Disposal of surplus property

Government is required to manage its estate in the most efficient and effective manner and this will often result in property or land being identified as surplus.  OGC has produced a guide, which provides advice to the public sector, including non-departmental public bodies (NDPBs), executive agencies and other public bodies on how to dispose of such assets.

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) is updated appropriately.  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. The disposal should be conducted in a proper and effective way, having recourse to appropriate professional advice.

Surplus assets need to be disposed of as expeditiously as possible - within 6 months of being declared surplus for housing and within three years for all other properties, whilst achieving overall value for money for the taxpayer. The disposal process must be clearly documented and managed properly, and there should be a clear audit trail.

The Guide defines "disposal" as; sale on the open market for monetary consideration, releasing or vacating property via administrative transfers to other government departments or agencies, surrenders of leases to landlords or assignments of leases to third parties for the payment of a premium or a reverse premium. Disposal through a PFI contract is outside the scope of this Guide.

Guide for the disposal of surplus property (PDF 1.3KB)