PowerPlusWaterMarkObject3 Revised Guidance On Disposal Of Historic Assets 11

powerpluswatermarkobject3 revised guidance on disposal of historic assets 11 february 2008 the disposal of historic assets guidance

PowerPlusWaterMarkObject3 Revised guidance on disposal of historic
assets 11 February 2008
THE DISPOSAL OF HISTORIC ASSETS
GUIDANCE NOTE FOR GOVERNMENT DEPARTMENTS
AND NON-DEPARTMENTAL PUBLIC BODIES
Document Control
Document description:
Revised version of ‘The Disposal of Historic Buildings: Guidance Note
for Government Departments and Non-Departmental Public Bodies’,
previously published by DCMS, 1999.
Author:
Will Holborow
Related Documents
Terms of Reference for Review, August 2007
Version Control
Date Issued
Version
Reason for Change
23 August 2007
0.1
Document created and sent to DCMS.
30 August 2007
0.2
Document agreed by DCMS for initial consultation; para 2.7 revised in
accordance with advice from TNA
12 September
0.3
References to Government Accounting replaced with Managing Public
Money, in accordance with advice from HM Treasury
11 February 2008
0.4
Title amended to refer to ‘historic assets’. Introduction and key
points amended. Section 2 rewritten. Amendments to 1.4, 1.5, 7.5, 8.6
and 8.7. New paras 1.1, 4.1 and 5.3. Other changes in response to
comments from OGC and Defence Estates.
CONTENTS
1. Introduction and summary
2. Definition of historic assets
3. Alternatives to disposal
4. Partnerships with the private sector
5. Safeguarding buildings pending disposal
6. The planning policy framework
7. The conservation policy framework
8. Methods of disposal
9. Price
10. Managing the disposal process
11. Consultation and community involvement
1. Introduction and summary
1.
This guidance note contains mandatory advice on the disposal of
historic assets by central government bodies in England. The
term ‘historic asset’ is used here to refer to historic
buildings and their contents, memorials, archaeological remains
and designed landscapes. These are all defined in Section 2.
2.
Government departments and their agencies have an important role
in regeneration and sustainable development through the disposal
of their surplus land and property. Many surplus sites and
buildings are of historic or architectural interest, and
government bodies are required to safeguard this heritage as
part of their mandatory duty under the Protocol for the Care of
the Government Historic Estate (Department for Culture, Media &
Sport, 2003)1. The purpose of this guidance note is to ensure
that public bodies take proper account of the heritage values
associated with any surplus land. This will help to minimise the
risk of damage to or depreciation of public assets and to avoid
any unnecessary delays in the planning process.
3.
Guidance on the disposal of historic buildings was first issued
in February 1995 by the then Department of National Heritage and
subsequently updated and republished in 1999 by the Department
for Culture, Media & Sport. This new edition has been updated
and expanded following consultation with key departments
including HM Treasury. It supplements the guidance on disposal
of land and property assets contained in Annex 4.8 of Managing
Public Money (HM Treasury, 2007)2 and the Guide for the disposal
of surplus property (Office of Government Commerce, 2006)3.
4.
This guidance note applies across central government, including
departments, executive agencies and the non-departmental public
bodies for which they are responsible.
5.
Although not mandatory beyond central government, this guidance
note provides the elements of best practice for the public
sector as a whole, including local authorities, health trusts
and the police. It is complementary to the guidance published by
English Heritage for local authorities on managing their
heritage assets.4
6.
Guidance on the handling of disposal cases is available from the
Government Historic Estates (GHEU)5 in English Heritage who
should be consulted at an early stage regarding any site where
there is a significant heritage issue.
1.7 There are seven key points:-
a. Accepting the highest purchase offer is not always appropriate.
Maximisation of receipts should not be the overriding aim in cases
involving the disposal of historic assets (see paragraph 9.1);
b. Any options for reuse should be considered before deciding to sell.
It may be possible to retain and adapt a historic building for a
different use, instead of selling it (see section 3);
c. Empty historic buildings need to be actively protected. All vacant
historic buildings should be regularly inspected and maintained in a
secure, safe and stable condition pending disposal (see section 5);
d. English Heritage should be consulted at an early stage. In all
cases involving sale of historic assets, whether listed or not,
English Heritage should be given the opportunity to comment at the
earliest possible stage (see paragraph 2.6).
e. Departments should provide clear information for purchasers.
