Empty property
Unlocking the potential
An implementation handbook
Empty property
Unlocking the potential
An implementation handbook
This guidance has been endorsed by:
3 Assessing feasibility
Preface
Empty Property: Unlocking the Potential is the first comprehensive guidance on bringing empty
property back into use. It has been prepared on behalf of the Office of the Deputy Prime Minister
(ODPM) by KPMG, working in partnership with the Empty Homes Agency, Drivers Jonas, SWPM
and DLA. An Advisory Group and other contributors have also provided significant assistance.
Through their diverse roles and responsibilities, they have provided an important source of
information and advice. ODPM would like to thank them for the time they have invested and it is
hoped that their practical experience helps to make this guidance a valuable working tool for
Local Authority officers, owners and other people and organisations involved in bringing empty
property back into use.
Contents
How to use this Handbook
11
Part A – Getting started
13
Introduction
15
A1
Identifying empty properties
17
A1.1 What is an empty property?
A1.2 How can I tell if a property is empty?
17
18
What steps need to be taken to bring empty properties back into use?
21
A2.1 Understanding the barriers to bringing empty properties back into use
A2.2 Overcoming the barriers to bringing empty properties back into use
21
22
Partnership working
23
A2
A3
A3.1 As a Local Authority officer, with whom might I need to work
and how should I go about it?
A3.1.1 With whom might I need to work?
A3.1.2 How can this be achieved?
A3.2 As an owner, with whom might I need to work and how
should I go about it?
A4
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23
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Developing skills
37
A4.1 Why is it important to have the right skills to bring empty
properties back into use?
A4.2 What skills may be needed?
A4.3 How can I develop my existing skills or obtain new skills?
A4.3.1 Training and networking
A4.3.2 Appointing a professional advisor
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Part B – Prioritising investment
49
Introduction
51
B1
53
Developing an Empty Property Strategy
B1.1 What is the purpose of an Empty Property Strategy and how should it be structured?
B1.2 What steps need to be taken to develop and publicise an Empty Property Strategy?
53
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3 Assessing feasibility
B2
Gathering, recording and interpreting information about
empty properties
65
B2.1 What information is needed about empty properties?
B2.2 Gathering information about empty properties.
B2.2.1 Techniques available to Local Authorities for identifying empty properties
B2.2.2 Techniques available to owners for identifying empty properties
B2.3 Recording information about empty properties
B2.4 Interpreting information about empty properties
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Part C – Bringing a property back into use
77
Introduction
79
C1
83
Brokering reuse or conversion
C1.1 When is it appropriate to broker the reuse or conversion of an empty
property and what steps should I take?
C1.2 What techniques are available to identify an owner?
C1.3 What should I do when the owner has initially been identified?
C1.4 What should I do if the owner is prepared to bring the property back into use?
C1.5 What can I do if the owner cannot be identified or will not take steps to
bring the property back into use?
C1.5.1 Using legal powers to undertake works
C1.5.2 Compulsory purchase
C2
Working up a scheme
C2.1 Selecting an end use
C2.2 Preparing an initial design and specification
C3
Assessing feasibility
C3.1 Why is it important to assess the feasibility of bringing a property back into use?
C3.2 How can I assess the feasibility of a project?
C3.2.1 Is it practically possible to bring the property back into use?
C3.2.2 Are there sufficient financial returns
C3.2.3 Is it deliverable?
C3.3 What steps can I take to improve the feasibility of a project?
C3.3.1 Changing the financing arrangements
C3.3.2 Changing the design and specification
C3.3.3 Adopting a range of techniques
C3.4 What can I do if the project remains unfeasible?
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C4
Securing consents
C4.1 What consents may be needed?
C4.2 What is the application process and how are applications assessed?
C4.3 What decisions can be reached by a Local Authority?
C5
Undertaking building or refurbishment works
C5.1
C5.2
C5.3
C5.4
C5.5
C6
Selecting how to commission building or refurbishment works
Finalising the design and specification
Appointing a building contractor
Undertaking the works
Ensuring the property is ready for occupation
Securing an end user
C6.1 Identifying an end user
C6.2 Entering into legal agreements
C6.3 Fulfilling ongoing management responsibilities
C7
Reviewing project outcomes
C7.1 Why should I review project outcomes?
C7.2 How can I evaluate project outcomes?
C7.3 How can I capitalise on lessons learned?
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3 Assessing feasibility
Case studies
Case
Case
Case
Case
Case
study
study
study
study
study
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Case study 6:
Case study 7:
Case study 8:
Case study 9:
Case study 10:
Case study 11:
Case
Case
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Case
study
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study
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Case study 16:
Case study 17:
Case
Case
Case
Case
Case
Case
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study
study
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study
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Partnership working (1) – Saving Greenfield Sites
Partnership working (2) – Attracting partners
Partnership working (3) – Empty Property Working Group
Partnership working (4) – Capitalising on services from other agencies
Partnership working (5) – The benefits of an owner and Local Authority
working in partnership
Developing skills (1) – Training
Developing skills (2) – Networking
Developing an Empty Property Strategy (1) – Preparing an effective Local
Authority Empty Property Strategy
Developing an Empty Property Strategy (2) – Setting targets
Prioritising investment
Identifying empty properties (1) – Local Authorities working with
other agencies
Identifying empty properties (2) – London Underground posters
Identifying empty properties (3) – Empty property hotline
Identifying empty properties (4) – Maximising publicity
Recording and interpreting information on empty properties (1)
– Empty property database
Recording and interpreting information on empty properties (2)
– Geographical Information Systems
Brokering reuse or conversion (1) – The benefits of using legal
enforcement powers
Brokering reuse or conversion (2) – Developing preferred partner relationships
Improving feasibility (1) – Securing grants
Improving feasibility (2) – Innovative use of property
Improving feasibility (3) – Adopting a range of techniques
Securing an end user – Using specialist agencies
Reviewing project outcomes (1) – Publicity benefits
Reviewing project outcomes (2) – New phases
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Anecdotes
Anecdote 1:
Anecdote 2:
Anecdote 3:
Anecdote 4:
Anecdote
Anecdote
Anecdote
Anecdote
Anecdote
Anecdote
Anecdote
5:
6:
7:
8:
9:
10:
11:
Partnership working (1) – Working with communities
Partnership working (2) – The benefits of an owner and Local Authority
working together
Developing and publicising an Empty Property Strategy (1)
– Securing buy-in from key stakeholders
Developing and publicising an Empty Property Strategy (2)
– Securing effective publicity
Brokering reuse or conversion (1) – A Local Authority toolkit
Brokering reuse or conversion (2) – Tailoring solutions
Brokering reuse or conversion (3) – Dealing with difficult properties
Using statutory enforcement powers (1) – Enforced Sale
Using statutory enforcement powers (2) – Compulsory Purchase
Improving feasibility (1) – Securing premium values
Improving feasibility (2) – Mixed-use projects
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Figures
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Overcoming the barriers to bring empty properties back into use
Sharing information
Developing skills
Appointing a professional advisor
Prioritising investment
Preparing an Empty Property Strategy
Identifying empty properties
Bringing empty properties back into use
Brokering arrangements to bring empty properties back into use
Identifying the owner of an empty property
Local Authority legal powers
Selecting an end use
Maximising tax allowances
Preparing a Residual Appraisal
Securing grant funding
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Appendices
Appendix 1:
Appendix 2:
Appendix 3:
155
Useful contacts
Bibliography
Glossary
Acknowledgements
157
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How to use this Handbook
This Implementation Handbook is the second
of two documents making up the guidance
Empty Property: Unlocking the Potential. It deals
with ‘how’ empty properties can be brought
back into use. The first document, A Case for
Action, deals with ‘why’ reuse of empty property
should be on Local Authorities’ and owners’
agendas. It also details the scope of the guidance
and the types of property and situations for
which it should be of value. A Case for Action
should therefore be read before using the
Handbook for the first time.
