Agenda item

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Placemaking & Local Economy

The Cabinet Member for Placemaking and Local Economy introduced the report. It was explained that the Council owned a broad range of land and property assets, from corporate properties where staff provided services, to retail outlets, commercial units, and community spaces. These assets provided a valued source of income and social value to residents; however, they also incurred significant running and maintenance costs. As a corporate landlord, the Council had a responsibility to manage these assets to the highest standard on behalf of taxpayers and for the benefit of all residents.

It was noted by the Cabinet Member that, following an extensive review of its land and property assets, the Council found that a number were surplus to requirements. These properties were either costly to maintain, unsuitable for housing or service delivery, or lacked development potential.

This paper proposed to approve the Land and Property Disposal Policy, which set out a robust and transparent governance process. This policy strengthened the approach already taken in the Strategic Asset Management and Property Improvement Plan (SAMPIP), a key component of the Corporate Delivery Plan/ Having undertaken a detailed assessment of the properties listed for consideration in 2025–26, the Council sought permission to develop a business case for each asset ahead of its disposal.

It was explained that the policy and accompanying programme enabled the Council to better utilise, divest, and rationalise its property portfolio. This, in turn, freed up finances and resources to deliver on Council priorities.

In response to comments and questions from Cllr Emery, the following information was shared:

1. It was explained that the choice of assets were considered commercially sensitive and that the Council would not disclose this information publicly until tenders were available, in order to prevent market manipulation. However, officers assured Members that there had been a thorough review of properties undertaken by officers and relevant Boards to ensure robustness of decision making.
   
   

RESOLVED:

That Cabinet:

1. Approved the adoption of the Land and Property Disposal Policy shown at Appendix B.
   
   
2. Declared as surplus to requirements the land and property identified within the property disposal programme for the financial year 2025–26, as shown in EXEMPT Appendix A, and approved their disposal to support the Council’s income targets.
   
   
3. Delegated authority to the Corporate Director of Finance and Resources to dispose of any land and property identified within the property disposal programme for 2025–26 (as shown in EXEMPT Appendix A) for a capital receipt of £3 million or less, and to market the property, negotiate terms, approve the final terms of the disposal, and enter into the contract and any associated documentation, subject to achieving best consideration reasonably obtainable.
   
   
4. Authorised the Corporate Director of Finance and Resources to procure agent(s) to market the property.
   
   
5. Delegated authority to the Corporate Director of Finance and Resources, in consultation with the Cabinet Member for Placemaking and Local Economy, to make minor amendments to the Land and Property Disposal Policy at Appendix B.
   
   
6. Noted: For land and property valued at more than £3 million, a separate report would be presented to Cabinet for approval.
   
   
7. Noted: Land and property identified for disposal were listed in Appendix A.

Reasons for decision

The Council had launched its Strategic Asset Management and Property Improvement Plan (SAMPIP) 2023–28, a key programme over three to five years focused on properties within the Council’s general fund. Its vision and purpose were to drive Haringey’s improvement and growth through the retention, development, or disposal of the Council’s corporate, operational, and investment portfolio, while delivering capital receipts.

Under SAMPIP 2023–28, the Council required a formal approach to asset management, particularly for the disposal of assets identified as surplus or no longer required for service delivery. This needed to be done in a structured and controlled manner to avoid long-term operational difficulties and to ensure the best return was achieved.

The approach to asset disposal was set out in the Land and Property Disposal Policy at Appendix B.

The Council had a capital receipts target for the financial year 2025/26. Meeting this target partially depended on the disposal of assets detailed in Appendix A. Declaring these assets surplus to requirements created opportunities to support the General Fund capital programme through capital receipts and to reduce revenue expenditure through lower running costs.

Alternative options considered:

The Council could have continued to hold the assets listed in Appendix A in perpetuity and relied on any income generated to offset the costs of ownership. However, this would not have aligned with the Cabinet decision under the Strategic Asset Management and Property Improvement Plan (SAMPIP) to better manage property assets. It would also have meant the Council failed to demonstrate responsible financial property management.

The assets listed in Appendix A could potentially have been developed or repurposed for corporate occupation or service delivery and retained within the General Fund. However, there was no current identified service requirement. This option would also have resulted in missing a significant opportunity to generate capital receipts.