Affordable Housing Supply Programme (AHSP): process and procedures MHDGN 2023/01
This Guidance Note supersedes MHDGN 2022/02 and is for local authorities and registered social landlords. It details the process for planning the delivery of the majority of grant-funded homes through the Affordable Housing Supply Programme.
Annex B: Affordable housing investment benchmarks – examples
3 person equivalent conversion factors
Table 1: 1.0 bedspaces to 1.9 bedspaces
|
Average bedspace |
Conversion factor |
|
1.0 |
72.0 |
|
1.1 |
73.7 |
|
1.2 |
75.5 |
|
1.3 |
77.2 |
|
1.4 |
78.9 |
|
1.5 |
80.7 |
|
1.6 |
82.4 |
|
1.7 |
84.1 |
|
1.8 |
85.8 |
|
1.9 |
87.6 |
Table 2: 2.0 bedspaces to 2.9 bedspaces
|
Average bedspace |
Conversion factor |
|
2.0 |
89.3 |
|
2.1 |
90.4 |
|
2.2 |
91.4 |
|
2.3 |
92.5 |
|
2.4 |
93.6 |
|
2.5 |
94.7 |
|
2.6 |
95.7 |
|
2.7 |
96.8 |
|
2.8 |
97.9 |
|
2.9 |
98.9 |
Table 3: 3.0 bedspaces to 3.9 bedspaces
|
Average bedspace |
Conversion factor |
|
3.0 |
100.0 |
|
3.1 |
100.9 |
|
3.2 |
101.8 |
|
3.3 |
102.7 |
|
3.4 |
103.6 |
|
3.5 |
104.5 |
|
3.6 |
105.4 |
|
3.7 |
106.3 |
|
3.8 |
107.2 |
|
3.9 |
108.1 |
Table 4: 4.0 bedspaces to 4.9 bedspaces
|
Average bedspace |
Conversion factor |
|
4.0 |
109.0 |
|
4.1 |
109.7 |
|
4.2 |
110.3 |
|
4.3 |
111.0 |
|
4.4 |
111.6 |
|
4.5 |
112.3 |
|
4.6 |
112.9 |
|
4.7 |
113.6 |
|
4.8 |
114.2 |
|
4.9 |
114.9 |
Table 5: 5.0 bedspaces to 5.9 bedspaces
|
Average bedspace |
Conversion factor |
|
5.0 |
115.5 |
|
5.1 |
116.0 |
|
5.2 |
116.4 |
|
5.3 |
116.9 |
|
5.4 |
117.3 |
|
5.5 |
117.8 |
|
5.6 |
118.2 |
|
5.7 |
118.7 |
|
5.8 |
119.1 |
|
5.9 |
119.6 |
Table 6: 6.0 bedspaces to 6.9 bedspaces
|
Average bedspace |
Conversion factor |
|
6.0 |
120.0 |
|
6.1 |
121.0 |
|
6.2 |
122.0 |
|
6.3 |
123.0 |
|
6.4 |
124.0 |
|
6.5 |
125.0 |
|
6.6 |
126.0 |
|
6.7 |
127.0 |
|
6.8 |
128.0 |
|
6.9 |
129.0 |
Table 7: 7.0 bedspaces to 7.9 bedspaces
|
Average bedspace |
Conversion factor |
|
7.0 |
130.0 |
|
7.1 |
131.0 |
|
7.2 |
132.0 |
|
7.3 |
133.0 |
|
7.4 |
134.0 |
|
7.5 |
135.0 |
|
7.6 |
136.0 |
|
7.7 |
137.0 |
|
7.8 |
138.0 |
|
7.9 |
139.0 |
Table 8: 8.0 bedspaces to 9.0 bedspaces
|
Average bedspace |
Conversion factor |
|
8.0 |
140.0 |
|
8.1 |
141.0 |
|
8.2 |
142.0 |
|
8.3 |
143.0 |
|
8.4 |
144.0 |
|
8.5 |
145.0 |
|
8.6 |
146.0 |
|
8.7 |
147.0 |
|
8.8 |
148.0 |
|
8.9 |
149.0 |
|
9.0 |
150.0 |
Example 1:
The following example relates to a six unit RSL social rent project in a ‘city and urban’ area. All six homes are being delivered directly by the RSL and all six homes: will be delivered to Section 7, Silver Level, of the 2019 Building Regulations in respect of Energy for Space Heating, will have automatic fire suppression systems installed, will have zero direct emissions heating systems installed, will be digitally enabled, and will have electric vehicle charge points:
|
Description |
Number and amount (£) |
|
Number of units (a) |
6 |
|
Number of bedspaces (b) |
22 |
|
Average bedspaces (b)/(a) |
3.7 |
|
Total proposed grant (c) |
£615,500 |
|
Average proposed grant per unit (c)/(a) |
£102,583 |
|
Three-person equivalent conversion factor |
106.3 |
|
Apply conversion factor to average proposed grant per unit (£102,583 divided by 106.3 multiplied by 100) (d) |
£96,503 |
|
Compare (d) with the relevant three-person equivalent affordable housing investment benchmark of £103,224 per unit[1] |
Project under benchmark at £96,503 per unit and therefore follows a streamlined application and approval process |
Example 2:
The following example relates to a 20 unit council social rent project in an ‘other rural’ area. All 20 homes are being delivered directly by the council and all 20 homes: will have automatic fire suppression systems installed, will have zero direct emissions heating systems installed, and will be digitally enabled. Ducting infrastructure for 30 electric vehicle charge point connectors will be provided, and 20 electic vehicle charge points will be installed:
|
Description |
Number and amount (£) |
|
Number of units (a) |
20 |
|
Number of bedspaces (b) |
80 |
|
Average bedspaces (b)/(a) |
4.0 |
|
Total proposed grant (c) |
£2,130,000 |
|
