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ebull

Crashtastic. Zone 2 Islington plots 40k per unit

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www.standard.co.uk/news/london/holloway-prison-campaigners-to-protest-against-plan-to-turn-historic-jail-into-luxury-flats-a3468186.html

Ooops sorry, not for you and me at 40k. Only for a special freind. Or am I too sceptical.
Of course labour thinks it should be "affordable" housing and the developer that gets it will have to play the game about pretend affordable homes for some years. They are not even demanding social housing.

"potential £2 billion housing development.

The Government wants to sell the site as part of its overhaul of the UK prisons service. Property sources believe offers of £200 million could be made for the land, expected to be used for up to 5,000 homes."

So either it costs best part of 360k per unit to build or there's rather a big profit factored into that. Can no-one in the government do a simple calculation when big numbers are involved?

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4 hours ago, ebull said:

www.standard.co.uk/news/london/holloway-prison-campaigners-to-protest-against-plan-to-turn-historic-jail-into-luxury-flats-a3468186.html

Ooops sorry, not for you and me at 40k. Only for a special freind. Or am I too sceptical.
Of course labour thinks it should be "affordable" housing and the developer that gets it will have to play the game about pretend affordable homes for some years. They are not even demanding social housing.

"potential £2 billion housing development.

The Government wants to sell the site as part of its overhaul of the UK prisons service. Property sources believe offers of £200 million could be made for the land, expected to be used for up to 5,000 homes."

So either it costs best part of 360k per unit to build or there's rather a big profit factored into that. Can no-one in the government do a simple calculation when big numbers are involved?

It's a shame that a crowd funded approach doesn't fit here: you would need to find a bank willing to assess and lend to 5,000 separate buyers, and release the funds in stages to landowner, architects, builders, utilities, etc. Has any bank ever done this?

Also, councils are still HRA capped (though recently slightly extended), so Islington council would struggle to afford the entire project themselves. (Although it would be in their interest to have 5,000 extra council tax receipts, rather than investment units that take 8 years to sell...)

Total cost including land, building, architects, utilities, surely wouldn't exceed 150k per flat?

It seems that with the current system, the affordable land actually exists in this case, but the only group with the ability to build on a large scale is the corporate housebuilders who keep the housing unaffordable. The current government doesn't want to challenge the builders on their actual selling prices, because they see them as a 'free market' entity even though no other group competes with them on large scale building.

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The equation is 1/3 Land cost, 1/3 Build cost and 1/3rd sales/finance/management/profit. The profit can disappear very quickly or vice versa.

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