Local authority property portfolios need to be reassessed to meet 21st century needs according to a new guide co-authored by the Urban Land Institute and Deloitte.

’Ten Principles for Creating Value from Local Government Property’  launched today (8 April) looks at best practices for creating value from local government property in the UK. The guide is the first in a series and focuses on the buildings local authorities occupy to coordinate and deliver public services.

In the context of above inflation rises in Council Tax, pressure on local authorities to increase productivity and the likely impact of the Comprehensive Spending Review of 2007, the guide encourages local authorities to reconsider their property portfolios. Property estates of many local authorities are a legacy of piecemeal acquisitions, boundary changes and mergers, and many councils still need to assess whether their property portfolio supports the delivery of modern local government services.

Deloitte real estate partner and co-author of the guide, Paul Stephen, commented:  "Local authorities in the UK are under pressure to deliver ever more efficient public services. Rethinking their extensive property estates offers local authorities the opportunity not only to access capital, but also to change fundamentally the way local government does business. Too often organisations find their property commitments constrain their greater need to evolve operationally.

"Requirements for local authorities to prepare annual asset management plans (AMPs) has started to raise the corporate profile of property. To date, these plans have generally been better at diagnosing liabilities than at identifying funded solutions. With a broad range of financing options available, local authorities are in a strong position to challenge the status quo and to think about what role property will play in the achievement of strategic goals.”

Andrea Carpenter, Managing Director of Urban Land Institute’s Centre for Regeneration and Sustainability, said: “The benefits of a local authority rethinking its property requirements can extend further than creating operational efficiencies. A bold property transformation can act as a catalyst for regeneration in the local community, promoting good design, fostering civic pride and encouraging further investment in the area.”

The guide provides practical examples of how UK public bodies have optimised the use, cost and operational value of their property assets through Public Private Partnerships. It illustrates the work of Surrey County Council who began implementing changes to its property portfolio in 1997. At that time, it had around 90 mainly freehold offices, where were of poor quality and failed to match location and need. By 2001, the council had halved the number of offices and was using new facilities, procured mostly on short leases. By 2006, the administrative portfolio has been reduced to 14 offices, releasing capital and improving productivity.

Ends

Notes to editors

For more information, read our executive summary and download the Ten Principles for Creating Value from Local Government Property report.

Press releases for Deloitte & Touche LLP
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other’s omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. 

The information contained in this press release is correct at the time of going to press.