The Handbook is broken down into three Parts,
each of which covers a different set of issues:
• Part A – Getting started. This is relevant both
to Local Authority officers and to owners. It
details some of the important issues that you
should consider before taking steps to bring
empty properties back into use. This includes
how you can establish whether properties
are empty, what steps you need to take to
bring them back into use, the parties with
whom you may need to work and the skills
you may need. It is important to read Part A
when using the Handbook for the first time.
• Part B – Prioritising investment. This is
relevant both to Local Authority officers and
to owners concerned with more than one
empty property. It considers how to prioritise
investment. This includes how to develop
an Empty Property Strategy and how you
can select properties to bring back into use
as a priority. It should be read before Part C.
• Part C – Bringing an empty property back
into use. This is relevant both to Local
Authority officers and to owners. It considers
the steps that you may need to take to bring
an individual empty property back into use.
This includes how Local Authority officers
and owners can broker arrangements to
bring property back into use and, once this
has been achieved, the stages involved from
working up a scheme and assessing its
feasibility through to securing an end user
and reviewing its outcomes.
Each of these Parts in turn breaks down into a
number of Sections and smaller sub-sections
focusing on specific topics.
Each Section of the Handbook begins by
explaining whether it is most relevant to Local
Authority officers, to owners or to both. For
example, Section C3, which deals with assessing
feasibility, is most relevant to owners in deciding
whether to invest in bringing empty properties
back into use. However, Local Authority officers
should also find it of interest given their
important brokering role, which may involve
offering advice and financial assistance to
improve a project’s feasibility. Although it is
only necessary to read the Sections specifically
relevant to you, it is advisable to read the entire
guidance to appreciate how Local Authorities
and owners can best work together to bring
empty properties back into use.
Once you are familiar with the scope of the
Handbook, you can then refer directly to
specific topics of interest. To assist in this, the
Contents page provides page numbers for each
Section and sub-section and the footnotes on
some pages refer you to other Sections where
additional details can be found. For example,
Section C1.2, which deals with techniques that
Local Authority officers can use to identify the
11
3 Assessing feasibility
owner of an empty property, refers you to
Section A3.1, where important information can
be found on the legal restrictions on how this
information can be used.
Case Studies, Anecdotes and Figures
A significant number of empty properties have
now been successfully brought back into use.
The Handbook contains a range of Case Studies
highlighting good practice or ideas from some
of these projects, and Anecdotes based on the
experience of the professionals involved.
A range of Figures, including diagrams, flowcharts
and tables is also included to summarise or
support important topics. The Case Studies,
Anecdotes and Figures are all shown in labelled
boxes and are listed in the Contents Page.
Additional Information
As identified in the Case for Action, this
guidance cannot cover all of the issues and
actions needed to bring empty properties back
into use. The Handbook therefore also outlines
a range of organisations and other material that
may be able to provide additional information
and support. Organisations that may be able to
help you are shown in bold text, with contact
details provided in Appendix 1. Documents
and other useful material are identified in the
footnotes, with a more detailed Bibliography,
including details of how they can be obtained,
provided in Appendix 2.
Jargon
It is recognised that the Handbook is likely to
be used by people from a broad range of
backgrounds. As such, jargon is kept to a
minimum. However, a number of important
technical words and expressions remain, which
are either frequently used in relation to empty
properties, such as a ‘Listed Building’, or have
specific technical meanings that may differ
from everyday use, such as a ‘greenfield’ site.
The words and expressions to which this applies
are shown in underlined text and explanations
are provided in the Glossary at Appendix 3.
This Handbook is not a substitute for specialist professional advice. It is intended to provide an overview
of the main issues and actions you may need to consider in bringing empty properties back into use. Some
of the main steps where you may need professional advice are highlighted in the Handbook. However, this
is not exhaustive and you should therefore also seek specialist advice when in doubt.
12
Empty property: unlocking the potential
Part A
Getting started
Introduction
All of Part A is relevant both to Local Authority
officers and to owners. It highlights the steps
to consider before taking action to bring empty
properties back into use. It gives you the basic
tools likely to be needed and is broken down
into four Sections:
• Section A1 – Identifying empty properties.
This Section considers the characteristics of
an empty property and the tests that can be
used to determine if a property is empty.
• Section A2 – What steps need to be taken to
bring empty properties back into use? This
Section considers barriers to bringing empty
properties back into use and how these can
be addressed. It highlights specific topics
within this Handbook to assist you.
• Section A3 – Partnership working. This
Section considers the assistance that may be
needed to bring a property back into use
and the organisations that may be able to
provide it.
• Section A4 – Developing skills. This Section
considers the skills that may be needed to
bring empty properties back into use and
how these can be obtained, including training
and networking opportunities and appointing
professional advisors.
Once you have read Part A, if you are a Local
Authority officer or an owner concerned with
more than one empty property you should
refer to Part B, which considers how to
prioritise investment. If you are an owner
concerned with only one empty property you
should refer to Part C.
Introduction
15
A1 Identifying empty properties
This Section is relevant both to Local Authority
officers and owners. It considers what constitutes
an empty property and the reasons why properties
have become empty. This Section is broken
down into:
• A1.1 – What is an empty property?
• A1.2 – How can I tell if a property is empty?
You should read each Section in turn.
A1.1
What is an empty property?
Recognising an empty property can be
important. For example, it may determine:
• The level of Council Tax or Rates payable1.
• How a planning application is assessed2.
• Eligibility for grants and other financial
assistance3.
However, it is not always straightforward.
There is no widely accepted definition of an
empty property and a range of terms, such as
‘vacant’ and ‘redundant’ are also often used,
sometimes with slightly different meanings.
For the purpose of this guidance, empty
properties are those that:
• Have been unoccupied for six months or more.
• Have been unoccupied for less than six months
and are a special case. For example, legal
action has been taken by the Local Authority
as a result of serious disrepair or other problems
being caused by the property4.
• Are occupied, but the space is capable of
more beneficial use.
• Do not have a reasonable prospect of being
brought back into use by the owner
working alone.
A property does not need to be used all of the
time to be ‘occupied’. Properties that are used
infrequently, such as a second home or a
holiday home, are not covered in this guidance.
However, properties where squatters are present
are considered to be empty, unless appropriate
legal steps are already underway to secure
possession and bring the property back into use 5.
Assessing whether more beneficial use can be
made of a property is generally subjective.
In some cases, parts of a property may not be
used at all. For example, space above a shop
may lie idle. In such cases, it may be obvious
that more beneficial use could be made of this
space. In other cases, a property may appear
used but may be under-used. For example, an
1
Further information on the costs of owning an empty property can be found in Section C3.2.2.
2
Further information on planning and other consents can be found in Section C4.
3
Further information on grants and other financial assistance can be found in Section C3.3.1
4
Further information on legal action available to a Local Authority can be found in Section C1.5.
5
Further information on squatters can be found in Section C3.1.1.
A1 Identifying empty properties
17
3 Assessing feasibility
elderly person may own a large house and
may only live in several of the rooms. In such
cases it is likely to be more difficult to identify
if a property is empty.
Although a property has been unoccupied for
some time, there may be a reasonable prospect
of it being brought back into use. For example,
building or refurbishment works may be planned
or underway or the property may recently have
been sold or a lease granted. In such cases, the
guidance may not be relevant unless the owner
needs specific support or advice.
How can I tell if a
property is empty?
A1.2
In some cases identifying whether a property is
empty may be straightforward, whereas in other
cases it may be more difficult. The techniques
used by Local Authority officers and owners
are likely to vary.
18
‘to-let’ boards or a building contractor’s
equipment on site may indicate that there is
a reasonable prospect of the property being
brought back into use.
• Asking other people, such as neighbours 8.
• Contacting Local Authority colleagues. For
example, the Regeneration Department may
be bringing forward proposals to demolish
the property as part of an area-based
regeneration project. Alternatively, colleagues
from the Local Authority’s Planning or Building
Control Department may be able to tell you
if an application has been submitted or if a
consent has been granted to bring the
property back into use.
