to be making a tidy profit :shock: ......and for building the type of dwellings which are not really either needed or wanted.

If the need is for 2 & 3 bedroom family accomodation wouldn't it be better to build 2 storey houses, with gardens for the kids to play in? :roll:

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Don't they have a "Scrutiny Cttee" to delve into such matters? It would appear, in principle, two options present themselves - 1) dispose of the land at the highest possible price in order to off set the impact of Gov cuts on the budget, and save rate payer's money OR 2) in the absence of purpose built Council housing, try to provide some form of affordable units, which represents the rate payer subsidising social housing provision. The term "affordable" seems to mean all things to all men, but looking at some of the rents these days, one wonders how affordable "affordable" actually is, especially in an era of general price inflation, wage deflation and reductions in housing benefit. :?

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