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Disposal of Land and Property
Policy
Policy Title: Disposal of Land and Property Policy
Table of Contents
Section 1 – Policy Intentions
Section 2 – Policy
Section 3 – Procedural guides
Section 4 - Statutory Powers
Section 5 – Delegated Powers
Section 6 – Property Sales
Section 7 - Valuation and Pre-Sales Considerations
Section 8 – Methods and Timing of Disposal
Section 9 - Evaluation of Bids
Section 10 – Conclusion
Appendix 1
Appendix 2
Appendix 3
Identification, Monitoring and Review
1
1
2
2
3
3
4
6
6
6
7
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9
10
Section 1 – Policy Intentions
1.1
This Policy is intended to prescribe the process to be adopted by the Police and
Crime Commissioner when disposing of land and buildings that are no longer required
for the delivery of an efficient and effective police force.
1.2
This Policy takes full account of the requirements of Sections 17(4) and 35 of the
Police Reform and Social Responsibility Act 2011 and the obligations of the Police &
Crime Commissioner and Chief Constable to secure good value for money and to
have regard to the Financial Management Code of Practice issued by the Home
Secretary.
1.3
This Policy has been prepared taking account of prevailing legislation. This Policy will
be amended or reviewed as necessary with the introduction of new legislation or
amendments to existing legislation.
Section 2 – Policy
2.1
Property in this context shall include land, buildings, and any fixtures and fittings
which are to be included in the sale of that land and/or buildings.
2.2
The disposal of surplus property is a significant aspect of the management of the
Police & Crime Commissioner’s estate and will continue to be so. The Police & Crime
Commissioner keeps under constant review its property holdings to ensure that they
remain consistent with operational and estate requirements and that;

Optimum use is made of land and buildings and they contribute
positively toward the proper discharge of the Police & Crime
Commissioner’s duties, Constabulary objectives and environmental
policies.
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2.3

Expenditure on maintenance and repairs will be carried out to
maintain the value of a property and its condition so that it is fit for its
designated use and maximum value at disposal.

Property and assets are disposed of appropriately, following due
diligence and sign off through the appropriate governance
arrangements
The overall objective is to maximise the proceeds from disposal in accordance with
this policy in a manner that is ethical, while meeting the Police & Crime
Commissioner’s statutory requirements and obligations. It is important that the
procedures for the disposal of property are sufficiently robust to ensure that
prospective individual purchasers do not secure a commercial advantage at the
expense of the public purse.
Section 3 – Procedural guides
3.1
The opportunity or requirement for property to be disposed of generally arises once a
police station or site has been identified as being surplus to operational policing needs
and requirements by the Chief Constable.
3.2
Before land, buildings or assets are formally declared surplus to the requirements of
the Chief Constable their suitability for other police purposes should be considered.
3.3
The Constabulary’s Estates Programme Manager will be aware of the projects
included in the Asset Management Programme. Consideration of community impact
and operational need will form part of the decision making process for disposal.
Section 4 – Statutory Powers
4.1
The Police & Crime Commissioner‘s power to acquire and dispose of property is
contained in Section 2 and Schedule 1 of the Police Reform and Social Responsibility
Act 2011.
4.2
The Police & Crime Commissioner is required by Section 17(4) of the Police Reform
& Social Responsibility Act 2011 “to have regard to any financial code of practice
issued by the Secretary of State”. The Home Secretary issued the Financial
Management Code of Practice for the Police Forces of England and Wales in October
2013. The Code imposes a general duty on Police & Crime Commissioners to
achieve value for money in relation to, among other things, the management and
disposal of assets by which Police & Crime Commissioners are required to secure
“the best mix of quality and effectiveness for least outlay”
4.3
This Policy has been written and reviewed to take account of Equality Legislation and
is not intended to discriminate on the grounds of Age, disability, gender, race, religion
or belief, Sex, Sexual orientation or any other protected characteristic.
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Section 5 – Delegated Powers
5.1
The Police & Crime Commissioner is wholly responsible for the sale of land and
property and has not delegated any powers
Section 6 – Property Sales
Sales on the Open Market
6.1
The Police & Crime Commissioner will normally sell its property on the open market
and in accordance with this policy. The most appropriate advertising practices and
marketing methods shall be adopted, based on professional advice.
Special Categories of Purchaser
6.2
Sales to Other Public Bodies, Housing Associations and Voluntary Organisations
6.2.1 Unless the public body is the only possible purchaser, one to one transactions will not
normally be pursued unless agreed following consultation with the Police & Crime
Commissioner, and the public body will be advised of the method and details of the
sale process.
