We are going to dispose of, or re-purpose, some of our properties and land considered surplus to our requirements, in order to reduce our costs and become a stronger and more sustainable council.
Members of our Cabinet yesterday, (Wednesday 11 October), were asked to back plans that will see the disposal of some of the properties we own, including the prestigious former Judges Lodgings, Larkebeare House, Exeter.
Other properties considered surplus to our requirements include:
- Compass House, Exeter, currently used by Devon Partnership NHS Trust
- Ivybank, Exeter, office space used by one of our services
- Land adjacent to County Hall, Matford Lane
- St Georges Road Youth Centre, Barnstaple
- Pottington Industrial Unit, Barnstaple
We are currently responsible for properties with estimated annual running costs of around £8 million, and a maintenance liability in excess of £20 million, excluding schools.
We own, lease or occupy in excess of 1,000 assets (buildings or parcels of land), including 364 schools; 500 land assets; 65 farms and around 300 operational buildings, including offices, children’s centres, youth centres, recycling centres, day centres, respite centres, and contact centres.
But because we need to save yet more millions from our budget in order to meet continually growing demand for statutory services, including support for vulnerable children and adults, as well as rising costs to deliver them, we need to reduce our property expenditure.
We are reviewing our property holdings to identify which properties we need; which ones may not be needed in future; and whether any can be re-purposed for other uses such as housing in conjunction with District Councils.
We have identified that since the pandemic, many of our staff, like employees everywhere, have adopted a hybrid model of working, dividing their time between working from an office and from home. And we estimate on average that our offices are only 20 to 30 percent occupied each day.
The decision means that Larkebeare House, Exeter, will be put on the open market as soon as possible.
Vacant land adjacent to County Hall, Exeter, which had until recently accommodated offices, could potentially be developed for residential use.
We will work with Devon Partnership NHS Trust to allow time for the Trust to find alternative accommodation to Compass House.
Services that support young offenders, at Ivybank, Exeter, will be relocated, and similar relocation is expected of services at St Georges Road Youth Centre, Barnstaple, to our nearby Rosebank building.
We have already made moves to reduce our expenditure, looking to lease out office space in the recently refurbished Lucombe House at County Hall.
It’s thought that the sale of property and land could generate capital receipts of around £6 to £10 million, depending on planning approval, and reduce revenue costs by around £300,000 per year. It will also avoid backlog maintenance costs of around £3 to 5 million.
Larkebeare House is used by our Registration Service and is a popular venue for weddings. We will endeavour to honour and officiate bookings already made, but that we will be in contact with couples who may be affected.
Councillor John Hart, Leader of the Council and Cabinet Member with responsibilities including asset management, said:
“These are financially challenging times, and these are the responsible decisions that we must take to reduce costs, put us on a firmer financial footing, and make us a stronger and more sustainable council that can continue to meet the needs of the people of Devon.
“We are reviewing our property holdings on an ongoing rolling programme to make sure we are making best use of assets and buildings, and to identify any future opportunities to repurpose the use of our estate.”
