Moving into shared property

Phil Lawrence outlines some of the key issues to be considered when public bodies share sites.

It is a time of austerity. The use of the Government's estate has a key role to play in the public sector efficiency programme. Across the public sector, strategic consideration is now being given to the long term ways in which the public sector manages real estate and operates from it.

One aspect of this strategy is site sharing. This can come in many forms including co-location, multi use of sites or closer co-operation with private sector site providers. Not only will this involve the legal and property professionals it will also involve the operational and corporate teams in any given public sector organisation. In reviewing any property arrangements there needs to be a high level of co-operation between service delivery, customer management and also back up solutions such as HR and IT services.

One possible scenario is where a public sector organisation shares space with an existing private provider. There are a number of legal property issues with this to be considered including the following;

• Tenure of occupation: Generally, there will be a desire not to be "locked in" to the arrangements. Typically, therefore, a licence, being a short term arrangement will be used rather then a lease. However, a licence can normally be ended, by either party, more easily than a lease. Detailed consideration as to the legal property interest to be created should be given at an early stage.
• Planning: Where existing sites are proposed for a particular use it is likely that a change of use planning permission will be required under the planning legislation. Clearance from the local planning authority should be considered by planning advisers at an early stage.
• Communal facilities: Where sites are being shared with private providers thought needs to be given to creating both customer and secure areas. This could include secure document storage, data protection issues and IT and communication shared facilities.
• Liability: Where there is separate control and use of the space, the responsibility for both customer operations and public liability needs to be clear. Typically, the private provider will retain control of the site but clarity is needed on compliance issues such as health and safety and fire access procedures.
• Consent: There may also be issues with third parties' consents, for instance if the private providers have a landlord or a mortgage, they may need to consent to site sharing arrangements with a public body.
• Procurement: There may need to be consideration if the site sharing will give the private sector site provider a competitive benefit, i.e. to its trading position, from the association created by the site sharing.

Early consideration of these issues is needed to ensure that the hoped for savings and efficiencies are actually generated.

Phil Lawrence is an Associate at Veale Wasbrough Vizards. He can be contacted on 0117 314 5441 or This email address is being protected from spambots. You need JavaScript enabled to view it..