Condition of Government properties

Public Accounts Committee Closed Inquiry
Opened: 15 Jan 2025 Closed: 21 Aug 2025 Parliament page
The Government owns and manages all kinds of property for the delivery of public services and to support its own operations – from hospitals, schools and prisons, to courts, museums, warehouses and more. The estate overall is valued at around £187.1bn, as of March 2023, with annual running costs of … Read more
6 Recommendations
22 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 6 events
18 Sep
2025
Report published
4 Sep
2025
Correspondence
11 Jun
2025
Report published
24 Apr
2025
Correspondence
31 Mar
2025
Oral evidence
31 Mar
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
Oral evidence sessions 1 session
31 Mar 2025
View on parliament.uk
Cat Little · Cabinet Office Mark Chivers · Cabinet Office Mike Green · Defence Infrastructure Organisation
Title HC No. Published Items Response
29th Report - Condition of Government property HC 641 11 Jun 2025 28 Responded
Recommendations & Conclusions
28 results
2 Conclusion Rejected
29th Report - Condition of Governm…
Mandate departments to include explicit risk analysis in their updated Strategic Asset Management Plans.
The poor condition of some property and the failure to maintain it is regularly affecting the provision of key public services. Risks relating to property condition have materialised, taking property out of use and impacting functionality of properties such as … Read more
Government Response
The government agrees with the recommendation but states that the Spending Review 2025 did not provide additional resources for the Cabinet Office to support departments in minimizing risks from poor maintenance. Therefore, central support for this work will be limited unless departments pool resources.
HM Treasury
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3 Conclusion Accepted
29th Report - Condition of Governm…
Improve departmental property plans through regular assessment and Ministry of Defence housing estate strategy.
Many departments’ property plans lack the information necessary to manage and maintain their portfolios. Departments are required to prepare Strategic Asset Management Plans (SAMPs) to consider the totality of their assets and document their planned approach to managing maintenance and … Read more
Government Response
The government agrees with the recommendation, reporting that the Defence Housing Strategy Review (DHSR) is planned for publication later this year. This review will set out a roadmap for renewing Service Family Accommodation, identify surplus land, and inform a comprehensive Strategic Asset Management Plan, directly addressing the Ministry of Defence's housing estate plans.
HM Treasury
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4 Conclusion Accepted
29th Report - Condition of Governm…
Update on longer-term property maintenance planning; mandate Treasury to consider disposal alternatives.
Short–term funding for property maintenance is hindering longer–term planning. Departments typically bid for property maintenance funding on a yearly basis. This short–term funding cycle can be inefficient as it hinders departments’ ability to plan longer–term maintenance works. The contracting phase … Read more
Government Response
The government states the recommendation is implemented, explaining that The Green Book already mandates that business cases for maintenance funding must include a full range of options, including disposing of existing assets and building new properties, in addition to maintaining existing ones.
HM Treasury
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5 Recommendation Accepted
29th Report - Condition of Governm…
Set out Cabinet Office plans to improve recruitment, skills, and diversity of government property professionals.
Many departments and arm’s length bodies do not have the skills and capabilities to manage their property portfolio effectively. There is a shortage of skilled property professionals across departments. Departments are finding it difficult to recruit and retain property professionals. … Read more
Government Response
The government agrees and will produce a strategic capability plan for the property profession during financial year 2025-26, which will identify skills shortages and inform work to improve skills and diversity.
HM Treasury
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6 Conclusion Accepted
29th Report - Condition of Governm…
Update committee on review of government property oversight and actions to remove duplicate roles.
The Cabinet Office’s oversight of government property risks being ineffective due to duplication of roles. The OGP is responsible for the overall strategy for non–office property across government, whereas the Government Property Agency (GPA) is responsible for office related strategy. … Read more
Government Response
The government agrees and states that a review of the Government Property Agency (GPA) is underway, and the Cabinet Office will write to the Committee with the outcome and how it addresses duplication concerns.