Disposals should always be accompanied by clear information regarding
any historic assets, including information about any maintenance
liabilities where appropriate (see paragraph 7.5);
f. Historic assets need sustainable ownership. Departments should take
reasonable steps to ensure that purchasers of vulnerable historic
assets have the resources to maintain them. Alternative methods of
sale may need to be considered to ensure appropriate ownership (see
section 8 and 9.4);
g. Large historic sites should be considered as a whole. The disposal
of large sites should be handled so as to avoid isolating historic
assets and potential damage to their setting (see paragraph 8.5).
2. Definition of historic assets
2.1 For the purposes of this guidance, historic assets are historic
buildings and their settings, monuments, memorials, archaeological
remains and designed landscapes. According to circumstances, historic
works of art, contents and collections associated with historic
buildings may also be considered in this context.
2.2 The system of heritage protection is currently subject to reform
proposals. In March 2007, the government published its White Paper
‘Heritage Protection for the 21st Century’. The full text is available
on the DCMS (Department for Culture, Media & Sport) web site6 together
with various supporting documents. The White Paper proposes a new
unified ‘Register of Historic Sites and Buildings of England’ (RHSBE)
which will bring together scheduled ancient monuments, listed
buildings, registered parks and gardens, registered battlefields and
World Heritage Sites. The register would be complemented by local
designations including conservation areas. The current timetable is
for legislative changes to be taken through Parliament in 2007/08 and
for the new arrangements to come into effect in 2010. Further
information about all aspects of heritage protection is available on
the English Heritage website7.
2.3 Under current statutes, historic assets can have legal protection,
either as listed buildings or scheduled monuments. Listed buildings
are buildings of special architectural or historic interest. The
protection afforded to a listed building extends to its interior and
to any historic fixtures and fittings. Objects or structures within
the curtilage of a listed building, unless constructed after July
1948, are also protected. Scheduled monuments are deemed to be of
national importance. They include buildings (usually not in use),
ruins and archaeological remains, such as earthworks. They may include
buried sites covered by later development.
2.4 There are other types of historic asset which do not benefit from
statutory designation. However, their preservation may be a material
consideration in the determination of a planning application:
*
unlisted buildings where these make a positive contribution to the
character or appearance of designated conservation areas and
locally listed buildings where policies for their protection have
been formally adopted by the local planning authority.
*
Unscheduled archaeological sites. Scheduled status is only
accorded to sites and monuments which are deemed to be of national
importance. For unscheduled archaeological sites and monuments,
mechanisms are set out in Government guidance (PPG16: Archaeology
and Planning) to ensure the appropriate evaluation of sites and
mitigation of the effects of development.
*
historic parks and gardens where these are included in English
Heritage’s Register of Parks and Gardens of Special Historic
Interest.
*
battlefields, where these are included in English Heritage’s
Register of Battlefields.
Historic assets may receive protection within the planning system
where they are included in areas which are:
*
conservation areas. These are designated by local planning
authorities. Designation introduces additional planning controls
and is the basis for policies designed to preserve or enhance an
area’s special character or appearance.
*
World Heritage Sites. There are seventeen sites in England
inscribed under the UNESCO World Heritage Convention. All are
subject to non-statutory management plans.
2.6 Undesignated buildings and structures. The process of disposal
often draws attention to the potential for listing or scheduling of
buildings or structures of historic interest. Anyone can make a
request to English Heritage to consider a historic asset for statutory
protection, at any time. Such requests can be a cause of uncertainty
and delay if they are made late in the disposal process. Rather than
risk this, departments should consult English Heritage on the case for
statutory protection at an early stage. In cases of urgency, where
planning permission has been obtained, or has been applied for prior
to a disposal, an application for a formal Certificate of Immunity
from listing can be made.
2.7 Buried remains. As part of their research into the development
potential of a site, departments should include an initial assessment
of whether the site is known or likely to contain archaeological
remains. Early consultations with the relevant Historic Environment
Records (HERs)8 will help to provide prospective developers with
advance warning of the archaeological sensitivity of the site. It may
be necessary to commission an assessment by a professionally qualified
archaeological organisation or consultant.