However, it is important to treat these signs
with caution as they may not in themselves be
conclusive. For example:
• There may be signs of occupation but this
may be from squatters.
For a Local Authority officer, it may be possible
to identify whether a property is empty by:
• The new owner may not yet have moved in
or building or refurbishment works may be
being planned but not yet undertaken.
• Asking the owner, if you have contact
details 6.
• A property may be occupied, but the garden
may be overgrown.
• Looking for visible signs. Broken or boarded
windows or holes in the roof may indicate
that a property is unoccupied7. ‘For-sale’ and
It is therefore advisable to use a range of
techniques if possible.
6
Further information on identifying an owner can be found in Section C1.2.
7
Further information on inspecting a property can be found in Section C3.2.1.
8
Further information on people that may be able to help you can be found in Section A3.2.1.
Empty property: unlocking the potential
exact level is likely to depend on a range of
factors, such as the size and configuration of
the office and how much time staff spend in
it. If you have considerably more than 25
square metres per employee and if there is
no apparent strong business case for this,
then specialist advice, for instance from a
Facilities Manager, Architect or Surveyor,
may be desirable10. Even if space used is
close to 15 square metres per person, it may
be possible to make space savings with
specialist advice. However, the likely impact
of such savings needs to be balanced against
the cost and time of undertaking the works
and an allowance needs to be planned for
any known or expected expansion plans.
This should be considered as part of a
feasibility study 11.
For an owner, if you are not already aware of
the property being empty this could be
undertaken by:
• Reviewing available information, such as
property records 9.
• Carrying out an inspection.
In assessing whether more beneficial use could
be made of space, you should consider:
• How much space is currently needed?
• What space may be needed in the future?
It is important to recognise that space needs
may vary over time. For example, a family
may grow or a company may recruit more
staff and need to accommodate more desks
in its office.
• How much space could potentially be freed
by more effective use of the space available?
There are no definitive tests for whether
space is being used beneficially and this
should generally be assessed on a case-bycase basis depending on the use. For example
if you own a shop, is there space above the
shop that is not currently being used or is
being used temporarily for storage?
Alternatively, if you own offices, a rule of
thumb for beneficial use of space is around
15-25 square metres per employee depending
on location and the nature of the use. The
• Could the freed space be converted into one
or more homes?
• Do the benefits of doing so outweigh
the costs?
In some cases it may be obvious whether
space could be used more beneficially and
whether it could be freed up. In other cases,
specialist advice may be needed. For
professionals such as Architects or Surveyors
may be prepared to make an initial inspection
for free. Alternatively, the Local Authority may
have an experienced officer who could advise
you. In all cases, it is important to note that the
9
Further information for owners on identifying empty properties can be found in Section B2.2.2.
10
Further information on improving space utilisation in office accommodation can be found in Property Solutions.
11
Further information on assessing feasibility can be found in Section C3.
A1 Identifying empty properties
19
beneficial use of space cannot just be assessed
based on financial and other indicators. An
owner may not be willing to change their
ownership/occupancy patterns, which may also
be important. For example, if an elderly person
20
Empty property: unlocking the potential
lives in a house which is larger than they need,
they continue to have a right to live there,
even if the Local Authority may be able to help
them find more suitable accommodation.
A2 What steps need to be taken to bring
empty properties back into use?
This Section is relevant both to Local Authority
officers and owners. This Section is broken
down into:
• A2.1 – Understanding the barriers to
bringing empty properties back into use.
• A2.2 – Overcoming the barriers to bringing
empty properties back into use.
You should read each Section in turn.
Understanding the
barriers to bringing empty
properties back into use
A2.1
There are effectively two stages in understanding
why a property is empty:
• Why did it become empty initially? For example:
– The owner may have passed away.
– There may have been no investment in
the property and tenants may have decided
not to renew their leases.
– There is more space than the owner needs.
• Why does it remain empty? For example:
– Market-related issues, such as an oversupply of residential accommodation
relative to demand, may be present.
– Ownership of the property may be unclear.
For example, the owner may not know
they own the property because of poor
property records or an inheritance that
they have not been notified of.
– The costs of bringing the property back
into use may be prohibitive, relative to
the income that could be generated.
– The owner may be aspiring for some
speculative financial gain or ‘hope value’
and may be seeking to preserve the
flexibility to sell the property at the
appropriate stage.
– The owner may not be aware that more
beneficial use could be made of the
property or that financial assistance could
be available from the Local Authority or
other organisations.
The answers to these questions could be linked.
For example, a property may have become
empty because an elderly person has passed
away and it may remain empty because the
Solicitor cannot locate the next of kin.
Alternatively, there may be different answers to
each question. For example, the property may
have initially become empty because the
owner-occupier decided to move abroad, but
may have remained empty because a new
owner purchased it with a view to capitalising
on any growth in market value and they did
not wish to lease it in the interim.
It is important to understand why a property
has become and remained empty so that you
can recognise the barriers to reuse and hence
take steps to address these (see below).
A2 What steps need to be taken to bring empty properties back into use?
21
Overcoming the barriers
to bringing empty properties
back into use
A2.2
It is important that the approach taken to
bringing empty properties back into use
reflects the specific barriers posed. Figure 1
outlines how particular parts of the Handbook
can assist in this.
Figure 1: Overcoming the barriers to bringing empty properties back into use
Barrier posed
Steps to be taken
Section
Ownership of the property is unclear.
Contact the possible owner.
C1.2
Identify third party legal rights.
C3.3.1
Consider grants and other financial assistance.
C3.3.1
Consider tax allowances.
C3.2
Consider other steps for improving feasibility,
such as phasing.
C3.3
Consider if more beneficial use could be
made of the space available.
A1.2
Costs may be prohibitive.
Space is surplus to owner’s needs.
Owner may be aspiring for speculative
Consider the risks of legal action by
gain or ‘hope value’ and retaining flexibility. the Local Authority.
Lack of awareness of support available.
22
Empty property: unlocking the potential
C1.5
Consider how leases can be structured whilst
retaining flexibility over selling the property
at a later stage.
C2
Consider advice and information available
from a Local Authority.
C1
A3 Partnership working
This Section is relevant to both Local Authority
officers and owners. It considers the support
you may need from other people and
organisations in bringing empty properties back
into use and how these relationships can be
developed. This Section is broken down into:
These aspects fall outside the scope of this
Guidance.
Some of the main responsibilities considered in
this guidance include:
• Identifying empty properties12.
• A3.1 – As a Local Authority officer, with whom
might I need to work and how should I go
about it?
• A3.2 – As an owner, with whom might I need
to work and how should I go about it?
You should read whichever Section is relevant
to you.
• Preparing an Empty Property Strategy13.
• Brokering the reuse or conversion of
individual properties14.
A3.1.1 With whom might I need
to work?
The main people you are likely to need to
work with are:
As a Local Authority officer,
with whom might I need to work
and how should I go about it?
A3.1
As a Local Authority officer involved in empty
property work you are likely to have a number
of specific roles. The scope of this guidance
indicates the potential extent of these roles,
although it can be much broader. A number of
Empty Property Officers have wider responsibilities,
including tackling Low Demand or undertaking
Compulsory Purchase Orders. In addition, Empty
Property Officers often become involved in
work to prevent properties falling empty, such
as through promoting equity release schemes.
• Owners.
• Local Authority colleagues.
• Other people and organisations.
These are considered in turn.
Owners
Although in a number of cases, a Local Authority
Empty Property officer may be involved in
projects where the owner cannot be identified,
there are also likely to be many projects where
an owner needs some basic advice to help
bring an empty property back into use.
12
Further information on identifying empty properties can be found in Section A1.
13
Further information on preparing an Empty Property Strategy can be found in Section B1.
14
Further information on brokering reuse or conversion can be found in Section C1.
A3 Partnership working
23
3 Assessing feasibility
In order to be able to assist owners it is
important that you can provide practical help
and support. You should therefore be able to
navigate other Local Authority colleagues (see
below) and have a good working knowledge
of the Local Authority’s policies. For example,
it is advisable to read the Development Plan15.
