It has also quit more than 1,000 leasehold and PFI properties, saving a further £168m in the first six months of 2012/13 financial year alone.
Cabinet office minister Francis Maude said: “It’s remarkable that the government was paying for property that it just wasn’t using. That kind of waste is always unacceptable – but is completely unjustifiable when we are trying to reduce the deficit and get ahead in the global race.”
“In the past government took out expensive leases at the taxpayer’s expense on new properties even though freehold space was under-used or even empty. Our strategy is to get out of expensive leases and concentrate on the properties we actually own.”
The £1bn milestone was reached by the sale of St Dunstan’s House in central London, which was previously used by the Ministry of Justice civil servants. It has been bought by Taylor Wimpey, which has begun the development of 76 residential apartments on the site.
Taylor Wimpey divisional chairman Peter Truscott said: “We are constantly looking for attractive development opportunities that meet our strict evaluation criteria and enable us to deliver much needed new homes. We believe that St Dunstan’s Court, Fetter Lane will prove to be a successful development for our customers and Taylor Wimpey.”
The next stage of the government’s property rationalisation is a “workplace transformation programme” with “touchdown hubs” and civil servants from different departments sharing space.
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