Policy paper

Ministry for Housing, Communities, and Local Government Strategic Asset Management Plan - Executive Summary

Published 30 October 2025

Introduction

1. The Ministry for Housing, Communities and Local Government (MHCLG) was reformed in 2024 following the General Election and appointment of a Labour government, replacing the Department for Levelling Up, Housing and Communities.  

2. MHCLG is supported by 15 agencies and public bodies, the biggest of which are Homes England and the Planning Inspectorate. 

3. The department currently holds close to 4,200 staff of which approximately 2,400 are based in central London at our headquarters. A second headquarters located in Wolverhampton acts as a base for approximately 300 staff.

Departmental Property Strategy 

4. The property strategy agreed by the department’s Executive Team will allow MHCLG to create an efficient, well utilised, high quality, safe, accessible estate that includes the technology and infrastructure to enable smarter working. 

5. As part of this strategy, the department will close four offices within its current 20 location portfolio by 31st December 2027. Two offices have already been closed this financial year. The department will retain a presence in each English region and devolved nation, alongside it’s primary HQ in London, and second HQ in Wolverhampton.

6. The estate will support the government’s goal for Net Zero, through the Greening Government Commitments, and seek to provide value for money. The department will also actively take into account wider government property policies including Places for Growth, One Public Estate and the London Plan 2030 when developing its property strategy to ensure that it is effectively supporting them. 

Core Property Portfolio

7. The department maintains 20 buildings across the United Kingdom. In addition to the two HQ buildings, larger offices are located in Manchester, Darlington and Bristol, with smaller offices in each of the regions of England and offices in Scotland, Wales and Northern Ireland. Four of these offices accommodate teams of specialist functional expertise. 

8. The department is a minor tenant in all but one of the office buildings that it occupies. In these building, the major tenant is other government departments in all but three sites. The Government Property Agency (GPA) manages delivery of the office estate on behalf of the department, with the estate typically being held by means of ‘Terms of Agreement’, the majority of which have a duration between five and ten years in length. 

9. The total floor space currently occupied by the department is 17,036.50 m2. For the 25/26 financial year, it is estimated that the department will spend a total of £21.5m (excl. VAT) on leases and associated facilities management services across the whole estate, exclusive of ALB’s and regional fire rescue authority control centres. 

Other Properties

10. The department holds leases for six buildings that were originally designed as regional Fire Control Centres but never fulfilled this purpose. These centres were designed, built and leased as a Public Private Partnership (PPP agreement). Tenants have been found for two of the centres. The remaining four centres are currently vacant, with the MHCLG PFI Team actively looking to identify options to find new tenants, minimise costs or provide solutions. 

11. The core department does not manage the property strategy of its Arm’s Length Bodies (ALBs) and other public bodies, who are each responsible for their own property arrangements. 

12. The department holds the freehold to Burlington House and New Burlington House. (Old) Burlington House is currently occupied by the Royal Academy under a 999 year lease agreement. New Burlington House is home to five national Learned Societies. The department ensured value for money for the taxpayer by signing a 999 year lease in October 2024 with the Learned Societies, securing their future in these premises. 

13. The department also holds the freehold for the QEII Conference Centre which is run by a Trading Fund, who maintain the building on the department’s behalf. 

Programme of Projects

14. The MHCLG Property Team run programmes and projects to deliver the Office of Government Property (OGP) priorities and initiatives, specifically, ‘right-sizing’ the government estate, maintaining and improving the condition of the held estate, and improving sustainability.  

15. The projects and programmes to be delivered in 25/26 include:

a. Workforce Location Programme – reduction of the department’s overall office location number by six – retaining 16 offices, one in every region of England and nation of the UK. Closing offices will take advantage of lease events to exit without incurring additional costs. Staff based in these locations will be moved to the remaining office locations or agree alternative working arrangements – no one will be made redundant as a result of this change. Locations identified for closure include Newcastle, Truro, Exeter, Sheffield, Birmingham and Warrington.  As part of the programme, office capacity will be increased via the development of four larger offices in the locations of Bristol, Darlington, Manchester, and Wolverhampton.

b. London Plan 2030 – in support of the wider London Plan 2030, the department’s primary HQ in London will change location from 2 Marsham Street to 1 Horse Guards Road. The specific date for this move is still to be confirmed. 

c. Better Buildings – in addition to making improvements to offices to increase capacity, the Property Team will work to ensure any designs and plans contribute to a positive user experience and a productive working environment, with accessibility considered from the outset. 

Internal Governance

16. The department’s Permanent Secretary acts as the MHCLG Accounting Officer and is accountable for management of property owned and/or occupied by the department. 

17. In practice, decision making relating to the estate is delegated to a sub-committee of the Executive Team, the People and Operations Committee, which is chaired by the Chief Operating Officer (COO). The COO takes decisions within the established framework of the governance arrangements and structures. 

18. The MHCLG Property Team itself sits within the corporate function, specifically the Commercial Directorate and reports to the Commercial Director on a monthly basis. Day to day decisions on property matters are taken by the Head of the Property Function, consulting the Commercial Director as necessary.

External Governance

19. The department is an onboarded client of the Government Property Agency, which manages delivery of its office estate on its behalf. The Department’s Property Team operates an intelligent client function, meeting recognised best practice across central government. All issues relating to delivery are referred to the GPA’s governance and decision-making bodies. 

Property Function Capability and Capacity

20. All members of the Property Team are in possession of or in the process of acquiring professional qualifications that are suitably matched for the positions they held and are in line with Government Property Profession career pathways. Any future roles advertised will indicate similar requirements to ensure that the team remains suitably equipped to effectively deliver against its programme of work. The Property Team will undertake recruitment as and when appropriate to address capacity constraints and ensure project delivery. Recruitment will be subject to approval by the Commercial Director and CFO.