So that owners can find you, you should provide
your details to the switchboard and put them
on the Local Authority’s website. You should
also provide details to other organisations that
an owner may contact, such as the Citizens
Advice Bureau. You should also make yourself
known to the Empty Homes Agency, which keeps
details of Local Authority officers involved in
empty property work.
Local Authority colleagues
A number of Departments and teams within
the Local Authority are likely to deal with
empty properties and may therefore be able to
assist you. These include:
• Housing Management. They may have a
waiting list of tenants to nominate and
therefore wish to identify properties that can
be brought back into use for affordable housing.
• Environmental Health. They may become
involved in investigating complaints and
may have to undertake legal action in
extreme cases.
24
• Planning and Building Control. They may be
called on to consider applications for reuse
or conversion of empty properties or may
also be involved in taking legal action in
extreme cases 16.
• Social Services. They may be involved in
re-housing elderly and other people, which
may result in properties being left empty.
• Regeneration, Economic Development and
Housing Strategy. They may be responsible
for bringing forward proposals for areabased regeneration or renewal projects of
which the reuse or conversion of empty
properties may form a part.
• Property and Estates. They may be able to
assist in assessing the feasibility of a reuse
or conversion project. In this respect they
may be able to provide specialist advice.
• Council Tax and Rating. They may hold
information on owners claiming exemptions
or discounts. They may also wish to see
properties brought back into use to maximise
Council Tax and Rates revenues.
• Environmental Services. They may be called
to clear rubbish from a property.
The exact titles of these Departments may
differ between Local Authorities but the broad
roles fulfilled should be similar. Given the
important information and experience of people
in these Departments, it is important to work
15
Further information on Development Plans can be found in Section C4.
16
Further information on securing consents can be found in Section C4. Further information on undertaking legal action can be found in
Section C1.5.
Empty property: unlocking the potential
with them. However, it is also important to
note that there are legal restrictions relating to
accessing some of the information held by
other Departments. This can apply both in
terms of sharing information between Local
Authority Departments and sharing of information
by the Local Authority with other people and
organisations.
The Data Protection Act 1998 limits the sharing
of information on empty properties held by
Local Authorities. The objective of the Act is to
protect personal details, such as the owner’s
name and address. It applies both to the sharing
of information within the Local Authority and
with other people and organisations. The
limitations imposed depend upon the original
source from which the Local Authority obtained
the information. This is likely to be one of
three main sources:
• The owner. The owner of an empty property
may have approached you for assistance in
bringing it back into use. In this case,
information should only be used for a
purpose agreed with the owner. An owner
is likely to reasonably assume that you
might discuss the property with other
colleagues within the Local Authority. As
such a formal consent would not generally
be necessary to do this, although it is
advisable to highlight to the owner that you
may do this. However, you should secure
the owner’s consent if you wish to pass
details of the property or contact details to
third parties unless there is a legal reason
for doing so, such as the need to provide a
building contractor with details of the
property so that they can undertake building
or refurbishment works on the Local Authority’s
behalf. Hence if you are aware that a third
party, such as a private landlord or Registered
Social Landlord, might be interested in
buying the property or taking a lease over
it, you need to ask the owner’s permission
to provide details to them. If the owner is
not prepared to do this you could provide
their contact details to the owner instead.
• Local Authority colleagues. If information
that is publicly available is obtained from
other Local Authority colleagues, such as
details of a planning permission, this should
not generally pose any legal issues. Most
Local Authority Departments also hold nonpublicly-available details about the location
or owners of empty properties. They may
be able to share this with an Empty
Property Officer provided that:
– It is in the public interest. A clear and
well-publicised Empty Property Strategy
is therefore important, although not
necessarily conclusive, in demonstrating
the benefits that the ‘public’ could derive
from bringing empty properties back
into use.
A3 Partnership working
25
3 Assessing feasibility
– It is not prevented by other legislation.
For example, the sharing of information
held by the Council Tax and Rates
Departments is governed by additional
legislation that prevents information held
by these Departments being shared with
the Local Authority’s Empty Property
Officer, unless they are employed within
the Department.
If information is obtained in this way, you
should still notify the owner that you have
obtained this information and the purpose for
which you plan to use it.
• Other people and organisations. In some
cases information may originally be obtained
from other sources outside the Local Authority.
For example, a neighbour of the empty
18
26
property may have provided contact details
for the owner. If information has been
obtained, you need to notify the owner that
you have been supplied with information
and intend to use it with a view to bringing
the property back into use. Formal consent
should not be needed again provided that
the information is being shared in the
public interest.
These steps, which are summarised in Figure 2,
are only a guide and are likely to vary from
case-to-case. It is therefore important to obtain
specialist advice from the Local Authority’s
Legal Department. They should also be able to
help you prepare a standard letter to use to
notify owners and a form to use to gain their
consent, if appropriate.
Further information on gathering information on empty properties can be found in Section B2.
Empty property: unlocking the potential
Figure 2: Sharing information
Information source
Owner
Local
Authority
colleagues
Other
people and
organisations
Permission
from owner?
Other legal
restrictions?
In the public
interest?
NO
YES
YES
NO
NO
YES
Notify the
owner
Unable
to use
information
The sharing of impersonal information, such as
the location of an empty property, but not details
of the owner, would not generally be affected
by these rules. However, the Local Authority
would still be bound by any other separate
legislation (see above).
Other people and organisations
There are a range of other people and
organisations with which you may need to
work. These include:
Able
to use
information
• Councillors. They take many of the Local
Authority’s important decisions, including
approving an Empty Property Strategy and
granting consents. Through their local
knowledge and contacts they may also be
able to help in identifying empty properties
and brokering their reuse or conversion
with the owner.
A3 Partnership working
27
3 Assessing feasibility
• Resident and community groups. They
may be aware of empty properties in their
communities. A range of community
consultation techniques can be used17. This
should include both adults and children, as
highlighted in Anecdote 1 and Case Study 1.
• Home Improvement Agencies or other
brokerage agencies. They may be involved
in bringing potential purchasers or tenants
together with owners of empty properties.
Their skills and networks may therefore
be valuable.
• Emergency services. The local police and
fire services may be called to deal with
empty properties.
• Private landlords, Registered Social Landlords
and other organisations that may be interested
in buying or leasing empty properties.
Anecdote 1
Partnership working (1) – Working with communities
“When seeking to engage people in addressing empty property, their perceptions of an area or a building
can make a significant difference. You need to consult not only local people or other parties with a stake
in the area but also the next generation. Local Authorities have a key role to play in building relationships
with owners and the wider community.”
Andrew Bennett MP, Chairman, ODPM: Housing, Planning, Local Government
and the Regions Select Committee
17
28
Further information on community consultation techniques can be found in the Connecting with Communities Toolkit.
Empty property: unlocking the potential
Case Study 1
Partnership working (1) – Saving Greenfield Sites
The Saving Greenfield Sites Project was formed between St Edmundsbury Borough Council and the
London Borough of Hackney Council in 1999 with the aim of making children aware of the need to bring
Empty Homes and Wasted Spaces back into use.
At first glance a partnership between these two Local Authorities, one urban and the other rural, seems
an unlikely one. However, they both actively pursue the reuse of empty property and they therefore decided
to work together in a project designed to make young people aware of their empty homes strategies.
Other partners, including the Empty Homes Agency, Countryside Agency and Chartered Institute of
Housing, also added support for the project.
Children from schools in both Boroughs were involved in the project, taking part in a mixture of classroombased activities and supervised fieldwork. In the classroom, the children compared the number of empty
properties in each Borough against the number of homeless people, finding that there were seven empty
homes for every homeless person. As a fieldwork exercise the children visited a country park in Bury St
Edmunds and pegged out an area equivalent to that covered by the empty homes that had been brought
back into use by both Local Authorities through their Empty Property Strategies. This demonstrated the
amount of greenfield land that had not previously been built on that had been retained.
