Panel urges changes to boost income from vacant council properties in Portsmouth

Portsmouth City Council’s economic development, culture & leisure scrutiny panel has completed a review into how the council manages its vacant commercial properties, aiming to boost income and address concerns raised in successive internal audits.

The council owns a diverse portfolio of non-residential properties, including offices, warehouses and retail, which generate approximately £30m annually.

Since the report was compiled, the council has four empty office suites totalling nearly 37,000 sq ft and eight empty industrial units under offer, with one letting already completed.

The review was triggered by two consecutive “limited assurance” ratings from the council’s Internal Audit team, which highlighted ongoing issues in the management of empty properties.

Two "high risk exceptions" were raised in July 2023 and July 2024, relating to building compliance checks - specifically tenant responsibilities and overdue rent reviews.

The panel stated that it aimed to examine the management of vacant commercial properties in order to return the "Internal Audit Report back into the 'assurance' category and to ensure maximum income generation for the council.”

Among its recommendations is the creation and maintenance of an "easily searchable central list of PCC commercial properties that are available to let at any one time".

A second recommendation calls for the implementation of a "clear process and hierarchy for dealing with customer complaints that is readily available for clients renting PCC commercial properties".

In 2024, the council received ten complaints from tenants. The panel noted in its report that there was no clear process in place for resolving complaints or addressing issues.

The panel suggested that a comprehensive internal audit could help clarify what actions are needed to reduce vacancies and improve revenue.

While it cannot formally request an audit, it welcomed news that the chief internal auditor is considering including a review of commercial property voids in the 2025/26 Audit Plan. The panel said it “is very supportive that this item be added.”