The Berkeley Group: Economic Impact AssessmentFILE/EY_Berkeley_Group_Economic_Impact_Asses… · 2 The Berkeley Group Economic Impact Assessment The Berkeley Group Holdings plc Established

The Berkeley Group

Economic Impact Assessment

Grosvenor Waterside

ContentsExecutive summary 1

Background to the study 2

Berkeley’s economic impacts 8

Final remarks 26

Appendix A Timeline 28

Appendix B Glossary 29

Appendix C Economic Impact Assessment Methodology 30

Appendix D References 32

1The Berkeley Group Economic Impact Assessment

In November 2012 The Berkeley Group Holdings plc (Berkeley) commissioned Ernst & Young LLP (Ernst & Young) to perform an Economic Impact Assessment of Berkeley’s contribution to the UK economy over the financial years 2008-2012.1

This report presents the results of the Economic Impact Assessment undertaken by Ernst & Young. The analysis is based on Berkeley’s own data, both published and internal, and on publicly available statistics.

Berkeley’s contributions to UK plc

2012Contribution to the UK economy

Total contribution to Economic Activity in 2012 £2.6bnTotal contribution to GDP in 2012 £1bnEmployment

Jobs directly or indirectly supported in 2012 16,000Total number of jobs created per home built 4.5

2008-2012Tax generation

Total UK tax contribution between 2008 and 2012 £1.1bn International investment

Amount of international investment attracted to the UK between 2008 and 2012 £1.9bnHomes built

Number of new homes built in the last five years 13,000Affordable homes provided (commitments 2008-2012) 7,000Change in number of homes built 2008-2012 +13% (UK -35%)

Development benefits

Contribution to infrastructure, education, healthcare and communities through S106 (commitments 2008-2012) £245m

Executive summary

2 The Berkeley Group Economic Impact Assessment

The Berkeley Group Holdings plcEstablished in 1976 with the founding of Berkeley Homes in Weybridge, Surrey, in less than four decades The Berkeley Group Holdings plc (“Berkeley”) has become one of the most prominent and successful developers in the UK.

Today Berkeley is a FTSE 250 company with a market capitalisation of approximately £2bn2. Its six divisions: Berkeley Homes, St George, St James, Berkeley First, Berkeley Commercial and the joint venture, St Edward, generate over £1bn in annual revenues3.

Berkeley is recognised as a leader in the regeneration of complex brownfield sites and the creation of sustainable communities. Its portfolio reflects the aspirations of a broad range of home buyers, encompassing medium to large-scale developments in towns, cities and the countryside, estate regeneration projects, town centre developments, riverside apartments, refurbished historic buildings and urban loft spaces as well as student accommodation and senior living homes.

At the time this report was prepared, Berkeley had 40 active development sites in London, a further 29 in the South East of England and another 32 sites acquired for future development.

Berkeley’s ambition is to be one of the most successful and sustainable businesses in Britain. This is guided by its ten-year strategic framework, “Vision2020”, which focuses on four key impact areas:

► The Customer Experience

► Building Greener Homes

► Delivering Sustainable Communities

► Running a Sustainable Business

Testament to Berkeley’s success is the number of awards the company has received over the years, including “Britain’s Most Admired Company”, twelve “What House?” Awards in 2011 and The Queen’s Award for Sustainability.

Background to the study

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1 375 Kensington High Street2 Battersea Reach3 Beaufort Park, Hendon4 Blackheath Road, Deptford5 Camberwell Grove6 Carmelite, Finchley*7 Caspian Wharf, Bow8 Chelsea Creek / Imperial Wharf9 Costume Store, Acton

10 Dickens Yard, Ealing11 Ebury Square, Belgravia12 Emerald Square, Roehampton13 Fulham Reach, Hammersmith14 Goodmans Fields, Aldgate15 Griffon Studios, Clapham16 Grosvenor Waterside17 Napier, Acton18 Kew Bridge Road 19 Kew Bridge West, Brentford20 Kidbrooke Village

21 Langham Square, Putney22 Lime Grove Mews, Hammersmith23 Marine Wharf, Deptford24 Marryat Place, Wimbledon*25 ONESE 8, Deptford26 One Tower Bridge27 Parkwest, West Drayton28 Queen Mary’s Place, Roehampton29 Riverlight, Battersea30 Roman House, City of London31 Royal Arsenal Riverside32 Saffron Square, Croydon33 St Catherine’s Place, New Cross34 St James Park Mews, Surbiton35 Stanmore Place36 Terrace Yard, Richmond37 The Boatyard, Kingston38 The Tower, One St George Wharf39 Wimbledon Hill Park40 Woodberry Park

1 190 Strand, City of London2 Abell & Cleland House, Westminster3 Carnwath Road, Fulham4 City Forum, City of London*5 Eastbury House, Albert Embankment*6 Hampton House, Albert Embankment*7 NEC House, Acton*8 One Blackfriars, Southwark*9 Queen’s Rise, Richmond*

10 Section House, Finchley*11 Sir Alexander Close, Acton12 Twickenham Sorting Office*13 Warwick Road, Kensington (Telereal)14 Warwick Road, Kensington (Homebase)

* Sites purchased during financial year 2012

London under construction London sites in planning

London


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1 375 Kensington High Street2 Battersea Reach3 Beaufort Park, Hendon4 Blackheath Road, Deptford5 Camberwell Grove6 Carmelite, Finchley*7 Caspian Wharf, Bow8 Chelsea Creek / Imperial Wharf9 Costume Store, Acton

10 Dickens Yard, Ealing11 Ebury Square, Belgravia12 Emerald Square, Roehampton13 Fulham Reach, Hammersmith14 Goodmans Fields, Aldgate15 Griffon Studios, Clapham16 Grosvenor Waterside17 Napier, Acton18 Kew Bridge Road 19 Kew Bridge West, Brentford20 Kidbrooke Village

21 Langham Square, Putney22 Lime Grove Mews, Hammersmith23 Marine Wharf, Deptford24 Marryat Place, Wimbledon*25 ONESE 8, Deptford26 One Tower Bridge27 Parkwest, West Drayton28 Queen Mary’s Place, Roehampton29 Riverlight, Battersea30 Roman House, City of London31 Royal Arsenal Riverside32 Saffron Square, Croydon33 St Catherine’s Place, New Cross34 St James Park Mews, Surbiton35 Stanmore Place36 Terrace Yard, Richmond37 The Boatyard, Kingston38 The Tower, One St George Wharf39 Wimbledon Hill Park40 Woodberry Park