As a result of the event, the two Local Authorities decided to formalise a Saving Greenfield Sites initiative,
which has developed a video and workbook that together give background details, information about
housing problems which face today’s young generation, a range of practical projects and discussion
topics. The video and workbook provide opportunities for learning in line with the National Curriculum for
Geography and Environmental Science.
There may also be other relevant people and
organisations with which you should work in
bringing empty properties back into use.
assist you through their own networks in
identifying empty properties in your area18.
In identifying partners from these groups, you
could use a number of techniques including:
A3.1.2 How can this be achieved?
• Asking colleagues within the Local Authority
to name organisations they have previously
worked with or are aware of.
You could contact these organisations on a
case-by-case basis when a relevant opportunity
arises. However, it is advisable to build a working
relationship with them early on. In this way
you can gain an appreciation of the type of
properties they are interested in. They can also
18
• Contacting relevant professional and trade
organisations. For example, the National
Housing Federation can provide details of all
Registered Social Landlords.
Further information on gathering information on empty properties can be found in Section B2.
A3 Partnership working
29
3 Assessing feasibility
• Contacting Local Property Agents or Surveyors
that may represent organisations interested
in empty property work. Contact details for
these can be obtained from organisations
such as the Royal Institution of Chartered
Surveyors (RICS), National Approved Letting
Scheme (NALS), National Association of
Estate Agents (NAEA) and the Association of
Residential Letting Agents (ARLA).
• Advertising for partners as part of the wider
publicity you are likely to undertake19. An
example of a Local Authority successfully
advertising for partners is shown in Case
Study 2.
• Looking out for ‘for-sale’ or ‘to-let’ boards
could help identify the particular Local
Property Agents operating in the areas of
higher empty property concentrations.
There may also be other approaches that could
be used. Once you have identified a long list
of potential partners you may wish to create a
short list. Criteria such as a relevant track record
in empty property work and membership of
recognised trade bodies, such as the National
Approved Letting Scheme, could be applied.
Case Study 2
Partnership working (2) – Attracting partners
In preparing its Empty Property Strategy, Eastbourne Borough Council identified that a number of the
areas with high concentrations of empty properties were also those where private rented accommodation
was in most demand. The Council therefore established that it particularly needed to work with landlords
in the private rented sector to bring empty properties back into use. Historically, the Council had relatively
low levels of contact with the private sector landlords and so first needed to improve contact significantly.
Advertising was therefore identified as an important tool to give wide coverage in a short space of time.
In Summer 2002, the Council prepared and undertook a press campaign using local radio and newspapers.
Advertisements were used in newspapers and local journals and coverage was also obtained in one local
newspaper with the headline “Eastbourne Needs New Landlords!” The involvement of Councillors in the
campaign was essential in demonstrating the Council’s commitment to bringing empty property back into
use. As a result of the publicity, about 50 private sector landlords made further enquiries. These were
then short-listed to partners the Council felt they could work with in the long-term.
The Council found the approach taken to be very successful in emphasising its keenness to work in
partnership with the private sector. A strong relationship has now been forged.
19
30
Further information on publicising empty property work can be found in Sections B2 and C7.
Empty property: unlocking the potential
You are likely to need to call on a range of
people and organisations to bring properties
back into use. A central feature of your role is
to co-ordinate and harness the experience of
these parties. This co-ordination is essential to
ensure that:
• The parties are prepared to invest their time
and financial resources.
• Information is shared.
• There is no overlap or duplication and
hence waste of resources.
It is therefore advisable to form a working
group both to coordinate the inputs of Local
Authority officers and Councillors and those of
other people and organisations. An example of
an effective working group is shown in Case
Study 3. Although it may not be possible to
include all people and organisations with an
interest in empty property work, representatives
from as many interests as possible should help
to provide an appropriate range of perspectives.
They would also assist in demonstrating to the
private sector that its interests are being
considered in framing the Local Authority’s
response to empty properties.
Case Study 3
Partnership working (3) – EMPTY PROPERTY WORKING GROUP
Sheffield City Council formed its Empty Property Working Group in August 2002. The aim of the Working
Group is to get all of the Local Authority officers and external parties involved in empty property work
together in one forum to tap into their experience and develop joint solutions to tackling empty property
issues. Representatives from a number of Local Authority Departments are involved. This includes those
dealing with private sector housing, homelessness and asylum seekers, planning and building standards,
environmental health, Council Tax and housing management. A senior Councillor also sits on the Group
to reinforce the Council’s commitment to bringing empty properties back into use. A range of external
stakeholders are also involved, including Registered Social Landlords, letting agencies and the Empty
Homes Agency.
The Council has found the Empty Property Working
Group (pictured) to be very effective in breaking
down barriers with the private sector and offering a
more responsive service to the public. For example,
one of the projects is the Invest in Sheffield Scheme,
through which approved landlords’ details can be
forwarded to owners of empty properties who are
looking to sell their properties.
The Group has already brought benefits in terms of strengthening relationships between the key parties
involved in bringing empty property back into use. As it becomes more established, the parties intend to
focus on specific projects in addition to informing the strategic direction of the Local Authority’s work.
A3 Partnership working
31
3 Assessing feasibility
As an owner, with whom
might I need to work and how
should I go about it?
A3.2
As an owner, you may need a range of
assistance in bringing an empty property back
into use. In some cases professional advisors
may be needed. For example, you may need
the advice of a Building Surveyor in assessing
the property’s condition20. In other cases, support
from the Local Authority may be needed. This
may be particularly appropriate if you are
seeking to secure grant funding or consents, in
which case contacts within relevant Departments
of the Local Authority should be able to assist
you21. However, a range of additional support
and advice may be available through Local
Authorities, many of which now appoint
specialist Empty Property Officers. The support
they can provide generally includes:
• Help in navigating your way around Local
Authority Departments.
• Working with you and the Planning
Department to help achieve acceptable
planning consents if possible.
• Ensuring that potential sources of grant
funding are identified, both from the Local
Authority and other organisations.
• Advising on how to improve the feasibility
of a project 22.
• Making introductions to third parties, such
as private landlords or Registered Social
Landlords, who may wish to buy or lease
empty properties.
A significant range of other information and
contacts may also be available. The value that
a Local Authority Empty Property Officer can
bring to a project is illustrated in Anecdote 2.
In addition, the Local Authority may have
prepared an Empty Property Strategy and it is
advisable to obtain a copy of this to understand
how it relates to your property23.
Anecdote 2
Partnership working (2) – The benefits of an owner and Local Authority working together
“Although owners may be sceptical of the benefits that a Local Authority can bring to a project, there is a
great deal of value that can be added through partnership working. I have worked with an Empty Property
Officer on a project in Manchester and the experience was good. She was able to offer a range of
assistance, including the threat of using the Council’s compulsory purchase powers on an adjoining
owner of an empty property. This enabled the project to take place. Local Authorities are therefore an
important partner to have on board early on in a project.”
Chris Brown, Chief Executive, Igloo Regeneration Fund
32
20
Further information on appointing professional advisors can be found in Section A4.3.2.
21
Further information on securing grant funding can be found in Section C3.3.1.
22
Further information on improving feasibility can be found in Section C3.3.
23
Further information on Empty Property Strategies can be found in Section B1.
Empty property: unlocking the potential
Case Study 4
Partnership working (4) – Capitalising on
services from other agencies
In Newcastle, Home Housing Association administers
a joint Private Rented Project in partnership with
and funded by Newcastle City Council, Enterprise 5
Housing Association and Newcastle New Deal for
Communities. It operates across the Inner West
area of Newcastle, fulfilling a number of roles in the
private rented sector, with the broad objectives of
reducing empty properties, reducing crime, improving
management standards and supporting private
tenants and landlords. This includes a tenant-finding
service for owners and a register of properties
available ‘to-let’ for tenants. It also provides practical
training and advice to landlords. In addition, if the
owner is unable or is not prepared to bring the
property back into use, third parties are identified to
undertake this role. The objective is that the process
of bringing an empty property back into use can be
simplified and therefore become more appealing for
owners. However, the role of the Local Authority
remains critical, in particular if legal powers need to
be called upon.
