Council raises £5.6 million from property auctions this year

Birmingham City Council has raised almost £5.63m from property auctions so far this year, and more of its buildings and land will go under the hammer this week.

September was the biggest month, when ten lots raised £2.95m. Before that, £1.5m came in March, £486,000 in July, £458,000 in February and £153,000 from land sold in May. The next auctions are on 22 October and 9 December.

The biggest sales

The largest single sale of the year was the former Skilts School on Gorcott Hill in Beoley, near Redditch, which went for £1.2m. It used to provide education and accommodation for primary-aged children with emotional, social and behavioural difficulties, and comes with a site manager's house, two residential blocks and a gym.

A large vacant freehold site of about 3,257 square metres sold for its asking price of £800,000.

A six-bedroom detached house on Lichfield Road in Four Oaks, Sutton Coldfield, drew a lot of interest. It had a guide price of more than £600,000 and sold to an online bidder for £799,000.

The former Halescroft Centre, a youth centre in Halescroft Square, Northfield, sold for £555,000, more than double its £250,000 guide. The 0.59-acre site includes a former four-bedroom house and a plot of land beside it.

A ground rent investment on industrial premises at 50 Icknield Street in Hockley sold for £456,000, well above its £325,000 asking price.

Why the council is selling

The auction sales are a small part of a much larger programme. Since it issued a section 114 notice in September 2023, effectively declaring itself bankrupt, the council has been selling property to meet a target of £750m, which it needs to cover its equal pay liability and earlier budget deficits.

The government-appointed commissioners say it is about halfway there. The largest single sale so far was the Wheels site at Bordesley Green, sold for £50m and earmarked for Birmingham City's new stadium. Most sales, though, are much smaller: shops, garages, car parks, community buildings and plots of land.

Each month a property meeting decides which assets to declare surplus. One due to be considered on Monday is the former Summerfield Children's Centre in Winson Green, which its local councillor says has become a magnet for anti-social behaviour.

A contested programme

The sales have been controversial. Opposition councillors have criticised the loss of community centres and playing fields, while the commissioners have warned that slower progress has real financial consequences for the council's budget.

Buyers of former council buildings must still get planning permission for any change of use, and the auction listings for several lots note that redevelopment would depend on obtaining the necessary consents.