Purpose

Overview
A decision was taken in February 2026 (Appendix 1) to dispose of 45-49 Newland and 51 Newland, but retain Annexe D. While earlier discussions indicated that 51 Newland should be retained due to concerns regarding access arrangements if occupied by a third party, the latest strategic steer from Cllr Gibson (Portfolio Holder for Property) is to dispose of all the properties including Annexe D. This approach will avoid significant decoupling costs and maximise the capital receipt. A chart showing the financial analysis is provided at Appendix 2. Emergency egress from 51 Newland can be accommodated via the existing fire exit into the County Offices car park if required by purchaser, addressing the previously identified access concerns.

A site plan and photographs are provided in Appendix 3 and 4 respectively.

The following is taken from the previous decision and amended as necessary:

Local Councillor Engagement
The elected member for the ward in which these properties are located was engaged via email in January 2026. Cllr Murray confirmed that he has no objection to the proposal and referenced his preference of the properties being converted into flats or family dwellings by any potential buyer. He also noted that there is an over-supply of HMOs in the area and another would therefore not be desirable.

Cllr Gibson, as Executive Portfolio Holder for Property has also been engaged via email in January 2026 and confirmed that he sees no major issue with the proposal. A site visit was organised to provide further detail and improve familiarity with the buildings. In July 2026 Cllr Gibson reviewed the decoupling costs and approved the disposal of all Newland properties.

Social Value
It is not yet known whether the sale will derive any social value, however if an unconditional sale can be achieved or any conditionality be resolved quickly, it is likely to reduce the risk of further deterioration of the unoccupied buildings which are located in a prominent area. There is potential that these properties could be converted into flats or family dwellings, thus improving residential options for the local community.

Restrictive Covenants
The sale will include a restriction against the use of the site for Housing in Multiple Occupation (HMO) and this be protected by way of a deed of covenant procedure to bind any future purchasers.

Legal Issues & Other Considerations
1. Reconfiguration of the fence at the rear of the buildings will be required, and it is currently thought that there will be a positive, time limited obligation for the new buyer to undertake this work, to ensure privacy of the properties and LCC’s retained land are protected.
2. The Council will undertake works to disconnect all services to the properties. Electricity and water supplies will need disconnecting from the extensions from Orchard House, and the buyer will need to apply for a new connection from the highway.
3. Subject to negotiations, the emergency exits from Annexe D into the Council’s carpark will need reviewing and documenting appropriately.
4. Reservations will ensure privacy of LCC land is retained and access rights over the site are preserved.

Method of Disposal
It is recommended that these properties are not appropriate for auction and as such, the most suitable approach would be that they are sold via private treaty. The proposal is to procure external agents to market the property through an agreed advertising strategy, inviting expressions of interest from any interested parties, which can then be fully assessed prior to a decision to contract.

The proposed strategy will be to offer 45 – 49 Newland to the market as one parcel, and 51 and Annexe D as a separate parcel. It is expected that there will be strong interest for 45 – 49 based on recent successful marketing of Rauceby Terrace and Orchard Street. The market for 51 and Annexe D will be tested and reviewed if no interest is forthcoming in the first 2 months.

Corporate Property have previously approached selling agents and received proposals in March 2026, with the successful agent already being appointed as part of the sale of Orchard Street/Rauceby Terrace. Based on a sole agency agreement, it is likely that the basis of fee will be similar for all four, with an initial fee to cover up-front costs for production of marketing materials and a contingent fee payable on successful disposal based on a percentage of the sale value. It is expected that the up-front costs can be met from departmental budgets and the contingent fee from the sale proceeds.
It is anticipated that the subject properties will attract a similar level of interest to 34–35 Orchard Street and 1–2 Rauceby Terrace, which are currently under offer at £404,200, subject to contract, to a cash purchaser. These properties were marketed at a guide price of £375,000 and, following a relatively short marketing period and five viewings, best and final offers were invited. Two offers were received, with the underbidder offering £380,000 on a cash and unconditional basis, also exceeding the asking price. This level of interest is a positive indication of market demand for the subject property. The selling agent considers that 45–49 Newland is likely to be well received on the open market, particularly given its condition, location and potential for alternative use.
Local Government Reorganisation
Consideration has been given to the recently announced LGR developments and subsequent implications. However, these properties have been identified as surplus to requirements and therefore the professional view of Corporate Property is that this disposal would not have any detrimental impact on LGR proposals or future service delivery.

Finance comment
A breakdown of the decoupling costs based on the different options is below,

Opt 1:Dispose 45 49, retain 51 & D
Opt 2: Dispose 45 49 & 51, retain D
Opt 3: Dispose all
Opt 1 Opt 2 Opt 3
Decoupling cost £159,320 £307,108 £ 37,835
Est. capital receipt £550,000 £650,000 £700,000
Net £390,680 £342,892 £662,165

Running costs for each property are shown below:
Property Running costs
45 – 49 Newland £38,468.75
51 Newland £15,500.92
Annexe D £80,267.84
TOTAL £134,237.51

While the cost to implement these changes would be approximately £38k, the associated revenue savings of £134k per annum mean that the payback period will be in the same financial year. The sale of the properties could result in an estimated capital receipt of £700k.

Decision

To dispose of 45-49, 51 Newland and Annexe D

Alternative options considered

1. Do nothing – This option is not recommended. Strategic reviews and engagement have not identified any operational requirement for these buildings and as such, they are surplus to requirements. The most recent condition survey identified that the buildings would require significant investment to be in a safe and fit for purpose state, while keeping the buildings empty incurs ongoing revenue spend of £0.134m per annum.

2. Demolish the site and hold – This option was considered, however feedback from a pre-planning enquiry suggested that approval for demolition would not be received due to the significant element of the character of the Conservation Area that they hold.

3. Lease to a third party – This option was considered, but the condition of the buildings means that they would not be a desirable opportunity without significant LCC investment prior.

4. Retain some of the properties – This option was considered, but due to the estimated decoupling costs, timescales involved in such works and the political steer, this option was discounted