How to use the workbook:

Project information

The following fields should be completed.

Project Details

Enter the following details:

• Project name
• Project Manager
• Procurement type – select from the drop down list, either Traditional, Design & Build or Off the Shelf

Project Mix

Enter the following details:

• Tenure – select from the drop down list, i.e. Social Rent, Affordable Rent, HomeBuy, Market Rent, Shared Equity or Outright Sale
• Enter a line for each type

Cash Flow Dates

Enter the following dates:

• Purchase completion
• Start on site
• Practical Completion
• Last sales completion – only applicable for HomeBuy, Shared Equity or Outright Sale

Grant

Enter the following details:

• Amount of HCA grant: split between Social Rent or Affordable Rent and HomeBuy/Shared Equity
• Amount of Local Authority grant and the date this is likely to be received
• Amount of any other funding and the date this is likely to be received

Other Information

Enter the following details:

• Local authority – select from the drop down list; please note that the list of LAs relates to the areas in the National Rent Regime data, and does not reflect the most recent local government reorganisation.
• HCA Region – select from the drop down list
• Rent year – this is the year the social rented units will be completed. The rent year runs from 1 April to 31 March.
• HCA Allocation year. This also runs from 1 April to 31 March.
• Date last updated – this is the date the model was last updated to aid version control.

Assumptions

The Assumptions can all be defined by the user. The values included in the model are suggestions and can be adjusted as appropriate. Those included in the model are:

Funding

• Interest rate Dev Loan – this is the interest rate that is being charged by the funder over the developement period
• Interest rate L/T Loan – this is the interest rate that is being charged by the funder once the development is complete
• Length of L/T Loan this is the period of the long term loan
• Discount rate – we have included this at the same rate as the long term loan but you may choose a different rate

General Needs

• Management costs per unit
• Maintenance costs per unit
• MRP % – this is the Major Repair Percentage, sometimes also called a Building Fund. In this case it is 0.4% of the build costs per annum
• Voids

HomeBuy

• Equity Sold – the amount of equity sold as a first tranche
• Rent Cap – percentage of the rent charged on the unsold equity

Inflation

• Rents – the National Rent Regime requires that rents do not increase faster than RPI+0.5%
• Management Costs – expect to increase at RPI+0.5% or RPI+1%
• Maintenence Costs – expect to increase at RPI+0.5% or RPI+1%