At the start of the programme, a number of streets were targeted for particular attention in the Arthur’s
Hill area due to the high levels of both long-term voids and anti-social behaviour. Attempts to help the
landlords bring their properties back into use through advertising only had limited success, especially as
no grants were available. The property in question (pictured) was in a particularly poor state. It had been
empty for a number of years, it was not properly boarded up and it had large holes in the roof. The landlord
did not live locally and was difficult to reach, which also made matters more challenging. It was decided
that the only way that the property was likely to be brought back into use was if the owner sold the
property. A two-pronged approach was therefore taken. Firstly, in partnership with the Council, notices
were served in relation to rubbish in the yard and the risks associated with the open access to the
property. Secondly, a landlord interested in buying the property was identified. Following considerable
correspondence, the owner eventually agreed to sell the property to avoid the costs of undertaking the
works and a new landlord purchased the property and brought it back into use within 2 months.
A number of other projects have also been successfully completed along similar lines.
A3 Partnership working
33
3 Assessing feasibility
To identify whether the Local Authority employs
such an officer, you could start by asking the
Local Authority’s reception, viewing its website
or asking staff within relevant Departments of the
Local Authority, such as Planning, Environmental
Health or Housing. Alternatively, you could
contact the Empty Homes Agency, which keeps
details of Local Authority officers involved in
empty property work.
If a Local Authority does not currently have an
empty property officer you could still obtain
useful information by directly contacting the
relevant Departments or teams within the Local
Authority. A number of Local Authorities in
partnership with other organisations, such as
Registered Social Landlords, have also established
separate agencies which may be able to offer
advice and information on bringing empty
properties back into use. These sometimes also
exist in areas that have dedicated Local Authority
Empty Property Officers and provide additional
information and assistance. For example, they
may be able to help you in identifying tenants.
An example is illustrated in Case Study 4. If
these organisations exist, information on them
is generally available through the Local Authority,
or other organisations such as the Citizens
Advice Bureau.
Working in partnership with the Local Authority
is essential. The Local Authority officers involved
should be aware that you, as the owner, have
financial or other objectives and that these
34
Empty property: unlocking the potential
need to be taken on board. However, at the
same time, it is important to recognise that the
Local Authority is generally bringing a project
forwards within the context of a wider Empty
Property Strategy and it has a limited amount
of time and money that it can apply to any one
project. A balance therefore needs to be struck.
Close liaison with the Local Authority is
particularly important when you are involved
with more than one empty property and
demonstrating a willingness to participate in
partnership working should help this relationship
for other projects.
You may also find it helpful to bring your local
Councillor on board to help champion the
project within the Local Authority.
In addition to working with the Local Authority,
it may also be necessary to work with other
people and organisations. For example, if you
are considering converting space above a shop
the input of the person operating the shop,
whether working for your organisation or a
tenant, is likely to be needed.
If a particularly large or complex project is
proposed, regular communication with the
Local Authority and other parties is likely to be
essential and project team meetings involving
the relevant parties may be beneficial. An
example of an owner successfully working in
partnership with the Local Authority can be
found in Case Study 5.
Case Study 5
Partnership working (5) – The benefits of an owner and Local Authority working in partnership
Cornish Place and Brooklyn Works, neighbouring former cutlery factories, lay derelict for eight years before
a developer stepped in to purchase them in 1997. The developer, Gleeson Regeneration Limited, was
seeking to convert the properties, which both have Grade II Listed elements. Gleeson worked with a number
of officers from Sheffield City Council, including officers from its Planning and Estates Departments, to work
up a project comprising about 100 flats and live/work accommodation, together with offices, a pub and a
retail unit. It secured the sale of the site from the Council and a planning permission to enable it to go ahead.
The support from the Council also enabled it to bid for and secure about £2.7 million of grants from Yorkshire
Forward, the Kelham Island Industrial Conservation Area Partnership and the Heritage Lottery Fund. The
project was highly successfully. Of the first phase, completed in December 1999, more than 20 flats were
reserved on the first day. Customers were also ‘camping out’ to purchase the second phase of flats. The high
take up and associated financial returns achieved enabled the repayment of over £1 million to the grant
funding bodies following completion of the project. The project also received praise in the local press for the
partnership working with the Council and has received a number of awards. Gleeson has adopted a similar
approach on other projects based on the benefits that partnership working with the Local Authority brought
in this case.
A3 Partnership working
35
3 Assessing feasibility
A4 Developing skills
The Section is relevant both to Local Authority
officers and to owners. It considers the skills
that may be needed to bring empty properties
back into use and how you can develop your
existing skills or obtain new skills if needed.
This Section is broken down into:
• A4.1 – Why is it important to have the right
skills to bring empty properties back into use?
into use. It is therefore important to have
access to all of the appropriate information,
whether through your own knowledge and
experience or through networks with other
people and organisations. It is also important
to remember that you generally have a legal
responsibility, referred to as a ‘duty of care’, for
the quality of advice given.
• A4.2 – What skills may be needed?
• A4.3 – How can I develop my existing skills
or obtain new skills?
You should read each of these Sections in turn.
Why is it important to have
the right skills to bring empty
properties back into use?
A4.1
Bringing an empty property back into use requires
the investment of both time and money. It is
therefore important to ensure that this is used
to the best effect. A broad range of technical
disciplines may be involved and factors such as
policy or market conditions may change. There
is also an increasing amount of experience of
bringing empty property back into use and the
good practice learnt from this can help to ensure
that you are not ‘reinventing the wheel’.
Developing skills is particularly important if
you are a Local Authority officer, as you may
be called on to provide a broad range of
advice to help bring empty properties back
What skills may
be needed?
A4.2
Unless a project involves relatively minor works,
such as redecorating, a number of steps are
likely to be involved in bringing back into use.
This can be appreciated from the scope of this
guidance. A range of skills is therefore likely to
be needed. Some of these skills apply to most
projects, such as assessing their financial returns.
Others may be specialist and apply on a
limited number of projects only. For example,
refurbishing a Listed Building is likely to need
specialist conservation skills. The skills needed
to bring properties back into use fall into two
different categories – technical and professional.
The main technical skills that may be needed
are summarised in Figure 3. It also highlights
the qualifications that may be needed and the
relevant professional organisations that can
provide details of suitably qualified advisors if
you need to appoint them (see below). The
skills highlighted reflect the main topics covered
in this guidance, although other skills may be
needed on a case-by-case basis.
A3 Partnership skills
37
Figure 3: Developing skills
Skills
Professional advisor
Professional organisation
Assessing whether space is
being used beneficially
Architect
Architects Registration Board
Facilities Manager
Association of Chief Estates Surveyors (ACES)*
Surveyor
British Institute of Facilities Management (BIFM)
Chartered Institute of Building (CIOB)
Royal Institute of British Architects (RIBA)
Royal Institution of Chartered Surveyors (RICS)
Identifying third party
legal rights
Solicitor
Law Society
Undertaking a
measured survey
Architect
Architects Registration Board
Surveyor
Association of Chief Estates Surveyors (ACES)*
Royal Institute of British Architects (RIBA)
Royal Institution of Chartered Surveyors (RICS)
Preparing initial and
detailed designs
Architect
Architects Registration Board
Surveyor
Association of Building Engineers
Engineer
Royal Institute of British Architects (RIBA)
Royal Institution of Chartered Surveyors (RICS)
38
Association of Chief Estates Surveyors (ACES)*
Undertaking a
Condition Survey
Building Surveyor
Preparing a Residual
Appraisal
Surveyor
Taking legal action to bring
a property back into use
Solicitor
Law Society
Securing planning
permission
Planning advisor
Royal Institution of Chartered Surveyors (RICS)
Undertaking building or
conversion work
Building contractor
Empty property: unlocking the potential
Royal Institution of Chartered Surveyors (RICS)
Association of Chief Estates Surveyors (ACES)*
Royal Institution of Chartered Surveyors (RICS)
Royal Town Planning Institute (RTPI)
Chartered Institute of Building (CIOB)
Federation of Master Builders
Skills
Professional advisor
Professional organisation
Drafting legal agreements
(such as leases and
appointment documents for
professional advisors)
Solicitor
Law Society
Maximising tax allowances
Tax advisor
Chartered Institute of Taxation
Selecting tenants/managing
property
Letting agent/
Associated of Residential Letting Agents (ARLA)
Managing Agent
National Approved Letting Scheme (NALS)
National Association of Estate Agents (NAEA)
Royal Institution of Chartered Surveyors (RICS)
*Relevant to staff working within a Local Authority only.