HM Treasury
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1 Conclusion Accepted
29th Report - Condition of Governm…
Evidence received from Cabinet Office and DIO on condition of government property.
On the basis of a report by the Comptroller and Auditor General, we took evidence from Cabinet Office and the Defence Infrastructure Organisation (DIO) on the condition of government property.1
Government Response
The government states the 'recommendation' is implemented and describes existing Consolidated Budgeting Guidance and flexibilities for departments to manage and roll over capital budgets.
HM Treasury
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7 Recommendation Accepted
29th Report - Condition of Governm…
No standard definition for government maintenance backlog impedes strategic funding decisions.
There is no standard definition for the calculation of the total maintenance backlog across government. Government organisations include different costs in their individual calculations. The lack of consistent and complete data impacts government’s ability to make well–informed, strategic choices in … Read more
Government Response
The Cabinet Office has written to the Committee alongside the Treasury Minute response to provide an update on mandating a standard definition of backlog, Insite implementation, and departmental compliance.
HM Treasury
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8 Recommendation Accepted
29th Report - Condition of Governm…
Cabinet Office's InSite programme targeting improved data consistency for government property by April 2025.
The Cabinet Office aims to improve data consistency through its new InSite programme, enabling the implementation of the government property data standard across the central government property portfolio.12 It told us that the Insite was going live and would be … Read more
Government Response
The Cabinet Office has written to the Committee alongside the Treasury Minute response with updates on data standardisation and Insite implementation.
HM Treasury
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9 Recommendation Deferred
29th Report - Condition of Governm…
Poor government property maintenance significantly disrupts public services and drives rising costs.
Well–maintained government properties are more cost–effective than poorly maintained buildings. They contribute to a better experience for the public and higher levels of wellbeing and productivity for staff. Poor property maintenance can result in water leaks, collapsing ceilings, fire alarm … Read more
Government Response
The government will strengthen the position on inclusion of strategic risks in Strategic Asset Management Plans (SAMPs) as an initial step by reviewing GovS 004: Property. Following this, they intend to consult with departments to determine the practicality and level of detail for further guidance development.
HM Treasury
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10 Conclusion Acknowledged
29th Report - Condition of Governm…
Government acknowledges poor property condition as an unacceptable risk to civil service delivery.
The government has identified poor property condition as a significant risk. The Civil Service Board, which supports the strategic leadership of the civil service, considers unsafe property to be one of the risks to the civil service’s ability to deliver … Read more
Government Response
The Civil Service Board considers unsafe property to be one of the risks to the civil service’s ability to deliver the government’s objectives, and assesses it to be outside of its appetite.
HM Treasury
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11 Conclusion Acknowledged
29th Report - Condition of Governm…
Addressing RAAC risks in government estates diverted resources from other civil service initiatives.
The NAO reported that civil service resources for other initiatives have been diverted to deal with risks relating to reinforced autoclaved aerated concrete (RAAC) across government.18 We asked the Cabinet Office about RAAC and how it has impacted the delivery … Read more
Government Response
Resources were diverted to coordinate efforts across governments to identify RAAC issues and put in place mitigation plans; seven hospitals in the poorest condition were rebuilt through the New Hospital Programme, while RAAC has largely been repaired in the other less significant instances.
HM Treasury
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12 Conclusion Acknowledged
29th Report - Condition of Governm…
OGP developing expertise to identify and prevent future property risks from new construction methods.
We questioned whether government is adequately prepared to prevent future risks, similar to the sudden emergence of RAAC and asbestos, from affecting property unexpectedly. The OGP stated that it has a clear picture of RAAC and asbestos across all of … Read more
Government Response
The OGP is bringing together knowledge and expertise to better support departments in identifying risks, and that it is important to identify how new methods of construction bring future risks into the estate.
HM Treasury
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13 Conclusion Not Addressed
29th Report - Condition of Governm…
Departments must prepare Strategic Asset Management Plans for long-term estate maintenance and risk management.
