Councillors are poised to unlock a significant capital windfall from the sale of The Hawthorns in King’s Hedges, Cambridge, after both the council’s own development company and the city council declined to buy it.
On March 11, the Assets and Procurement Committee of Cambridgeshire County Council will be asked to approve the recommended disposal of the former care home at Haviland Way, Cambridge CB4 2RA.
The two-storey 1960s building, set on nearly an acre of land around 1.5 miles north of the city centre, was marketed with an asking price of £1.25 million. Following a competitive bidding process involving eight offers — and a best-and-final round with five shortlisted parties — the recommended bid exceeds the estimate built into the council’s 2026–27 Business Plan.
If approved, the sale will deliver a capital receipt above expectations at a time when local authorities remain under sustained financial pressure.
First Refusal — But No Takers
Before going to the open market, the site was offered internally in line with the council’s disposal policy.
In July 2025, the property was presented to This Land Ltd — the county council’s housing development company — and to Cambridge City Council.
This Land declined the opportunity to acquire the site. The city council expressed initial interest and undertook a period of appraisal but ultimately did not commit to purchase.
Only after that process concluded did the county council proceed to external marketing.
Surplus to Requirements
The Hawthorns comprises a former care home building of approximately 9,148 sq ft, set within a self-contained 0.4-hectare site in a predominantly residential area.
Most recently, it operated as a supervised contact centre. The service relocated to Bottisham in autumn 2022, after which the building stood vacant.
Officers explored alternative adult social care uses. However, refurbishment costs were judged too high, and no capital funding was approved. The site was subsequently declared surplus to operational requirements.
Planning use falls within Class C2 (Residential Institutions). A 2020 Regulation 3 permission allowed change of use to a supervised contact and social care centre, though this was never implemented. Marketing particulars highlighted redevelopment potential, subject to planning, and invited both unconditional and conditional offers.
Strong Market Response
Formal marketing began in November 2025 through a commercial property agent.
Interest was immediate and substantial, with numerous viewings booked. Eight compliant bids were submitted by the deadline, each supported by funding details and due diligence information.
Officers assessed bids not only on headline price but on deliverability — including planning risk, conditionality and timescale. After a best-and-final stage involving the top five bidders, several offers were increased.
The recommended bid is understood to be slightly above the financial estimate already factored into forward planning assumptions — demonstrating compliance with the council’s legal duty to achieve “best consideration reasonably obtainable”.
Legal Duty to Maximise Value
Under Section 123 of the Local Government Act 1972, councils must dispose of land for the best price reasonably achievable unless specific consent is obtained to do otherwise.
The county council’s own asset disposal policy mirrors that requirement. Surplus property is normally sold on the open market following appropriate marketing unless there are compelling strategic reasons to depart from that route.
In this case, with no internal or public-sector acquisition agreed, open marketing became the default path.
The March 11 report recommends that members formally approve the selected offer and delegate authority to the Executive Director of Finance and Resources — in consultation with the committee’s Chair and Vice Chair — to finalise terms and complete the legal documentation.
Capital Boost at a Critical Time
The disposal represents more than a routine property transaction.
Capital receipts are a crucial component of local authority financial planning, helping fund investment, reduce borrowing requirements or support transformation programmes.
With local government budgets stretched nationally, achieving a competitive uplift above forecast on a surplus site will be viewed by some members as a positive outcome.
The contrast between the strong private-sector response and the absence of a public-sector deal is also notable. Both This Land Ltd and Cambridge City Council had the opportunity to bring forward their own proposals before the site went to the open market.
For residents of King’s Hedges, attention will now turn to what replaces the 1960s building — and whether the next chapter for the Haviland Way site delivers tangible local benefits.
The committee’s decision on March 11 will mark the formal step in converting a vacant former care facility into a multimillion-pound boost for the county’s balance sheet
The Hawthorns Cambridge is no longer used by the County Council for operational purposes and has been declared surplus to the Council’s requirements. The property had previously been used as a supervised contact centre; however, this activity has since been re-located to the Bottisham Locality Centre
