Council Dwelling Componentisation

Good Afternoon,

We do not currently componentise our Council Dwelling Stock other than for land and buildings. We have calculated that the depreciation we currently charge each year i.e. 1/40th of building value is not materially different to what the depreciation would be if we fully componentised the Council Dwellings.

I would be interested to know what approach other Authorities take to Council Dwelling Componentisation please?
  • For simplicity, we also choose not to componentise our Council housing stock other than for land (which does not depreciate in value) and buildings (1/60th of building value).

    Each year, we're required by our external auditor to do a calculation which demonstrates that componentising the assets does not lead to a materially different depreciation figure.

    This calculation is based on estimated useful economic lives of the different components sourced from a qualified quantity surveyor.