- The below is prepared to illustrate the differences between the four options being considered as alternatives to the provision of temporary accommodation through Bed and Breakfast accommodation.
- Cost Comparison Table
Existing / Option 1 / Option 2 / Option 3 / Option 4
Model / A dispersed shared and single occupancy scheme with floating support, including revised EHAG / A new build facility with support on site. / The conversion of an existing owned building with support provided on site (Winton House or similar) / The purchase of an existing B&B and the provision of support on site.
Purchase cost / £nil / £550k
Build cost / £nil
Capital refurbishment/
furnishing cost
(one off) / £18k / £30k / £100k / £100k
Capital Total / £18k / £30k / £100k / £650k
Rental cost/housing charge / £220k / £77.5k / £101k1 / £50.4k2 / £67.2k3
Revenue ‘support’ costs (p.a.) / £32k / £50k - £70k7 / £50k - £70k7 / £50k - £70k7
Repair/replacement (fixtures and fittings)cost contingency / £1k / £9k / £nil / £nil / £nil
Communal Service Charge, incl: / £nil / £nil / £22.3k4 / £14.4k5 / £19.2k6
Residual B&B costs still necessary / £nil / £nil / £nil / £47k8 / £36k8
Total annual Revenue costs / £221k / £118.5k / £193.3k / £181.8k / £192.4k
Rent foregone / £30k9
Total Max. Recoverable Costs (Apr18 – Apr20) / £110.5k / £86.5k / £123.3k / £88.3k / £104.4k
Net annual costs after recoverable costs (Apr18 – Apr20) / £110.5k / £32k / £70k / £123.5k / £88.4k
Total Max. Recoverable Costs (post 2020) / £110.5k / £86.5k / £0k / £23.5k / £18k
Net annual costs after recoverable costs (post 2020) estimate. / £110.5k / £32k / £193.3k / £188.3k / £174.4k
- References (Cost Comparison)
Rent - These ‘core’ Rents (below) fund purchase and build, repayment of loans management of premises, void costs, development of sinking fund, cyclical and responsive repairs and improvements.
1 – based upon 12 units * 12 months * £700 pcm core rent.
2 – based upon Winton House being converted to 6 units * 12 months * £700 pcm core rent.
3 – based upon theoretical B&B with 8 units * 12 months * £700 pcm core rent.
Communal Service Charges – These service charges (below) cover cleaning,
gardening, heat and light, door entry, fire equipment, communal service repairs,
asset replacement, other otherwise unspecified communal expenses, etc.
4 – based on 12 units * 12 months * £155 pcm Note – this is a little lower as it is likely a new build property will have fewer repair issues over the first few years of its life.
5 - based upon Winton House being converted to 6 units * 12 months * £200 pcm communal services charge reflecting its age and state of repair.
6 - based upon theoretical B&B with 8 units * 12 months * £200 pcm communal services charge reflecting its age and state of repair.
7 – This figure is for the staff costs likely to be incurred in the delivery of the support to residents of the service. This can be varied, using the principle that more support provides improved outcomes hence the variance in potential costs. Costs are lower at the dispersed scheme as it is felt that this type of scheme would require less support input to sustain.
8 – For two options some residual B&B use will be required and the estimated cost of this is indicated.
9 – Should we use Winton House to operate a scheme from there will be a cost to the authority in rent foregone.