Eastleigh Borough Council is grappling with substantial financial burdens due to an empty office building, Wessex House, which it acquired over two decades ago. The council is incurring significant annual costs for maintaining the property, which was vacated due to fire safety concerns. Efforts to sell the building are hampered by contractual restrictions until 2028, leaving the council in a difficult financial position.
Key Takeaways
- Eastleigh Borough Council is spending £345,165 annually on the empty Wessex House.
- The building was vacated by tenants in May due to fire safety risks identified in February 2025.
- Estimated repair costs range from £6.6 million to £7.6 million, deemed "uneconomic" by the council.
- The council is restricted from selling the property until 2028.
- Annual business rates alone amount to £245,165.
The Financial Drain of Wessex House
The council is reportedly spending £345,165 each year to maintain Wessex House, a property purchased for £4.4 million more than 20 years ago. This substantial cost includes £245,165 in business rates, with other ongoing expenses for utilities and maintenance totalling £80,000 annually. The building had to be evacuated by all tenants by the end of May due to fire safety risks that emerged in February 2025.
Repair Estimates and Sale Restrictions
Initial estimates for necessary repairs, including partial demolition and asbestos removal, range from £6.6 million to £7.6 million. These costs have been described as "uneconomic," and the council’s ability to sell the building is significantly restricted until 2028 due to existing contractual obligations. The council has been attempting to have the building removed from its assets for a year, but a suitable offer is required to break the contract prematurely.
Councillor Concerns
Councillor Karen Caws has expressed outrage and disbelief at the situation, comparing the council’s spending to "monopoly money." She highlighted the significant cost of repairs, noting that it would be a third more than the original purchase price due to asbestos issues. The council’s policy and performance scrutiny panel received a report detailing these costs, with a recommendation for increased transparency through annual reports on key risks and obstacles related to statutory checks.