2.8 War memorials require sensitive consideration, whether or not they
are protected by listing. There is a UK National Inventory of War
Memorials that can be searched online9. Where it is proposed to move a
war memorial, or to transfer ownership, at least six weeks’ notice
should be given to the War Memorials Trust, who may be able to help in
finding a suitable new location. Further guidance is available in War
Memorials in England & Wales: Guidance for custodians10 published by
the former Department for Constitutional Affairs (now the Ministry of
Justice) in April 2007.
2.9 Historic collections, artefacts and works of art. Where items are
fixed to a listed building, they may have statutory protection and
listed building consent would be required for their removal. Loose
items may also have historical significance in relation to the
building. Many public buildings contain works of art or historical
collections. Examples include furniture, books, paintings and
memorabilia connected with the past use of a historic building. Expert
advice should be sought to confirm their value, historical importance
and measures for their protection. Consideration may need to be given
to whether they can be retained in situ. Where this is not practical
or appropriate, such items may need to be inventoried and recorded in
situ prior to disposal.
2.10 Records and archives. The first point of contact for enquiries
relating to the disposal and archiving of records should be the
Departmental Record Officer (each government department or agency has
one). The National Archives (TNA) publishes guidance on its website11
for government departments and other organisations subject to the
National Records Act 1958 on the retention of various sorts of
buildings records12. Alternatively, it may be appropriate to lodge
records in a local archive or museum, or with a specialist collection
such as one of the MoD’s service museums. General guidance on historic
environment records and archives is available on the HELM website13
2.11 The identification of the historic assets on a site will require
specialist advice. Some departments (eg MoD) have in-house advisers
who will have access to relevant information and further sources of
advice. The Government Historic Estates Unit is available to provide
advice to departments on disposal cases and can direct enquiries to
the relevant team in English Heritage. Where appropriate, enquiries
should be made with the local Historic Environment Records (see 2.5)
and/or with the planning authority to ascertain any constraints which
may arise in relation to any historic assets (see 6.4). Once these
enquiries have been completed, the information should be made
available to potential purchasers and may be incorporated in a
statement of significance or conservation management plan (see 7.5).
3. Alternatives to disposal
3.1 Each property disposal must stand up to scrutiny and appraisal in
accordance with the requirements of the Green Book (2003)14. An
appraisal should consider wider property requirements and not simply
the price that might be realised. Appraisals should consider whether
better value for money might be returned through making better use of
the asset. The appraisal will also need to show what consideration is
given to special matters such as listed building status, heritage and
environmental issues. Further guidance on appraisals is available in
the OGC guide.
3.2 If a historic building is surplus to requirements in its present
use, departments should consider whether they can make cost-effective
alternative use of it. This will involve assessing: the feasibility of
alternative uses by the owning department; the likely cost of adapting
the building to a new use, compared with alternative means of
accommodating that use; and the prospects for disposal, and likely
receipt.
3.3 In appraising these options, maintenance and running costs need
careful assessment. It should not be assumed that historic buildings
are more expensive to run than modern buildings. In assessing the
financial prospects for disposal, account should be taken of the cost
of maintaining the building prior to disposal, and the extent to which
sale value may be depressed by restrictions on future use, or by costs
of repair or adaptation which a purchaser would have to meet. This
will require some exploration of the planning/conservation framework
(sections 6 and 7) before the disposal decision is taken.
3.4 Where a public body no longer has a use for a property, it should
consider how to dispose of the asset in a way that gives best
available overall value for money. In the first instance, public
bodies must ensure that e-PIMS (OGC's Electronic Property Information
Mapping Service)15 is updated. It may also require adding to the
Register of Surplus Public Sector Land. This enables other public
bodies to express an interest in acquiring the asset before it is put
on the market by the originating body. If there is no interest, the
asset should then be disposed of on the open market.
4 Partnerships with the private sector
1.
