Government issues new guidance on managing surplus property

The UK Cabinet Office has published updated functional guidance titled Managing Surplus Government Property, setting out how government departments should identify, evaluate and dispose of surplus real estate within the central government estate. The document was released on 10 November 2025. The guidance replaces the earlier Guide for the Disposal of Surplus Land and reflects a broadened scope, placing greater emphasis on reviewing multiple options and combining factors when considering disposal or reuse of property assets.

Under the new framework, organisations holding central government property, including land, buildings or infrastructure, are required to carry out regular reviews of their portfolios, assess whether assets are delivering value for money, and determine if they might be redeployed, transferred or sold.

The guidance outlines three core objectives for surplus property management: improving efficiency and sustainability of the estate, lowering running and maintenance costs, and unlocking opportunities in housing, economic regeneration or infrastructure aligned with government priorities.

For workplace design, culture and estate professionals these developments are significant. The guidance reinforces the expectation that property strategies must link to organisational objectives, workforce changes and evolving patterns of working. Space that is underused, costly to maintain or poorly aligned with service delivery may now come under greater scrutiny.

The estate management process set out in the guidance proceeds in stages. It begins by identifying assets that are surplus to requirements, then conducting an options appraisal that considers strategic, economic, commercial, financial and management factors, and finally determining whether a transfer within government, wider public sector reuse or open market disposal offers the best outcome.

In practical terms, the guidance requires that central government organisations maintain a Strategic Asset Management Plan, a forward-looking pipeline of property events, and engage other public sector bodies early in the review of surplus property.

Of particular interest to workplace and office estate professionals is the reinforcement of the Smaller, Better, Greener mission from the Government Property Strategy 2022 to 2030. The guidance emphasises that property with high running costs, low utilisation or which is difficult to adapt or decarbonise should be prioritised for review and possible disposal.

Estate leads should also note the requirement that surplus properties be recorded in the e-PIMS, or its successor InSite, register, with a 40-working-day notice period given to other public sector bodies before any open market sale.

Although disposal of assets remains a key part of the process, the guidance notes that the highest sale price may not always align with wider policy objectives such as new housing, social value, decarbonisation or local regeneration. Disposals at less than full market value may therefore be justified, provided a clear appraisal of benefits and opportunity cost is recorded.

For workplace planners and estate managers this means that decisions about redundant or underperforming space should increasingly be framed not only in terms of cost reduction, but also broader value including community, environmental, social and workplace experience factors. As organisations adapt to hybrid working, agile space use and changing occupancy patterns, the new guidance may accelerate decisions around office consolidation, relocation, alternative uses such as housing or community space, and eventual divestment.

Organisations responsible for government-held space are encouraged to review the new guidance in full and align their asset management frameworks, business case procedures and disposal pipelines accordingly. The guidance will remain under review and may be updated to reflect changing government priorities.