ENVIRONMENTAL SERVICES EMPTY HOMES STRATEGY FOR PRIVATE SECTOR HOUSING 2009-2012 The Council’s approach to long term empty homes May 2009 1 Contact Details Housing Initiatives Officer (Empty Homes) Chris Smetherham-James [email protected] Assistant Head of Environmental Services (Residential Health) Anna Watson [email protected] Tendring District Council Council Offices Thorpe Road Weeley Clacton-on-Sea Essex. CO16 9AJ. Telephone : Switchboard 01255 686868 Residential Health Enquiries 01255 686744 Fax: 01255 686404 2 CONTENTS 1. An Empty Homes Strategy for Tendring 1.1 Key Aim 1.2 Objectives. 2. Introduction 2.1 Why do properties remain vacant for so long? 2.2 What are the effects of long term vacant properties and the benefits of bringing them back into use? 3. Strategic Context 3.1 The Sustainable Community Strategy for Tendring 3.2 The Corporate Strategy 3.3 The Strategic Housing Market Assessment (SHMA) 3.4 The Audit Commission’s Key Line of Enquiry (KLOE 2) 4. The National and Local Context 4.1 The National Picture 4.2 The Regional Picture 4.3 The Local Picture 3 5. Delivering the Strategy 5.1 Informal Action 5.2 Financial Assistance - Landlord Empty Property Loans 5.3 Enforcement Action 5.4 Empty Dwelling Management Orders (EDMO) 5.5 Compulsory Purchase Orders (CPO) 5.6 Enforced Sale 6. Outcomes from the Strategy Annex - Empty Homes Strategy – Service Delivery Plan 4 1. An Empty Homes Strategy for Tendring 1.1 Key Aim The key aim of this Strategy is to set out the strategic direction for empty property action in the District to enable the Council to bring as many long term vacant properties in the private sector back into occupation in the most appropriate way in the shortest possible timescale. 1.2 Objectives The Key Aim will be achieved by working towards five key objectives To reduce the number of empty homes in the District by 10% in the three years the Strategy covers. This is in the region of 115 properties based on the current number of vacant properties. The Local Performance Indicator target for 2009/10 is to return 20 vacant properties back into occupation, for 2010/11 a projected target is an additional 40 properties and an additional 55 properties in 2011/12. Therefore the aim is to help bring back a total of 115 empty properties into use in this three year period. These targets will be influenced by the finances made available for this work and the initial target for 2009/10 may need reconsideration as finances are unlikely to be made available in this financial year. There is a separate Local Performance Indicator LPI ES054b to demolish derelict private sector dwellings, with a target of 5 properties per year to be demolished for 2009/10 and subsequent years. The LPI to bring empty homes back into use is independent of this. To help to reduce the local housing shortage and to assist in the provision of decent and affordable housing especially in those areas most in need. 5 To prevent properties becoming long-term empty - by proactive engagement with owners of empty homes to support and assist in identifying the most appropriate way to get their property back into use as quickly as possible. To raise awareness of empty homes in the District – through effective publicity of the empty homes work and marketing of the service to encourage members of the public to report empty properties and to encourage owners of empty properties to approach the Council for advice and assistance. To assist in keeping an accurate and up to date record of long term empty properties – by creating a database of long term vacant properties, to engage with partners and to provide a single point of contact at the Council for recording of long term vacant properties. The manner in which these objectives will be achieved is set out in the Service Delivery Plan which is appended to this Strategy. The Council will follow an enforcement approach in line with the Government’s enforcement concordat and the Service enforcement policy which is published and available. This will consist of an initial informal approach with advice and assistance offered but with appropriate use of the full range of regulatory powers available if an informal approach is not successful. 6 2. Introduction There is increasing pressure on housing authorities to develop effective empty homes strategies to make best use of the existing housing stock in the face of a growing population and increases in the rate of household formation driven by smaller household sizes and growing pressure on local authorities and registered social landlords with high levels of homelessness. There are currently in the region of 3,460 households on the Housing Register seeking social housing. There is an under supply of housing within the District to meet the demand for property across all housing tenures and price brackets. Whilst it is recognised that empty homes are not the sole answer to the housing problems in the District, their potential cannot be ignored and it is the role of the Local Authority to take action to unlock this wasted resource. Returning empty properties back