Adopt strategic approach to £2.5bn surplus property assets, says Audit Commission

The Audit Commission has called on councils to adopt a strategic approach to the £2.5bn worth of surplus property assets they own.

The quango, which is due to close next year, said the local government estate in 2012-13 was worth an estimated £169.8bn, nearly a third less than it had been in 2004-05.

It said the surplus £2.5bn of assets comprised property that was not used to provide or support services, nor held as an investment.

The Commission said a strategic approach to managing these assets – including systematic and regular reviews – would help get the best value for money.

It added that councils need to link the management of the local government estate to their wider strategic ambitions. “For example, if stimulating city centre regeneration is a key objective, are these properties working to aid that goal?”

The Commission also said authorities needed to be mindful of the high costs that could be occurred through occupying buildings.

Chairman Jeremy Newman said: “We are neither advocating that local government starts a wholesale sell-off of their land and property nor are we suggesting councils shouldn’t spend money on buying assets or on investment to improve their existing property.

“What we are highlighting is a group of assets that do not provide immediate benefit to local communities, but still require councils to spend money on maintaining them.”

He said the Commission’s Value for Money Profiles Tool, would help with reviews of estates.

Mark Smulian