Insight
Supporting the optimisation of your estate: unlocking latent capital value
5 Jun 2024
Local authority estates across the UK are under considerable pressure, grappling with issues such as decreasing pupil numbers in primary schools, requirements for Special Educational Needs and Disabilities (SEND) accommodations, soaring revenue funding needs, social housing lists, growing maintenance backlogs, and underfunded decarbonisation commitments. These challenges present a daunting task for local authorities, demanding innovative and effective solutions. Here, Director for Architecture, Derek Gee discusses how estate optimisation presents opportunities that exist to rebalance estates and address accommodation shortfalls.
Our goal is to transform these challenges into opportunities by reducing revenue burdens, providing essential SEND placements and social housing, and generating a capital surplus for further estate improvements. This initiative leverages underutilised buildings and land within educational and public estates, transforming them into high-quality, sustainable residential and mixed-use developments. The revenue from these developments can then be reinvested into the community, addressing urgent needs for educational spaces and housing.
The process
The process of estate optimisation begins with a comprehensive scoping and analysis phase where we identify the needs, assets, and constraints of your estate. This includes a data-driven review of pupil place sufficiency and housing provision, alongside a desktop site analysis to understand physical and statutory constraints. Following this initial analysis, our team leads the development of concept designs and masterplans for each site, illustrating the development potential while ensuring compliance with educational and housing requirements. This phase aims to maximise the capital receipt potential of each development.
Feasibility studies and development appraisals are essential to ensure the financial viability of proposed projects. Simultaneously, we engage with stakeholders to align our proposals with the community’s long-term needs and gain their support.
The benefits
The estate optimisation model enables local authorities to transform underutilised assets into revenue-generating properties, significantly reducing their annual operational costs. It also directly addresses pressing community needs by providing necessary SEND accommodations and social housing. Moreover, this model self-funds the developments and generates surplus capital that can be reinvested into further estate improvements.
By adopting the estate optimisation model, local authorities can effectively address their estate challenges, turning underutilised assets into thriving developments that serve the community's educational and housing needs while also stabilising their financial outlook. This strategic approach not only alleviates current pressures but also secures a sustainable future for local communities, promoting a collaborative and prosperous environment.
Want to know more? Get in touch:
Hannah Hamilton
Associate Director - Strategic Development
Email: Hannahhamilton@PickEverard.co.uk
Mobile: 07551 151305