1 190 Strand, City of London2 Abell & Cleland House, Westminster3 Carnwath Road, Fulham4 City Forum, City of London*5 Eastbury House, Albert Embankment*6 Hampton House, Albert Embankment*7 NEC House, Acton*8 One Blackfriars, Southwark*9 Queen’s Rise, Richmond*

10 Section House, Finchley*11 Sir Alexander Close, Acton12 Twickenham Sorting Office*13 Warwick Road, Kensington (Telereal)14 Warwick Road, Kensington (Homebase)


London under construction London sites in planning

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Out of London under construction Out of London sites in planning 1 Basingstoke2 Beaconsfield3 Billingshurst4 Cambridge5 Canterbury6 Cheltenham7 Cirencester8 Eastbourne9 Effingham

10 Esher11 Farnham Common12 Fleet (2 sites)13 Gillingham14 Gosport15 Guildford

16 High Wycombe17 Holborough18 Horsham19 North Bersted20 Oxford (2 sites)21 Portsmouth22 Reading23 Worcester24 Sevenoaks25 St Albans26 Wantage27 Woodstock

1 Amersham*2 Ascot (2 sites)3 Beaconsfield4 Caterham*5 Cheltenham*6 Claygate7 Cobham8 Gerrards Cross (2 sites)*9 Maidenhead*

10 Oxshott*11 Reigate12 Shalford*13 Tadworth (2 sites)*14 Tunbridge Wells*15 Wantage

South East



The housing market in England

Supply and demandThe UK has undergone significant population growth and demographic changes over the last 10 years, which has led to increased demand for new homes.

The supply of new homes has failed to match such growth in demand. On the contrary, the chronic undersupply of new housing has severely worsened since the economic downturn in 2007.

The Department for Communities and Local Government (DCLG) estimates that the number of new households in the UK will grow by 232,000 every year for the next 20 years4 but fewer than 120,000 homes were built last year.5

At the current pace of construction the number of new homes built is expected to fall short of the number of new households formed in England by around 112,000 each year.

This shortage of new homes can be partly attributable to planning delays, which can cost the economy up to £3bn per year according to estimates from The National Housing and Planning Advice Unit.6

The economic recession and the consequent tightening of the credit market have proven particularly challenging for the industry, which is reliant on access to credit for developers to build new homes. This has worsened the mismatch between demand and supply of new homes.

Home buyers are also facing difficulties in gaining access to credit. As a consequence, residential property transactions reached a historic post-war low of 736,000 in England in 2009 after the crisis hit in 2008, increasing slightly to 762,000 in 2011.7 This is a contraction of almost 50% compared to the 1.4m transactions completed in England in 2006.

Economic impact of housing developmentThe Government’s growth agenda8 recognises that housing delivery is important not only in its own right but also because of the contribution it makes to economic growth and to reducing unemployment, particularly for the young and unskilled workforce.

House building has a significant economic impact:

► Before the economic downturn in 2008, house building accounted for 335,000 jobs and 1.5% of Gross Domestic Product (GDP), some £22bn when using 2011 GDP as a reference.

► We have calculated that, for every additional job created in the construction industry a further 1.53 jobs are created in the wider economy. We therefore estimate that, before the crisis, house building supported approximately 850,000 jobs across the UK.

► House building is also a key source of funding for Central Government and Local Authorities. Stamp Duty Land Tax (SDLT) generates over £6bn a year9 and Council Tax is estimated to generate £23bn.10

► Based on these figures, it can be inferred that if the gap between supply and demand of new homes were to be bridged, the additional 112,000 homes built in the UK could potentially create 220,000 jobs in the economy and contribute £14bn to GDP.

The provision of housing also promotes labour mobility and leads to better matching of workers with employment opportunities, thereby increasing the overall efficiency of the economy.

112,000 the annual deficit of housing delivery compared to new household formation in England at 2012 home building rates


Berkeley’s performanceBetween 2008 and 2012 Berkeley has:

► Delivered 13,000 homes

► Signed Section 106 agreements to provide over 1.6m ft2 of commercial space11

► Committed to delivering over £245m worth of investment in public infrastructure through Section 106 agreements12

► Committed to delivering 83 acres of public realm space

► Signed commitments to deliver over 7,000 affordable homes

► ►Completed, on average, 96% of dwellings on brownfield land

► ►Built, on average, 95% of sites within 500 metres of a transport node

Despite difficult economic conditions, Berkeley has invested heavily in land and construction. Performance over the last three years has been strong, with the number of new homes delivered to the market more than doubling to 3,565 between 2009 and 2012. This represents 8% of all new homes built in London and the South East.13

Berkeley established the UK’s first Private Rental Fund with the Home and Communities Agency in 2010. This private rental initiative shows how the public and private sector can work together to mitigate challenges faced in the housing market. The fund is currently valued at £200m and consists of almost 900 homes across 27 Berkeley developments.

The strategic importance of the Private Rental Sector to the UK has been explicitly recognised by the Government, in that it “fulfils a vital economic and social role, offering households choice and flexibility in meeting their housing needs, whether for the short or the long-term.”14

Chart 1: Homes delivered by year

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850,000 the number of jobs directly or indirectly supported by new home building in the UK before the crisis


Case study – Gunwharf Quays


The £200m15 redevelopment of Gunwharf Quays has transformed a redundant Royal Naval dockyard into a thriving new community and visitor destination. Gunwharf now comprises 757 homes and, as a retail and leisure destination, attracts approximately six million visitors per year.

Gunwharf was the main ordnance yard for the Royal Navy from its inception in the 17th Century until 1986 when it was closed and the site was made redundant. Portsmouth City Council issued a development brief in 1995 and the 32 acre site was acquired by Berkeley in 1997.

Construction began in 1999 and the first residents moved in during 2002. By 2008, the site had been transformed around a new marina with over 90 shops, 23 bars and restaurants, a cinema, a bowling complex, a hotel and office space. Retailers include Boots, Marks & Spencer, Barbour and Gap. The Spinnaker Tower, which rises 170 metres above sea level, has created a new landmark for Portsmouth.

Gunwharf has also been the catalyst for significant regeneration and development in the Portsea and wider Portsmouth area, including the former Queen’s Street Car Park which is now 566 apartments, and a 22 storey high landmark tower.