into use could make a contribution to the overall housing supply and in meeting the demand. It is accepted that there will always be a certain number of properties which are unoccupied, this may be due to people moving home, waiting for a sale or a let, or for probate etc. These properties are not a primary concern as they are in a transactional process. It is the properties which have been vacant for periods in excess of six months which are of concern. Figures taken from Tendring District Council’s return for the Housing Strategy Statistical Appendix in 2008, show that there are 60,106 homes in the private sector. Information given by Council Tax in January 2009, shows there are in the region of 1,125 long term vacant properties in the private sector. It is difficult to give an exact figure. For this strategy, empty homes are to be defined as a property which has remained vacant for a period of six months or longer, and is free from Council Tax exemptions. These exemptions include commercial properties, Council owned properties, registered social landlords and those with other exemptions such as the owner being in care etc. However, this figure does include vacant residential accommodation linked with commercial premises, such as flats above shops. 7 It is not considered necessary for this Strategy to be addressing long term vacant RSL owned properties as the void times for such properties are controlled by the . However, if individual cases warranted action then this could be considered on the individual merits of the case. Whilst at the same time as there are these vacant properties in the District, there is also a considerable housing shortage. This document and the accompanying Service Delivery Plan outlines the Council’s determination to deliver a strategic approach to dealing with this issue. 2.1 Why do properties remain vacant for so long? There are many reasons why properties may remain empty for prolonged periods of time. Whilst the local situation has not been fully investigated to determine the reasons which are specifically relevant to this District, some of the more common reasons for long term empty homes are: The property has been on the market for sale or to let for a long time, but has remained unsold or un –let. The property has been inherited following the death of the previous owner and the new owner is reluctant to sell or rent it out. The property is in the process of probate. The owner cannot afford the repairs required to bring it up to a habitable condition. The owner has a lack of knowledge regarding the options open to them. The owner has had to move into care. The owner may have multiple properties and so it is not on the top of their agenda The owner may have bought the property to retire to. The property may have been bought as an investment, with property prices expected to increase 8 2.2 What are the effects of empty properties? These are best considered in the view of the effect upon the Community and upon the individual who owns the property: Community Vacant and unmaintained properties can become an eye sore for the local community. Not only will the value of the property reduce, but the presence of a vacant or derelict property in a community can devalue neighbouring properties and reduce the likelihood of property sales and investment in an Crime and anti social behaviour. Empty properties can attract unwanted attention in the area, can encourage arson, criminal damage and other forms of anti-social behaviour, including fly-tipping. This can cause great distress for neighbours. By bringing a long term vacant property back into use, this effect will be removed. A neglected property will deteriorate in condition and can reach a condition that it could become unsafe or a danger to the public or to neighbouring occupiers. Bringing a long term vacant property back into use will remove this potential risk to the public’s safety. Loss of a potentially affordable home for those in housing need. Bringing a long term vacant property back into use, as a potentially affordable home, in a decent condition, can be brought back to the rental market and could provide a home for a household in need on the Housing Register, so reducing the housing shortage in the area and the reliance on the Council or other social housing providers. A vacant property is a wasted resource. Renovation of an existing property reduces the need for new build and renovated properties on average create 1/6th of the carbon waste compared to building a new property. Undertaking renovations also provides employment opportunities. 9 Individual Loss of potential revenue to owner which could have been obtained through rent. Cost of insuring the empty property Devaluing property. Costs of boarding up, clearance of rubbish or graffiti and dealing with the other anti social behaviour. Risk of squatters Loss of the opportunity to undertake renovation works at a reduced VAT rate of 5% for long term empty properties (currently over 2 years). 