6.2.2 Where property is sold to such a body, it will be on the basis of Open Market Value.
Where the body’s proposal is dependent upon a discounted purchase price, this
should be the subject of a fully evaluated report to the Police & Crime Commissioner
for approval, setting out the way in which the proposal will support the Police & Crime
Commissioner’s and Constabulary strategic objectives and/or policies.
6.2.3 Where sales are undertaken at less than Open Market Value, mechanisms will be
included to protect the Police & Crime Commissioner’s interests in the event of
subsequent future sales. These can include clawback or uplift clauses, restrictive
covenants, ransom strip retention, user rights and user obligations.
6.3
Sales to Former Owners
6.3.1 The Crichel Down rules detail obligations on public sector bodies to offer certain land
back to original owners or their successors where the land was acquired by or under
threat of compulsory purchase.
6.4
Sales to Sitting Tenants
6.4.1 The sale of property to sitting tenants (both residential and business) may be affected
by legislation which gives tenants security and thus affects the value of the property.
In the case of some residential tenancies legislation gives rights to purchase at a
discounted value. Such disposals will have regard to the relevant legislative
constraints.
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6.5
Sales of Land to Adjoining Owners
6.5.1 On receipt of a request from an adjoining owner to purchase Police & Crime
Commissioner Property, the Estates and Support Services Manager shall:6.5.2 Inform the party seeking to buy of the procedures to be followed and ask them to
confirm that they are still interested in proceeding,
6.5.3 Determine if the land is surplus to requirements, having been discussed through the
appropriate governance arrangements, and
6.5.5 Determine if any right of reversion or obligation to offer to the former owner applies.
6.6
If it is considered feasible to sell the land as surplus to requirements, the procedures
as set out in the following two categories will be implemented:Category 1
Where a plot is land-locked and/or can only be of any use to the party requesting to
buy it the Estates and Support Services Manager will arrange for negotiations and
agreement of terms only if satisfied that value for money can be obtained having
regard to the “marriage” and/or joint sale value which may arise.
Category 2
In all other cases falling outside Category 1 the plot will be advertised for sale on the
open market. If no better offers are received the land may be sold to the adjoining
owner at a price to be negotiated. This will need to recognise the potential for
marriage value and/or take account of the potential for a share of overall sales
proceeds.
6.7
Sales to Officers and Staff of the Police & Crime Commissioner and Chief Constable
6.7.1 Providing there are adequate safeguards, there is no reason why officers and staff of
the Police & Crime Commissioner or Chief Constable should be denied opportunities
available to others.
6.7.2 Two main issues of sensitivity arise:


Access to information about the impending sale of property which is not readily
available to the public
Ensuring that the sale negotiations are conducted at “arms’ length”.
It is possible that an officer or Police staff member will become aware of an
impending disposal prior to this information becoming public knowledge.
Therefore, no sale to an officer or member of staff shall take place until adequate
time has been given for the public to respond to open advertisements, with the
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exception of sales falling within Category 1 above.
6.7.3 Officers and staff expressing an interest in a property should immediately inform the
Estates and Support Services Manager and are reminded of their responsibility to
declare their interest. Where the Estates and Support Services Manager is aware that
a member of staff is pursuing an interest in a property they will report accordingly to
the Deputy Chief Constable and to the Police & Crime Commissioner’s Chief
Executive.
Section 7 – Valuation and Pre-Sale Considerations
7.1
Apart from in exceptional cases, disposals must be at market value. This principle
applies to all sales unless a case is considered as an exception. They will be
considered through the normal governance arrangements. Determining market value
presents a number of issues:
Planning
7.1.1 Where a property has potential for development, re-development or a change of use
which would increase market value over that for its existing use, the grant (or
prospect) of planning permission can be significant. Thorough investigations into
planning potential will therefore be undertaken.
Restrictive Covenants and Use of Agreements
7.1.2 In every disposal it is the aim to ensure that the full value of the land, reflecting
reasonably foreseeable circumstances, is obtained. If there is any doubt about the
potential of the property being sold, it will usually be retained for future disposal and
further consideration. There may be circumstances in which it is appropriate for the
disposal to proceed without realising potential development value. The use of
covenants, restrictions or other appropriate agreements may be necessary to secure
a further capital receipt when/if subsequent development take place.
