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Disposal of Residential Property at 1 Invervar Cottages, Glenlyon

Perth and Kinross Council · 2 September 2024
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PERTH AND KINROSS COUNCIL
Property Sub Committee
21 August 2024
DISPOSAL OF RESIDENTIAL PROPERTY AT
1 INVERVAR COTTAGES, GLENLYON, ABERFELDY, PH15 2NJ
(Report No. 24/240)
Report by Strategic Lead – Economy, Development and Planning
1. PURPOSE
The purpose of this report is to seek Council approval for the disposal of
1 Invervar Cottages, Glenlyon by sale at auction. The disposal exceeds
delegated officer authority as detailed in this report.
2. RECOMMENDATION
2.1 It is recommended that the Sub-Committee:
(i) Approves the sale at auction of 1 Invervar Cottages, Glenlyon for
market value in compliance with the Disposal of Land by Local
Authorities (Scotland) Regulations 2010.
(ii) Agrees that should the property fail to sell at auction, it will be re-
marketed for sale either at auction or on the open market.
3. STRUCTURE OF REPORT
3.1 This report is structured over the following sections:
 Section 4: Background/Main Issues
 Section 5: Proposals
 Section 6: Conclusion
 Appendices
4. BACKGROUND / MAIN ISSUES
4.1 In May 2015 Property Sub-Committee considered and approved a disposal
process for the auctioning of surplus properties (Report 15/203 refers). The
process established that where auction had been identified as the most
appropriate method of disposal, Property Sub-Committee approval is required
to proceed with the disposal at auction of properties valued above the
delegated authority limit of £100,000 set out in the Scheme of Administration.
4.2 Auction is an established method of disposal for appropriate surplus
properties which incurs lower fees than conventional marketing and disposal.
It exposes the opportunity to countywide coverage with a binding deal being

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struck when the auctioneer’s gavel falls. Since 2016, the Council has
successfully disposed of various surplus properties through auction with the
full legal process of disposal being completed within the following 28 days.
4.3 The property at 1 Invervar Cottages is a two-bedroom cottage with living
room, kitchen and shower room, all on the ground floor. There is a garden
area to the rear of the property and an area of ground across the road from
the property. Plan CRP367 is attached at Appendix 1 showing the outline of
the property’s title.
4.4 1 Invervar Cottages is the only Perth and Kinross Council (HRA) owned
property in the Glenlyon area.
4.5 The cottage has been vacant and listed as Non-Effective Housing Stock since
27 November 2023. It was declared surplus to the Council’s operational
requirements on 9 January 2024 by the Housing Management Team. While
the property remains vacant the Housing Service is required to undertake a
physical property inspection every thirty calendar days to satisfy insurance
requirements. Prior to this the property was let to one family for approximately
20 years.
4.6 The water supply to the property is a private supply which is treated by, and
the responsibility of, Caledonia Housing Association (CHA).  Throughout most
of the previous tenancy there have been issues with the water to the property
in terms of water quality and supply, which has been insufficient at times. The
water supply is from an open source, a hill burn, and numerous contaminants
can enter the water supply such as dead animals and faeces. In the summer
months the water has been known to dry up, and in the winter, it is common
for the inlet to be damaged by the flow of water and debris. Most recently the
Housing Locality Team were providing potable water to the tenant,
consistently for a period of 12 months.
4.7 The Housing Compliance Team has completed water sampling and testing
monthly, and this has consistently indicated contamination over the last 12-
month period.
4.8 Attempts have been made by Caledonia Housing Association (CHA) to
address the current issues with the private water supply.  CHA has
considered the installation of a bore hole, but this was discounted as it was
cost prohibitive.  CHA was approached in terms of purchasing the property as
they own the adjacent cottages. However, following various correspondence,
CHA are also looking at the future viability of their own properties.
4.9 CHA have shared estimates for borehole installation costs which have been
estimated to be between £7,750 and £29,500 by a reputable private water
consultancy firm.  This information has been shared with the surveyor who
carried out the Home Report.
4.10 The Council had a similar situation regarding a private water supply to a rural
Council tenancy in Chapelhill, Logiealmond, South Perthshire some years ago
and disposed of the property by sale to the existing tenant.  At that time

