Gov't must stop ‘short-sighted’ selling off of public land

Whatever the composition of the next Government, the sale of publicly-owned assets will no doubt continue to form part of addressing a budget deficit which currently stands at £96bn. As a nation, we are asset rich but cash poor. Throw in an acute housing crisis, and the Conservative Party’s recently announced ambition to build 200,000 new homes for first-time buyers, and it would not be surprising to see an increased focus on the release of public sector land.

However, public land has an intrinsic worth beyond its financial value. Billions of pounds worth of local authority assets will be redeveloped over the next five years and this presents a once in a lifetime opportunity to transform our town and city centres and provide much needed new amenities. We urgently need to address the wholly inadequate supply of homes but selling off public land for one-off capital receipts or simply to develop housing is short sighted, results in lost revenue, and does not provide best value. Once these vital assets are sold, they are lost to the public forever. For housing needs to be addressed in a sustainable way, new homes need to be built as part of ambitious mixed-use developments.

A Localis report, Public Land, Public Good, commissioned by Cathedral Group, shows that one in six (17%) local leaders have been forced to dispose of assets for less than optimal value. We calculate that up to £2.3bn worth of local authority assets could be undersold over the next five years, costing nearly £230 million over the lifetime of the next Parliament. While the release of public sector land is necessary and desirable, there is an urgent need for much more joined-up thinking across the public sector and a greater emphasis on securing long-term economic and social benefits.

Obtaining the maximum value from public land release is a broader question than achieving a one-off sale price. Local authorities are well placed to work in partnership with private sector specialists, using their local knowledge to ensure that land is used to meet the needs of the area. Our work with Lambeth Council to develop Clapham One demonstrates the benefits of this approach. Through the development and sale of 199 apartments (44 to Notting Hill Housing Group for social rented or shared-ownership), an NHS primary care facility and some commercial space, we were able to provide the local authority with a new library and leisure centre on the two sites at no cost to the public purse, simply as return on investment of the land. Our profits were capped and shared with Lambeth Council, and, crucially, much of the land remains in public ownership and is providing valuable services to the local community.

Ultimately, Government, local authorities and private developers need to remember who public land belongs to. When developing this precious resource the focus should not be on government targets but on people, places and the building of sustainable, prosperous communities.