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Withdrawal of paper on valuation of affordable housing land in Scotland
June 2008

Ever since PAN74 defined developers' contributions towards affordable housing as "land at a price reflecting its use for affordable housing," the question of affordable housing land values in Scotland has been a somewhat open one. PAN74 said that the Chairman of RICS Scotland would adjudicate in the event of a dispute but, since RICS Scotland had carried out no specific research on the subject and had not been consulted before being allocated this role, it was difficult to come to a definitive conclusion.

To provide guidance, the housing division of the Scottish Government (Communities Scotland) published a paper on the subject on 30th November 2007. Levvel supported the broad methodology but had serious reservations about a number of details, principally, its failure to distinguish between tenures, its implied support for negative land values, the downward ratchet on HAG funding and the difficulty of obtaining the data necessary to carry out an appraisal.

On 25th March, after significant pressure from Homes for Scotland, Communities Scotland withdrew the paper and has put the methodology out for consultation. Levvel is keen to get involved and help to develop a transparent methodology that removes some of the current uncertainty.
 
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