Object

Representation ID: 14928

Received: 14/12/2020

Respondent: The Home Builders Federation Midland Region

Legally compliant? Not specified

Sound? No

Duty to co-operate? Not specified

Deliverability & Viability Study:
- HBF have concerns about Council’s standard inputs including (but not exhaustively):
o Using BCIS lower quartile costs. All new build housing is built to a high specification therefore median should be used.
o Blended developer return of 17% may not reflect the risk profile of development
o HBF recommend finance cost of 6.5-7%, not 6%
o Professional fees should be 8-10% for simple sites, and up to 20% for complex sites.
o Sales and marketing costs should be 3-5%
o Concern that not an accurate assessment of cumulative impact of compliance with all policy requirements, including at least:
 Policy P4D,
 Policy P4E (M4(2) & M4(3) compliant homes
 Policy P5 for NDSS
 Policy P9 for FHS and EVCPs
 Policy P10 (net biodiversity gain)
 Policy P11 (water efficiency standard)
- HBF notes that following typologies are unviable:
o North Solihull greenfield and PDL
o Mature Suburbs PDL
o Windfall sites in low value areas (North Solihull)
o Retirement developments