AC-2025-LON-001414 - [2025] EWHC 2840 (Admin)

The Land Registry title register records the value of the Carnegie Library Building as being £450,000. The value of the Carnegie Library Building was recorded as £599,000 on 1 April 2019 as the depreciated replacement cost. In November 2022, an independent RICS valuation provided that the commercial value was £400,000 to £425,000 and between £100,000 and £125,000 for community use. A further valuation report, compliant with RICS standards, was commissioned by the Council in January 2024 which provided a lower valuation of £220,000 to £240,000 if sold for commercial use or £90,000 to £100,000 if sole for community use. The valuation given by the Council for the disposal of the freehold of the Carnegie Library building at £95,000 was therefore the mid-point of that up to date valuation.

The Trust contends that the Defendant has fallen foul of section 123(2) of the Local Government Act 1972 (“LGA 1972”) which provides that councils are not to dispose of land for a consideration less than the best that can reasonably be obtained, unless with consent of the Secretary of State. Consideration is a reference to monetary consideration and not to social benefits (see R (on the application of Farraday Development Ltd) v West Berkshire Council [2016] EWHC 2166 (Admin)).

The consent of the Secretary of State pursuant to the provisions of section 128 of the LGA 1972 can include a general consent, as is provided by Circular 06/03: Local Government Act 1972 general disposal consent (England) 2003 paragraph 2:

“The specified circumstances are:

a)

the local authority considers that the purpose for which the land is to be disposed is likely to contribute to the achievement of any one or more of the following objects in respect of the whole or any part of its area, or of all or any persons resident or present in its area; i) the promotion or improvement of economic well-being; ii) the promotion or improvement of social well-being; iii) the promotion or improvement of environmental well-being; and

b)

the difference between the unrestricted value of the land to be disposed of and the consideration for the disposal does not exceed £2,000,000 (two million pounds).”

The local authority is the Council in this matter.