A range of professional skills is also likely to
be needed. These may include:
• Negotiation.
• Partnership working.
• Marketing and securing publicity.
• Project management.
• Data and information management.
As a starting point, it is important to establish
which of these skills you have and to what
level. For example, you may have been
involved in a number of property inspections
previously, although you may not actually be
qualified to undertake an inspection yourself.
Alternatively, you may have experience of
working on housing need issues, but may not
yet have the experience needed to broker the
reuse or conversion of empty properties. In
determining the nature and scope of the skills
you already have and the areas needing
development, it is helpful to use both selfassessment and assessment by others. If you
work for an organisation, this assessment could
form part of your personal review and
development process.
In identifying the level to which you wish to
develop particular skills, it is important to bear
in mind the investment of time and money
needed. This may be particularly important if
there is a fixed budget or competing priorities.
You may therefore need to prioritise the skills
you wish to focus on most or build a personal
development programme to enable them to be
achieved over time. However, you should also
consider the ‘costs’ of not having the appropriate
skills. For example, missing an opportunity for
grant funding due to a lack of awareness of the
programme. For a Local Authority officer and
owners of more than one property, the
resources needed should be considered in the
context of all of the properties with which you
A4 Developing skills
39
3 Assessing feasibility
are concerned. As such, training and
development could be built into and justified
as part of an Empty Property Strategy 24.
• Guidance materials.
• Courses and seminars.
• Magazines and journals.
How can I develop
my existing skills or obtain
new skills?
A4.3
• Working with colleagues.
• Site visits.
• Joining membership organisations.
If you identify the need for additional skills to
help bring empty properties back into use, there
are different ways through which they can be
achieved. These mainly fall into two categories:
• Training and networking. This can be used
to develop existing or new skills. This is
most likely to be relevant to Local Authority
officers and owners concerned with more
than one property. However, it may also be
of interest to the owner of a single property.
• Appointing a specialist advisor. This is relevant
to both Local Authority officers and owners.
• ‘On-line’ information.
You may also be able to identify other
opportunities relevant to your specific needs25.
Guidance materials
There is a range of guidance materials available
that is relevant to empty properties. These can
cover a broad topic, or be more specialist.
Some of the most relevant guidance materials
for empty property work are signposted in this
Handbook. Contact details for some useful
organisations providing guidance are given in
Appendix 1.
You may need to use a combination of these.
A4.3.1 Training and networking
There is a broad range of training and
networking opportunities that are available to
draw on. These include:
40
Courses and seminars
Attending courses and seminars can be a good
way of obtaining both specialist and general
training. Organisations offering courses and
seminars relevant to empty property work include:
24
Further information on preparing an Empty Property Strategy can be found in Section B1
25
Further information on training and networking opportunities can be found in Urban Renaissance Toolkit: An Urban Route Map
and Directory of Information.
Empty property: unlocking the potential
• British Urban Regeneration Association (BURA).
• Chartered Institute of Housing – in
association with the National Association of
Empty Property Practitioners (NAEPP).
• Empty Homes Agency (EHA).
• Royal Institute of British Architects (RIBA).
• Royal Institution of Chartered Surveyors (RICS).
• RICS Regeneration Forum.
• Town and Country Planning Association (TCPA).
Some of these are member organisations (see
below), although some of their courses and
seminars may still be open to non-members.
Private training providers also provide courses
and seminars on subjects relevant to bringing
empty properties back into use. Details of these
can often be found in magazines and journals.
Regional Regeneration Centres of Excellence
are currently being developed to co-ordinate
courses and seminars relevant to regeneration,
as well as other training and networking
opportunities at the regional level. The relevant
Regional Development Agency should be able
to advise you of the launch date in your region.
If you wish to enhance your existing technical
skills as well as to develop presentation skills,
you could consider giving a course or seminar.
This would involve researching around a
specific subject and focusing on the important
issues relevant to others working in the same
area. An example of a course offered by a
Local Authority is shown in Case Study 6.
Magazines and journals
Reading relevant magazines and journals is an
effective way of keeping up to date on empty
property related issues on a week-to-week basis.
Magazines and journals relevant to empty
property work include:
Case Study 6
Developing skills (1) – Training
The East Riding of Yorkshire Council provides a good example of the benefits of running a training course.
In May 2002, the Council arranged a two-day course on harassment, illegal eviction and security of tenure.
The course was designed both for internal staff and for officers from other Local Authorities and partner
organisations. It achieved its aim of bringing the attendees up to date on recent legal developments and
good practice. A fee was charged to cover refreshments and materials but the objective was to keep the
cost as low as possible to maximise attendance. The session was well attended, with delegates drawn
from a number of Local Authorities, including some from as far as Cambridge and London, as well as
representatives from a number of Landlord Associations. The staff involved in organising and taking part
in the session also felt that they had benefited from it.
A4 Developing skills
41
3 Assessing feasibility
• Estates Gazette.
• Housing Today.
• Housing.
• Inside Housing.
In a similar way to giving courses and seminars,
you could consider writing a feature for a
magazine or journal. Most magazines are happy
to receive well-written features. It tends to be
best to discuss your idea with the Features
Editor in the first instance to ensure something
similar is not already planned or to link in with
a future focus on empty property work.
• Local Government Chronicle.
• New Start.
• Planning.
• Property People.
• Property Week.
• Regeneration and Renewal.
• Social Housing.
• Urban Futures.
Some member organisations, such as the Empty
Homes Agency, RICS Regeneration Forum and
National Association of Empty Property
Practitioners, also produce newsletters for their
members (see below). In addition, organisations,
such as legal and surveying firms, often produce
technical briefing notes on specific issues. You
could add yourself to the mailing lists for these.
Details of these firms can be obtained through
relevant professional organisations, which
themselves often produce technical briefings.
These organisations can be found in Figure 3.
26
42
Working with colleagues
If you are a Local Authority Officer or an
owner from an organisation, working with
colleagues can be a good and cost effective
source of experience as well as helping develop
good working relationships26. If you are looking
to develop technical skills you could consider
shadowing a colleague. For example, as a
Local Authority officer you could shadow a
colleague from the Planning Department to
gain a better understanding of how planning
applications are assessed. Similarly, if you are
a property specialist from a retail company
considering the potential to convert space
above shops into flats, you could spend some
time with store managers understanding the
practical issues associated with such arrangements.
The level of experience you wish to gain
should determine how long you should spend.
If you are looking to develop people management
skills, you could also consider acting as a coach
or mentor for other staff members.
Site visits
Site visits can be invaluable in gaining an
appreciation of issues arising ‘on the ground’ in
bringing empty properties back into use and
Further information on partnership working can be found in Section A3.
Empty property: unlocking the potential
how they have been overcome in practice.
A range of membership organisations, Local
Authorities and owners organise site visits to
promote on-site or completed projects. These
are sometimes advertised within magazines
and journals.
‘On-line’ information
A range of helpful ‘on-line’ resources exist,
which include websites and e-mail groups.
These facilitate the exchange of information
and interaction with other relevant individuals
and organisations. Useful examples include:
• BuraNet.com. This is a website available to
British Urban Regeneration Association
(BURA) members. It provides news,
discussion groups and details of publications
and events.
