Annual Property Plan 2026/27

Annual Property Plan 2026/27

The Annual Property Plan 2026/27 will continue the council’s proactive approach to asset management and implement the strategies outlined in the Property Investment Strategy and Operational Portfolio Strategy including:

• Monitoring tenant compliance with lease obligations for both investment and operational property.
• Undertaking rent reviews and lease renewals in a timely manner.
• Taking a pro-active approach to asset management including removing breaks, progressing targeted disposal and lease regears.
• Ensuring void/un-let accommodation is re-let as soon as possible.
• Minimising void and irrecoverable expenditure.

Delivery of the Annual Property Plan will be monitored through the Action Plan (see Annex 1).

The Property and Assets team will continue to support the council in achieving its climate emergency targets by creating more sustainable assets in the property portfolio, thereby maintaining or increasing estimated rental value and enhancing capital value. This will lower the risk of vacancies within the investment portfolio as investors and occupiers are increasingly scrutinising ESG credentials of properties they buy and lease.

The council’s aim is to be one of the leading public sector organisations for property and asset management with a proactive approach to driving the best from its asset base and service delivery. The Property and Assets team will continue to work in accordance with the highest industry standards (as set out by the professional governing body, RICS) and will look to achieve best practice in all areas.

Investment Property

The council owns a substantial commercial investment property portfolio valued at £289.8M as at 31 March 2025 which is forecast to deliver an annual rental income of £20.4M in 2026/27; principally comprising office, industrial, retail and leisure property investments leased on commercial terms to third party tenants. The portfolio is located within the borough with most of the assets situated in or around Basingstoke town centre.

Good data management is essential to manage the property portfolio effectively and enable key metrics to be measured to benchmark the portfolio. Data held within the property information management system will continue to be reviewed and updated to improve accuracy for reporting and effective property management The investment portfolio is key to providing revenue to the council and the returns are benchmarked annually against a national index of similar portfolios. Key evaluation and target matrix include the following:

• Growth in capital value against year-end valuation and benchmarked against industry portfolios.
• Rent collection KPI target 95% and benchmarked against industry standard collection rates.
• Ensure void levels are kept to a minimum, and benchmarked against similar portfolios, unless they are held for strategic or operational purposes.
• Lease renewals and rent reviews to be proactively managed and completed at the Expected Rental Value or above.
• Target disposals are progressed during the year and meet their budgeted targets, subject to market conditions.
• Sustainability ratings.

Due to the size of its commercial property holdings, Basingstoke and Deane has a vastly different property portfolio compared to most other councils. For this reason, the council resources a dedicated Property Services function. The service is responsible for property management and strategy, property services and property investment, providing governance support, a regular reporting mechanism for councillors and updates to the council’s Strategic Asset Management Plan. Given the non-liquid nature of commercial properties, the substantial input is afforded to the council’s Strategic Asset Management Plan to ensure that assets remain sustainable and fit for purpose.

Appropriate specialist independent external professional advice is also provided to the council in making complex property decisions. Jones Lang La Salle (JLL) were appointed for this by the council in September 2020 as its property advisors. Additional agency, property and facilities management support is provided by external consultants for direct lets when necessary.

The delivery of professional valuations, additional advice and feedback on the council’s property assets is provided by Montagu Evans LLP. This brings additional resilience, flexibility and expertise to the management of the council’s property portfolio.

Operational Portfolio

The council owns an operational property portfolio valued at £83.8M as at 31 March 2025 principally comprising depots, council offices, car parks, community centres, council operated leisure facilities, public parks, and open spaces, located all around the borough.

A 25-year forward maintenance programme is in place for the operational portfolio which sits alongside the planned and preventative maintenance programme. These programmes will be revised on an ongoing basis to ensure that they are correct.

Additional resources have been proposed to enable work to be progressed to ensure the property portfolio is not only fit for purpose, having good environmental credentials, attracting commercial rents where appropriate, but also meets health and safety requirements and not putting the council at risk of prosecution.

The new community centre leases and service level agreements will continue to be rolled out, completing a minimum of four leases per year, the team will bring forward renewals to complete the programme as quickly as possible. Wade Road Depot will have more focus on the accommodation review and upgrade which will also include security. A new facilities officer will also allow for improvements to services given by the Property and Assets team and will ensure that all areas whereby council staff are located are given the same level of service.