Since the 1990s, government departments have made increasing use
of private sector expertise in property management, through
arrangements such as the Private Finance Initiative (PFI) and
Public Private Partnerships (PPP). Another option is sale and
leaseback (see OGC guidance note, para 5.1.4). Where maintenance
responsibility for a historic asset is transferred under one of
these agreements, the department should ensure that appropriate
levels of care are secured, in accordance with the DCMS Protocol
(see 1.1). For example, the contract documentation should make
explicit reference to any requirement to carry out periodic
condition surveys.
2.
In PFI schemes departments define their requirements in terms of
an output or performance specification in order to give
potential suppliers maximum flexibility in proposing how these
requirements are met. Usually bidders have discretion to decide
whether to offer to build new facilities or to refurbish
existing buildings. In general, this clearly makes good sense
and is likely to produce best value for money, since most
vacated buildings can readily be marketed for re-use or
development without detriment to the public interest. In some
cases a combination of new build and refurbishment will be the
best value option.
4.3 In some special cases involving historic buildings of outstanding
importance, alternative beneficial uses may be difficult to find, and
even then may involve such a degree of change that the special
interest of the building is seriously compromised. It may be
appropriate for the disposing department to require the refurbishment
of a historic asset as part of the scheme. This approach may also
apply to historic buildings whose form is very specific to their use -
historic courts, for example - provided that it is viable to provide
up-to-date operational facilities in the building concerned. If
refurbishment of a historic building is the preferred option then the
restrictions which will apply should be made clear to those invited to
tender.
4.4 The criteria for the assessment of bids should always be clearly
set out for bidders. For example, the cost of securing the future of
redundant historic assets may need to be identified and taken into
account. Bidders may need to be asked to identify the potential
non-financial benefits and wider regeneration benefits of using a
historic asset. It matters little whether responsibility for securing
the future of the redundant asset is placed upon the service provider
or is retained by the client body, provided that the potential costs
and risks are fully taken into account in the assessment of
alternative proposals. These costs should include any maintenance
deficit at the time of disposal and the cost of keeping the asset in a
secure and weather tight condition while vacant (see paragraph 5.2).
In cases where no alternative viable use can be identified, the
ongoing cost of management and maintenance for the duration of the PFI
scheme will need to be calculated and allowed for.
4.5 In a PFI project, the terms of the contract should be clear on the
supplier’s use of the historic building during the life of the
project. In particular, levels of care and maintenance should be
clearly identified. This is particularly important where the supplier
is entitled to develop/redevelop, or even dispose of, the historic
building. A comparison of the options for the overall responsibility
(ie public or private sector) for the condition of the historic
building is essential.
4.6 Where historic assets are affected by or likely to be affected by
PFI proposals, a statement of significance and/or a conservation
management plan should be commissioned by the disposing department
(see paragraph 7.5). This will provide greater clarity to PFI bidders
by explaining the significance of the site, and defining the
constraints and opportunities which arise from this.
5 Safeguarding historic assets pending disposal
5.1 It is important to set disposal procedures in train as soon as
possible after historic assets are judged surplus to requirements.
Risks of deterioration, vandalism and theft are a serious threat to
vacant historic buildings and wherever possible it is better to keep
them in full or at least partial use up to the point of disposal.
Managing Public Money advocates disposal of surplus land property
within three years and surplus residential property within six months.
However, this is not always achievable where the planning position is
unusually complex.
5.2 Where buildings are vacant pending disposal, it is essential that
they are regularly inspected, and that maintenance regimes are
strictly observed to ensure that buildings are kept weatherproof and
well ventilated. Inadequate maintenance will make ultimate disposal
more difficult. All historic buildings on the government estate should
be subject to a periodic inspection report (see DCMS Protocol). This
should be used as the basis for identifying outstanding repairs. The
report will provide approximate costs for works in four categories of
priority; works in the first three categories will be sufficient to
keep the building on a ‘plateau of good repair’ and should provide the
basis for calculating a maintenance deficit. Departments should
normally seek to carry out works classed as Priority 1 and Priority 2
in advance of sale, in order to avoid further damage or deterioration
in the course of disposal.