An independent report commissioned by the British Property Federation16 found that Gunwharf has delivered significant employment benefits to the local community:

► Site preparation and delivery provided more than 500 full time jobs in construction at its peak, with much of the work going to local companies.17

► The completed development has generated in excess of 2,500 new jobs in the local area, including 1,650 direct jobs in retail, leisure and offices on the development itself and approximately 900 other indirect jobs in the local area.

► 460 of these jobs were taken by unemployed people in the local area.18

Over half of Gunwharf Quays is public space. The development hosts up to 50 events a year, including concerts, carnivals and themed days. Major tourist events have also been held at Gunwharf Quays, including a Golden Jubilee visit by HM The Queen, The Tall Ships Race and the EDS Atlantic Challenge Race.

The development encourages visitors to arrive by means other than car by providing bicycle storage and a pedestrian walkway to the main bus and coach terminus. Additionally, funding given to the council has improved several road junctions and well-known accident hot-spots.

Gunwharf contributed £1.9m of council tax19 to the public purse in 2012. The development has also helped Portsmouth gain Single Regeneration Budget (SRB) funding of £78m20 which has been used to deliver education, employment, youth business support, training, early years and community project benefits.

Gunwharf Quays has received a number of awards, including the British Urban Regeneration Association (BURA) Award 2003 for Best Practice in Regeneration and the English Partnership Award for Partnership in Regeneration, recognising Berkeley’s partnership with Portsmouth City Council.

Table 1: Gunwharf Quays’ facts and figures

Key statistics

Number of acres regenerated 32

Total investment £200m

Number of homes built 757

Affordable homes 126

Retail space 235,000 ft2

Leisure space 217,000 ft2

Office Space 27,000 ft2

Jobs on site 1,650

Total jobs supported (on-site and off-site) 2,500

Source: Data on the Gunwharf Quays development provided by Berkeley and The College of Estate Management, Mixed Use Urban Regeneration at Brindleyplace, Birmingham and Gunwharf Quays, Portsmouth, 2003.

6 million annual visitors to Gunwharf Quays


IntroductionBerkeley contributes directly to the UK’s GDP through the Gross Value Added (GVA) it produces; it creates jobs and contributes to public finances through taxes.

In addition to this, Berkeley generates further demand for businesses throughout the UK through the supply chain and the wages paid to employees. This in turn creates additional GDP, supports jobs and contributes to the public purse through taxes.

In the following sections we present our estimate of these effects. Our results are based on the methodology described in Appendix C.

Berkeley’s economic impacts

375 Kensington High Street

Direct, Indirect and Induced effectThe full benefits Berkeley generates for the UK economy can be estimated by calculating the Direct, Indirect and Induced effects, as defined below:

► The Direct Effect of Berkeley’s activity, i.e., its contribution to the UK’s Gross Domestic Product and the jobs it creates.

► The Indirect Effect arising from Berkeley’s demand for goods and services along the supply chain.

► The Induced Effect of Berkeley’s and its suppliers’ employees spending a share of their income on the consumption of goods and services in the wider economy.

Berkeley also generates significant contributions to the UK economy through inward investment, affordable housing provision and contributions towards a broad range of facilities and services for local communities.


Cafe Rouge, Gunwharf Quays

Contribution to the UK economyIn 2012, Berkeley directly or indirectly supported over £2.6bn of economic activity in the UK; a 25% increase over the previous year. Table 2: Contribution to Economic Activity in (£m), by year

2008 2009 2010 2011 2012

Total 2,379 1,418 1,866 2,091 2,613

Direct 1,018 645 637 1,027 1,236

Indirect 1,044 583 951 808 1,046

Induced 317 190 278 256 331

Source: Ernst & Young’s calculations based on Annual Reports 2008-2012 published by the Berkeley Group Holdings plc and data on purchases and other operational costs provided by Berkeley.

This translates into a contribution to Gross Domestic Product worth over £1bn; a 16% increase over 2011 which was a previous record year for Berkeley (£906m). This is particularly impressive considering that over the same period the UK’s GDP fell by over half a percentage point (-0.51%21).

The largest share is accounted for by Berkeley’s direct contribution to GDP, which in 2012 was £457m; 44% of the total.

An additional £444m came from the Gross Value Added generated by Berkeley’s contractors and the supply chain (42%), and a further £145m (14%) from the additional induced consumption of employees.

Table 3 shows the evolution of Berkeley’s contribution to GDP over the last five years.

Table 3: Contribution to Gross Domestic Product (£m), by year

2008 2009 2010 2011 2012

Total 906 481 713 906 1,046

Direct 327 151 185 450 457

Indirect 441 247 406 344 444

Induced 138 83 122 112 145

Chart 2: Contribution to Gross Domestic Product

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Source: Ernst & Young’s calculations based on Annual Reports 2008-2012 published by the Berkeley Group Holdings plc and data on purchases and other operational costs provided by Berkeley.

Contribution to GDP only tells part of the story. Berkeley’s land purchases – over £1.3 billion over the last five years – inject cash that can be reinvested back into the UK economy.

Approximately £200m of this land was acquired from the public sector. This not only helps to support the Government’s objective of delivering new homes on surplus public land but also generates crucial funding for the public purse at a time of fiscal consolidation and budgetary constraints.

£2.6bn Berkeley’s contribution to economic activity in 2012


Contribution to employment Berkeley directly or indirectly supported approximately 16,000 jobs in the UK (2012).

The majority of jobs (8,668 in 2012, 54% of the total) are directly dependent on Berkeley’s activity, being either its own employees (1,221)22 or contractors’ employees working on Berkeley’s construction sites (7,447).23

The remaining 46% is split between the rest of Berkeley’s supply chain (4,431) and the wider economy (2,854).24 Chart 3: Contribution to employment

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Source: Ernst & Young’s calculations based on employment records provided by Berkeley and data on purchases and other operational costs provided by Berkeley.

Typical jobs created range from architects to construction workers and from structural engineers to plumbers.Table 4: Number of new jobs created by Berkeley per home built

Number of new jobs

Jobs at Berkeley 0.3

Contractors’ jobs on site 2.1

Jobs along the supply chain 1.2

Induced jobs supported by employees’ additional consumption

0.8

Total number of new jobs created 4.5

Note: Differences in totals due to rounding.

Source: Ernst & Young’s calculations based on employment records provided by Berkeley and data on purchases and other operational costs provided by Berkeley.

