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hp72

Self Build - Not For Profit Cpi Restrictive Covenant

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There's a review of the local plan in our area in Hampshire going on at the moment.

I am looking to suggest to the plan that areas of land to be set aside for required housing have a proportion allocated for self-build for people tied to the local area, rather than being snapped up by developers to build tiny, cloned, faceless properties which they want 20-40% profit on. And subsequent speculation.

Question is: How to ensure these are built and owned by people who actually LIVE in them?

How about a restrictive covenant that holds the owner to not being allowed to sell for more than CPI for 5-10 years?

I put together a quick sheet showing how land costs (£731,168 per Hectare in 1994 across England) extrapolates back to 1980 and up to 2013 by using ONS data, and an average of 30 dwellings per hectare. Build cost has been assumed as £10,000 in 1980.

See below to see how, if prices were priced at Inflation, homes that cost £22,761 in 1980 would now cost £75,447 in 2013.

The base inputs are in RED and all the other results are extrapolated. Land price input from 1994 as the earliest date in the sources.

Year Inflation Land Price Build Cost Total Price per Hectare (England) Price / Dwelling @ 30/H 1980 18.00% £10,961.11 £11,800.00 £22,761.11 1981 11.90% £12,441.66 £13,204.20 £25,645.86 1982 8.60% £13,612.32 £14,339.76 £27,952.09 1983 4.60% £14,268.68 £14,999.39 £29,268.07 1984 5.00% £15,019.67 £15,749.36 £30,769.03 1985 6.10% £15,995.39 £16,710.07 £32,705.46 1986 3.40% £16,558.37 £17,278.21 £33,836.58 1987 4.20% £17,284.31 £18,003.90 £35,288.21 1988 4.90% £18,174.88 £18,886.09 £37,060.97 1989 5.20% £19,171.82 £19,868.17 £39,039.98 1990 7.00% £20,614.85 £21,258.94 £41,873.79 1991 7.50% £22,286.33 £22,853.36 £45,139.69 1992 4.30% £23,287.70 £23,836.05 £47,123.75 1993 2.50% £23,884.82 £24,431.95 £48,316.77 1994 2.00% £24,372.27 £24,920.59 £49,292.86 £731,168.00 £24,372.27 1995 2.60% £25,005.95 £25,568.53 £50,574.47 1996 2.50% £25,631.09 £26,207.74 £51,838.84 1997 1.80% £26,092.45 £26,679.48 £52,771.93 1998 1.60% £26,509.93 £27,106.35 £53,616.29 1999 1.30% £26,854.56 £27,458.73 £54,313.30 2000 0.80% £27,069.40 £27,678.40 £54,747.80 2001 1.20% £27,394.23 £28,010.55 £55,404.78 2002 1.30% £27,750.36 £28,374.68 £56,125.04 2003 1.40% £28,138.86 £28,771.93 £56,910.79 2004 1.30% £28,504.67 £29,145.96 £57,650.63 2005 2.10% £29,103.26 £29,758.03 £58,861.29 2006 2.30% £29,772.64 £30,442.46 £60,215.10 2007 2.30% £30,457.41 £31,142.64 £61,600.05 2008 3.60% £31,553.88 £32,263.77 £63,817.65 2009 2.10% £32,216.51 £32,941.31 £65,157.82 2010 3.29% £33,276.43 £34,025.08 £67,301.51 2011 4.48% £34,767.22 £35,549.41 £70,316.62 2012 2.83% £35,751.13 £36,555.45 £72,306.58 2013 2.60% £36,680.66 £37,505.90 £74,186.55 2014 1.70% £37,304.23 £38,143.50 £75,447.73 Sources Cat. Link Note Price Land https://www.gov.uk/government/statistical-data-sets/live-tables-on-housing-market-and-house-prices UK / Hectare Density http://www.woking.gov.uk/planning/policy/localplan/density.pdf 30 Dwellings / hectare Inflation http://www.whatsthecost.com/historic.cpi.aspx CPI Inflation http://www.ons.gov.uk/ons/datasets-and-tables/data-selector.html?cdid=D7G7&dataset=mm23&table-id=1.2

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