Expenditure set against Anticipated Sale Proceeds
7.1.3 To maximise a property’s potential, pre- and post-marketing enhancement
expenditure may be required e.g. planning costs, separation works, creation of
accesses etc. These works will be financed from the anticipated proceeds of sale.
7.1.4 The Police & Crime Commissioner may require a standard ‘anti-embarrassment
clause’ so that should the property be sold within twelve months of its sale by the
Police & Crime Commissioner any increase in value will be shared (usually equally)
between the Police & Crime Commissioner and the purchaser.
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Section 8 – Methods and Timing of Disposal
8.1
Professional judgement has to be exercised in determining the method and timing of
disposal. This will be decided through the normal joint Constabulary/OPCC
governance arrangements.
8.2
Appropriate reserves will be placed upon any property submitted to public
auction. Time limits imposed on tenders and sealed offers will be adhered to and the
bids returned to and opened in the presence of authorised staff.
8.3
Once a marketing process has been decided all prospective purchasers must be
informed of the steps involved and whether their bids will be treated confidentially or
will be open for discussion with other bidders. Any change in the marketing process
must be communicated in clear terms to the prospective purchasers.
8.4
Detailed procedural guidance which forms part of this policy and which is attached at
Appendix 2 will be issued from time to time to agents and staff dealing with the
disposal of property. This will be reviewed annually.
Section 9 – Evaluation of Bids
9.1
The criteria for the evaluation of bids by tender will always be set out in the sales
particulars and working practice notes.
Section 10 – Conclusion
10.1
Each case will be dealt with on a case by case basis. Many cases with special
problems and potential sensitivities will need detailed consideration and research prior
to marketing. Whilst it is important that disposals proceed at the right time and in the
right timescale to ensure that the best consideration is obtained. In all cases the
Police & Crime Commissioner is committed to achieving the overall objectives of this
policy without compromising the discharge of its statutory responsibilities and duties.
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Appendix 1
Clarification of the duty to secure good value for money
Section 17(4) of the Police Reform and Social Responsibility Act 2011 places a statutory duty on the Police &
Crime Commissioner to have regard to the Financial Management Code of Practice for the Police Forces of
England and Wales (2013) issued by the Home Secretary. Section 35 of the Police Reform and Social
Responsibility Act 2011 also requires that “In exercising functions, a chief officer of police must secure that
good value for money is obtained. Section 12 of the Financial Management Code provides that:
“Achieving value for money bears on nearly all aspects of deployment of public resources: procurement,
asset management, disposals, administrative systems and financing arrangements. It means finding
solutions which achieve the best mix of quality and effectiveness for least outlay. This may not always mean
choosing the immediately cheapest option since, for instance, it may be more cost effective to buy a more
reliable service or a better quality asset with lower maintenance costs and a longer operating life. Additional
notes on the scope of value for money are included at Annex B of this document.
“As set out in section 4 of this document, the Chief Finance Officer of the PCC and the Police Force Chief
Finance Officer are required to advise the PCC and Chief Constable respectively on value for money in
relation to all aspects of PCC and Chief Constable/force expenditure.”
Appendix 2
Disposal of Land & Buildings – Procedural Guidance Notes for Valuers / Agents / Estates Programme
(To be adhered to once a property has been declared surplus to requirements).
Maximisation of proceeds of sale
Any disposals at less than open market value shall only be pursued in exceptional circumstances. All such
cases shall be referred to the Police & Crime Commissioner (or as delegated to the Chief Executive)
In all other cases the object of the disposal shall be, within all relevant procedural guidelines and statutes, to
maximise the proceeds of sale.
Costs associated with enhancing the potential of a property prior to sale must be balanced with the price that
can reasonably be expected to be attained for the property.
Conduct
Staff responsible for executing sales and appointed Agents will be expected to act in an ethical and
transparent manner at all times. Disposal of assets will be conducted in line with the expectations of the
Code of Ethics.
All disposals will be in accordance with the Police & Crime Commissioner’s “Policy for Disposal of Land and
Property” and the Gloucestershire Constabulary Corporate Governance Framework.
General Disposal Procedures
The Estates and Support Services Manager will oversee the process for advertisement, offers and disposal
liaising with the Chief Executive as appropriate.
The appointed Agent is to inspect the property as soon as possible and, when practicable, to issue
preliminary advice to the Estates and Support Services Manager and the Chief Executive.
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Sales details to be prepared and approved by the Estates and Support Services Manager, commensurate
with the public expectations of the Police & Crime Commissioner.