Berkeley offers a range of employment opportunities across the whole construction and development spectrum. It also recognises the importance that training schemes provide for getting young people in particular into work.

► The graduate scheme currently employs 86 recent graduates with relevant qualifications in quantity surveying, construction, town planning, architecture, marketing, customer services, health and safety, or related disciplines.

► Berkeley provided 115 full time apprenticeships during 2012.

► The Berkeley Sales Academy was formed in 2012, to provide structured training for junior sales consultants.

4.5 total number of jobs created per home built

11The Berkeley Group Economic Impact Assessment Royal Arsenal Riverside


Case study – Chelsea Bridge Wharf


Chelsea Bridge Wharf is a mixed use brownfield regeneration scheme in central London. It comprises 1,128 homes, 330 (29%) of which are affordable housing, 186,000 ft2 of commercial space, including a four-star hotel and spa, offices, retail and health and leisure facilities as well as 2.6 acres of public space.

The site is located on the south bank of the Thames adjacent to Chelsea Bridge. Originally warehousing, the site had been used as a car pound for the last 30 years before Berkeley purchased it in 2000 with an initial investment of £54m.25 Table 5: Chelsea Bridge Wharf facts and figures

Key statistics

Total investment £252m

Number of homes built 1,128

Affordable homes 330

Commercial space 186,000 ft2

Total amount of economic activity generated £587m

Multiplier effect of £1 invested by Berkeley 2.33

Additional Gross Value Added £214m


Source: Ernst & Young’s analysis based on data on purchases provided by Berkeley.

The supply chainBerkeley invested approximately £252m in the regeneration of Chelsea Bridge Wharf, mainly on construction activities and intermediate manufacturing goods.

By mapping the indirect and induced effect of Berkeley’s spend on Chelsea Bridge Wharf, we estimate that the total amount of economic activity generated throughout the UK as a direct consequence of the project has been £587m.

This means that for every £1 invested by Berkeley on the regeneration of Chelsea Bridge Wharf, £2.33 worth of economic activity was created across the UK. This is more than 4% larger than the average multiplier effect for all UK sectors.26

Table 6 shows the industry split of the additional economic activity generated by the regeneration project at Chelsea Bridge Wharf. 45% (£263m) was on manufacturing goods (e.g., building materials, furnishings); approximately one third (£193m) on construction activities (e.g., building and construction work); with the remaining £131m on services.

An additional £335m worth of economic activity is estimated to have been generated throughout the UK through the indirect and induced effect of Berkeley’s investment in Chelsea Bridge Wharf.

Table 6: Breakdown of additional economic activity across the supply chain

Sector Economic activity (£m) % of total

Construction 193 33%

Manufacturing 263 45%

Services 119 20%Real Estate 12 2%Total 587 100%


We estimate that the development generated a total of £214m in additional Gross Value Added in the UK economy, supporting 3,415 jobs.

Geographic spread of benefitsThe map below shows the geographic distribution of Berkeley’s direct investment on Chelsea Bridge Wharf. Although the scheme is in central London, the benefits of its development were felt across the UK.Map 1: Geographic distribution of direct investment on Chelsea Bridge Wharf


For example, a small enterprise, Red Architectural Ltd, in the North West of England, supplied over 96% of the brick and block work for the construction of Chelsea Bridge Wharf, worth a total of almost £20m; the majority of carpets and external cladding were supplied by companies in the West Midlands; staircases and concrete frames by companies in the East of England; plumbing and electrical installation by a small company in the East Midlands.

£587m the economic activity generated through the construction of Chelsea Bridge Wharf

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Contribution to public financesOver the last five years Berkeley’s activity, directly or indirectly, has contributed almost £1bn, or an average of £195m per year, to Her Majesty’s Treasury (HMT) (£977m). Table 7: Contribution to Treasury (£m)

2008 2009 2010 2011 2012 Total

Total 220 154 165 189 248 977

Corporation Tax 74 44 47 56 75 296

Employee PAYE 68 54 55 57 79 312

National Insurance 68 52 53 61 82 316

SDLT 10 4 10 15 13 53

Annual average 195.4


Source: Ernst & Young’s calculations based on Annual Reports 2008-2012 published by the Berkeley Group Holdings plc and data on purchases other operational costs and tax returns provided by Berkeley

If SDLT paid by residents over the same period is added then the total contribution to HMT resulting from Berkeley’s activity can be estimated to reach almost £1.1bn. Table 8: SDLT paid by Berkeley residents (£m)

2008 2009 2010 2011 2012 Total

Total 9 17 24 25 34 109

Annual average 21.8

Source: Ernst & Young’s analysis based on data provided by Berkeley.

Financial benefits to local authoritiesBerkeley’s developments have also generated significant revenues for local authorities through council tax and the New Homes Bonus.

We estimate that residents of Berkeley developments that were delivered between 2008 and 2012 have paid over £41m in Council Tax, an average of £8m per year. £25m of this was in London (61%), £15m in the South East (37%), and the remaining £1m split between the West Midlands and the East of England.

Table 9: Total Council Tax payments from 2007/08 to 2011/12 (£)

Total Annual Council Tax payments (£m)

London 25

South East 15

Other 1

Total 41

Annual Average 8.2

Source: Ernst & Young’s calculations based on Council Tax Bands and new homes delivery data provided by Berkeley.

The Government introduced the New Homes Bonus scheme in February 2011 as an incentive to increase housing delivery. For each new home delivered from October 2010 the council receives the national average council tax for six years. Affordable homes get a further £350 each year.27

We estimate that Berkeley’s developments have generated £32m for local authorities from the New Homes Bonus since the scheme began. Table 10: Total value of New Homes Bonus to councils

New Homes Bonus (£m)

London 17

South East 13

Other 2

Total 32

Source: Ernst & Young’s calculations based on NHB and new homes delivery data provided by Berkeley.

£1.1bnBerkeley’s direct and indirect contribution to HMT between 2008 and 2012


Inward investment to the UKBerkeley also contributes to the UK economy through the sale of its homes to international buyers. Over the period 2008-2012 Berkeley’s international sales have amounted to £1.9bn or £374m per year on average.

This equates to nearly £2bn of new capital entering the UK directly through Berkeley’s activity.

