England’s local authorities are responding to the country’s ongoing austerity measures by behaving more like property developers as they seek to redevelop property and land valued at £13.5 billion by 2019, according to a new report from local government think tank Localis in conjunction with developer Cathedral Group. Rather than simply selling off assets, the research claims that councils are increasingly looking to develop property to provide them with revenue streams as a way of shoring up their shrinking budgets. The report claims that the proportion of projects slated for redevelopment is currently a third of all disposals but will make up the majority in five years time. The report has received cross party support and links to other high profile public sector initiatives, especially the One Public Sector Estate scheme. The Cabinet Office recently reported that the UK public sector estate had shrunk by 2 m. sq. ft. since 2010.

More →

The parlous state of local authority finance in the UK is encouraging councils to behave in new ways and many are making them unpopular. From the greater use of bailiffs to attempts to increase income from local car parks, much of the current thinking on revenue generation has focussed on quick fixes as councils seek to preserve front line services. Whitehall is currently carrying out a technical consultation as it seeks to cut its funding for front line services by 21 percent over the next two years as part of the now annual debate about finding the money to do all the things Central Government expects local authorities to do. One potential solution is the sale of property according to a report that councils may be allowed to sell off buildings and reinvest the proceeds in their operations.

More →