Valuations are provided annually for the period July to June.
We welcome engagement about our approach to Commuted sums as part of the Local Development Plan and Supplementary Guidance updates.
If you are concerned about development viability please refer to Developer Contributions and Affordable Housing Supplementary Guidance.
Valuations as at 30 June 2023 for period July 2023 to June 2024 (exclusive of VAT)
Date of Publication – 1 September 2023
| Housing Market Area | Value for Private Sale (£) | Value for social rent (£) | Commuted payment (£) | ||
|---|---|---|---|---|---|
| Range < | Range > | Typical | |||
| West | £21,000 | £26,000 | £23,500 | £5,000 | £18,500 |
| South | £25,000 | £31,000 | £28,000 | £5,000 | £23,000 |
| East | £20,000 | £25,000 | £22,500 | £5,000 | £17,500 |
| North | £21,000 | £26,000 | £23,500 | £5,000 | £18,500 |
Valuation Methodology Statement
The valuations follow the guidance notes issues by the RICS within Planning Advice Note (PAN) 2/2010 and Valuation of Land for Affordable Housing Scotland GN1002013.
The understanding from PAN 2/2010 is that the commuted payment would be in lieu of, and equivalent to, the value of providing the percentage of serviced land otherwise required by the policy.
The commuted sum payment relates to the cost of providing serviced land for affordable housing for the same Housing Market Area (HMA). Assuming that the Housing Supply and Innovation Division of Scottish Government will make Housing Association Grant (HAG) available, then the value of the land is the difference between the affordable land plot which can be purchased using the subsidy and the value of the site for private development, that is, the commuted sum is the additional amount the housing association or local authority would have to pay over and above the affordable housing land value to obtain an alternative site.
The valuation for affordable housing is based on a residual valuation where the costs of the development are deducted from the calculated income and housing grants as per the More Homes Division Guidance Note - Affordable Housing Supply Programme: Process and Procedures. (MHDGN 2023/01).
The valuations follow the guidance notes issues by the RICS 'Valuation of Land for Affordable Housing Scotland' GN1002013 and GN Valuation of Development Property October 2019.
The valuations provided assume notional house plots for the erection of a three apartment/three-person semi-detached house within a development of around ten houses in each of the 4 HMA’s. It is assumed that the plot will be ready for development with services close by. The annual social 3-person equivalent rent set by the Scottish Government is used for the purpose of the social rent affordable housing plot valuation along with build costs provided by Angus Council.
The figures provided are on the basis of the following two tenures:
- Unrestricted plots for private sale
- Social rent affordable housing plot
The commuted payment is the difference between the affordable land plot value and the value of the plot for private development multiplied by the number of Affordable Housing units required.
It is calculated on the basis of the number of Affordable Housing units required x (benchmark MV of unrestricted housing plot less benchmark value of an Affordable Housing plot).
Example calculation
Commuted sum calculation using the June 2023 figures for a development for 20 houses in Kirriemuir within the West Angus Housing Market Area.
The Affordable Housing requirement in Kirriemuir is 25% = 5 affordable housing units.
The calculation would be:
Number of Affordable Housing units required x (benchmark MV of unrestricted housing plot less benchmark value of an Affordable Housing plot).
5 affordable housing units x (£23,500 less £5,000) equates to 5 x £18,500 = £92,500 Commuted Sum