Tag : Property investment investigation
Proposed government guidelines on council borrowing will make it near impossible for authorities to borrow to invest in income generating property investments outside of their area, LGC has been told.
Leeds City Council has invested £65m in property specifically to generate an income since 2010 but, like many metropolitan authorities, its history as a landlord goes back to the 19th century.
Runnymede BC claims that while it has made efficiencies since 2010, it has avoided making any cuts to services as a result of the £160m it has invested in income-generating property. In addition, the council has also invested in new discretionary services, including school buses and meals-on-wheels, and funded the contruction of a new leisure centre.
In 2016, councils spent almost £387m purchasing shopping centres, according to analysis by real estate advisors Savills. These transactions accounted for 13% of all UK shopping centre deals and 44% of all deals below £100m, suggesting councils are often investing in retail premises in smaller towns and cities.
Mansfield DC has invested £23.9m in income generating property since 2010, all of it outside of its boundaries.
More than a third of councils actively investing in revenue raising property since 2010 own land or buildings outside their area, LGC research has found.
Plymouth City Council has invested £58m in property in order to generate an income since 2010 to create a total investment portfolio in the region of £250m.
LGC has conducted extensive research into the growing trend for councils to invest in property to generate additional income to fund services. In total 265 of England’s 354 local authorities responded to a freedom of information request. Of these 94 said that since 2010 they had invested in property specifically to generate an income. Details of these councils’ investments are shown on the map. The key below provides further information.
Exclusive LGC research provides the most comprehensive picture to date of the scale of austerity-driven property investments by local government