Huntingdonshire District Council speculating on the property market

There was a rather stunning quotation from Councillor Rob Howe in a Hunts Post article dated Wednesday 26 July 2017. Headed 'Council builds portfolio as part of investment drive', Councillor Howe explained how Huntingdonshire District Council had spent £9,000,000 buying a retail park in Suffolk and an office block in Hertfordshire. The eye-catching quotation is in bold in the full text of the quotation as follows.

'We took some advice three years ago when we launched the commerical investment strategy that said at the moment Huntingdonshire District Council has investments in a basket of properties around Huntingdon and it would be advisable to spread the risk by investing in other types of properties in relatively local districts, not in Blackpool or in Scotland.

So if Huntingdon went into decline we would lose a lot of money simultaneously, but at the same time we don't want to neglect our local area so investing in our local area is clearly important.'

The District Council are speculating on the property market? Really? Over the last three years £25 million has been 'invested' in commercial properties. They recognise it's a risky thing to do. How sensible is their answer, to invest in other parts of the country where they have even less understanding of the property market? And what expertise does the Council have in this area?

A risky investment strategy meant many Local Authorities caught a cold in the 2008 Icelandic Banks crash. There's also much concern about where the current trend for speculation in the property market will leave them. Vince Cable, former business secretary, is quoted as saying

 'Local authoriites have a long and inglorious history of gambling in the financial and property markets. In some cases they may succeed, but there is a very high risk of bankrupting their local authorities. What is so bizarre, so shocking, is that they are investing in property in other parts of the country. It makes no sense whatsoever.'

The email text below has been sent to Councillor Howe asking for more information. Watch this space for the response.

Dear Cllr Howe… A Hunts Post article dated 26 July 2017 stated HDC had spent £9 million purchasing commercial properties outside the district. You were quoted in part as saying ‘So if Huntingdon went into decline we would lose a lot of money simultaneously…' 

It came as something of a shock to read HDC are speculating on the commercial property market. Even more bizarre the answer to spreading the risk is to buy properties in other parts of the country where there’s even less understanding of the local market. Could you advise the following information. If a Freedom of Information request is required please confirm. 

1. What expertise does HDC have in investing in commercial properties in Huntingdonshire and in the rest of England? 

2. Please supply details of properties HDC have bought as part of their commercial investment strategy, including their location, cost and current status (e.g. currently fully occupied and paying rent, partially occupied or unoccupied).

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