Land and Property Disposal Policy – voluntary and community sector summary

Reading Borough Council’s Land and Property Asset Disposal Policy explains how the council sells, transfers, leases, or otherwise disposes of land and buildings.

The policy was updated in December 2025 to strengthen how bids from voluntary and community sector (VCS) organisations are considered alongside commercial bids.

This is supported through the Third Sector Disposal Process, which recognises the important role that VCS organisations play in supporting communities, tackling inequality, and improving wellbeing in Reading.

A copy of the full Asset Disposal Policy document can be found here: Land & Property Asset Disposal Policy

What the policy covers

The policy applies to all council-owned land and property, including:

• Freehold sales
• Leasehold arrangements
• Community-use leases at subsidised rent
• Commercial leases
• Disposals below market value (“less than best consideration”)
• Regeneration and development projects involving Council assets
• Land swaps or exchanges
• Easements, options, and other rights over land

The council’s aims when disposing of assets

The council recognises that buildings and land can help communities thrive and support local services.

Although the council has a legal duty to secure market value for its assets, it can dispose of assets at below market value where there is clear social, economic, or environmental benefit.

The council’s disposal principles are:

• Value for money
  Achieve the best value possible unless there is a clear justification for a different approach.
• Efficiency
  Ensure disposals are completed in a timely and effective way.
• Transparency
  Use clear processes and fair decision making.
• Community benefit
  Support positive social, economic, and environmental outcomes for Reading residents.
• Sustainability
  Support net zero ambitions and biodiversity goals.
• Equality
  Support the council’s Public Sector Equality Duty and help create fairer communities.

Disposals below market value

Under the General Disposal Consent 2003, councils can dispose of assets at less than market value without Secretary of State approval where the undervalue is less than £2 million.

Any disposal at below market value must support one or more of the following:

• Economic wellbeing
• Social wellbeing
• Environmental wellbeing

When a property may be declared surplus

As part of the council’s Asset Management Strategy, the purpose, value and condition of its assets are regularly reviewed. A property may be declared surplus if:

• It is no longer needed for council services
• It does not support council priorities
• A more cost-effective option is available
• It no longer has strategic or regeneration value
• Parts of the building or site are vacant long term
• Services can be provided elsewhere
• The income generated is no longer financially worthwhile
• A sale would provide better overall value
• The property is no longer fit for purpose

Third Sector Disposal Process

The Council recognises that access to suitable buildings can help VCS organisations deliver important services and community activities.

What counts as a VCS organisation?

Typical characteristics include:

• Operating on a non-profit basis
• Working independently from government
• Being community-focused and locally rooted
• Delivering social or community benefit

This includes:

• Charities
• Community groups
• Community Interest Companies (CICs)
• Co-operatives
• Credit unions
• Social enterprises

Additional requirements for VCS disposals

Where a council asset is proposed for transfer to a VCS organisation, additional criteria will be considered to assess community value and legal compliance.

The council may also include an overage clause in agreements. This means that if the organisation later changes the use of the property or sells it for profit, the council may receive a share of any increase in value.

Any disposal at less than market value must be supported by a strong business case showing that the community benefit justifies the financial discount.

Demonstrating social value

Applicants are encouraged to show the social value their proposal will deliver. This helps the council assess whether the community benefit achieved matches any reduction in the disposal value.

One commonly used method is Social Return on Investment (SROI), which measures the wider social impact of activities by assigning financial values to outcomes and comparing them with investment costs.

Social value assessments will be carried out by the council’s VCS Partnership Management Team or relevant service area.

How bids are assessed

Under Section 123 of the Local Government Act 1972, the council must normally achieve the best consideration reasonably obtainable when disposing of property.

All bids, including commercial and VCS bids, will go through a formal evaluation process.

Who assesses bids?

• The Asset Management Team assesses commercial bids. Where assets are marketed to open market only and a third sector bid is received, this will be passed to the RBC VCS or Cultural Service to evaluate.
• The VCS Partnership Team or relevant council service assesses VCS bids, applying the methodology assessing Social Return on Investment.

Assessments will consider:

• Financial value
• Community and social impact
• Deliverability
• Organisational sustainability
• Alignment with Council priorities

Submitting a bid

VCS organisations are invited to submit proposals by 12 noon on the closing date of the bidding period.

Applications should be sent to: Mark Redfearn, Policy Manager, Reading Borough Council

Email: mark.redfearn@reading.gov.uk

What your bid should include

• Proposed use of the property
  Please provide an outline of your proposed use of the property and how this will benefit local residents and support the following ambitions of the Council Plan:
  • Promote more equal communities in Reading
  • Secure Reading’s economic and cultural success
  • Deliver a sustainable and healthy environment and reduce Reading’s carbon footprint
  • Safeguard and support the health and wellbeing of Reading’s adults and children
  • Ensure Reading Borough Council is fit for the future
• Your offer
  Please provide our proposed financial offer, including any conditions attached to the offer, such as surveys, planning permission or funding approval.
• Building and maintenance information
  Please set out a summary of the building in terms of current condition, potential opportunities and suitability for your proposed use.
  Please set out a programmme of any maintenance or improvement works you would wish to carry out at the property together with a cost summary and any related dependencies such as Listed Building Consent, Building Regulations or Planning Permission.

Supporting documents required

Please include:

• Details of your offer
• Organisational structure and legal status
• Constitution or governing documents
• Information about your current work in Reading
• Audited accounts for the last two years
• Evidence of financial sustainability
• Evidence of property management experience
• Information about planned alterations or improvement works
• Business plan and budget
• Delivery timetable
• Evidence of expected community benefits
• Consideration of Subsidy Control implications

Property viewings

All viewings must be arranged through the appointed marketing agent.

Details will be provided in the property advertisement or information pack.

Further information

For information about the bidding process or to request an application form, please contact:

• info@rva.org.uk
• advice@rva.org.uk

Support available for VCS organisations

Reading Borough Council support

The council supports VCS organisations through:

• A Community Building Request Form for organisations seeking premises
• Attendance at the VCS Community Buildings Forum
• Monthly VCS Intelligence Network meetings
• Early notification to Reading Voluntary Action (RVA) about suitable disposals
• Sharing bidding packs and relevant information with RVA

Reading Voluntary Action (RVA) support

RVA will:

• Promote opportunities through newsletters and networks
• Convene the Community Buildings Forum three times per year on a range of topics related to buildings
• Share bidding packs with interested VCS organisations
• Provide advice on:
  • Completing applications
  • Business planning
  • Funding
  • Governance
  • Property management
• Support collaboration between organisations
• Keep records of advice and support provided

All bids will still be submitted directly to Reading Borough Council for formal assessment.