Average proposed grant per unit (c)/(a) |
£106,500 |
|
Three-person equivalent conversion factor |
109 |
|
Apply conversion factor to average proposed grant per unit (£106,500 divided by 109 multiplied by 100) (d) |
£97,706 |
|
Compare (d) with the relevant three-person equivalent affordable housing investment benchmark of £98,257 per unit[2] |
Project under benchmark at £97,706 per unit and therefore follows a streamlined approval process |
Example 3:
The following example relates to a 15 unit RSL mid-market rent project in an island authority – 12 of the homes are three person units, with the other three homes being two person units. All 15 homes are being delivered directly by the RSL and all 15 homes: will be delivered to Section 7, Silver Level, of the 2019 Building Regulations in respect of Energy for Space Heating, will have automatic fire suppression systems installed, will have zero direct emissions heating systems installed, will be digitally enabled, will have electric vehicle charge points installed, and will have space for home working and study[3]:
|
Description |
Number and amount (£) |
|
Number of units (a) |
15 |
|
Number of bedspaces (b) |
42 |
|
Average bedspaces (b)/(a) |
2.8 |
|
Total proposed grant (c) |
£1,206,000 |
|
Average proposed grant per unit (c)/(a) |
£80,400 |
|
Three-person equivalent conversion factor |
97.9 |
|
Apply conversion factor to average proposed grant per unit (£80,400 divided by 97.9 multiplied by 100) (d) |
£82,125 |
|
Compare (d) with the relevant three-person equivalent affordable housing investment benchmark of £81,247 per unit[4] |
Project over benchmark at £82,125 per unit and therefore subject to a detailed value for money assessment |
[1] £91,182 (applicable baseline assumption), plus £2,338 for delivering to Section 7, Silver Level, plus £3,507 for the installation of an automatic fire suppression system, plus £4,676 for the installation of a zero direct emissions heating system, plus £351 for digital enabling, plus £585 for the installation of ducting infrastructure for an electric vehicle charge point connector, plus £585 for the installation of electric vehicle charge point = £103,224 (three person equivalent).
[2] (20 units x £97,379 (applicable baseline benchmark assumption of £88,260 plus £3,507 for the installation of an automatic fire suppression system, plus £4,676 for the installation of a zero direct emissions heating system, plus £351 for digital enabling, plus £585 for the installation of an electric vehicle charge point)) plus (30 x £585 for the installation of ducting infrastructure for an electric vehicle charge point connector), divided by 20 units
i.e.
(£1,947,580 plus £17,550) divided by 20 = £98,257 (three person equivalent).
[3] In this example, the grant applicant has demonstrated that additional space is necessary for the two person units in order to deliver this measure i.e. it has not been possible to incorporate this within the design of the homes under current space standards.
[4] (12 units x £80,429 (applicable baseline benchmark assumption of £68,387, plus £2,338 for delivering to Section 7, Silver Level, plus £3,507 for the installation of an automatic fire suppression system, plus £4,676 for the installation of a zero direct emissions heating system, plus £351 for digital enabling, plus £585 for the installation of electric vehicle charge point ducting infrastructure, plus £585 for the installation of an electric vehicle charge point)) plus (3 units x £84,521 (applicable baseline benchmark assumption of £68,387, plus £2,338 for delivering to Section 7, Silver Level, plus £3,507 for the installation of an automatic fire suppression system, plus £4,676 for the installation of a zero direct emissions heating system, plus £351 for digital enabling, plus £585 for the installation of electric vehicle charge point ducting infrastructure, plus £585 for the installation of an electric vehicle charge point plus £4,092 for space for home working and study)), divided by 15 units
i.e. (£965,148 plus £253,563) divided by 15 = £81,247 (three person equivalent).
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