3. The Strategic Context 3.1 The Sustainable Community Strategy for Tendring The Sustainable Community Strategy for Tendring addresses the key strategic issues likely to affect the future of the District over the next 10 years by looking ahead to what the district could look like in 2016 through the actions of the key organisations represented within the Local Strategic Partnership. Six strategic themes are identified in the Sustainable Community Strategy: Health – The population of the district is able to live longer, healthier lives less limited by long term illness Economic Development – Tendring has a stronger and more dynamic local economy together with a skilled work force Children and Young People – Have an equal opportunity for a good start in life Crime and Disorder – Keeping the district one of the safest parts of the country Deprivation - Narrowing the gap between the most disadvantaged areas and elsewhere Environment – The attractive environment of the district is safeguarded for future generations. 10 The Empty Homes Strategy will contribute both directly and indirectly to a number of these themes. Health – The impact of housing on health is well documented and highlighted in the Joint Strategic Needs Assessment. By bringing long term empty properties back into use and providing decent homes for vulnerable persons, this will make a positive impact upon their mental and physical health. There is also the potential to reduce the risk of mental health problems being suffered by neighbouring occupiers, who may be affected by stress linked to living near to a derelict property, with the increased risk of arson, criminal damage and other anti social behaviour and the stress of the blight on property values. Children and Young People – By prioritising action on properties which would be suitable as family homes in areas of greatest housing need and suitable for vulnerable families nominated form the Council’s Housing Register, the Strategy will ensure that children and young people in poor housing or in other housing need, are able to live in decent homes which will have a positive impact upon their general welfare. This in turn could contribute to reduced incidences of sickness and absences from school and give them equal opportunities for a good start in life. Crime and Disorder - Vacant and unmaintained properties can become an eye sore for the local community. Empty properties can attract unwanted attention in the area and can encourage arson, criminal damage and other forms of anti-social behaviour, including fly-tipping. Bringing such a property back into use will reduce the chances of such crime and disorder. Deprivation – Bringing long term empty properties back in to occupation in deprived areas of high housing demand will help to contribute to the Council’s aims of reducing the health inequalities which exist in the District. Environment - Vacant and unmaintained properties can become an eye sore for the local community and be a blight on the neighbourhood scene. Bringing empty properties back into use would remove this eye sore. 11 3.2 Tendring’s Corporate Strategy The Council’s Corporate Strategy for 2004-2011 sets out four key priority themes: The main priority is to create A Strong Local Economy, which will make it easier for the Council to achieve three of its other priorities which are :– A Cleaner District A Safer Community Affordable and Decent Housing The Empty Homes Strategy will contribute to these priorities in a number of ways. A Strong Local Economy – Renovation of existing buildings could provide employment opportunities. A Cleaner District – Bringing an empty property back in to use will reduce the incidences of fly tipping and rubbish accumulations on such sites. A Safer Community – Reducing the fear of crime and crime levels by removing the risk of squatters and derelict sites which attract vandalism and other anti social behaviour. Affordable and decent housing – bringing empty properties back in to use will increase the supply of decent and affordable homes in the District. It will improve the quality of housing in the District and make a positive contribution to the homelessness strategy. The new Corporate Plan is being prepared. This strategy will be reviewed if considered necessary when the new Corporate Plan is approved. 12 3.3 Strategic Housing Market Assessment (SHMA) The SHMA undertaken for Tendring District Council by Fordham Research in 2008 identified that, if all housing needs are to be met, there is a net affordable housing shortfall of 1,579 units pa. In addition, at 31 March 2008, there were 3,902 households on the housing register. (Currently approximately 3,460 households.) The Empty Homes Strategy will assist in meeting this demand for affordable housing, particularly if properties are brought back into use with financial assistance from the Council which would enable the imposition of nomination rights to provide a decent home for households from the Housing Register with rent agreed at an affordable level. This will also reduce the reliance and pressure on the Housing Register for social housing. 