WINGETS OPTION APPRAISAL
Background and briefing notes
In their final option appraisal report, published in July 2005, Hilland Ritchie identified three possible solutions for the problems facing the Wingets:
- To repair the defective properties (Retention)
- To demolish the properties and build new homes (New build)
- A mixture of repair and new build (Mixed)
All three were deemed viable but a number of financial and social issues must now be considered before proceeding further.
Retention Option
Hilland Ritchie considered three retention systems for the houses - all of which appear technically capable of giving the houses a lifespan of 30 plus years. However, one of the methods was rejected, as it did not offer good value for money compared to the cost of new build.
The estimated cost per unit of retention using the Adams system of retention is £65,800 and the Powerall system is £58,600. Both include the required structural repairs along with a provision for sound insulation, new kitchens and bathrooms, other internal works and the cost of decants.
For owners the cost per unit using the Adams system is £48,791 and the Powerwall cost is £40,164. The costs do not include any expenditure owners would incur for decanting or VAT.
The total cost of the Adams retention method is £44.7 million and the Powerwall retention method is £39.8 million.
New build option
Under the new build option, all the Winget houses would be demolished and replaced with new homes for all residents. A preliminary planning assumption of 600 new build houses is made for tenants, with an additional 368 homes to be considered for owner occupation.
The estimated costs of constructing new-build houses including fees, VAT, demolition and decant is around £106,000. In total, the cost to build around 600 new homes would be £63.7 million.
With regard to owners, the Hilland Ritchie report cites the Scottish Executive’s Homestake scheme (a shared equity programme) and states: "The Homestake model has obvious attractions for owners, as this would allow them to use the equity from the sale of their existing home to part-buy a new home in Carntyne. It is estimated that the costs of delivering the Homestake model and compensating the owners in Carntyne would be in the region of £25 million."
The mixed option
Three variations were considered under this option
- Maximum retention
- Retention of the best house types and reprovision with other new house types
- Retention of two-thirds of the existing stock and reprovision with other new house types
Hilland Ritchie recommend the latter option which would meet the overall target of 600 GHA homes - through the repair of 448 houses, building 150 new houses (including sheltered accommodation) and the improvement of existing houses to eliminate seriously sub-standard types.
Cost of the 150 new build homes would be £16.4 million. The cost of retaining the 448 existing homes through the Adams method is £30.2 million and the Powerwall method is £27million, giving total costs of £46.6 million and £43.4 million respectively.
The Hilland Ritchie report recognises that owners affected by the demolition element of this option would need to be compensated and have access to any shared equity scheme, if available.
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