5.3 Occasionally, historic assets stand empty for long periods, for
reasons beyond the control of the department that owns them. Obtaining
funding for condition surveys and repairs can become more difficult in
such circumstances. Access may also become more limited due to
concerns about health and safety. Listed buildings which are vacant
and/or in poor condition are likely to be classified as being ‘at
risk’. Details of all the listed buildings and structures known to be
at risk on the government estate are published in English Heritage’s
Biennial Conservation Report on the Government Historic Estate16. The
criteria for inclusion in this list are the same as for the national
online register maintained by English Heritage. In such cases, the
advice of GHEU should be sought to agree measures to protect the asset
during the disposal period.
6 The planning policy framework
6.1 Planning Policy Statement 1 Delivering Sustainable Development
(2005)17 sets out the Government's overarching planning policies on
the delivery of sustainable development through the planning system.
It emphasises the importance of community involvement in the planning
process (see paragraph 11.3 below).
6.2 The Planning and Compulsory Purchase Act 2004 replaced Local Plans
with Local Development Frameworks (LDFs), which are made up a number
of Local Development Documents (LDDs) and Supplementary Planning
Documents (SPDs). Planning Policy Statement 12: Local Development
Frameworks (2004)18 contains further guidance.
6.3 Under the 2004 Planning Act supplementary planning guidance and
site planning briefs have been replaced by Supplementary Planning
Documents (SPDs). These have greater weight because they are part of
the local development framework and have statutory status. The SPD has
to comply with the requirements for community involvement and
sustainability appraisal. This has the advantage of offering
prospective purchasers a higher degree of certainty about what will be
permitted.
6.4 At an early stage in disposals it will almost always be desirable
to have discussions with the local planning authority, before making a
formal planning application, on planning policies for the site or
building and the local planning authority's view of appropriate
alternative uses. Such discussions will be particularly important
where the planning position is not wholly clear - for instance,
because the local planning framework is under review, or leaves open
the possibility of more than one use for a building or site.
Professional planning advice, if not available in-house, will
generally need to be sought (see paragraph 10.1 below).
6.5 The disposal of sites which have potential for development will
usually secure the best price if sold with the benefit of planning
permission. However, local planning authorities normally require
planning applications affecting listed buildings to be supported by
concurrent applications for listed building consent. The latter may
incur extra costs and delays for the applicant. In each case the
disposing department will need to consider the most appropriate option
(see section 8), including ‘sale subject to planning permission’.
7 The conservation policy framework
7.1 Government policy on archaeology in England is set out in Planning
Policy Guidance Note 16, Archaeology and Planning (1990)19. This
states that where nationally important archaeological remains, whether
scheduled or not, and their settings, are affected by proposed
development there should be a presumption in favour of their physical
preservation. The key to informed and reasonable planning decisions is
for consideration to be given early, before formal planning
applications are made, to the question of whether archaeological
remains exist on a site where development is planned, and the
implications for the development proposal.
7.2 Government policy for historic buildings and areas in England is
set out in Planning Policy Guidance Note 15, Planning and the Historic
Environment (1994)20. This states a general presumption in favour of
the preservation of listed buildings and unlisted buildings which make
a positive contribution to the character or appearance of conservation
areas. Consent to the demolition of listed buildings is given only in
very exceptional circumstances, and disposal strategies should not be
based on the assumption that it will be forthcoming.
7.3 Local planning authorities will judge proposals for the
alteration, demolition or change of use of listed buildings according
to the guidance in PPG 15, and the policies in the local planning
documents referred to in paragraph 6.2 above. PPG 15 emphasises that
most historic buildings will need to find an economically viable use
if their long-term survival is to be assured; alterations and
adaptations may be necessary to achieve this, where they can be
carried out without unacceptable damage to a building's special
character. It is reasonable for disposing departments to explore this
possibility, so long as it is recognised that the most appropriate use
for a historic building may not necessarily yield the maximum
financial return.
4.
Care should be taken to protect the setting of a listed building
and its curtilage; and departments should take this into account
when preparing proposals for the disposal of non-historic
property which is adjacent to historic buildings. Unsuitable
uses on adjoining land can seriously reduce the likelihood of
successful disposal of a historic building for a viable new use
(see also paragraph 8.5). Local planning authorities are
expected to take account of setting in considering planning
applications which affect listed buildings.
4.