3.4 The Audit Commission’s Key Line of Enquiry (KLOE 2) This KLOE identifies that having a clear strategic approach to wasted homes and having policies and initiatives in place to deal with them is a demonstration of how an Excellent Service is provided in delivering a strategic approach to private sector housing. 13 4. The National and Local Context 4.1 The National Picture The Government has highlighted empty homes as an issue for action. The Empty Homes Agency was set up as an independent organisation with charitable status in 1992. It was set up in response to the high levels of empty homes in the UK, and also to help tackle the high levels of homelessness. It’s aims are to “raise awareness of the potential of empty homes in England to meet housing need and devise and promote, with others, sustainable solutions that will bring empty homes back into use” (Empty Homes Agency). It looks to working with Local Authorities and the Government to highlight the issue of empty homes. It has played a key role in introducing and advising Local Authorities on how to help return these properties into use. The Empty Homes Agency reports that there are currently 783,899 empty homes in England. The Government response to the Barker Report, “Delivering Stability : Securing Our Future Needs” identified a commitment to empty homes as a real alternative to developing Greenfield sites and in the Housing Act 2004, the Government introduced a new power for Local Authorities to take over the control of empty dwellings (EDMOs – as detailed below.) 14 4.2 The Regional Picture The Greater Haven Gateway regional Housing Strategy 2006-2010 highlighted the need to balance the work of investment in increasing the supply of new homes with investment in existing homes and communities. This document sets out the regions commitment to returning empty homes back into use as part of their overall aim of ensuring that everyone can live in a decent home at a price which they can afford and in locations that are sustainable. An area of priority identified for private sector housing was “To improve housing conditions for vulnerable people living in the private sector” and tackling Empty Homes was highlighted as a means to achieve this. According to the Empty Homes Agency, in 2008, Tendring had the second highest number of long term vacant private homes in the Eastern Region. See below. 15 Table 1 2008 data from Empty Homes Agency on vacant housing in the Eastern Region Local Authority Babergh Basildon Bedford Braintree Breckland Brentwood Broadland Broxbourne Cambridge Castle Point Chelmsford Colchester Dacorum East Cambridgeshire East Hertfordshire Epping Forest Fenland Forest Heath Great Yarmouth Harlow Hertsmere Huntingdonshire Total Empty Homes 1158 1024 2294 2378 1147 513 651 769 371 1014 1697 2227 1509 1014 1288 1308 661 316 1671 554 1033 1286 % Empty Homes 3.04 1.39 3.54 3.9 2.07 1.64 0.12 2 0.8 2.76 2.43 3.07 2.53 3.04 2.25 2.45 1.59 1.15 3.67 1.58 2.55 1.85 Local Council 37 124 0 12 0 21 0 12 161 11 8 66 163 0 0 81 0 0 80 45 2 0 16 Housing Association 8 37 227 85 52 15 16 71 138 9 215 44 65 20 124 22 45 16 19 40 88 150 Other Public Body 0 7 13 0 0 14 0 1 0 0 58 0 14 7 10 4 0 0 0 0 0 166 Privately Owned 1113 856 2054 2281 1095 463 635 685 72 994 1416 2117 1267 987 1154 1201 616 300 1572 469 943 970 Private Homes Empty more than 6 months 733 422 1002 889 626 219 472 225 72 649 759 883 673 599 627 540 549 67 794 95 354 492 Local Authority Ipswich Kings Lynn and West Norfolk Luton UA Maldon Mid Bedfordshire Mid Suffolk North Hertfordshire North Norfolk Norwich Peterborough UA Rochford South Bedfordshire South Cambridgeshire South Norfolk Southend-on-sea St Albans St Edmondsbury Stevenage Suffolk Coastal Tendring Three Rivers Total Empty Homes 1502 % Empty Homes 2.64 Local Council 66 Housing Association 82 3901 2047 860 950 818 934 1448 5.73 2.71 3.24 1.72 2.03 1.74 2.79 2191 896 1471 1642 1523 2620 1446 2.94 2.62 2.89 2.78 2.92 3.46 2.55 338 1691 2786 578 0.97 2.96 4.18 1.61 0 63 0 0 30 1 1 198 0 0 42 163 0 243 93 0 64 0 47 7 54 55 86 85 8 99 40 69 182 67 49 33 68 16 17 85 73 63 10 57 17 Other Public Body 11 0 0 0 180 0 7 5 86 0 0 13 0 0 11 5 0 2 Privately Owned 1343 3847 1929 774 685 780 827 1402 1670 1923 829 1380 1433 1455 2361 1325 996 196 1628 2727 514 Private Homes Empty more than 6 months 394 1161 1060 460 685 532 410 848 659 858 492 386 558 657 1391 407 341 164 802 1269 357 Local Authority Thurrock UA Uttlesford Watford Waveney Welmyn Hatfield East of England Total Empty Homes 1800 1118 946 934 713 61036 % Empty Homes 2.83 3.7 2.67 1.72 1.58 Local Council 93 24 16 65 69 2108 18 Housing Association 6 1 132 16 54 3013 Other Public Body 0 0 0 0 0 614 Privately Owned 1701 1093 798 853 590 58319 Private Homes Empty more than 6 months 679 224 297 853 291 27976 4.3 The Local Picture Table 2 Data for Essex Local Authority areas taken from Empty Homes Agency web site figures as at 2008 County of Essex Basildon Braintree Brentwood Castle Point Chelmsford Colchester Epping Forest Harlow Maldon Rochford Southend-on-Sea Tendring Thurrock Uttlesford Essex Total Total Empty Homes 1024 2378 513 1014 1697 2227 1308 