By apportioning international sales to Berkeley’s total sales, we estimate that international sales have:

► Contributed £388m to HMT between 2008 and 2012

► Generated £16m for local authorities through Council Tax between 2008 and 2012

► Supported 6,300 UK jobs in 2012

► Contributed £97m to S106 interventions between 2008 and 2012 (commitments)

► Funded the provision of almost 2,800 affordable homes between 2008 and 2012 (commitments)

International investment can often be the difference that makes development viable by supporting cash flow early on. It underpins the provision of public amenities and affordable housing, creates jobs and generates significant revenue for the Exchequer.

£1.9bnthe amount of international investment attracted to the UK by Berkeley

Construction of Crossrail


Development benefitsBeyond the benefit of creating new homes, offices and retail space, Berkeley developments make significant contributions to the UK’s affordable housing provision and other planning gain.

Berkeley has funded a broad range of facilities and services, including healthcare, sports and leisure facilities, transport improvements and employment and training, which mitigate the impacts of their developments and provide public spaces, amenities and a range of services to local communities.

Over the last five financial years, Berkeley has made S106 contributions of £245m; an average of £49m each year. Examples of Berkeley’s contributions include the Crossrail station box at Royal Arsenal and Imperial Wharf train station.

Berkeley’s S106 commitments include a total contribution of £47m to education and training on 50 developments; an average of £9m each year.

Table 11: Section 106 Contributions by type and region, commitments signed between 2007/08 – 2011/12

RegionEducation (£m)

Transport and highway improvements (£m)

Contributions to offsite affordable housing (£m)

Public art (£m)

Sports, community, healthcare and other (£m)

Total (£m)

London 38 38 11 1 108 196

South East 3 16 - - 23 42

Other 7 - - 1 - 8

Total 47 54 11 2 131 245

Annual average 9.4 10.8 2.2 0.4 26.2 49


Source: Ernst & Young’s analysis based on Section 106 Commitments data provided by Berkeley.

£49 millionBerkeley’s annual S106 contributions (commitments, average 2008-2012)

Beaufort Park

Imperial Wharf


Over the same period Berkeley has also provided 83 acres of public space, an average of 16.6 acres a year, including a seven acre park at Imperial Wharf, Thames riverside walkways and the restoration of gardens and pleasure grounds at Roehampton House, a Grade I listed building. Table 12: Public Realm by Region, commitments signed between 2007/08 – 2011/12

Region Public Realm (Acres)

London 38

South East 45

Other -

Total 83

Annual average 16.6

Source: Ernst & Young’s analysis based on Section 106 Commitments data provided by Berkeley. Public Realm acres for “Other” equal to 0.1.

Affordable housingBerkeley is a major contributor to affordable housing provision in London and the South East. Over the last five financial years, Berkeley has signed over 7,000 commitments to provide affordable homes; an average of over 1,400 commitments per year. These include social rent, shared equity, shared ownership and extra care homes for the elderly.

Berkeley accounted for approximately 16% of affordable housing commitments in London between 2008 and 2010. This rose to 23% in 2011.28 Table 13: Affordable Homes by type and region, commitments signed between 2007/08 – 2011/2012

RegionAffordable shared ownership

Discounted market sale Extra care

Other affordable Total

London 2,210 604 250 2,128 5,192

South East 284 131 138 1,028 1,581

Other - 99 137 - 236

Total 2,494 834 525 3,156 7,009

Annual average 499 167 105 631 1,402


Local expenditureIn addition to the direct benefits to local communities described in the previous sections, further benefits derive from the consumption of goods and services by the residents and tenants on Berkeley’s developments, supporting business in the local area.

We estimate that between 2008 and 2012, the additional local spend generated by Berkeley residents was £198m. This is equivalent to 768 additional full time jobs created in their local communities.29

7,000the number of affordable homes provided by Berkeley (commitments, 2008-2012)

Kidbrooke Village

Imperial Wharf


Senior living homesSenior living developments provide homes for older adults looking to live in an environment with residents of a similar age. A number of communal facilities are available on site, such as restaurants, activities rooms and hairdressers. Table 14: Senior living homes

Senior living developmentNumber of senior living homes

Complete Olive House, Imperial Wharf

55

Kingshill, Cirencester 60

Victory Pier, Gillingham 60

Under construction

Kidbrooke, Greenwich 170

Royal Arsenal Riverside, Woolwich

165

King Harry Lane, St Albans 28

Marine Wharf, Lewisham 78

Delancey, Cheltenham 49

Yarnton, Oxfordshire 52

Planning permission

195 Warwick Road, Kensington

89

In planning Kent & Sussex Hospital, Tunbridge Wells

43

Bersted Park, North Bersted

71

West of Horsham, West Sussex

107

Total 1,027

Source: Berkeley Group Evidence to the All Party Parliamentary Group on Housing and Care for Older People, Tony Pidgley, October 2012.

Dial Arch, Woolwich Arsenal

1,027the total number of senior living homes under development by Berkeley

19The Berkeley Group Economic Impact Assessment Jazz Festival, Imperial Wharf


Analysis of Indices of Multiple DeprivationWe have compared the Indices of Multiple Deprivation (IMD) of five areas in which Berkeley developments have been recently completed (or partly completed), to illustrate the positive effects that residential and mixed use developments have on communities.

As shown in the chart below, all five areas where Berkeley developments are present have outperformed their neighbouring wards in the most recent survey period (2007-2010). The improvement is particularly evident for those areas where deprivation was more pervasive (Haringey, Ealing and Greenwich).

The IMD measures social and economic deprivation, therefore, a negative change represents an improvement in an area’s conditions.

Indices of Multiple Deprivation Analysis

-4.2

-10.3

-1.1

-8.9

1.0

-0.1

-1.8

-0.6

0.6

2.2

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

Berkeley Bromyard Avenue,

Acton

Berkeley Royal Arsenal

Riverside, Woolwich

St George Imperial Wharf, Fulham

St James New River

Village, Hornsey

Oxford Waterways, Lucy Foundry

WardBorough

Source: Ernst & Young’s analysis based on: DCLG, English indices of deprivation 2007 and 2010.

The IMD developed by the Department for Communities and Local Government (DCLG) is a composite measure combining a number of indicators that cover a range of economic, social and housing issues, into a single score.

This allows areas to be ranked relative to each other according to their level of deprivation.

The IMD has been produced for the 32,482 Lower Super Output Areas in England for the years 2004, 2007 and 2010.

4.68the average decrease in the deprivation index of the five areas with Berkeley developments considered (IMD 2007-2010)

Street Elite Festival, Wandsworth


The Berkeley Foundation The Berkeley Foundation was launched in March 2011. It works to improve the lives of young people and their communities in London and the South East of England. To date, the Foundation has invested over £2m30 in more than 40 separate charities.