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advice was sought from the Council’s Legal Services and was provided as
follows:
Repairs or maintenance of dwellings let under a Scottish Secure
Tenancy (SST) are dealt with under Section 27 of the Housing
(Scotland) Act 2001, which in turn, refers to schedule 4 of the Act.
The schedule specifically provides that the landlord in a SST must:
(i) Ensure that the house is, at the commencement of the tenancy,
wind & watertight and in all other respects reasonably fit for
human habitation;
(ii) Keep the house in such condition throughout the tenancy.
In determining whether a house is ‘fit for human habitation’,
consideration is given to the extent, if any, to which by reason of
disrepair or sanitary defects the house falls short of the provisions of
any building regulations in force in the area.
The term sanitary defects includes ‘absence of adequate and readily
accessible water supply or sanitary arrangements’.
Additional advice was that the property in question did not meet the criteria of
being suitable for a SST and reference was made to the repairs provisions
within the Scottish Secure Tenants (Right to Repair) Regulations 2002, which
set a maximum time for repairs completion of 1 day for loss of water supply
and 3 days for partial loss of water supply.
4.11 Legal Services have restated this advice with regard to 1 Invervar Cottages,
since the property does not have an adequate and readily accessible water
supply.
4.12 This means the property is incurring void rent loss and there is no reasonable
solution for this in the medium to long term future.  At a time when the
demand for social housing is extreme the decision to dispose of this property
has been carefully considered. The costs of installing an individual bore
hole/water supply and the ongoing maintenance of this would be
disproportionately excessive.
4.13 As of 5 June 2024, there are a total of 83 applicants on the Common Housing
Register who have requested a two-bedroom property in the Glenlyon area.
Since the property consists solely of ground floor accommodation, normal
practice would be to consider this for an applicant who had a medical need for
accessible accommodation. Previous attempts to match the property
removing this requirement have also been unsuccessful. The current weekly
rent charge and therefore void rent loss for the property is £89.54 (including a
Hard to Heat discount).
4.14 In line with the Disposal Consultation Framework for Housing Revenue
Account assets, consultation has taken place with tenants in the locality of the
property. Individual letters were issued outlining the proposal to dispose of the

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asset and asking that tenants contact us with any queries or concerns. At
conclusion of this consultation, no further enquiries were received.
4.15 In preparation for selling the property a Home Report has been obtained and
is attached at Appendix 2. The Home Report outlines the property’s repair
requirements, gives the property an energy rating (EPC) of E, and provides an
opinion of Market Value i.e. the price that was considered likely to be
achieved on the open market. The Home Report survey does not test services
or water, but it does reflect the information that was supplied to the surveyor
with regards to the water supply as described in 4.6 and 4.9.
4.16 The Home Report states the Market Value of the property as £125,000. It will
be incumbent on the Council as seller to divulge the fact that the water supply
is problematic, and this could have a negative impact on buyer interest.
4.17 If the property is sold, the capital receipt would be reinvested into the Housing
Service’s Buy Back Scheme.
5. PROPOSALS
5.1 It is proposed that the property is put up for sale by public auction through
Shepherd Commercial Property Auctions with a reserve price set at 75% of
the Market Value, in compliance with the Disposal of Land by Local
Authorities (Scotland) Regulations 2010.
5.2 Should the property fail to meet its reserve, it is proposed it will either be
remarketed at auction at a later date or marketed for sale on the open market
with agents appointed as considered appropriate, under terms to the
satisfaction of the Strategic Lead - Economy, Development and Planning and
the Strategic Lead - Legal and Governance.
5.3 The Council is required to fulfil its statutory duties under Best Value as set out
in Section 1 of the Local Government in Scotland Act 2003 (“the 2003 Act”).
Relevant aspects of this duty include:
 Making best use of public resources, including land and property.
 Being open and transparent in transactions.
 Ensuring sound financial controls are in place to minimise the risk of fraud
and error.
 Assessing the full financial consequences of decisions at an appropriate
level before major financial decisions are taken or commitments entered
into.
 Demonstrating responsiveness to the needs of communities, citizens,
customers and other stakeholders, where relevant.
5.4 The benefits of disposing of the property are bringing to an end the ongoing
costs in terms of inspections, insurance and council tax, and there will be a
capital receipt.  The property is in Band C for council tax which has an annual
charge of £1,247.72. This is currently charged at 200% as the property is
vacant, giving an annual council tax cost of £2,495.44.