Departments are required to prepare Strategic Asset Management Plans (SAMPs) to document their approach to the maintenance of their estates, as well as the management of risks. SAMPs provide an opportunity for departments to consider the totality of their assets … Read more
Government Response
The response refers to the poor condition of some property and the failure to maintain it affecting key public services, but doesn't address the use of Strategic Asset Management Plans (SAMPs).
HM Treasury
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14 Conclusion Not Addressed
29th Report - Condition of Governm…
Departments inconsistently produce comprehensive Strategic Asset Management Plans despite their mandatory importance.
While SAMPs are mandatory and of high strategic importance, not all departments prepare comprehensive plans.23 The OGP is asking departments for a more forward–looking approach in their plans, including consideration of future risks.24 The Cabinet Office explained that almost all … Read more
Government Response
The response addresses a different PAC conclusion regarding property conditions, not the conclusion about SAMPs.
HM Treasury
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15 Recommendation Accepted
29th Report - Condition of Governm…
Ministry of Defence reviewing housing estate to address poor conditions and recruitment issues.
We raised concerns about the Ministry of Defence housing estate.26 The Chief Executive of the DIO told us that the Ministry is undertaking a review of the housing estate in order to address poor condition. As part of the review, … Read more
Government Response
The Ministry of Defence will report to the Committee its plan for redeveloping its housing estate, including long-term plans in the departmental SAMP, disposals, redevelopment and maintenance, target implementation date Autumn 2025.
HM Treasury
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16 Conclusion Not Addressed
29th Report - Condition of Governm…
Departments are responsible for including Arm's Length Body properties within their Strategic Asset Management Plans.
Responsibilities for property management vary across departments. Some manage the property of their ALBs, which includes acquisitions, disposals, maintenance, improvement works and facilities management. Others delegate management responsibilities to their ALBs.28 We questioned the OGP as to how much knowledge … Read more
Government Response
The response addresses a different PAC conclusion regarding departments' property plans, not the conclusion about property management responsibilities.
HM Treasury
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17 Conclusion Not Addressed
29th Report - Condition of Governm…
OGP confirms Strategic Asset Management Plans are improving and cover the whole property portfolio.
We followed up on whether the OGP knows if departments are preparing comprehensive SAMPs that cover ALBs. It assured us that it carried out a review on SAMPs to ensure that they were covering the whole property portfolio. The OGP … Read more
Government Response
The response addresses a different PAC conclusion regarding departments' property plans, not the conclusion about SAMPs.
HM Treasury
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18 Conclusion Not Addressed
29th Report - Condition of Governm…
Annual budget cycles drive short-term planning, hindering efficient property asset management
Government organisations operate with annual maintenance budgets. Transferring unspent funds to the following year is often not easy and requires HM Treasury’s permission. Departments respond to annual budgets by planning on a yearly basis. They may split contracts into smaller … Read more
Government Response
The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address annual maintenance budgets and the difficulties of transferring unspent funds.
HM Treasury
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19 Conclusion Not Addressed
29th Report - Condition of Governm…
Annual budgets challenging for long-term asset management, but Treasury plans multi-year strategies
We challenged the Cabinet Office as to whether this is a good way for government to operate, or whether a longer–term funding settlement would encourage better practice. The Cabinet Office replied that annual budgets are common. It also noted that … Read more
Government Response
The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address whether a longer-term funding settlement would encourage better practice.
HM Treasury
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20 Conclusion Not Addressed
29th Report - Condition of Governm…
Departments face disincentives and cultural attachment, hindering disposal of old properties
Departments may reduce their maintenance cost and backlog by disposing of existing properties that they no longer need. However, they may decide not to move because the proceeds from the sale of an old building would 31 C&AG’s Report, para … Read more
Government Response
The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address the disposal of existing properties that departments no longer need.