Approximately 70% of funding from The Berkeley Foundation has been committed through grants or strategic partnerships, with 21% to designated charities and 8% to sponsorship.Funding distribution

35%

21%

36%

8%

Grants and donations

Designated charities

Strategic partnerships

Sponsorships

Two strategic partnerships were launched in 2011. The first was with The Lord’s Taverners, developing a sports-based training for work programme called Street Elite. The second was with Shelter, supporting a comprehensive range of housing advice services for young people.

So far, the Berkeley Foundation has helped Shelter support 65,34831 people through a telephone helpline, individual advice face to face from an expert housing advisor and web-based services.

The Street Elite programme worked with a cohort of 24 disengaged young people who were not in education, employment or training (NEET) during its first year. Nineteen of these completed the programme and are now in work or training, at a unit cost of £4,41132 per person. For comparison, data from the New Economics Foundation33 suggests that jailing one young offender costs the UK taxpayer up to £140,000 a year.

Street Elite is now doubling in size and working with 48 young people in the second year of the programme. A report by The Work Foundation and The Private Equity Foundation34 found that a young NEET costs the economy £56,000 over the course of their lifetime. Therefore, by training these young people, the Berkeley Foundation could save the economy £2.7m at a cost of only £212,000.

In total, 15% of all employees have signed up to Give As You Earn, helping Berkeley achieve the gold Payroll Giving Quality Mark Award, and 60% of employees invested time or money in the Berkeley Foundation during its first year of operation.

£2 millionthe amount invested by the Berkeley Foundation in over 40 charities since March 2011


Case study – Royal Arsenal Riverside


Royal Arsenal Riverside in Woolwich is one of London’s largest brownfield regeneration sites. Formerly used for the manufacture of military equipment by the Ministry of Defence, the site was acquired by Berkeley in 2001 from the London Borough of Greenwich and the London Development Agency for a total investment of £43 million.

Development of Royal Arsenal will take up to 30 years and £1bn of investment to complete. To date, 1,988 homes have been delivered, 610 (31%) of which are affordable homes, and 21 listed buildings have been refurbished.

The site also comprises 3.5 acres of public space and 300,000ft2 of commercial space, including a gym, hotel, shops, a museum, a pub and cafes. The development includes a district heating network supplied by a low-carbon combined heat and power plant.Table 15: Royal Arsenal Riverside facts and figures

Key statistics

Size of regenerated area 76 acres

Total investment for the entire scheme £878m

Total number of new homes when complete 4,960

Total number of Affordable homes when complete 1,238

Total number of Extra Care homes when complete 165

Commercial space 300,000 ft2

Public park 3.5 acres

Source: Royal Arsenal Riverside, SE18 document from Berkeley, Ernst & Young’s analysis based on data provided by Berkeley.

Royal Arsenal is a good example of the potential economic benefits delivered through the construction of housing developments.

We have estimated that the £878m investment in the development could generate almost £2bn worth of economic activity throughout the UK. This means that for every £1 invested by Berkeley £2.22 worth of economic activity is created.

Table 16: Royal Arsenal Riverside economic benefits

Contributions to the UK Economy

Total economic activity generated £2bn

Contribution to GDP £780m


Total council tax payments from 2010 to 2012 £2.4m

Source: Royal Arsenal Riverside, SE18 document from Berkeley, Ernst & Young’s analysis based on data provided by Berkeley.

Although the scheme is located in London, the benefits of its development are felt across the UK.Table 15: Geographic spread of benefits

East

SouthEast

London

NorthWest

NorthernIreland

Scotland

EastMidlands

Wales

WestMidlands


12,400the total number of jobs supported by the Royal Arsenal Riverside development


The regeneration of Royal Arsenal has contributed a wide range of new facilities and services to the local community through S106 commitments worth over £15.4m.

Development benefits to the local community include:

► A £2.5 million financial contribution to support primary school places and a local library

► £700k of healthcare contributions and the provision of a new local health centre

► Improvement works to the local road system

► The provision of a Thames riverside pier to link Woolwich to the Thames Clipper Boat service

► The funding and construction of a new Crossrail station box which will be delivered by mid-2013

Chart 4: Royal Arsenal Riverside Section 106 contributions by type (commitments)

Education: £ 2.8m

Transport and highway

improvements: £3.2m

Miscellaneous S106 contributions: £6m

Sports, community, healthcare and other: £3.2mPublic Art:

£0.1m


The Ward of Greenwich has also experienced a significant improvement as measured by the Index of Multiple Deprivation (IMD) – as illustrated in Chart 5. A negative change in the IMD represents a decrease in the level of deprivation in an area.Chart 5: Indices of Multiple Deprivation Analysis

-2.5

-10.2

2.53

-1.8

12

10

8

6

4

2

0

2

4

2004-07 2007-10

IMD

Cha

nge

Ward

Borough

Source: Ernst & Young’s analysis based on: DCLG, English indices of deprivation 2007 and 2010.

£15.4mthe amount of S106 contributions from the Royal Arsenal Riverside development (commitments)


Royal Arsenal


“ There’s only one way out of this housing crisis: we have to build our way out”

Nick Clegg, NHBC’s Annual Lunch 2012

The housing sector plays a critical role in the growth of the UK economy through its contribution to economic output, job creation and the generation of significant tax proceeds. However, the housing market is currently facing both cyclical and structural challenges. The recent slump in housing activity accounted for around a third of the overall 6% drop in GDP over the 2008-09 recession35 and housing transactions are expected to fall to their lowest levels this autumn since 1990.36

At the same time, the chronic undersupply of new housing creates a long-term structural problem. The mismatch between supply and demand has severely worsened since the economic downturn in 2007 and has been a major factor in the significant volatility of housing prices which, in turn, has implications for the long-term affordability of housing in the UK. As a consequence, the average age of first time buyers increased from 33 to 36 years old between 2005 and 2009.37

This is particularly important in London where more than half of all households now live in rented accommodation. The cost of privately renting a home has risen by 37% in the past five years, and is set to increase a further 35% over the next six years.38 The shortage of homes and rising rents also has implications for public finances with the annual Housing Benefit bill reaching £23bn in 2012.39

The Government’s growth agenda recognises that housing delivery is important not only in its own right but also because of the contribution it makes to economic growth and to reducing unemployment, particularly for the young and unskilled workforce. Moreover, as it promotes labour mobility and ensures a better matching of workers with employment opportunities, it increases the overall efficiency of the economy.