Disposals should always be accompanied by clear information
regarding any historic assets. Statutory list descriptions
should not be relied on for this purpose. GHEU can advise on
what type of assessment is appropriate, what it should contain
and how it can be procured from appropriate specialist
consultants. A statement of significance can be a helpful way to
clarify the heritage values attached to a building or site, and
their relative importance. Where a site raises complex
development issues, a conservation management plan may be
required. This begins with a statement of significance and uses
this as a basis for defining the constraints and opportunities
related to the historic asset. Guidance on conservation
management plans has been published by the Heritage Lottery Fund21.
For large sites (for example, institutional sites with multiple
historic assets), a characterisation study can help to provide a
map-based analysis. Any assessment should be subject to
consultation (see Section 11) to ensure that it is accurate and
valid.
8 Methods of disposal (see also Section 5 of the OGC Guide for the
disposal of surplus property)
8.1 Open market sale: Where a historic building has an economically
viable use and has been kept in good repair, normal methods of open
market sale will be appropriate. There should be no difficulty, for
instance, where a historic building has a positive value in a
recognised use (eg business or light industrial). The presumption
should be that open market sale will be the preferred option, unless
exceptionally a department is advised in a particular case that
special disposal procedures are necessary to secure appropriate
ownership, repair or use of a building.
8.2 Method of sale: competitive tender is generally to be preferred to
sale by auction, since it can provide the opportunity for information
to be sought on the tenderers’ proposals for the building as well as
the offer price, and can provide room for some negotiation with the
short-listed potential purchasers. Sale by auction may, however, be
appropriate in the most straightforward cases, eg small tenanted
offices. Sale by private treaty may be appropriate in exceptional
cases: for example where a department wishes to sell a property to a
selected heritage body, such as a building preservation trust. Strict
guidelines apply in such cases - see paragraph 9.3 below.
3.
Sales prior to planning permission: Where, exceptionally, there
is uncertainty over the planning position which is not likely to
be quickly resolved (eg because of a development framework
review), or proposals for new uses entailing alterations to a
listed building are likely to require lengthy negotiations with
the planning authority, disposing departments may wish to
consider either an exclusive option to a developer (see
paragraph 8.4 and 9.2), or outright sale subject to a clawback
covenant (see OGC Guide, paragraph 4.11). Both methods place the
responsibility for obtaining planning/heritage consents with the
purchaser, but at the same time enable the disposing department
to share in any development value resulting from a subsequent
grant of permission. Sale with clawback also enables
responsibility for ongoing maintenance to be transferred quickly
to a purchaser.
8.4 Partnership agreements: exploration of the development potential
of a large historic building or site will involve a prospective
purchaser in a major outlay in time and fees to professional advisers.
Responsible developers are not likely to be ready to make that
commitment if they know that disposal will be by open competition and
that 'best price' will be the overriding consideration. Partnership
agreements with individual developers (eg the grant of an exclusive
option) may offer a better means in some cases of securing the
long-term future of a historic building and at the same time obtaining
the best financial return realistically achievable for the taxpayer.
Before granting an exclusive option, however, departments should first
explore the level of interest amongst developers and other potential
purchasers. Further guidance on arrangements for sharing development
value is given in the OGC Guide, paragraph 4.8.
8.5 Packaging of disposals: The aim should be to encourage prospective
purchasers to consider the potential of sites containing historic
assets as a whole, rather than to pick off the most profitable
elements. This is especially applicable to large institutional sites
such as hospitals and military bases. If the site includes vulnerable
historic assets, for example historic buildings with a maintenance
deficit, the marketing strategy should be designed to link their
repair to the sale of more profitable parts of the site. The local
planning authority may wish to secure this through a planning
agreement. The distinctive character and cachet which historic assets
can contribute to redevelopment schemes may help to attract the more
imaginative type of developer and may improve the attractiveness and
success of a scheme overall.
8.6 Assets with no economic use or negative value: Most scheduled
monuments (eg earthworks, fortifications and ruins) and some
specialised types of listed building have no economic use within the
constraints of their statutory protection. Some historic assets have a
negative market value because of limitations on alternative uses or a
backlog of repairs and necessary maintenance. Where the issue is
disrepair, it may be necessary to put the asset into a reasonable
state of structural repair before sale, to bring the market value up
to a positive figure, rather than to pay a reverse premium or ‘dowry’.
