Decision details

To award and instruct Jones Lang Lasalle (JLLS) via the Commercial Crown Services (CCS) Framework to undertake the Asset Valuations of the Housing Portfolio (Cheltenham Borough Homes and Housing Revenue Account) for Resource Accounting Purposes for circa. 5,000 properties.

It is important to note that this is a very specialist for of valuation known as Existing Use Value -Social Housing (EUV-SH), there is limited market expertise it is a very niche valuation skill.  The Council must present the information within its accounts in a very specific form and the Council needs to ensure that the company instructed is able to meet these objectives to prevent further work, resource implications and further costs arising.

JLLS has been selected for a direct award based on cost award (value for money as per the cost analysis set out in the CCS Framework (encrypted info)) reputation and ability to deliver within tight timeframes.

The EUV-SH valuations are a quinquennial (5 yearly) requirement. Valuations are updated and adjusted by regional indices in the four years between the stock re-valuations. This is a quinquennial re-valuation exercise of circa 5,000 properties (predominately homes). It is a one-off instruction.

The Council considered undertaking the valuation work inhouse.  However, the size and scale of the project was compared against the existing work project commitments, legislative and valuation guidance changes and available resource, it was determined that contracting with a third party would be lower risk and would provide the best value for money for the Council.  

There is no option not to proceed, it is a regulatory accounting requirement.

This valuation work requires internal coordination between housing colleagues, finance and other property team members. Even with the actual valuations being undertaken by an external expert, there are still significant resource implications. Therefore, the Lead Member is made aware to manage expectations as to resource implications. The lead member acknowledges the importance and resource implication. Similarly, SLT members are made aware and are in support.