Better designs can give better value for developers, claims CABE report

Developers can add value to their operations by adopting good urban design practices that create a strong sense of neighbourhood, according to a new report by the Commission for Architecture and the Built Environment (CABE).

The report, The Value of Housing Design and Layout, sets out a methodology which shows how different types of housing layout and design impact on the costs of the development, the value of the end-product and final profitability to the developer.

The main findings from the report are:

• Any preconception that higher density decreases value per square metre was not borne out.

• There is a critical balance to be struck by the developer in maintaining unit values while increasing density.

• Good design becomes more critical as densities are increased above 30 units per hectare.

• Values will be maintained or enhanced at these densities if design techniques are sufficiently sophisticated to maintain their attractiveness to occupiers.

• Density can be a potent economic lever for developers.

• Employing design principles can create a sense of place and a new type of location. This can also add value further than just the choice of location.

Tim Farrow, chairman of St James Group, who took part in the research, said: "At a practical level, this report provides a methodology for developers to assess and analyse overall site values on the basis of the land covered, rather than the square metres of units built. This should go some way in helping to create new and attractive places for people to live in."