This avoids the difficulties that arise in connection with covenants
which require the purchaser to carry out repairs. In other cases, it
may be more appropriate to dispose of the asset and allow the new
owner to undertake repairs, for example where the asset is to be
transferred to a building preservation trust. However, in all cases
departments are obliged to undertake precautionary measures to
safeguard historic assets pending disposal, as explained in Section 5.
Detailed surveys and technical studies may be necessary prior to
transfer to ensure that adequate funding is in place to cover future
maintenance liabilities. The onus should be on the disposing
department to ensure that the purchaser is capable of maintaining the
asset to an appropriate standard.
8.7 Disposal to charitable trusts: A trust may offer a solution where
no one else is prepared to invest due to a negative value, or where
the special character of the asset is not compatible with a commercial
use. In exceptional cases trusts have been established specifically to
take on buildings or sites of national importance, for example the
historic dockyards at Chatham and Portsmouth, Somerset House in London
and the Royal Naval College at Greenwich. Building preservation trusts
are non-profit organisations with charitable status which can raise
and co-ordinate various forms of finance including low interest loans
from the Architectural Heritage Fund and grants from public bodies.
Appropriate safeguards should be built into the trust deeds to ensure
the repair of the asset and to control its future use. The procedures
which govern disposals to trusts are outlined in paragraph 9.5 below.
9 Price
9.1 It is Government policy that the maximisation of receipts should
not be the overriding objective in the disposal of historic assets.
The aim should be to obtain the best return for the taxpayer having
regard to -
i. the provisions of the Local Development Framework for the area;
ii. Government policy for historic buildings and areas and archaeology
as set out in PPG 15 and PPG 16;
iii. in particular, the clear recognition in these documents that the
most appropriate long-term use for a historic building (when account
is taken of the need to protect its fabric, interior and setting) may
not be the use which generates the maximum financial return;
iv. the building's current state of repair, and the likely costs of
future maintenance and repair;
v. non-financial and wider regeneration benefits including
environmental, cultural and long-term economic impact.
9.2 Departments should take particular care in their handling of
private treaty sales, (which should be taken to include exclusive
options and partnership agreements) since they may well be called on
formally to defend the decisions they take in particular cases. Where
a professional valuer who has experience of historic buildings is
prepared to certify (a) that there are special considerations in the
particular case which exceptionally justify a private treaty sale, and
(b) that having regard to these considerations, the sale nevertheless
represents full market value and has no concessionary element,
Treasury approval will not be required. Otherwise the sale may be
regarded as concessionary, and if so it should only go ahead if the
Accounting Officer and, where appropriate, the Minister are prepared
to defend it. The disposal of an asset at less than market value would
need to be treated as a gift in accordance with Annex 4.12 of Managing
Public Money22.
9.3 When sale is by competitive tender or by any form of private
treaty, professional advice should, wherever possible, be taken on the
financial soundness of the prospective purchaser, since major problems
have arisen where historic buildings have been sold to purchasers who
have subsequently proved unable to afford proper upkeep.
9.4 Disposal to trusts is a complex matter on which full legal and
estates advice should be sought. HM Treasury should also be consulted.
If a building has a negative value even when repaired, the disposing
department may transfer it to a trust with a dowry to cover the
maintenance deficit (see paragraph 5.2 above). It is generally
accepted that the gift procedure should apply when assets are
transferred to a trust, even though the buildings may have a negative
value. Gifts of an unusual nature - which are likely to include this
sort of disposal - should be notified to Parliament through the Minute
procedure.
10 Managing the disposal process
10.1 General guidance on the management of the disposal process, from
establishing objectives through to post project appraisal, is set out
in Section 3 of OGC’s Guide for the disposal of surplus property.
10.2 Selecting the right team of professional advisers is essential to
the success of disposal and development projects. Where historic
assets are involved, specialist consultants with proven conservation
expertise will need to be appointed as part of the professional team,
unless such advice is available in-house. The Government Historic
Estates Unit can advise departments on the identification of
appropriate consultants in individual cases.
10.3 It is important in all disposal cases to fully document and
carefully manage the disposal process to ensure that there is
accountability and a clear audit trail behind all key decisions (see
paragraph 2.10 of the OGC guide).
