Beyond establishing any new authority, the LGR process will demand a substantial investment of time and resources to ensure the smooth transfer of day-to-day operations and minimise any impact on service delivery. 

In this blog series ‘LGR Practicalities’,  we break down the practical realities of LGR and how to approach dealing with it, looking at contracts, procurements, companies and ongoing litigation. In this blog, we focus on how to manage land when LGR is taking place. 

One of the critical aspects arising from LGR is the transfer of land, property and assets from the predecessor councils to continuing and new authorities.

As noted above, the 2007 Act and the Transfer Regulations, supplemented by an SCO, govern what will happen. The legal framework has previously been used to facilitate land and property asset transfers where administrative boundaries have changed, or LGR has occurred. The framework is designed to ensure that, on vesting day, all land, property and assets held by the predecessor councils automatically vest in the new authority. Where there will be multiple new authorities, it is essential to further supplement the framework with section 16 agreements to ensure that land, property and assets vest in the correct authority.

This statutory vesting is a crucial feature of the process. It means that the transfer occurs by operation of law, rather than by assignment, novation, or individual property transactions. As a result, there is no need for the consent of third parties and anti-assignment clauses in contracts or leases are not triggered. The successor authority simply steps into the legal position of the predecessor council, ensuring continuity of ownership and management of public assets.

While the transfer of land and property under LGR occurs automatically on vesting day, meaning no formal conveyancing or third-party consent is required, the new authority should still apply to HM Land Registry to update the registered title. This is an administrative step to ensure the public record reflects the new legal ownership and prevents any delay in future dealings with those registered titles. The application is typically supported by the relevant SCO, which serves as evidence of the statutory vesting and confirms the successor authority’s entitlement to the property.

While the statutory mechanism provides legal certainty, the practical success of the transfer depends on thorough due diligence and effective asset management. Successor authorities must undertake comprehensive reviews to identify all land and property holdings, examine title documentation, identify any current disputes and assess any encumbrances or restrictions. This process includes reviewing leases, trusts and statutory obligations that may affect the use or disposal of assets.

Accurate asset registers and valuations are essential to ensure that the new authority has a clear understanding of its estate. Asset mapping, often supported by Geographic Information Systems (GIS), can help visualise the distribution and strategic importance of properties across the new authority’s area. This information is vital for both operational planning and long-term estate management.

Following the transfer, the newly formed authorities face important decisions about the future use and management of their assets. Strategic assets may be retained for core functions, while surplus properties can be disposed of, subject to the requirements of section 123 of the Local Government Act 1972, which mandates that disposals must achieve best consideration unless specific consent is obtained.

When conducting asset reviews, councils typically assess their property portfolio to determine how each asset is used and whether it continues to serve a strategic or operational purpose. Assets are generally categorised into three types: operational assets (used to deliver services, such as offices or libraries), surplus assets (no longer needed for service delivery and potentially suitable for disposal or redevelopment) and community assets (properties with social or local value, such as community centres or parks). In the context of community assets, councils may consider transferring ownership or management to parish or town councils, or to community groups, particularly where there is strong local interest and capacity to maintain the asset. This approach supports local empowerment and ensures that valued community spaces continue to serve residents effectively.

The transfer of land, property and assets under LGR is a statutory process designed to provide legal certainty and operational continuity. However, its success relies on robust due diligence, strategic planning and effective governance. By carefully managing the transition, new authorities can not only safeguard public assets but also seize opportunities to rationalise their estates and empower local communities.

The transfer of functions is effected by statutory transfer, but as this LGR Practicalities series demonstrates, there is a lot of due diligence and thought needed about how services will be delivered post vesting day to be able to implement LGR successfully. It can be a daunting task and one that has to take place in a short time period to ensure effective transfer. Our team at Anthony Collins is well-versed in the issues arising from LGR and can assist authorities (whether predecessor, continuing or new) with the process, including due diligence and implementation. Please contact us for further information.