Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, if he will list all the correspondence and communication he or his officials have had with the officers of the Learned Societies at Burlington House since June 2020.
Answered by Eddie Hughes
Ministers and officials are in frequent contact with the Learned Societies.
The Learned societies pay discounted rent on new Burlington House, currently 30% of the market rate, in line with the agreement they reached with the then Government in 2006. The current arrangement would not see them pay market rent until 2085, however the Government is sympathetic to their position and is working with them to find a solution.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what the percentage increase was in rent set by his Department payable by the Courtyard Societies in each year since 2005; for what reasons there has been a change in the level of the percentage increase since 2012-13; and if he will make a statement.
Answered by Eddie Hughes
Five Learned Societies are tenants of New Burlington House, owned by the Department. Following a High Court settlement, all parties agreed in 2005 that rent would increase to market levels over a period of 80 years. The rent is at a limited rate to reflect the fact that the land is being used for cultural and educational purposes. The Department and the Learned Societies agreed in 2019 that the market rental value of the land was £50 per square foot but the Learned Societies are currently paying only £15.35 per square foot.
The rents charged are in accordance with the Learned Societies’ leases. The rents are calculated annually by way of a valuation that is based on evidenced market transactions and have followed growth of market rent since 2005. Rents can therefore rise and fall. The Department does not currently hold a forecast of rental projections from 2005. Rents based on the current lease are updated each year following valuation.
The Department is sympathetic to the Societies’ position and is exploring whether there is a solution that can deliver value for taxpayers and help the Learned Societies to remain at New Burlington House and an assessment of value will be made as part of an agreement. The Department has been discussing options with the Learned Societies and DCMS given their responsibility for policy in regards to culture, museums and heritage.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the difference for his Department's rental projections for the Burlington House Societies (a) as forecast in 2005 and (b) latest figures available; and if he will make a statement.
Answered by Eddie Hughes
Five Learned Societies are tenants of New Burlington House, owned by the Department. Following a High Court settlement, all parties agreed in 2005 that rent would increase to market levels over a period of 80 years. The rent is at a limited rate to reflect the fact that the land is being used for cultural and educational purposes. The Department and the Learned Societies agreed in 2019 that the market rental value of the land was £50 per square foot but the Learned Societies are currently paying only £15.35 per square foot.
The rents charged are in accordance with the Learned Societies’ leases. The rents are calculated annually by way of a valuation that is based on evidenced market transactions and have followed growth of market rent since 2005. Rents can therefore rise and fall. The Department does not currently hold a forecast of rental projections from 2005. Rents based on the current lease are updated each year following valuation.
The Department is sympathetic to the Societies’ position and is exploring whether there is a solution that can deliver value for taxpayers and help the Learned Societies to remain at New Burlington House and an assessment of value will be made as part of an agreement. The Department has been discussing options with the Learned Societies and DCMS given their responsibility for policy in regards to culture, museums and heritage.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, whether his Department has made an assessment of the future options for New Burlington House; and if he will make a statement.
Answered by Eddie Hughes
Five Learned Societies are tenants of New Burlington House, owned by the Department. Following a High Court settlement, all parties agreed in 2005 that rent would increase to market levels over a period of 80 years. The rent is at a limited rate to reflect the fact that the land is being used for cultural and educational purposes. The Department and the Learned Societies agreed in 2019 that the market rental value of the land was £50 per square foot but the Learned Societies are currently paying only £15.35 per square foot.
The rents charged are in accordance with the Learned Societies’ leases. The rents are calculated annually by way of a valuation that is based on evidenced market transactions and have followed growth of market rent since 2005. Rents can therefore rise and fall. The Department does not currently hold a forecast of rental projections from 2005. Rents based on the current lease are updated each year following valuation.
The Department is sympathetic to the Societies’ position and is exploring whether there is a solution that can deliver value for taxpayers and help the Learned Societies to remain at New Burlington House and an assessment of value will be made as part of an agreement. The Department has been discussing options with the Learned Societies and DCMS given their responsibility for policy in regards to culture, museums and heritage.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment was made of the (a) public value benefit and (b) value to the public purse in his Department's plans for the New Burlington House apartments.
Answered by Eddie Hughes
Five Learned Societies are tenants of New Burlington House, owned by the Department. Following a High Court settlement, all parties agreed in 2005 that rent would increase to market levels over a period of 80 years. The rent is at a limited rate to reflect the fact that the land is being used for cultural and educational purposes. The Department and the Learned Societies agreed in 2019 that the market rental value of the land was £50 per square foot but the Learned Societies are currently paying only £15.35 per square foot.
The rents charged are in accordance with the Learned Societies’ leases. The rents are calculated annually by way of a valuation that is based on evidenced market transactions and have followed growth of market rent since 2005. Rents can therefore rise and fall. The Department does not currently hold a forecast of rental projections from 2005. Rents based on the current lease are updated each year following valuation.
The Department is sympathetic to the Societies’ position and is exploring whether there is a solution that can deliver value for taxpayers and help the Learned Societies to remain at New Burlington House and an assessment of value will be made as part of an agreement. The Department has been discussing options with the Learned Societies and DCMS given their responsibility for policy in regards to culture, museums and heritage.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what the terms of agreement were between his Department and the Societies for the drawing of a new lease for Burlington House in 2018.
Answered by Eddie Hughes
A lease was agreed in 2005 by the then Government and the Learned Societies. The terms of the 2005 lease remained unchanged in the 2018 lease renewal.
Details of the 2005 lease, can be obtained from the Land Registry.
Asked by: Tim Loughton (Conservative - East Worthing and Shoreham)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, what assessment was made of the (a) public value benefit and (b) value to the public purse when Somerset House was transferred from HM Government to the Somerset House Trust in 1997.
Answered by Eddie Hughes
The information requested is not held centrally and could only be obtained at disproportionate cost.