11 Consultations
11.1 Departments, or their professional advisers, should always
contact the local planning authority at an early stage to discuss
proposals which are likely to raise planning or listed building
consent issues; English Heritage should also be consulted at an early
stage in cases which involve scheduled monuments, grade I or II*
buildings or the substantial or total demolition of grade II
buildings; and in any other case which raises difficult or
controversial issues about the re-use or alteration of listed
buildings (particularly major complexes of buildings).
2.
Additionally, where large and/or sensitive sites are involved it
will often be helpful for the disposing body to consult at an
early stage with the relevant Government Office and other key
agencies at the regional level including the Regional
Development Agencies. The Commission for Architecture and the
Built Environment (CABE) may also need to be consulted where
proposals raise conservation or design issues of more than local
importance.
11.3 National amenity societies (six of which have a statutory role in
commenting on applications for listed building consent) and other
conservation bodies, both at national and local level, may wish to
comment on proposals affecting historic buildings. Further details are
available via the Joint Committee of the National Amenity Societies23.
In addition, SAVE Britain’s Heritage has a record of campaigning and
publishing on heritage issues.
11.4 Community involvement. Planning Policy Statement 124 (paras 40 -
44) sets out the government’s vision for community involvement in the
planning process. It states that ‘Local communities should be given
the opportunity to participate fully in the process for drawing up
specific plans or policies and to be consulted on proposals for
development.’
Reference documents not mentioned in the text
Towards Better Management of Public Sector Assets: A Report to the
Chancellor of the Exchequer by Sir Michael Lyons, December 2004.
www.hm-treasury.gov.uk./media/8ED/DB/pbr04_lyonspsas_complete_205.pdf
Managing the defence estate, National Audit Office, May 2005
www.nao.org.uk/publications/nao_reports/05-06/050625.pdf
The Disposal of Heritage Assets by Public Bodies: A report for the
National Trust, Green Balance, September 2006
www.nationaltrust.org.uk/main/w-policy-heritage_assets.pdf
Protecting and preserving our heritage: Third report of session
2005-06 Culture Media & Sport Committee, House of Commons, July 2006
www.publications.parliament.uk/pa/cm200506/cmselect/cmcumeds/912/912-i.pdf
Circular 06/2004 Compulsory Purchase and the Crichel Down Rules
www.communities.gov.uk/publications/planningandbuilding/circularcompulsorypurchase2
END
1 www.helm.org.uk/upload/pdf/DCMS-protocol.pdf
2 http://documents.treasury.gov.uk/mpm/mpm_annex4.8.pdf
3
www.ogc.gov.uk/documents/Guide_for_disposal_of_surplus_property_PDF.pdf
4 Managing local authority heritage assets, DCMS, ODPM, English
Heritage (2003)
www.helm.org.uk/upload/pdf/LA_Assets_leaflet.pdf
5 www.helm.org.uk/upload/pdf/GHEU-flyer.pdf
6 www.culture.gov.uk
7 www.english-heritage.org.uk/server/show/nav.1368
8 www.english-heritage.org.uk/server/show/nav.8332
9 www.ukniwm.org.uk
10 www.dca.gov.uk/corbur/war-memorial-guidance.pdf
11 www.nationalarchives.gov.uk/recordsmanagement/
12 www.nationalarchives.gov.uk/documents/sched_buildings.pdf.
13 www.helm.org.uk/server/show/category.7717
14 http://greenbook.treasury.gov.uk/
15 www.ogc.gov.uk/electronic_property_information_mapping_service.asp
16 www.helm.org.uk/gheu
17 Planning Policy Statement 1:
www.communities.gov.uk/index.asp?id=1143805
18 www.communities.gov.uk/index.asp?id=1143847
19 www.communities.gov.uk/index.asp?id=1144057
20 www.communities.gov.uk/index.asp?id=1144041
21
www.hlf.org.uk/NR/rdonlyres/F6B05389-9FF5-4565-800A-73439A7ABFDF/505/HLFConsPlan05.pdf
22 http://documents.treasury.gov.uk/mpm/mpm_annex4.12.pdf
23 http://www.jcnas.org.uk/
24 Planning Policy Statement 1:
www.communities.gov.uk/index.asp?id=1143805
18