The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Government to Consolidate Estate By Selling £1.5bn of Property

Government to Consolidate Estate By Selling £1.5bn of Property
01 September 2022

Under a new Government Property Strategy, ministers hope to make over £2 billion in savings through property sales and “efficiencies”.

Announced by Minister for Brexit Opportunities and Government Efficiency Jacob Rees-Mogg, £1.5 billion of government properties will be sold over the next three years.

£500 million of savings will also be made by reducing operating costs, implementing urgent decarbonisation interventions across the estate and using modern construction materials and energy sources.


Justifying Spending on Government Properties


Jacob Rees-Mogg has always been outspoken about his view that all spending on government property needs to be justified. In a letter to his cabinet colleagues sent in April 2022, he urged civil servants to reduce how much time they spend working from home, to ensure “efficient use of the central London estate".

In the foreword to the strategy, Jacob Rees-Mogg wrote “It is always important that every property held by the government is efficient, functional and well utilised. It is also essential that the government estate is beautiful and will stand the test of time, while being greener and more sustainable in line with our net-zero commitments by 2050.

“Properties that are not needed will be sold, which, in turn, will support other government priorities such as economic growth, housing and jobs, working in partnership with local government and other partners through programmes such as One Public Estate.”


Moving Government Roles Out of London


Under the Government Hubs programme, staff will be consolidated into fewer, localised buildings, acting as destination places to work for civil servants

The Places for Growth programme will also move 22,000 civil service roles out of London by 2030. The scheme has already relocated 7,000 jobs out of the capital, including 1,389 moved to Yorkshire & the Humber.

The Home Office, Ministry of Justice and Department for Health and Social Care have moved more than 500 roles to Leeds.

Picture: a photograph of the Palace of Westminster. Image Credit: Unsplash

Article written by Ella Tansley | Published 01 September 2022


Related Articles

Inadequate IT Systems, Incomplete Data and High-Cost Leases  – Inside the Report That Criticises Government Property Management

Reforms to manage the government’s vast property estate are based on “incomplete data” that risks them being locked into long-term, high-cost...

 Read Full Article
Spotlight Interview – James Massey | MRI Software

MRI Software is a global name in real estate technology. We spoke to James Massey, Managing Director of Facilities Management for MRI Software, about his career so far,...

 Read Full Article
BBP Launches Guide for Real Estate Climate Change Resilience

The Better Buildings Partnership (BBP) has launched a new guide for BBP Climate Commitment signatories and other real estate companies on climate...

 Read Full Article
deVere Group Pulls All UK Property Investment Projects

deVere Group will temporarily close its property investment division with immediate effect. The finance firm’s Investment Director cited the “availability...

 Read Full Article
Will HSBC Leave its Iconic Canary Wharf Home?

Leaked memos suggest that the banking giant is considering whether to keep its global HQ at HSBC Tower when the lease expires in 2027. HSBC has occupied the 45-storey...

 Read Full Article
WSP Completes Acquisition of Capita’s Real Estate and Infrastructure Consultancy Businesses

After announcing the deal in August 2022, WSP has completed the acquisition of GL Hearn Ltd and Capita REI from Capita Plc. This will add around 1,000 UK-based...

 Read Full Article
London Bridge’s New Office on Stilts

A London Bridge development that will be raised 18m above ground level by steel stilts has been granted planning approval by Southwark Council. Described as “the...

 Read Full Article
New York’s Seagram Building Debuts 'The Playground'

As building owners race to offer tenants unique and compelling spaces, a New York real estate development company is blurring the lines between work and recreation with...

 Read Full Article
Planning Ahead When Developing Mixed-Use Premises

Commercial property lawyer Sophie Bedwell explains the importance of planning ahead for landlords of mixed-use premises, to avoid falling foul of legislation that means...

 Read Full Article
First UK Commercial Building to Achieve the Top Three Wellbeing Certifications 

Bloom Clerkenwell has become the first commercial building in the UK to achieve the highest accreditations for wellbeing, sustainability and digital...

 Read Full Article