Across the UK, Councils are one of the Country’s largest property owners. Property is a valuable asset for Councils, but they are also costly to run and maintain. Unlocking the hidden value and managing assets in the most cost effective way, whilst reducing costs and staying within financial boundaries, is often a difficult target to achieve.
For Councils looking to undertake a property project in their area, they have only a few well-known options that are available; in-house, outsourcing or status quo. PSP provides a coveted 'Fourth Way', allowing council the ability to unlock additional value in their assets.
Public Sector Plc offer Relational Partnering, which was conceived from within the public sector and further developed by the private sector in tandem with local government. PSP has created a new way of working that captures the best of the public and private sectors and makes best use of available resources.
How do Councils currently manage their assets?
In recent years they have found themselves under increasing pressure to deliver projects quicker and at a lower cost, this has raised the question of whether the existing options available to Councils offer the greatest potential to unlock value. With continued reductions to Councils’ budgets and the restrictions on those involved with developing Authority owned properties, having a further option when considering how to manage a property portfolio is the way forward.
Recent figures suggest that there are around £380 billion of publicly held assets in the UK, of which more than two thirds are owned by Councils. Value is frequently locked within these properties, but if things are done differently, the potential exists to provide a substantial flow of much-needed funds to a Council.
How can Councils better manage their property portfolio?
Frequently a councils’ property team only has the capacity to manage the day to day issues arising from an income producing portfolio. Whilst the income stream is valued, the true cost of running a portfolio is often hidden. Further, there is frequently little rationale behind the mix and type of assets owned and little in the way of strategic asset management to ensure that any assets owned perform to their optimum level.
PSP help to protect and optimise the value of Councils’ assets and believe that they should consider Relational Partnering – it can help unlock the hidden value from within assets already in their possession.
Councils should challenge their existing methods and consider whether they could benefit from a more open, collaborative and proactive relationship with their partners.
What can Public Sector Plc do to help Councils?
PSP’s extensive list of projects is proof that the collaborative solutions we put in place are working for Councils across the Country. The impact of having a building in the centre of town disused and unsightly can, more often than not, have a negative effect on the community. Implementing Public Sector Plc’s ‘Fourth Way’ allows the public sector to ‘in-source’ skills and resources to build with the knowledge and expertise that already exists within a Council. PSP works with Councils to increase revenue and capital income, generate revenue savings, deliver regeneration schemes and achieve broader socio-economic benefits that might otherwise never have been realised.