Karbon Homes – Development Appraisal Benchmarking Review

Karbon Homes is a housing group with over 34,000 homes across the North-East and Yorkshire.

Objective

DTP were asked to review the proposed development appraisal assumptions that were to be adopted by the Board, using benchmarks from other housing associations.

What we did

We initially reviewed Karbon’s Microsoft Excel spreadsheet model used for development appraisals and considered this against sector best practice and Karbon’s longer term aims. We then reviewed the new proposed development appraisal parameters, comparing these against sector benchmark data that DTP has collected.

What we achieved

We made a variety of recommendations for changes to the software used, overall model and parameters used:

• Changes were made to the overall development appraisal model
• Recommendations were made in relation to the use of bespoke software which may better suit Karbon’s future needs
• Changes were made to development parameters, based on benchmark data produced by DTP, and also considering impacts for loan covenants and Karbon’s business plan