Explanatory notes on selection of key multipliers

Only one Key Multiplier can be used per unit.

New build

Acquisition and works multiplier

Used where a site is purchased and the Association commissions a new build development via a building contract.

Off-the-shelf multiplier

Used where new properties are purchased, following inspection, from contractors/developers without the Association having commissioned works via a building contract. The cost of any ancillary works required must be set against the on-cost allowance.

Works only multiplier

Used for accommodation which involves the development of land or property already in the Association’s ownership, and for which no acquisition costs (other than legal charges) apply.

Rehabilitation

Acquisition and works multiplier

Used where existing buildings are purchased and require substantial repair and improvement, conversion, or extension for housing use.

Existing Satisfactory Purchase (ESP) multiplier

Used for existing properties which have been occupied for at least 12 months and are purchased following an open advertisement by the vendor’s agent in the property market. Unless the property is being offered for sale back to the Association under the terms of the Statutory House Sales Scheme or is being sold directly to the Association by the NIHE. An ESP shall be subject to an inspection of condition and independent valuation prior to purchase. The Association shall not commissioned works to an ESP as part of the purchase contract for the property. The condition of these properties is such that they do not require full rehabilitation, but may require a degree of repair/checks/upgrading to bring them up to an acceptable standard for letting. Works required to an ESP, are to be procured by the Association after the purchase of the property has been completed. The estimated repair/checks/upgrading cost of each property must not exceed the specified limit.

Works only multiplier

Used for accommodation which involves the development of land or property already in the Association’s ownership and for which no acquisition costs (other than legal charges) apply.

Re-improvement multiplier

Used for dwellings which have already received some form of public/grant subsidy and now require major improvement works (Re-improvement). Re-improvement schemes are generally expected to be submitted no less than 15 years after a rehabilitation or 30 years after new build construction.*

*(Note: For further details on Existing Satisfactory Purchases, Re-improvements and other types of scheme development see Scheme Types.

New build/ rehabilitation

‘Tenanted/decanting’ multiplier

Used in:

• New Build – Acquisition and Works schemes;
• Rehabilitation – Acquisition and Works schemes;
• Works Only schemes;
• Re-improvement schemes

Where land and property, or property only, is acquired or exists with a tenant or tenants who have to be decanted to temporary accommodation – such as another dwelling, mobile home or caravan – until the new build, rehabilitated or re-improved dwelling is completed. (including Home Loss costs)