Estate update

Report: 07
Date: 18 January 2007
By: Acting Director of Resources on behalf of the Commissioner

Summary

This report updates members on the latest information on Estate and Property Services matters.

A. Recommendations

1. Members note the information on current estate issues.
2. Members are asked to approve the proposed increases in the residential rents levied against those officers who are charged for occupying MPA owned properties (see Paragraph 13).

B. Supporting information

Introduction

1. At the Finance Committee on 24 October 2002 it was agreed that a report on estates issues would be produced at alternate meetings. Source documents can be found in previous relevant reports and also in the Members' Library.

Safer Neighbourhoods

2. At December 2006, space for 158 teams has been delivered during this financial year. Property Services remain on course to deliver a full year target of 180 for the current financial year.

3. Borough visits continue for the 2007/08 and 2008/09 roll-out to agree a Safer Neighbourhoods accommodation plan taking full account of Property Services Asset Management Plans.

4. By the end of 2006/07, 450 teams will have been accommodated.

Procurement related issues

5. With Procurement Services, work continues to build and enhance Procurement support in Property Services.

MPA/MPS Estate Strategy

6. The MPA/MPS estates strategy document and associated consultation and communication strategy was approved at MPA Full Authority in December. Comments and direction provided by MPA Members at the meeting will be incorporated in the roll out of the strategy. A further paper will be brought to MPA Full Authority in April 2007 to outline next steps in regard to the consultation and communication of plans.

Acquisitions and disposals

7. Acquisition of a property in Hammersmith and Fulham to provide accommodation for the Royalty and Diplomatic Protection teams, previously approved by the MPA, completed on 6 December.

8. A further surplus residential property has been sold since the last reporting period. In addition, the disposal of Turret House, Kingston, completed in November. Following the request of MPA members, in November 2005, a schedule of disposals completed to 30 November 2006 is contained at exempt Appendices 1 and 2.

Property Capital Programme

9. The re-phasing of a number of projects due to delays in regulatory approvals and related matters, and the outcome of the MPA’s decision regarding the overarching estates strategy will result in a significant under-spend against budget for this year’s capital programme and will impact on budget submissions for 2007/08 and on.

10. To mitigate this, Property Services have brought forward a number of smaller projects; although the impact on the overall capital spend will be minimal in the current year.

Residential Estate Strategy update

11. Following approval at MPA FC in February 2006 to exit the majority of the MPA’s residential estate, holding a core estate for operational reasons, Property Services continue to communicate with those individuals occupying residential properties owned by the MPA, including individual letters and intranet notices. Property Zone, the Property Services’ team set up to assist colleagues looking to purchase property by highlighting options, funding streams etc., has also run a number of presentations / open days in recent weeks to highlight options. The opening up of the Property Zone function to all MPS colleagues has been welcomed by colleagues and commercial operators alike. Property Services continue to work successfully with commercial operators who focus on the provision of key worker housing and those who assist key workers in purchasing properties to ensure the options available to colleagues are as broad as possible.

12. In line with the residential estate strategy, surplus properties continue to be sold in the open market via auction / private treaty as appropriate.

Residential rent review

13. The annual review of rents that the MPA charges on its residential properties is implemented in April each year. Members have been presented in previous years with options that form the basis of the rent reviews, but have always approved the option that links its own rents with those charged by Registered Social Landlords (e.g. housing associations). When considering last year’s increase options, Members resolved that in future years if rents were to be increased to reflect changes made by RSL’s then a separate paper with options would not be required.

14. A review of the MPA’s residential rents has been undertaken in conjunction with an analysis of rent data published by the Housing Corporation. Using this data, Property Services recommend that rents should be increased from between 3.02% to 4.54%, depending upon the size of individual units. The average across the estate will be 3.94%. The practical effect of the increases is that the rent for a 3 bedroom unit, which comprise more than 75% of the total estate, will rise from £416.50 to £434.50 per month. The section house service charge (rent) will rise by £14.50 per month to £384.50 (i.e. 3.94%).

15. Based on current occupation levels, the rent increases are forecast to produce additional rental income totalling £87k in a full year. Appendices 3, 4 and 5 attached highlight the existing MPA Rent Schedule (April 2006) and the proposed Rent Schedule to be effective from April 2007. Members are asked to approve the proposed recommendation.

