Draft Charging Schedule

Object

Representation ID: 68045

Received: 10/04/2015

Respondent: Alumno Developments

Agent: GL Hearn

Proposed charge of £80 per sqm of new floorspace for student accommodation was raised as a concern during the last consultation. This appears high compared with similar locations elsewhere. The rate is unjustified and could make development unviable. The viability report prepared by BNP Paribas in support of the emerging CIL assumes rent of £120 per week per 29 week term. It is based upon no case study evidence as far as one can see and is based Warwick University provided accommodation on campus. The income figure appears to be gross rather than net and assume would include management fees. Applies to one type of accommodation where there are cluster types which are more affordable. The appraisal should consider the proposed CIL charge to be appropriate to reflect costs of facilities which are provided off campus.
Real danger that this level of charge would restrict future accommodation supply to HMO's.
Support proposal to accept payment in instalments.