HM Treasury
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21 Conclusion Not Addressed
29th Report - Condition of Governm…
Shortage of skilled property management professionals persists, despite recruitment and training efforts
There is a shortage of skilled property management professionals across departments. If the perceived value of working in the public sector property profession has declined, or levels of pay are no longer considered attractive, his would be a matter of … Read more
Government Response
The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively but doesn't address the shortage of skilled property management professionals across departments.
HM Treasury
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22 Conclusion Acknowledged
29th Report - Condition of Governm…
OGP and Cabinet Office developing workforce plans to address property professional fluctuations
We asked the OGP how it plans to address fluctuations in property professionals. The OGP told us it is working with departments to adjust their workforce plans. The Cabinet Office is also producing its first strategic workforce plan in summer … Read more
Government Response
The OGP is working with departments to adjust their workforce plans, and the Cabinet Office is producing its first strategic workforce plan in summer 2025, alongside maintaining oversight of supply and demand trends.
HM Treasury
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23 Conclusion Not Addressed
29th Report - Condition of Governm…
Government Property Function has lowest proportion of females, requiring active diversity promotion
The OGP told us that the Government Property Function has the lowest proportion of females compared to all other functions. We asked the OGP how it plans to recruit and retain more female property professionals. The OGP told us that … Read more
Government Response
The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively, but doesn't address the proportion of females in the Government Property Function.
HM Treasury
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24 Conclusion Not Addressed
29th Report - Condition of Governm…
Civil Service cost reductions impact property professionals, despite specialist pay frameworks
We questioned the Cabinet Office about how the planned cost reductions in the Civil Service will impact the number of property professional staff. It explained that there will not be any broad exemptions, including for property professionals, and that the … Read more
Government Response
The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively and doesn't address planned cost reductions in the Civil Service and their impact on property professional staff.
HM Treasury
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25 Recommendation Accepted
29th Report - Condition of Governm…
Overlapping remits between OGP and GPA prompt Cabinet Office review for efficiency
The OGP sets the overall strategic direction for the management of government property overall, split across 15 portfolios.49 The OGP told us that the Government Property Agency (GPA), which is an executive agency of Cabinet Office, sets and delivers the … Read more
Government Response
The Cabinet Office will write to the Committee with the outcome of the review of the Government Property Agency (GPA), including how it addresses the concerns of duplication, clarifying that the review is not in relation to oversight of all government property.
HM Treasury
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26 Conclusion
29th Report - Condition of Governm…
OGP's Better Buildings Programme lacks sufficient leverage to drive change in departments
The Cabinet Office has attempted to improve oversight of departments’ management of property, and to increase the guidance available to assist them. It did this through the Better Buildings Programme, launched in 2022, which aimed to share best practice and … Read more
HM Treasury
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27 Conclusion
29th Report - Condition of Governm…
Dispersed property management responsibilities across departments and ALBs create varied approaches
Responsibilities for property management vary across departments. Some manage their property directly, and others delegate this to ALBs. The Department for Education is not legally responsible for the maintenance of the school estate, though it does provide funding, with other … Read more
HM Treasury
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28 Conclusion
29th Report - Condition of Governm…
ALBs lack awareness of OGP guidance, highlighting need for improved direct communication
We asked the OGP about ALB’s lack of awareness of the OGP’s guidance, to which it agreed it needed to do more, calling the NAO report a wake–up call to engage more with stakeholders.56 After further challenge on whether it … Read more
HM Treasury
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Government Response AI assessment · 25 of 6 classified
Accepted 9
Acknowledged 4
Deferred 1
Not Addressed 10
Rejected 1
Total 6 recs + 22 conclusions
Correspondence 2 letters
4 Sep 2025 To committee Letter from the Civil Service Chief Operating Officer and Cabinet Office Permanent Secretary relating to the 29th Report of Session 2024-25, Condition of Government property, Recommendation 1a, 15 August 2025
Parliament page
24 Apr 2025 To committee Letter from the Civil Service Chief Operating Officer and Permanent Secretary of the Cabinet Office relating to the oral evidence session held on 31 March 2025 on the Condition of Government properties, 11 April 2025
Parliament page