Sustainability will continue to be at the forefront to reduce carbon emissions and energy consumption. There is ongoing collaboration with the Climate Change and Sustainability Team to investigate and deliver programmes of work which will include:

• Completion of the enhanced solar PV programme to community centres.
• Continue with the fabric first approach of sustainable delivery programmes alongside reletting and capital programme works to ensure EPC’s and the reduction of carbon emissions continues.
• Installation of the Hybrid heating system for Tadley Health and Fitness Centre to be completed in the new financial year.

Regeneration

The Property and Assets team will continue to provide appropriate support to the delivery of strategic corporate priorities through projects of partners across the borough, for example, Sovereign Network Group (SNG) in Buckskin and South Ham and VIVID in Winklebury. The Regeneration team continues to work closely with the Property and Assets team to identify any asset implications associated with progressing major projects or renewal schemes delivered by key partners. This includes consideration of when and how strategic development opportunities are brought to market.

Work will continue to secure an Investment Partner to bring forward redevelopment and regeneration of Basing View and the town centre.

The Property and Assets team provide technical property advice to both the Housing and Manydown teams including the annual valuations for the council’s land interests.

Governance

The council has delegated responsibility for the monitoring and scrutiny of its investment strategies and activity to the Audit and Accounts Committee. Performance of the council’s investment property portfolio is reported half yearly to the Audit and Accounts Committee and the income from investment property is monitored and reported as part of the council’s revenue budget monitoring.

The execution and administration of the Property Investment Strategy is delegated to the Director of Regeneration.

The council’s governance measures with regards to property were updated in 2024 including the delegations to the Director of Regeneration and a scheme of authorisation to allow the Head of Property and Assets and other senior officers to take some decisions on her behalf. This scheme reflects the revised structure. More major property matters, and major projects are reported to Senior Leadership Team

meetings. This includes reports on proposed lease regears and disposals.

Following consideration by the Senior Leadership Team, a report is prepared for consultation with the Portfolio Holder and then the appropriate Officer or Cabinet decision is made. Decisions on commercial investments are made by the Director of Regeneration, after consultation with the Chief Finance Officer (S151 Officer) and the Co-Leader and Cabinet Member for Finance and Property, within the limits and criteria set out in the Property Investment Strategy and Annual Property Plan.

The council’s Constitution including delegations is currently under review.

The Property and Assets team develop and input into emerging policies and processes including responding to Government consultations where they may impact the property portfolio.

Risk management

A risk assessment has been carried out in accordance with the council’s risk management policy and was included in the Strategic Asset Management Plan. 

Property is a riskier asset class than some investments due to its physical characteristics which makes the asset less liquid. Consistent with all investment types (cash, shares, bonds, etc) the expected return on investment increases with the level of inherent risk. In the context of property markets rental and capital values can also fluctuate upwards and downwards over time according to the market and wider economic circumstances. Due to these risks, it is a longer-term investment and only suitable for strategic investment funds with an expected duration of 5 to 10 years or more. 

The main risks are reputational concerning the failure to process transactions, financial relating to fluctuations in property and capital due to market or wider economic circumstances, financial failure of tenants, a lack of suitable investments for acquisition and property vacancies following lease expiry. 

These risks will be managed at portfolio and asset levels through focussed asset management and can be further moderated by ensuring a balanced portfolio.

Prior to all major investments the council will seek independent advice from external advisors and consultants that are specialists in their field as necessary. This approach ensures that the council has access to knowledge and skill commensurate with its risk appetite.

Equality, Diversity, and Inclusion

When considering the impact of the Annual Property Plan on the protected characteristics groups, and the implications for the Public Sector Equality Duty (Equality Act 2010) it can be concluded that the proposal will have no differential impact for all groups. As the Plan aims to ensure a stable and growing long term source of rental income from the investment portfolio to support the council’s financial needs and provisions of services to businesses and residents across the borough. Properties forming part of the investment portfolio and for which the council has direct responsibility will be assessed to ensure that the relevant accessibility legislation is met. 

Climate change, ecological and biodiversity

This Annual Property Plan and the actions being undertaken will have a positive carbon impact once implemented. This is because of the continued focus of reducing the carbon footprint of the council’s property portfolio as part of the maintenance and repair plans for properties and action that will be taken as a result. This will help to deliver the targets established in the Climate Emergency declaration and aligns with Council Plan priorities in respect of carbon reduction.

When delivering the Annual Property Action Plan 2026/27 consideration will be given to the Biodiversity Strategy and the implications at an early stage. The Biodiversity team will continue to work closely with the Property and Assets team to ensure the impacts for biodiversity in relation to habitats and species that occupy the sites under the council’s property portfolio are considered and managed effectively.

Annex 1