Finding value from surplus and liability land through auctions

Across the country, public bodies and utility companies hold thousands of parcels of land that no longer serve their original purpose. Whether they are small roadside strips, redundant depots, awkwardly shaped sites, or parcels with planning or access challenges, these assets can be costly to retain and difficult to dispose of through traditional sales channels. 

Over the past year, our team has supported a range of organisations in tackling this challenge. Most notably, we recently completed the successful disposal of more than 50 sites on behalf of National Highways. This naturally diverse portfolio demonstrated both the complexity of surplus land and the effectiveness of the auction route, which is now shaping our strategy for marketing this specific type of asset disposal. 

Why are auctions so effective for surplus land? 

Disposals of this type highlight why auctions continue to stand out as a method of sale.

Public organisations have a duty to show transparency and accountability in their asset management. Demonstrating open competition and visible market pricing shows fairness and encourages public confidence in the process. 

Reiterating this transparency and accountability, the transaction is legally binding once a lot is sold at auction, with exchange on the day and completion typically within 28 days. This allows organisations to release capital quickly and avoid the uncertainty that can come with private treaty negotiations. 

As a benefit of this quick release, the ongoing costs for maintenance, insurance, and security can be transferred to the new owner. This reduction in liability and responsibility will unlock further funding for reinvestment elsewhere. 

The value of surplus sites cannot be overstated, although they are unconventional. Auctions provide the widest exposure to potential buyers; from developers and investors to local businesses and individuals - often creating interest where none previously existed.

The wider benefits of land disposals

What begins as a liability for one organisation frequently becomes an opportunity for another. Small parcels of land may be bought by neighbouring owners, bringing them into productive use. Larger or more complex sites may attract developers or investors, unlocking future schemes and regeneration. 

We can see from our experience in this arena that auction disposals not only provide financial benefits for vendors but also deliver wider value for local economies and communities. 

A growing role in public sector asset management 

Alongside National Highways, we continue to work with organisations such as United Utilities, Canal & River Trust, Network Rail and local authorities, and we see significant scope for auctions to play a bigger role in their disposal strategies. The approach is tried, tested, and consistently effective. With increasing scrutiny on public finances, and a rising demand for accountability and efficiency, the case for auctions is a strong one. 

The secret solution to surplus sites 

When assets are complex, unconventional, or hard to value, auctions provide a clear route to market that works. For organisations holding surplus land, the challenge is often less about what to sell, and more about how to sell it - and that is where auctions continue to prove their effectiveness.

If you have surplus land that you want to dispose of, get started today by completing the form below. A member of our team will be in touch to discuss the next steps.