IWA Fears for Thames Lock Houses Sell-off

IWA Press Release:

Release date: 21 April 2008

The Inland Waterways Association (IWA) today voiced fears surrounding the proposals by the Environment Agency to sell off some of its Thames Lock houses.

IWA is concerned on two principal accounts.

Firstly, that the sale of  freehold assets has in the past caused problems on other navigations where new owners with little or no interest in the use of the navigation, have used the law of public nuisance to restrict the activities of the waterway in the immediate vicinity of the property, to the ultimate detriment of other waterway users.

Secondly, the sale of the freehold releases only short-term benefits. IWA argues that a longer-term view should be taken where property divestment is necessary.

IWA believes it is in the interests of the waterways as a whole that the freehold should be retained to enable redundant properties to be utilised as a source of sustainable revenue for the benefit of the waterway and the navigation authority. This will additionally allow the navigation authority to limit as far as possible the impact that lessees may have on the operation of the waterway.

Commenting on the proposals, IWA’s Honorary Consultant Surveyor, Tony Davis said:

“Even were a case to be made for selling off some Lock houses, it would be a perverse decision to do so at the present time when all the indications are that the residential sales market is in decline and looks likely to continue on a downward trend for some time. Experience in the Thames Valley area suggests that the rental market prospers when the sales market declines, and we can see this starting to happen at the present time. As a result the rental returns on capital value still look attractive. If, as has been suggested, EA are only able to retain within the Thames Navigation Service one half of the money achieved on any sales, then the case for retention and renting looks to be overwhelming”.

He continued:

“The other key issue is that you can only spend the money from a property sale once, whereas rental income continues, with the underlying capital asset remaining intact. Additionally, on an annual lease, the freeholder can retain greater control over the usage of the Lock-house and it's inhabitants, than is possible on a sale, even if stiff covenants are inserted (which will then impact on the sale price achieved). If there are Lock houses surplus to current operational requirements, then leasing them short term will enable EA to retain greater control; review the rent annually; remove unsatisfactory tenants; and regain occupancy if circumstances change and these Lock houses are once again needed.                            

He concluded:

“It appears that EA are willing to sell the family silver for short term gain, and they should seriously consider the wisdom of such a move”. 

ENDS

For more information please contact  Jo Gilbertson  01923 711 114

Jo.Gilbertson@waterways.org.uk

Notes for Editors

The Inland Waterways Association

The Inland Waterways Association (IWA) is a registered charity, founded in 1946, which advocates the conservation, use, maintenance, restoration and development of the inland waterways for public benefit.

IWA has about 18,000 members whose interests include boating, towing path walking, industrial archaeology, nature conservation and many other activities associated with the inland waterways.  Information provided by 188 corporate members with their own membership structures has revealed that they, in themselves, have a combined membership of at least 59,500 in support of IWA's voice.

IWA works closely with navigation authorities, other waterway bodies, a wide range of national and local authorities, voluntary, private and public sector organisations to raise funds, lobby for support and encourage public participation in the inland waterways.

More than 500 miles of canals and navigable rivers have been re-opened to public use since the Association was founded in 1946. Currently another 500 miles of derelict inland waterways are the subject of restoration plans.