Local authorities rush to sell surplus buildings

Property consultant Lambert Smith Hampton said more than 100 of the 127 lots for its autumn auction had come from the public sector. There are 60 lots from Yorkshire, mostly Sheffield, including 14 industrial units at Carlton Industrial Estate in Barnsley, Wombwell Town Hall and Madni Trust Park House School in Sheffield

The buildings were put on the market ahead of yesterday's Comprehensive Spending Review.

Many local authorities historically own most of the area they cover with both operational and investment properties.

It is estimated they own more investment properties than the combined value of UK quoted property companies.

Simon Riggall, head of auctions at LSH, said the recent rush to sell off public sector properties in the current economic climate reflects a growing trend in recent years.

He said: "Over the last six years I have put under the hammer 935m worth of public sector property and about 50m of that has been for Sheffield.

"There has been a bit more urgency to sell recently given the government's cuts.

"We are finding that local authorities are ahead of central government bodies in getting their act together."

Mr Riggall said many of the Sheffield sales had come from ground rents, which generate a nominal rent for the council each year but can generate more income if sold to an investor. He added: "Most of it has never been on the market before which creates an exciting opportunity for buyers."

Guy Gilfillan, head of LSH Yorkshire, said: "It's estimated each local authority has 10 per cent surplus capacity within its property portfolio so I expect to see more buildings being put up for sale in Yorkshire over the coming months."