Central London asset management plan

16. Plans to decant Wellington House, the sale of Sunbury and the planned occupation of Cobalt Square, continue in line with prior MPA approvals. The timing of the exit of Wellington House will however need to be reviewed, initial discussions have been held with the landlord to explore options to extend occupational arrangements for a further few months, a proposal has been received which will be taken to Investment Board for approval in February.

Pan London asset plans

17. Following the sign off by TPHQ and BOCU Commanders of all Borough based draft asset plans, and MPA Full Authority approval to the MPA/MPS estates strategy document and associated consultation and communication strategy, Property Services are working with TP to develop the consultation and communication plans for each Borough which will be brought back to the MPA via the Estates Oversight Group for approval.

18. Asset strategies will be progressed for other business groups, the Hendon estate, and a number of larger pan London properties where business groups share occupation. This will include contact with relevant stakeholders.

19. Requirements for Heathrow are currently under discussion with those teams based at the Airport.

20. Submissions have been sent to the Olympic Delivery Authority (ODA) in regard to property related requirements for the London 2012 Games to assist in the forthcoming planning application that will be submitted by the ODA. Property Services are working with British Transport Police to ensure the needs of both organisations are met, but not duplicated, and to ensure that suitable provision is made for Policing within the Stratford City development. Further meetings will be taking place with the ODA and LOCOG later this month. The MPS seek confirmation that the ODA/LOCOG will make suitable provision for the MPA/MPS needs.

Operational Support Group

21. Property Services have been heavily involved in recent policing operations (for the MPS and other Forces) both in response to counter-terrorist activities, and recent festive events.

Town planning issues

22. Property Services have continued to work closely with the GLA, London Development Agency, London Thames Gateway Development Corporation and Local Planning Authorities; responding to the consultation process in regard to the 5 Sub-Regional Development Frameworks, Area Action Plans, Opportunity Area Frameworks and other Planning Policy documents. We continue to liase with the GLA in regard to the forth-coming review of the London Plan.

PFI project

23. A separate paper will be presented to COP on 1st February 2007, in regard to this matter.

Facilities Management (outsourced re-tender / realignment)

24. FMIC transition continues to proceed as planned.

Property “deals” under consideration

25. Property Services continue to consider other property opportunities.

Abbreviations

BOCU

Borough Operational Command Unit

BTSC

Building Towards the Safest City

DDA

Disability Discrimination Act

DoI

Directorate of Information

DPG

Diplomatic Protection Group

FMS

Facilities Management Services

GLA

Greater London Authority

HMG

Her Majesty's Government

HQ

Headquarters

IPLDP

International Police Learning and Development Programme

MPA

Metropolitan Police Authority

MPA FC

MPA Finance Committee

MPS

Metropolitan Police Service

NIC

National Insurance contribution

ODA

Olympic Delivery Authority

PFI

Private Finance Initiative

RSL

Registered Social Landlord

RCOS

Resilience, Compliance & Operational Support

SOCA

Serious Organised Crime Agency

TfL

Transport for London

TP

Territorial Policing

TUPE

Transfer of Undertakings (Protection of Employment) Regulations

C. Legal implications

1. Contract or other documentation in these matters will contain all the usual commercial terms and provisions, and no unduly onerous or unusual terms – except where reported otherwise.

2. Significant risks have been evaluated and considered and steps taken to minimize or manage such risks.

3. All reported matters are considered to be within the powers of the authority.

4. All/any disposal represents the best consideration that can reasonably be obtained – save where stated otherwise.

D. Race and equality impact

Any equality and diversity implications arising from the matters in this report are being assessed as part of the individual project or item and will be reported separately to the Committee at the appropriate time.

E. Financial implications

Any financial implications from the above items will be reported in full to the relevant committees at the appropriate time. Support to security operations continue to place financial demands on Property Services, and the estate. Unless otherwise stated, other financial implications are manageable within existing approved budgets.

F. Background papers

None

G. Contact details

Report author: Alan Croney, Director of Property Services, MPS.

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1 and 2 are exempt.

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