The department for education has confirmed it is to move to a new headquarters, the Old Admiralty Building, SW1.
The Government Property Unit has shortlisted the historic 113,000 sq ft Old Admiralty Building as the preferred option for the new department for education HQ in March 2013.
The Old Admiralty Building is the largest of the Admiralty Buildings in Whitehall and has been home to the Foreign and Commonwealth Office since the 1960s.
However, DfE intends to take up the building in September 2017 following the FCO’s decision to vacate the building and consolidate its London staff into one HQ in the King Charles Street.
The move will see DfE release its leasehold accommodation at Sanctuary Buildings as part of the government’s ongoing work to streamline its property estate.
The move is expected to save the taxpayer more than £19m a year, which includes an annual saving of more than £8.5m for DfE.Since May 2010, Whitehall has exited more than 1,000 leasehold properties with more than £1bn raised for the taxpayer by selling 770 buildings and surplus land.
Minister for the cabinet office Francis Maude, said: “As part of our long-term economic plan, we are getting more value from our property by letting go of properties that no longer suit our needs and reaping maximum benefit for both the taxpayer and the wider economy.
Education secretary Michael Gove said: “By moving into the Old Admiralty Building we will be saving the taxpayer millions and freeing up money that was being spent on rent so it can be reinvested back into the department’s budget.
The move follows the announcement of a restoration project that will see Admiralty Arch turned into a publicly accessible landmark hotel.
The 99-year lease agreement signed between the government and Prime Investors Capital in October 2012 will raise an additional £60m from the sale of Admiralty Arch’s leasehold.