554 860 896 2620 2786 1800 1118 20795 % of homes empty 1.39 3.9 1.64 2.76 2.43 3.07 2.45 1.58 3.24 2.62 3.46 4.18 2.83 3.7 2.59 Local Council 124 12 21 11 8 66 81 45 0 0 243 47 93 24 775 Housing Association 37 85 15 9 215 44 22 40 86 67 16 10 6 1 653 Other public body 7 0 14 0 58 0 4 0 0 86 0 0 0 0 169 Private L/lord 856 2281 463 994 1416 2117 1201 469 774 829 2361 2727 1701 1093 19282 19 Private Homes empty more than 6 months 422 889 219 649 759 883 540 95 460 492 1391 1269 679 224 8971 It should be noted that Tendring had the highest vacancy rate in Essex at 4.18%, with the majority of those vacant properties owned by private landlords. Tendring District Council’s return for the Housing Strategy Statistical Appendix in 2008, detailed that there were 60,106 homes in the private sector. Information given by Council Tax in January 2009, was that there are in the region of 1,125 long term vacant properties in the private sector. This excludes commercial properties, Council owned properties, registered social landlords and those with other exemptions such as the owner being in care etc. However, this figure does include vacant residential accommodation linked with commercial premises, such as flats above shops. This strategy is predominantly aimed at those long term vacant properties in private ownership, not those owned by TDC or other social landlords. This strategy will address and aim to reduce the level of vacancy in this sector in the District over the three year period of the strategy, so that Tendring is no longer the District with the highest vacancy rate in Essex. It is not considered necessary for this Strategy to be addressing long term vacant RSL owned properties as the Tenant Services Authority regulate the void times for such properties. However, if individual cases warranted action then this could be considered on the individual merits of the case. It should be recognised, that being a seaside District there will be a prevalence of second or holiday homes, which this Strategy will not be addressing, if the properties are genuinely in use as such. When property owners claim their properties to be holiday homes/second homes, this will be investigated further. In the absence of any definitive legislation on this, it will be a matter for a common sense approach to what does constitute a holiday or second home, for example, how often the property is used as such, when it was last used, the utility usage, whether the property is furnished etc. It also should be noted that those Local Authorities which are pro - active in dealing with empty homes, including Basildon, Chelmsford and Colchester have the higher rate of returning vacant properties back into use. 20 Table of long term vacant private sector dwellings as at January 2009 by Ward (data provided by Council Tax records.) Ward AA Alton Park, Clacton AB Alton Park, Clacton AC Beaumont AD Thorpe-le Soken AE Bockings Elm-Bluehouse Farm AF Bockings Elm- Cann Hall AG Burrsville, Clacton AH Frinton AJ Golf Green- Brooklands and Grasslands AK Golf Green AL Golf Green- Tudor Estate AM Great Oakley AN Little Oakley AO Hamford AP Harwich East AQ Harwich East Central – The Bay AR Harwich East Central – The Vines AS Harwich West – All Saints AT Harwich West - Tollgate AU Harwich West Central – Hall Lane AV Harwich West Central – Pound Farm AW Haven AX Holland and Kirby – Great Holland Number of Empty Homes 10 30 2 6 5 11 14 94 65 45 16 7 6 42 35 37 15 29 3 12 9 14 9 % Total Homes Empty 0.89% 2.67% 0.18% 0.53% 0.44% 0.98% 1.24% 8.36% 5.78% 4.00% 1.42% 0.62% 0.53% 3.73% 3.11% 3.29% 1.33% 2.58% 0.27% 1.07% 0.80% 1.24% 0.80% 21 AY Holland and Kirby – Kirby Cross AZ Holland and Kirby – Kirby-le-Soken BA Homelands BB Little Clacton and Weeley BC Peter Bruff BD Pier – Town Hall BE Pier – West Cliff BF Parkeston BG Ramsey BH Rush Green – Coppins Hall BJ Rush Green – Tinkers Hall BK St Bartholomews – Brook Farm BL St Bartholomews - Gunfleet BM St James BN St Johns BO St Marys BP St Pauls - Gardens BQ St Pauls – Holland Park BR Walton - Central BS Walton – The Naze DA Alresford DB Ardleigh DC Little Bromley 2 5 11 2 12 43 28 6 3 4 4 9 18 18 18 17 13 6 59 25 13 9 0 0.18% 0.44% 0.98% 0.18% 1.07% 3.82% 2.49% 0.53% 0.27% 0.36% 0.36% 0.80% 1.60% 1.60% 1.60% 1.51% 1.16% 0.53% 5.24% 2.22% 1.16% 0.80% 0.00% 22 Ward DD Bradfield DE Wrabness DF Wix DG Brightlingsea – All Saints DH Brightlingsea – Hurst Green DJ Brightlingsea – St James DK Great Bentley DL Lawford East DM Lawford West DN Little Bentley DO Manningtree DP Mistley (Horsley Cross/West) DQ Mistley (Village) DR Tendring DS Point Clear DT St Osyth DU Elmstead DV Frating DW Great Bromley DX Thorrington DY Weeley Total Empty Number of Empty Homes 8 6 6 13 18 31 11 10 7 3 10 5 27 2 15 55 6 3 8 3 37 % Total Homes Empty 0.71% 0.53% 0.53% 1.16% 1.60% 2.76% 0.98% 0.89% 0.62% 0.27% 0.89% 0.44% 2.40% 0.18% 1.33% 4.89% 0.53% 0.27% 0.71% 0.27% 3.29% 1125 100.00% 23 As expected, there are a high proportion of long term vacant dwellings in the Jaywick wards. In addition, in the other coastal wards of Frinton, Walton and St Osyth there are high vacancy rates – these may be holiday homes. However, in the areas of high housing demand of central Clacton and Harwich, there are still relatively high vacancy rates to be addressed. First priority will be given to dealing with those vacant properties in the areas of highest housing demand of Clacton, Harwich, Dovercourt and Walton. However, as the time period for the Strategy progresses, all areas will be addressed. 