HEREFORDSHIRE Council’s former county offices on Bath Street are expected to be sold to a housing association for £2million.

The completion of the sale of the site, once controversially mooted as a potential new location for Hereford's fire station, is subject to Herefordshire Housing Ltd obtaining planning permission for redevelopment with a residential housing scheme.

A decision made in July last year agreed to the disposal of the property and Herefordshire Tertiary Education Trust, the organisation behind the county's new university project, rejected it due to potential planning constraints.

An open marketing campaign by commercial property agents Bruton Knowles on behalf of the council resulted in the recommendation to accept the offer from Herefordshire Housing as being the 'best financial consideration' with the least risk or delay.

The proposed purchasers are now carrying out their own intrusive ground investigation survey to establish whether there is any contaminated ground or abnormal ground conditions which would require any 'non-standard' construction.

The purchase price may be reduced, the council says, if this is the case.

A conditional contract exchange is expected to take place this month and a planning application submitted within three months of exchange.

The long stop date given in the council's timetable is nine months following exchange, although this could be extended if planning consent is appealed.

A report by the council's head of corporate asset management says: "Redevelopment of the site will enhance what is currently an unused semi derelict building in a prominent city centre location.

"This will have a positive impact on the adjacent residential properties and improve the overall urban environment in this part of the city."

The council's costs of disposal, such as legal and administration fees, will need to be deducted from the gross capital receipt value of £2million.

Revenue savings through the removal of holding costs – such as rates and security at the site – will total around £100,000 per year and there will also be a reduction in debt charges of around £60,000 per year through the capital receipt generated by the sale.

These have been assumed through the council's existing Medium Term Financial Strategy.

Herefordshire Housing Ltd, which provides home and support services in Herefordshire and the surrounding counties, has confirmed it has agreed to purchase the property but more detailed plans for the site are expected to be released at a later date.