Do things in valuation work as per the needs of people?

However Bolton, like  several of the respondents, suggested that ‘an alternative would be to freeze the right to buy on  these new properties for a period of time so as to secure the dwellings for social housing’. If  such spending has been significant, as would be the case if the landlord had built the property, the  discount can effectively be wiped out, so that the tenant has to pay its full market value. Other impacts that were pointed out were the possible delays in the procurement of the scheme, as  Reading BC point out: ‘Bids will not be price certain until planning permission for the  redevelopment is obtained.

Such contingency can make the bid evaluation process more  problematic and risks bid price drift with associated impacts upon project timescales’. However  ODPM think that this will be counteracted by: the removal of certain contractual issues like  existing latent defects, statutory notices and ground conditions. In addition more conventional  payment mechanisms and the removal of a need for stock condition surveys should shorten the  bidding process and reduce bidding costs.

HACAS Chapman Hendy, a Housing Association, point out that ‘tenants in new build homes will,  under the rent restructuring regime, move on to a higher target rents as the new homes will, we  assume, have a higher value than refurbished ones’. However when the rents are restructured only  30% of the rent takes into account the market value of the property and it is felt that the benefit of  living in a new and well designed home will outweigh the price difference. Other benefits pointed out were that in areas of low demand, such as the Housing Market Renewal  Area, the ability to demolish and build new homes could assist authorities in kick-starting the  process.  click here for details : Brisbane Property Valuers

Indeed Oldham, who have a 2nd Round scheme currently in procurement, and also have  HMRF pathfinder status, have indicated that they would welcome the opportunity to test new build  against refurbishment solutions in their existing scheme. They see it as working by possibly being  able to alleviate poor conditions in the private sector by replacement with public sector stock.