5. Delivering the Strategy There is no single solution that will solve the problems associated with empty properties. From 1 April 2009, Council Tax discounts are 10% for registered second homes which are furnished, and a 0% discount for empty properties vacant longer than six months. This is expected to encourage owners to take steps to bring their properties back into use. Council Tax exemptions will still apply e.g. if property is in Probate, or the owner is in full term care elsewhere etc. There are a wide range of interventions and statutory powers available to the Local Authority. The use of a range of approaches and powers is considered to achieve a greater degree of success than attempting to use the same solution for every property and every owner. In compliance with the spirit of the Government’s enforcement concordat and Environmental Services Enforcement Policy, our approach will be fair, equitable and incremental. The Strategy is in place for a three year period (2009-2012). Whilst it is recognised that this time period is only for three years, given the property market’s volatility and how this could impact on the nature of this subject, it seems prudent for the Strategy to run for a shorter period than the Sustainable Communities Strategy and other key corporate plans and documents. 24 However, if legislation changes significantly affecting the Council’s powers for dealing with empty properties, or if the Council’s priorities change substantially with the implementation for the new Corporate Plan, the Strategy will be reviewed before 2012. The Appended Service Delivery Plan sets out in detail the way in which this Strategy will be delivered. 5.1 Informal Action An informal approach will always be the first approach. This will include Advice with identifying the options available to the owner e.g. selling, letting, refurbishment, financial assistance etc. Signposting to other Council services such as Planning and Building Control and Housing Services. Assistance with identifying external agencies/companies such as Tendring Home Improvement Agency, local letting and estate agents, auctioneers, property developers and registered social landlords. Discretionary financial assistance – as detailed below. 5.2 Financial Assistance - Landlord Empty Property Loans The Council’s Financial Assistance Policy allows for interest free empty property loans of up to £20,000 to help meet the cost of bringing an empty home or derelict building up to the decent home standard and suitable for letting, at an affordable rent level. Tenants will be nominated by the Council from the Housing Register for a period of five years. These loans are repayable by instalments using a proportion of the monthly rental income. The amount of money paid is registered against the property as an interest in the land at HM Land Registry and will be subject to repayment (after deduction of any instalments paid) if the property is sold or transferred to another owner at any time in the future, or if the landlord ceases to let the property within 5 years of the grant completion date. 25 Priority for such loans will be given to landlords who are cooperative and where the property is in an area identified by the Council as having a significant housing need. As a condition of receiving the loan, the landlord would be required to sign a five year nomination agreement (or alternatively, a five year leasing agreement) ensuring that the property can be used by people who are homeless or are on the housing register. Rent levels will be restricted to the Local Housing Allowance levels. Offering financial support to owners of empty properties to pay for renovation works would be an easy solution and popular with property owners. However, owners are often capital rich, research nationally has shown that many vacant properties are owned without a mortgage and these owners may not be considered to be appropriate recipients of public money as this could be considered to be rewarding anti-social behaviour i.e. by leaving their property so that it falls into a poor state of repair, they could then qualify for financial assistance which they may not be able to receive in the private market. The Council does not wish for this incentive to be present as it has a negative impact on society. In addition, this form of assistance is discretionary and with the limited budget available for such discretionary forms of assistance, it is unlikely that this form of assistance will be considered to be a priority. A cost pressure for 2010/11 of £150,000 to enable discretionary financial assistance to be offered and for a possible compulsory purchase scheme was