Berkeley, through the provision of new homes, can play a significant role in supporting the nation’s growth agenda.

Berkeley delivered 3,565 homes in 2012, representing 8% of all new homes built in London and the South East of England. It directly or indirectly supported over £2.6bn of economic activity in the UK in 2012, which translates into a contribution to Gross Domestic Product worth over £1bn and the creation of 16,000 jobs.

The delivery of new homes provides significant economic benefits to local communities.

Over the last five financial years Berkeley has made significant contributions to local communities through Section 106 commitments. These include the delivery of over 7,000 affordable homes and £245m of investment in public infrastructure, education and community facilities and services. Moreover, its residents can be estimated to have spent almost £200m in their local communities over the same period, supporting almost 800 local jobs.

International investment underpins the provision of these benefits and is often the driver that makes a development viable.

Berkeley is a major attractor of inward investment to the UK. Over the period 2008-2012, Berkeley’s international sales have amounted to almost £2bn. These alone have funded the provision of 2,800 affordable homes and of £78m worth of investment in local communities (S106). They also contribute £279m per annum to the Exchequer; and support over 3,500 UK jobs (2012).

Final remarks

Appendices

Imperial Wharf


Year Event1976 Berkeley Homes is established in Weybridge, Surrey by Tony Pidgley and

Jim Farrer

1984 Berkeley lists on the LSE

1985 St George Plc is established as a Joint Venture between Berkeley and Speyhawk

1996 St James Homes is established as a Joint Venture between Thames Water and Berkeley

2005 Berkeley disposes of Crosby Homes division to focus on its core London and the South East of England markets

2006 St Edward Homes established as a Joint Venture with the Prudential plc

2008 The Berkeley Group is granted The Queen’s Award for Enterprise: Sustainable Development

2010 Berkeley launches Vision2020, a plan for the business to become one of Britain’s most successful and sustainable companies by 2020.

Berkeley establishes the UK’s first Private Rental Fund with the Homes and Communities Agency

2011 Berkeley is voted Britain’s Most Admired Company 2011

The Berkeley Foundation is launched to improve the lives of young people and their communities in London and the South-East of England

2012 Berkeley awarded “Large House builder of the Year” at the inaugural RESI Awards and ranked Britain’s most sustainable major house builder by the Next Generation benchmark for the seventh consecutive year

Appendix A Timeline


Appendix B Glossary

Affordable Housing: includes social rented and intermediate housing, provided to specified eligible households whose needs are not met by the market1.

Give As You Earn (G.A.Y.E): is a scheme that enables anyone receiving pay that is subject to PAYE deductions, to donate to any charity or religious organisation from their gross pay. Payments are deducted from a donor’s pay before tax is deducted. This means that employees are given tax relief on their donation immediately, at their highest rate of tax2.

Gross Domestic Product (GDP): provides a measure of the total economic activity in a country. It can be measured using income, expenditure or output3. GDP is often referred to as one of the main ‘summary indicators’ of economic activity and references to ‘growth in the economy’ invariably refer to the growth in GDP during the latest quarter4.

Gross Value Added (GVA): is a measure of the value of goods and services produced in the economy and can be defined as outputs less the cost of raw materials and other inputs used up in production (intermediate consumption), i.e., the value added by any unit engaged in production. This is calculated gross of any deductions for depreciation or consumption of fixed capital.5

Index of Multiple Deprivation (IMD): a composite measure combining a number of indicators that cover a range of economic, social and housing issues into a single score6.

Lower Super Output Area (LSOA): is a small geographic area in England and Wales. It is designed to improve the reporting of small area statistics and there is a LSOA for each postcode in England and Wales.7

Not in education, employment or training (NEET): a young person who has left full time education and is not working or training.

New Homes Bonus (NHB): is a grant to local councils for increasing the number of homes and their use. It is paid each year for six years and is based on the amount of extra Council Tax raised for new build homes, conversions and long-term empty homes brought back into use. There is also an extra payment for providing affordable homes8.

S106 (Section 106): legally binding agreements under the Planning Act, containing obligations either in cash or kind, to undertake works, provide affordable housing or provide additional funding for services as part of a developer’s planning obligations

Stamp Duty Land Tax (SDLT): is a tax payable on the purchase or transfer of property or land in the UK where the amount paid is above a certain threshold9.

Standard Assessment Procedure (SAP): the Department of Energy and Climate Change’s (DECC) methodology for assessing and comparing the energy and environmental performance of dwellings. Its purpose is to provide accurate and reliable assessments of dwelling energy performances that are needed to underpin energy and environmental policy initiatives10.

1 CLG Planning Policy Statement 3: Housing, Annex B, Definition of Affordable Housing, November 2006

2 HMRC: Payroll Giving: introduction for employers and pension providers

3 ONS Glossary

4 ONS: Gross Domestic Product Preliminary Estimate, Q3 2012, 25 October 2012

5 Ibid

6 Ibid

7 Data Dictionary, NHS

8 DCLG

9 HMRC

10 DECC


Economic activities are related to one another within the wider economy through a dense network of supplier-customer relations, and thus produce effects that cross corporate and sector borders.

Each unit of output produced in a specific sector of the economy requires the production of additional units of goods and services in other parts of the economy to fulfil its input requirements.

Production of an additional unit of any good or service also requires the application of additional amounts of labour.

Therefore, any increase in the demand for goods and services in the economy will trigger yet more demand for other goods and services, to fulfil the input needs described above.

The amount of labour as well as the quantity and type of goods and services necessary to produce an additional unit of output is industry-specific and depends on the technology used.

The Input-Output model developed by Wassily Leontiev describes such relationships and allows quantifying such additional demand for labour, goods and services through the computation of industry-specific multipliers.

Using the Input-Output model as its main building block, the Economic Impact Assessment methodology allows quantifying a productive activity’s total contribution to the wider economy.

Within this framework, three distinct effects can be identified and measured:

1. A Direct effect arising from the initial increase in economic activity, the GVA it generates and the additional jobs it creates.

2. An Indirect effect arising from the additional demand of goods and services along an industry’s supply chain.

3. An Induced effect arising as an effect of households spending a share of the additional income generated through the provision of labour on the consumption of goods and services.

A comprehensive assessment of Berkeley’s contribution to the UK economy has been produced, using an Economic Impact Assessment methodology.

