Land exchanges under the Affordable Housing Initiative are subject to a public tendering process which involves a range of rigorous assessments and evaluations. In advance of tendering each site, a feasibility report is prepared in order to examine the options available for leveraging the site for the Initiative and recommend the most appropriate course. In the event that the feasibility report confirms the appropriateness of the land exchange option, a pre-tender valuation is obtained and the site is publicly advertised.
Bids received are assessed in terms of value, the number of affordable homes involved and their location, the timeframe for delivery and the design quality of the development. As part of the evaluation process, the value of each bid, taking account of professional valuation advice, is assessed against the pre-tender valuation of the site. In addition to the design quality of the development being a criterion within the assessment process, all affordable homes provided through land exchanges are required to be covered by Homebond or a similar guarantee scheme. Furthermore, as the homes are sold directly by the selected bidder in a similar manner to that which applies to private sales, each affordable purchaser is in a position to have their home inspected and snagged in the normal way before completing the purchase transaction.