Yield:
The Council will only acquire properties and make investment decisions where the running cost does not require Council subsidy, (unless otherwise agreed by the R&I to further a strategic priority with a clear funding plan in place). Per acquisition, no minimum target will be set, but the yield must be balanced against the financial risk of the project holistically.
Where projects deliver key strategic priorities, or where the community benefits of job creation or safeguarding, tourism, town centre regeneration, business rate growth or effective asset utilisation are significant a very low or zero net yield may be acceptable.
Value and Cost:
- Acquisitions: Larger lot sizes are favoured - smaller size properties have disproportionately higher management costs and expose the Council to greater property void risks, but the economic and trade benefits of buying smaller units may outweigh this.
- Acquisition costs of properties, land and buildings are forecast not to exceed 7% (Stamp Duty Land Tax (SDLT) / Legal / Agents / Due Diligence). These costs are to be contained within the overall strategy budget.