The Economic Impact Assessment quantifies the effect of Berkeley’s activity on three key economic variables:

1. Gross Domestic Product

2. Employment

3. Government Revenue

Direct effectBerkeley’s productive activity contributes directly to the UK’s economic activity; it contributes to the Country’s GDP through the Gross Value Added it creates; and it supports jobs.

Berkeley’s direct contribution to the UK’s Gross Domestic Product is the Gross Value Added it generates in the course of its productive activity. This has been calculated by subtracting the costs of goods and services purchased by Berkeley in the course of its activity from the total value of production, i.e., the sum of sales and the year-on-year difference in work-in-progress.

The data for the computation of Berkeley’s GVA has been obtained from the Group’s Consolidated Income Statement and Financial Statements, integrated with Berkeley’s accounting and Human Resources records.

Berkeley’s direct employment has been measured by headcount as reported in the Human Resources records.

Berkeley’s direct contribution to Government Revenue has been calculated from Berkeley’s tax returns, and it includes Corporate Income Tax (CIT); employment-related taxes: Income Tax (IT) and National Insurance (NI); Stamp duty Land Tax (SDLT); Council Tax; and Business Rates.

Indirect effectBerkeley’s activity generates additional demand for the factors of production at the national level through the commissions it grants to its contractors and the domestic component of its supply chain.

Through its purchase of goods and services, Berkeley supports the businesses that supply such goods and services. These businesses in turn generate additional economic output, Gross Value Added and employment; and in turn generate additional demand for goods and services along their supply chain.

Berkeley’s purchases have been measured directly from the Group’s purchase records. These enter the calculation of Berkeley’s indirect output directly. The additional effect of the suppliers’ own supply chain has been estimated using Type I multipliers obtained from Input-Output tables.

The indirect effect on GDP has been calculated through the application of GVA/Output ratios to the indirect Output thus obtained. GVA/Output ratios can be calculated at the industry level from official data from the Office of National Statistics (ONS).

Appendix C Economic Impact Assessment Methodology


The indirect effect on employment has been calculated in two steps: in the first place, contractors’ employment on Berkeley’s sites has been extracted directly from their records, as provided by Berkeley. The additional indirect employment creation has been calculated by applying a measure of apparent labour productivity (GVA/employee) to the residual part of indirect GVA, after subtracting the GVA generated by Berkeley’s contractors themselves. Apparent productivity of labour can be calculated from statistical data produced by ONS at the industry level.

Total tax revenue has been calculated as the sum of Corporate Income Tax (CIT), employees’ Income Tax (IT) and National Insurance (NI). These have been estimated using data from Her Majesty’s Revenue & Customs (HMRC) and ONS.

Induced effectAs household disposable income increases due to the increased provision of labour services, so does their spending, as determined by their Marginal Propensity to Consume (MPC). Household spending in turn generates economic activity within the economy to satisfy the additional demand for goods and services.

The increase in consumption of local goods resulting from the induced effect can be computed by multiplying the additional household disposable income by the Marginal Propensity to Consume, adjusted by the ratio of imports to local production at the product level.

Marginal Propensity to Consume, import ratios and household consumption patterns will be obtained from the ONS.

Multiplier calculationsOutput multipliers are obtained from Input-Output tables, through a mathematical process known as Leontiev Inverse. Input-Output tables are readily available for the UK from the ONS.

By applying industry GVA/Output ratios and apparent labour productivity measures to the Output multipliers thus obtained, industry level GVA multipliers and employment multipliers will be produced.

GVA/Output ratios and apparent labour productivity measures are obtainable from statistical data published by the ONS.


1. Berkeley’s financial years run from April to March, hence the period covered in this report extends from April 2007 to March 2012

2. London Stock Exchange

3. The Berkeley Group Holdings plc consolidated income statement 2012

4. DCLG: Household projections 2008 to 2033, England. 26 November 2010

5. DCLG: House Building: June Quarter 2012, England. 16 August 2012

6. National Housing and Planning Advice Unit: Housing Supply and Planning Controls: the impact of planning control processing times on housing supply in England, February 2010

7. HMRC: Residential and non-residential UK Property Transactions Count (Monthly, Quarterly and Annual Tables)

8. HM Treasury & BIS: The Plan for Growth, March 2011

9. HMRC receipts 2012

10. DCLG: Receipts of council tax in England 2002-03 to 2011-12. 27 June 2012

11. Ernst & Young’s Analysis based on Section 106 data provided by Berkeley

12. Ibid

13. DCLG: House Building Tables: June Quarter 2012, England, the UK and constituent countries

14. Investment in the UK private rented sector, HM Treasury, February 2010

15. The College of Estate Management, Mixed Use Urban Regeneration at Brindleyplace, Birmingham and Gunwharf Quays, Portsmouth, 2003

16. Ibid

17. Ibid

18. Ibid

19. Ibid

20. The Partnership, Single Regeneration Budget Rounds 1-4

21. Seasonally adjusted annual GDP growth, Q1. Source: Office of National Statistics, quarterly National accounts

22. Analysis based on employment data provided by Berkeley

23. Ibid

24. Ernst & Young’s calculations based on ONS Supply-Use Tables 2010, July 2012

25. Analysis based on development cost data provided by Berkeley

26. Ernst & Young’s calculations based on ONS Supply-Use Tables 2010, July 2012

27. DCLG: New Homes Bonus: final scheme design, February 2011

28. London Plan Annual Monitoring Report 8, 2010-11, Mayor of London – March 2012

29. Ernst & Young’s calculations based on DCLG: English House Conditions Survey; ONS: Average weekly household expenditure; and unit delivery data provided by Berkeley

30. The Berkeley Foundation Annual Review 2012

31. Ernst & Young’s analysis based on Street Elite Budget data provided by Berkeley New

32. Ernst & Young’s analysis based on Street Elite Budget data provided by Berkeley

33. New Economics Foundation, Punishing costs: How locking up children is making Britain less safe, March 2010

34. The Work Foundation and the Private Equity Foundation: Off the map? The geography of NEETs, November 2011

35. CBI Unfreezing the housing market, November 2011

36. ITEM Club Autumn 2012 statement

37. HMT Investment in the UK private rented sector, February 2010

38. Home Truths, NHF, 22 October 2012

39. DWP budget 2012: Housing benefit expenditure data tables, 2012

Appendix D References

Ernst & Young LLP

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