Lotting of the property should be considered in all cases where this would encourage and enable additional
bidders to come forward.
Responses to interested parties, marketing agents, solicitors (vendor and purchaser) should be conducted as
soon as is practicable in order to expedite the sale process.
All relevant legislation will be followed when conducting the marketing exercise including the Estates Agents
Act 1979 and the Misrepresentation Act 1967 or any subsequent amendments or additions thereto.
Where relevant, the appointed Agent will be expected to check which utilities/services are connected to the
property and which are available for connection.
For land with development potential (or as otherwise relevant), the appointed Agent is to establish which
alternative planning uses may be permitted. A Planning Application may be made if this is considered
necessary to enhance the sale value.
In conjunction with the appointed Agent and through the appropriate governance arrangement the Estates
and Support Services Manager will ensure the desired disposal method is selected.
The property will be advertised as appropriate to the nature and style of the property and market conditions
at the time.
Prior to marketing the appointed Agent is to determine an asking price (where appropriate) which will be
based on a professional assessment of the market for that property and where necessary will involve
collation of comparable evidence.
Sales particulars are to be prepared by the appropriate Agent and circulated as widely as possible and will
incorporate a statement explaining that the sale will be subject to the Police & Crime Commissioner’s
obligation to secure value for money. .
Consideration will be given to the various disposal options available. These are:Open Bids/Private Treaty
In this case bids will not be confidential and may
be disclosed to other bidders
Informal Sealed Bids
Binding Sealed Bids
In these cases bids will be treated confidentially
and will not be disclosed to other bidders
Auction
If more than one offer is received for a property, the appointed Agent should use their professional expertise
and knowledge in considering the ability of the bidders to proceed to completion together with any additional
supporting information. Offers should not be accepted without establishing the general bona fides of the
prospective purchaser(s) by appropriate professional methods. In some cases the highest offer may not be
the most suitable and this can be particularly evident when attempts are made to spoil the sale process.
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However, due care must be taken when concluding whether a prospective purchaser(s) is in a position not
to complete the transaction.
On conclusion of negotiations, the appointed Agent will advise and recommend to the Estates and Support
Services Manager the options for sale. This will be discussed through the appropriate governance
arrangements.
Once the sale terms have been agreed the buyer should be notified in writing by the appointed Agent as
soon as possible (other than at auctions). Unsuccessful bidders should also be notified in writing as a
matter of courtesy but not detailing any information about the Buyer or their bid details.
Appointed Agents must always be alert to Money Laundering Regulations and alert the appropriate
authorities if an approach is being made to acquire property using suspect funds.
.
At all stages a sale file must be maintained to ensure the process can be easily audited. Interactions
with potential bidders or interested parties should be strictly recorded. It is preferable that this
engagement is done through the appointed agent.
Appendix 3
Procedure for Disposals of Land and Buildings
Binding Sealed Bids Process
Following the authorised instructions through the appropriate governance arrangements that sale will be
subject to binding sealed bids, (not informal bids), the appointed Agent shall provide the Police & Crime
Commissioner’s Chief Executive with a list of the names and addresses of interested parties
The Chief Executive shall instruct the Legal Services Contractor for Conveyancing and Property Related
Legal Services (the Contractor) to prepare the invitation to tender letters and contract pack (the documents).
The Legal Services Contractor shall supply the documents to the Chief Executive who will append the
relevant tender instructions and tender labels and invite the sealed bids, following the normal tendering
procedure and ensure that the tender opening procedures are in place.
.
The Chief Executive (or his delegate) shall open the tenders and after formal verification he will consult with
the Estates and Support Services Manager for evaluation and recommendation to the Police and Crime
Commissioner.
The above procedure is intended to standardise the disposal method and will create an acceptable audit trail
for the Police & Crime Commissioner.
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Identification, Monitoring and Review
Security Marking:
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Document Title: POLICY / INFORMATION / PROCEDURAL
Type
URN
Strategic
Board
Policy / How To / What Is
Author/Reviewer
Name
Version
Date
Changes (ensure public copy amended
and uploaded to external website)
2.9
22/12/2015
Re-wording to update the inclusion of
the Police and Crime Commissioners
responsibilities for the Estate
Vicki
Heselton/
Paul
Trott
Complied
with
Policy
Guidance

Review of process to comply with
current governance arrangements
Next Document Review Date: 29/4/2017
EIA
EIA Sign Off
EIA Review
LOW
22/12/15
22/09/15
SIA
SIA Sign Off
SIA Review
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