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5.5 The sale of the property at auction, after a competitive bidding process, will
comply with the Council’s requirement to fulfil its statutory duties in respect of
Best Value and Best Consideration, and complies with the Council’s Disposal
of Land and Buildings Policy. The property will be advertised by the
Auctioneers to expose the opportunity to a wide market and the auction
process will take place under the direction of a qualified Chartered Surveyor,
ensuring good governance.
5.6 The date of the next auction is 17 October 2024.
6. CONCLUSION 
6.1 1 Invervar, Glenlyon has been declared surplus to operational requirements
by the Council due to the ongoing issues with the private water supply.  It is
recommended that the Council approves a sale at auction for market value in
compliance with the Disposal of Land (Scotland) Regulations, and that if the
property fails to sell at auction, it is remarketed at a future date for sale either
at auction or on the open market under terms to the satisfaction of the
Strategic Lead - Economy Development and Planning and Strategic Lead - 
Legal and Governance.
Author
Name Designation Contact Details
Katherine Farmer Estates Surveyor (01738) 475000
ComCommitteeReports@pkc.gov.uk
Elaine Ritchie Strategic Lead - Housing
and Communities
Approved
Name Designation Date
David Littlejohn Strategic Lead - Economy,
Development and Planning
23 July 2024
APPENDICES
 Appendix 1 – Deed Plan
 Appendix 2 – Home Report pack

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ANNEX
1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION
Strategic Implications Yes / None
Community Plan / Single Outcome Agreement none
Corporate Plan none
Resource Implications
Financial yes
Workforce yes
Asset Management (land, property, IST) yes
Assessments
Equality Impact Assessment none
Strategic Environmental Assessment none
Sustainability (community, economic, environmental) none
Legal and Governance yes
Risk none
Consultation
Internal yes
External yes
Communication
Communications Plan none
1. Strategic Implications
Community Plan/Single Outcome Agreement
1.1 Not applicable.
Corporate Plan
1.2 Not applicable.
2. Resource Implications
Financial
2.1 The net proceeds of the sale will accrue to the HRA fund in compliance with
the Disposal of Land by Local Authorities (Scotland) Regulations 2010.  A
successful disposal will remove the corporate maintenance and running costs
of the property.
2.2 The Strategic Lead for Finance and Business Support has been consulted.
Workforce
2.3 There will be a saving in workforce resources and associated transport costs.

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Asset Management (land, property, IST)
2.4 The Strategic Lead, Property Services has been consulted on this report.
3. Assessments
Equality Impact Assessment
3.1 Under the Equality Act 2010, the Council is required to eliminate
discrimination, advance equality of opportunity, and foster good relations
between equality groups.  Carrying out Equality Impact Assessments for plans
and policies allows the Council to demonstrate that it is meeting these duties.
The Equality Impact Assessment undertaken in relation to this report can be
viewed clicking here.
This section should reflect that the proposals have been considered under the
Corporate Equalities Impact Assessment process (EqIA) with the following
outcome:
(i) Assessed as not relevant for the purposes of EqIA.
Strategic Environmental Assessment
3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the
Council to identify and assess the environmental consequences of its
proposals.
This section should reflect that the proposals have been considered under the
Act and
Option 2 no further action is required as it does not qualify as a Plans,
Programmes and Strategies as defined by the Act and is
therefore exempt.
Sustainability
3.3 Not applicable.
Legal and Governance
3.4 The Strategic Lead, Legal & Governance has been consulted on the issues
contained in this report.
Risk
3.5 There are no direct risk implications arising from this report other than those
reported within the body of this report.

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4. Consultation
Internal
4.1 Colleagues in Property Services, Legal Services and Economy, Development
& Planning have been consulted in the development of the proposals.
External
4.2 As detailed in para 4.14.
5. Communication
5.1 Not applicable.
2. BACKGROUND PAPERS
2.1 Not applicable.