Applying a standard method to assess the benefits of disposal options

As part of a transparent process, local authorities are advised to outline their expectations and set out the criteria by which they will judge any application from interest parties for the purchase or transfer of heritage assets.

Suitable assessment criteria might include:

• Strategic impact benefits

  For example, to what degree the bid will address the local authority’s community strategy objectives.

• Economic impact benefits

  For example, forecasts on jobs created, amount of additional investment levered into an area, local multiplier effect, entrepreneurship etc…

• Social impact benefits

  For example, forecasts on number of individuals/groups benefiting from the service, degree of local support and usage.

• Environmental impact benefits

  For example, proposals for Code for Sustainable Homes level, Building Research Establishment Environmental Assessment Method (BREEAM) rating, in relation to the local development framework.

• Service impact benefits

  For example, financial savings from the ability to reduce services locally, imputed savings from any service preventative or outreach work or service enhancement.

• Precise value of any financial discount being sought

  This is the difference between a community group bid and the best price reasonably obtainable in the marketplace. This may not be the asset’s value in its present use but may be higher, reflecting possible change of use or future development value.

• Asset considerations

  For example, any future revenue savings associated with repair, rates and utility costs or capital savings from planned investment and assessment of arrangements for future good stewardship, such as health and safety, and maintenance.

• Viability and management

  For example, capacity and skills of bidders and developers, their track record of managing similar projects, ability to repay funders. The capacity of third sector organisations can be assessed using accepted yardsticks such as the Development Trust Association’s ‘Health Check’ (www.dta.org.uk) or Community Matters’ ‘Visible’ standards (www.communitymatters.org.uk).

• Conservation and regeneration of a historic building

  Assessment criteria to ensure a new owner properly conserves and regenerates a historic building should be developed by the local authority once it has taken the decision to dispose of a historic asset.

It is useful if each anticipated outcome or benefit from an option is scored to reflect the extent to which it meets the local authority’s objective. The total scores can then be used to compare the relative merits of each option. Weighting the different criteria in accordance with the local authority’s community priorities can assist this, for example, using a qualitative scoring matrix, or other prioritisation technique or method. Local authorities could have the right to veto certain applications if they fail to meet the minimum requirements in certain criteria’s so to ensure the most sustainable use for the asset is secured.

Forecasting techniques such as Social Return on Investment analysis (SROI) can also help assess the full impact of a project, providing a clear rationale for decision-making and assisting in monitoring and evaluating a project in the longer term. Please see Step 12: The wider social benefits of disposal for more information about SROI.

Source: RICS (2009) Local Authority Asset Management Best Practice