submitted as part of the 2009/10 Financial Strategy but was categorised as a priority 3 and resources for this area would need to be considered for the 2010/11 Financial Strategy. This form of assistance could be used on occasion to good effect. This would be where a landlord is cooperative, has not got the finances available to complete the necessary works, still has a mortgage on the property, is willing to accept the nomination rights and the property is in an area of high housing demand. A few improved long term vacant properties in such areas could act as a catalyst to other owners to take action and would be a good opportunity to promote the Council’s work in bringing empty properties back into use. 26 5.3 Enforcement Action If necessary and appropriate, enforcement action will be taken. There is a raft of powers which the Local Authority can use, the choice of which will be dependent on the circumstances of the case. Possible enforcement actions to require an owner to undertake works of repair or demolition to a vacant property include: Housing Act 2004 – Improvement Notices to remove Category 1 or 2 hazards as assessed using the Housing Health and Safety Rating System. Building Act 1984, (Sections 77 and 78) - Owner to make a ruinous or dilapidated property safe or enable Local Authority to take emergency action to make the property safe. Building Act 1984 – Section 79 – A notice to require the renovation or demolition of a ruinous or dilapidated building . Housing Act 1985 – Demolition Orders. Possible enforcement action to require an owner to secure an unsecured property against unauthorised entry or likely to suffer vandalism, arson or similar: The Local Government (Miscellaneous Provisions) Act 1982, section 29 allows a Local Authority to undertake any works necessary to prevent unauthorised entry or to prevent the building from becoming a danger to public health. The Environmental Protection Act 1990 section 80; Building Act 1984 sections 78 allow the Local Authority to serve a notice requiring the owner to take steps to secure the property or allow the Local Authority to board it up in an emergency 27 Possible enforcement action if the property is attracting vermin or there is a high risk of attracting vermin that may detrimentally affect people’s health: Prevention of Damage by Pests Act 1949, sections 2-7 allows the Local Authority to serve notice to require an owner to take steps to clear the land of vermin and/or requires the owner to remove waste likely to attract vermin or gives the local authority the power to do so in the default of the owner. If a property is causing a statutory nuisance: The Environmental Protection Act 1990 sections 79-81; Public Health Act 1961 section 34; Building Act 1984 section 79; Public Health Act 1961 section 34 all allow the Local Authority to serve notice on an owner to remove the nuisance or gives the local authority the power to do so in the default of the owner. If a property/plot is unsightly and affecting the amenity of the area: The Town and Country Planning Act 1990 section 215 allows the Local Authority to serve notice to require an owner to take steps to remedy the unsightly land or external appearance of the property within a specified time period. Where the owner fails to comply with such a notice, the Local Authority can undertake the works in their default and place a charge on the property. For many Local Authorities this is their main tool in bringing empty properties back into occupation. 28 5.4 Empty Dwelling Management Orders (EDMO) Empty Dwelling Management Orders were introduced in the Housing Act 2004. This empowers a local authority to take control of the management of an empty property in order to secure its occupation. These take effect in two stages. An interim EDMO is agreed by the empty property owner and lasts for twelve months. A final EDMO does not have to be agreed by the empty property owner and passes control of the property to the local authority for up to seven years. At no point does the local authority control ownership of the property, and so cannot sell the property but is required to insure the property and arrange for its letting and maintenance and management etc. These costs would be met from the rents received and the balance passed to the owner. An agreement will have to be sought with an RSL in the area or possibly with TDC Housing Services to manage and let such properties. This has yet to be explored. 5.5 Compulsory Purchase Orders (CPO) CPOs are a lengthy legal process and perhaps the strongest power available to the Local Authority that will not be undertaken lightly. They will be used in appropriate circumstances, where despite following the informal process, the Council has been unable to engage with the landlord to bring the property back into occupation. An application would have to be made to the Secretary of State for an order to be made and it would have to be demonstrated that there is a compelling case in the public interest for the property to be compulsorily purchased and that other methods of returning the property to use have been tried and failed. Compulsory purchase proceedings are often not completed as the owner is prompted into action by the process being commenced. Though a useful tool, this type of action tends to shift the burden of responsibility to resolve the unused property. Therefore, a quicker alternative is to pursue the Enforced Sale Order route. 