Appendix A Solihull Empty Homes Strategy 1. Introduction Solihull has a buoyant housing market with a high level of demand for homes of all types to buy and to rent. This means that homes which become available are generally occupied quickly and do not lay empty for extended periods. Long term vacancies do occur, however, and it is recognised that these are a wasted resource which deny housing opportunities to local people and which can have negative impacts on communities. The Council wants to see these homes returned to residential use. This is particularly important as the number of people in housing need continues to rise and outstrip supply and a significant number of households cannot afford to buy a home or obtain a home to rent within the Borough. This strategy has three main elements: Clear information on definition and numbers of empty homes in Solihull, including ward – level information on specific properties Encouraging owners to bring empty homes back into use through offering advice and assistance, including financial incentives where appropriate Using the Council’s enforcement powers where owners will not respond, particularly where the empty property is causing blight or nuisance to a neighbourhood, where there is a robust business case to do so 2. Empty Homes in Solihull At the end of December 2014 there were 868 empty homes in Solihull of which 487 had been vacant for six months or more. The latter are considered ‘long – term’ empties. There has been a reduction in number over recent years, mostly due to changes in the housing market (particularly the increase in private renting) and changes in the local Council Tax charging policy which has involved the removal of rebates for empty homes and imposition of a premium in some cases. There are no spatial concentrations of empty or long-term empty homes and virtually all are in private ownership. The Strategy will focus on homes which have been empty for six months or more (i.e. ‘long-term’ empty homes) Some properties may be unoccupied for extended periods but will not be classed as ‘empty homes’: Second homes and holiday lets Properties which are normally occupied by students Appendix A Owner of a property is in British Armed Forces Owner of a property is giving or receiving care Owner of a property is in prison Flood – damaged property Property awaiting clergy Around 125 of the 487 long-term empties come within these categories, leaving approximately 362 which could reasonably be tackled. Of these, 48 properties have been empty longer than 2 years and attract 50% additional Council Tax. Almost all of the owners of these properties are paying this additional sum. In some instances there will be little of no prospect of any approach bringing a home into use, for example where a property is tied up in probate. In such cases any action by the Council would await the completion of that process. STRATEGY The key objective of this strategy is to bring empty properties back into residential use after they have been vacant for 6 months to maximise use of the Borough’s housing stock and maintain the quality of its neighbourhoods Where the implementation of the strategy leads to the following additional outcomes this will be particularly welcome: improvement in the local streetscene or relief of nuisance new lettings or sales that are ‘affordable’ to local households property will provide temporary accommodation for homeless applicants property will provide shared accommodation improvement in the repair and quality of homes improvement in the thermal efficiency of homes This will be achieved through the following process: 1. The Council will know which properties are empty and for how long. A single database will be maintained by Council Tax. This will show the duration and location of empty properties at both Borough and ward levels, the latter for advising Ward Members on their local situation. The source information will include: Council Tax records Reports from the public [www.gov.uk / Council web / SCH web / Connect] Reports from officers of the Council [e.g. Public Protection, planning, building control] and external agencies [e.g. Land Registry, Probate Office] 2. The Council will find and engage with owners of empty homes to find out why they are being kept empty This will be part of the regular inspections by staff in Income and Awards (for Council Tax) and officers in Public Protection (following complaints and referrals). Appendix A 3. The Council will provide advice and assistance to all owners of empty homes in order to return their properties to residential use Some owners choose to leave their property empty when bringing it back into use would benefit them both financially and through improved security for their property. Often owners may not appreciate how much they are losing out on financially or do not know how to go about bringing their property back into use. Perhaps they need some assistance in carrying out repairs or are reluctant to enter into a landlord / tenant relationship. The options for owners who wish to remedy this are to rent out the property, lease it out for a longer term, sell it or live in it themselves A particularly important aspect of the strategy is in reassuring owners that they can let their property with confidence, both earning additional income and having the ability to obtain possession of the property at the end of the term. The Council and Solihull Community Housing (SCH) will ensure that owners can access advice on the options and reasonable assistance in pursuing an action which will return the property to use. Information on how to return an empty home to use will be freely available on the Council and SCH websites and will be given by Income and Awards officers when they contact empty home owners. This will include: advice on letting or sale of the property advice on repair and improvement works that may be required, how to get the work done through a reliable contractor (linking to “No Rogue Traders Here” scheme) and on any financial assistance that may be available free home security check through the Homecheck scheme advice on how to improve the energy efficiency of the property advice on how to obtain planning permission where required Where the owner of an empty home is interested in bringing it back into use but requires further advice and practical assistance than can be provided by Council Tax officers there will be a referral to SCH whose staff can offer a package of measures to include (as required): Business advice – becoming a private landlord or selling your property Technical advice - repairs, improvements, safety Tenant referral Rent Guarantee – to protect landlord from tenant’s default Management Service - paid for out of rental income Loan finance – for property improvement Improvement grants – for property improvement Energy - related grants – for property improvement These products will be part of SCH’s new private sector package which will seek to maximise the potential of the private rental sector to provide good quality homes to local households which are in housing need Where the property is or is likely to constitute a nuisance a referral will be made to Public Protection. An officer will seek to advise and encourage the owner to take the Appendix A necessary steps to remedy disrepair in accordance with the Public Protection Enforcement Policy. In doing so PP may wish to liaise with SCH on possible assistance through the measures outlined above or on purchase of the property (see below), or refer the case to SCH if no PP involvement is required 4. The Council will encourage partner agencies to help owners dispose of properties to secure their future residential use In some cases owners of empty homes may wish to sell their property rather than bring it back to use themselves. This may be through private sale or by a housing organisation targeting such properties in liaison with the Council. In 2015/16 Solihull Community Housing will, subject to Board approval, purchase vacant properties from the open market to replenish the Council’s housing stock. They will, wherever feasible, seek to include long – term empty properties in their portfolio. Where this is not suitable (eg on cost grounds or because of the type / location / condition of the property) they will seek to encourage other parties to consider the business potential. SCH will also consider assistance through the private leasing scheme which will be introduced during 2015/16. Where other Registered Providers have interest and capacity to do similar, the Council will encourage them to work in partnership with SCH. 5. The Council will use its enforcement powers where necessary to provide a cost-effective solution Where an owner of an empty home will not respond to reasonable requests and advice from Income and Awards or SCH, the case will be referred back to Income and Awards who will arrange a ‘case conference’ to consider available options. This will comprise officers from; Council Tax, SCH, Legal Services and Public Protection. These will include the use of statutory powers by Public Protection to require the owner to undertake work to prevent nuisance, remedy safety issues or neighbourhood dis-amenity. Alternatively, the statutory powers may require the owner to return the property to residential use. This may be on grounds of health and safety, neighbourhood impact or a wasted asset In some cases the disposal of the property by the owner may lead to the best outcome and this may involve an enforced sale or even compulsory purchase. Enforced Sale Procedure – this allows the Council to force the sale of a property with a local land charge. Any outstanding charges against the property, including any mortgage, works by the Council over the years to make it safe while it was empty and Council Tax are paid following the sale, and the money remaining (if any) is put into an account for the owner to claim. Appendix A Compulsory Purchase Order (CPO) – the 1985 Housing Act allows Local Authorities to acquire property and remove ownership from the current owner. Once an Order has been granted, the dwelling can be developed as affordable housing through agreement with SCH or a housing association. If this is not financially viable, the property will be sold on the open market subject to covenants ensuring the refurbishment and reoccupation of the property. Empty Dwelling Management Order (EDMO) - whereby the Local Authority takes possession of the property for a set period of time, the management and repair of the property being contracted out to a partner organisation In considering the use of any of these options the objective will be to determine the most appropriate means of securing the most cost-effective solution. This will require the preparation of a business case for each proposal for approval by the relevant Elected Member. In some instances properties may come directly to the attention of Public Protection as a result of inspections or other referrals. Public Protection will inform Council Tax of the property and of any action that it will take in such cases The cost of enforcement measures to the Council can be significant in terms of time and money so will be used only when (a) co-operative approaches have failed, and (b) the cost / benefit of the proposed action is reasonable to the Council. The cost/benefit of the Council action will be determined by an intervention risk assessment developed by Public Protection. Where works are carried out in default the cost will be recovered from the owner or a charge put against the property. DELIVERY Successful delivery of the strategy will depend on effective partnership working involving the following: Partner SMBC Council Tax SMBC Connect Solihull Community Housing SMBC Development & Regulatory Management SMBC Managed Growth SMBC Communities and Adult Social Care Role Council Tax charging Data and analysis Empty homes list Tracking progress of cases Ward-level info and analysis Advice and assistance to owners Referrals to SCH / PP Response to calls from public Referrals to CTax / PP as req’d Specific advice and assistance Property improvement, adaptations Property disposal [Leasing / purchase] Empty Homes Strategy Enforcement - Housing Act Powers Dealing with nuisance Home energy advice / assistance (via SCH) Housing Strategy Appendix A Homecheck Legal Services Communications Security checks and advice Empty Dwelling Management Orders Compulsory Purchase Public relations and awareness REPORTING In all cases Income and Awards will be advised by SCH or Public Protection of the progress of cases so that they can keep track of property histories, keep a record of progress through the implementation of the strategy, and update the database. This will enable the production of ward-level analysis which will be made available to elected Members. Progress in the implementation of the strategy will be reported to elected Members on a quarterly basis by the Head of Income and Awards The Neighbourhoods Scrutiny Board may receive an annual report on the progress of the strategy and the current situation as regards empty homes in Solihull. March 2015
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