East Thames Group Limited
Expenditure on works to existing properties Amount capitalised Amounts charged to income and expenditure account
2009 £’000
2008 £’000
5,795 3,027 8,822
17,591 1,326 18,917
Total accumulated capital and revenue social grant receivable
2009 £’000
2008 £’000
Capital grants Revenue grants
526,571 — 526,571
511,933 — 511,933
Housing properties comprise: Freehold land and buildings Long leasehold land and buildings
2009 £’000 695,803 355 696,158
2008 £’000 665,653 355 666,008
45
Completed housing properties held for letting are stated at Existing Use Value for Social Housing (EUV-SH) and shared ownership properties are stated at EUV-SH less the Net Present Liability to repay Social Housing Grant. Housing properties have been valued by professional valuers, FPD Savills, Chartered Surveyors. The last valuation of completed housing properties was prepared as at 31 March 2009 in accordance with the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors. This has resulted in a positive valuation adjustment as follows: Completed properties at valuation East Homes Limited Housing properties under construction at cost East Homes Limited
£’000 642,945
87,776
730,721
In the valuing of housing properties, discounted cash flow methodology was adopted and key assumption included: Discount rate
5.5%
Long term (beyond 2010-11) annual inflation rate
2.5%
Short term (2009-10 & 2010-11) annual inflation rate ≈ -2.5% to 0% The carrying value of the housing properties that would have been in the financial statements had theassets been carried forward at historical costs less SHG and depreciation is as follows: 2009 £’000 Historical cost
992,003
2008 £’000
restated
960,807
Social Housing Grant (488,431) (460,872) Other capital grants Depreciation and impairment
Level of annual rent increase
0.5%
Investment in HomeBuy and Starter Home Initiative:
Long term investment in properties
2009 £’000
2008 £’000
27,806
31,706
Decrease in investment in properties
(1,993)
(3,900)
(38,139)
(51,061)
Cost of HomeBuy and Starter Home Initiative
25,813
27,806
(7,053)
(6,246)
458,380
442,628
Less; Social Housing Grant
(25,813)
(27,806)
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