29 5.6 Enforced Sale The Enforced Sale is actually a procedure to recover debt, but can also serve as a way of bringing an empty property back into use. The procedure allows the Local Authority to sell properties to release money tied up in the value of the property to recover any debt. This may occur when a property has had a charge raised against it, for example, for works in default completed by the Council in the absence of the owner. This could include for example, works required by a number of the statutory notices detailed above such as boarding up, rubbish clearance, drainage work or even non payment of Council Tax. This entails the service of a Law of Property Act section 103 notice on the owner. The property is then sold at auction and the cost of statutory works undertaken, the administration costs and the Land Registry fees can be recovered from this sale. Council Tax debts can be recovered in this way if necessary, following an interim charging order once a final charging order has been approved. 6. Outcomes from the Strategy The aim of the strategy as detailed above will be met in a number of outcomes. Through informal action – The owner may chose to sell the property on the open market – explaining to owners the current trends in the local housing market as identified through the Council's Strategic Housing Market Assessment may help them to realise that there is a risk to hoping that the value will always be increasing. When coupled with the likelihood that an unoccupied, empty home is often likely to attract lower rather than higher offers and be perceived as a higher risk for purchasers, as well as increasing the risk to the owner of damage through vandalism and higher insurance premiums, some may see that this is a realistic option. The Council could also signpost owners to advice regarding tax liabilities which may have been swaying their thoughts on selling the property. 30 The owner may chose to rent the property through a letting agent – as above, using the information we have from the current housing market assessment, it can be seen that there is at present a growing demand for privately rented accommodation. Renting through a letting agent would bring in an income to the owner ensure that the property is maintained in a reasonable condition without the day-to-day management of the property. In addition, an inspection of the property would be undertaken to advise on any improvements or repairs required before the property could be let. Renting directly – some owners may decide to maximise the income they receive through renting out their homes by acting as the landlord rather than use a letting agent. The Council could provide information as to their responsibilities to tenants and signpost them to other organisations that can provide more specialist guidance and support, including the Council's own Landlord’s Forum. In addition, an inspection of the property would be undertaken to advise on any improvements or repairs required before the property could be let. Council’s Guaranteed Deposit Scheme – property owners who are willing to let their property and where an inspection has been undertaken and the property found to be to the required standard, may chose to accept persons on this scheme administered by Housing Services. Property owners could be signposted to this scheme. Private Sector Leasing Scheme – Owners of suitable properties may be signposted to follow this route with the scheme administered by Housing Services. The owner grants a lease to Colne Housing, a Registered Social Landlord, who is working in partnership with the Council. The Council is able to nominate a family to live in the property. Direct Leasing Arrangements – some RSLs and on occasions Essex County Council may consider leasing properties either to provide accommodation for people they have a responsibility to accommodate either as part of their statutory duty or through partnerships with other organisations. Where the Council is aware of these schemes, we can promote these as another option for owners of empty homes. Purchase and Repair – Periodically, RSLs have sought to increase their housing stock through acquiring existing buildings as well as through new-build schemes. This is a particularly useful way to increase the supply of affordable housing in an area where there may be very little opportunity for new developments, or during times when there is a slow-down with the development programme nationally. There may be opportunities to explore this in the future and use of this as another option for some empty homes. Through Enforcement Action - Use of various enforcement powers as described above. 31
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