• Empty_homes_network_uk. This is an e-mail
discussion group available to National
Association of Empty Property Practitioners
(NAEPP) members (see below). It provides
the opportunity for members to post and
share useful information and good practice.
• Office of the Deputy Prime Minister (ODPM)
website (odpm.gov.uk/subject_index.htm).
This provides a range of information
including policy and guidance materials.
• Regen.net. This is a website established by
ODPM and other partners. It provides
information on new publications, guidance
and initiatives and identifies seminars,
conferences and training opportunities for
people working in the area of regeneration.
It also has a discussion forum section allowing
best practice and experience to be shared
with other users of the service. Access to
the website is free following initial on-line
registration.
• Renewal.net. This is a sub-site of the
regen.net website and offers similar services
focusing specifically on the work of the
Government’s Neighbourhood Renewal Unit.
Use of this service is also free.
• [email protected]. This is an email discussion group that has been set up
by the Empty Homes Agency. It provides the
opportunity to post and share useful
information, display new legislation and
bulletins. Use of this service is free
following initial registration.
In addition to these sources, you may find it
helpful to view relevant websites for
organisations involved in empty property work
for potential news or updates related to policy
developments or good practice that may be of
benefit. Relevant organisations are highlighted
throughout this guidance and contact details
can be found in Appendix 1. Some of these
websites also enable you to set up e-mail
briefings so that you are notified when new
information is added.
Joining membership organisations
This can be an effective way of accessing a
broad range of training and networking. The
national member organisations relevant to
empty property work include:
• National Association of Empty Property
Practitioners (NAEPP).
• British Property Federation (BPF).
A4 Developing skills
43
3 Assessing feasibility
• British Urban Regeneration Association (BURA).
You should therefore investigate which of these
may be able to offer the most appropriate package.
• RICS Regeneration Forum.
• Property Services National Training
Organisation (PSNTO).
In some cases membership is for an organisation
rather than a person and it may therefore be
possible to share costs with other people or
Departments. Some organisations are more
relevant to Local Authorities and others to owners.
In addition to these organisations, membership
of one of the professional organisations, such
as the Chartered Institute of Environmental
Health (CIEH) or Royal Institution of Chartered
Surveyors (RICS), may also provide access to
relevant information. However, this generally
requires structured training over a number of
years and you therefore need to consider
carefully whether this is appropriate.
Case Study 7
Developing skills (2) – Networking
The Sussex Empty Homes Forum was established in 1997
to act as a main point of contact for all Local Authorities and
other organisations with an interest in empty property issues
in Sussex. Its objectives are to share information, identify
best practice and address mutual training and education
needs. It is attended and supported by 13 Local Authorities,
the Empty Homes Agency, the Government Office for the
South East, the National Housing Federation and the Housing
Corporation. It is a member organisation, with annual
membership fees paid.
The Forum meets bi-monthly and discusses policy and
legislative developments in the field of empty property work
as well as practical issues affecting the day-to-day work of
its members. It also organises a range of training events and
activities, such as inviting guest speakers, providing training
and utilising the training provided by the Empty Homes Agency.
The Forum also seeks through its work to identify areas where policy could be improved to assist the
work of its members. For example, it has worked with the Government to develop the Best Value
Performance Indicator on the reuse of empty property (BVPI 64). The Forum members were concerned
about the practicality of a particular element of the draft guidelines and invited a Government representative
to attend the Forum and listen to their views. The Government responded positively to the recommendations
made by the Forum and adopted the suggested amendments within the final guidelines
44
Empty property: unlocking the potential
A range of regional, sub-regional and local
membership organisations also exist and these
can provide valuable training and networking
opportunities. An example of an empty property
forum for Local Authority officers is shown in
Case Study 7. The Empty Homes Agency
should be able to tell you if there is forum in
your area or offer advice on how to go about
setting up a forum if none exists. A range of
business networking organisations and landlord
associations also exist and details can be
obtained via the Local Authority, Local Property
Agents and organisations such as the British
Chamber of Commerce.
A4.3.2 Appointing a professional advisor
To complement your own skills, you may need
to appoint specialist advisors. At the earlier
stages of a project, a range of specialists can
undertake some of the work. For example,
Architects and Surveyors may be able to provide
indicative costs for a project. At the later stages,
as greater detail is needed, the team of advisors
is likely to need to be expanded.
Specialists could be drawn from within your
organisation. This is likely to be the case for
most Local Authorities and for some owners.
However, if you intend to use internal staff, it
is important to bear in mind that there may be
a charge for their services. Alternatively external
professional advisors could be appointed. In this
case, a fee is generally payable although some
initial advice may be free of charge. It may be
27
possible to agree ‘contingent’ fees where a fee
is only payable if a certain event happens. For
example, a tax advisor may only charge fees if
tax savings are identified. Some professional
advisors also undertake free or ‘pro bono’
work for voluntary organisations27.
Before you appoint an advisor, you should
establish the nature and scope of the works
you need. It is advisable to prepare a written
brief setting out the outputs you are seeking
from the work, the timescales you are working
to and an indication of the budget you have
available for the work. Although you are
inevitably going to need to discuss and agree
the scope of the work with your advisor, it is
advisable to have as clear an idea as possible
of your requirements before entering into these
discussions. This can also make it easier to
compare advisors’ proposals on a like-for-like
basis if you plan to ask more than one advisor
to put forward a proposal for the work.
If you do need to appoint external professional
advisors, you may decide to appoint different
advisors for different roles. Alternatively you
may seek advice from a multi-disciplinary firm
that offers a range of services. The important
issue is that the advisor has the necessary skills
and experience you need. There are a number
of sources from which you may be able to
identify suitable professionals. These include:
• Referrals from other parties that have
used advisors.
Further information on pro bono advice can be obtained from Business in the Community, which runs the National Pro Bono Network
on behalf of the Home Office.
A4 Developing skills
45
3 Assessing feasibility
• Your organisation may keep a list of preferred
advisors. This is frequently the case in Local
Authorities and also some owners. You
should contact the Procurement or Legal
Department or team in the first instance.
• Contacting the relevant professional
organisations. For example, the Royal
Institution of Chartered Surveyors (RICS)
can provide details of Chartered Surveyors.
Some of the relevant organisations are
shown in Figure 3.
This approach is generally better than selecting
advisors direct from newspapers or magazines
as some form of screening of their experience
has usually taken place. In general it is still
advisable to undertake a screening exercise
yourself, tailored to your own specific needs.
The detail you need to go into is likely to
depend on the scale of work you are
commissioning and your specific requirements.
For example, you could review whether they
have relevant professional qualifications and a
track record on empty property work of the
nature and scale proposed. References should
be requested and followed up. You should also
check that they have the necessary level of
Professional Indemnity Insurance to cover the
work. This is needed in the event that the advice
they provide is inaccurate and costs of rectifying
any problems arising from this need to be
recovered. As a minimum, this should be for
the value of the works undertaken, but should
normally be considerably more. The appropriate
amount may vary from project to project and
so you should seek advice from Legal or
Procurement Departments or a legal advisor.
46
Empty property: unlocking the potential
You should also be aware of any rules that
may govern such appointments. Rules may
exist around issues such as:
• The level of authority given to individuals
within the organisation. For example, the
approval of another person may be needed
if the cost of the service is more than a
particular value.
• The number of advisors that need to be
invited to put forward proposals.
• The basis on which a preferred advisor can
be selected. Some organisations may stipulate
that a minimum proportion of the decision
is based on price.
Advice should again be sought.
Once proposals have been received, you then
need to assess them to select a preferred advisor.
The analysis of the proposals is likely to focus
on three main areas:
• The value for money of the services. This
balances the likely quality of the advice with
the cost proposed.
• The ability of that party to deliver the
service in accordance with your timescale
and other requirements.
• The experience of the individuals and how
well they ‘gel’ with the rest of the team.
A potential scoring checklist is shown in Figure 4.
Figure 4: Appointing a professional advisor
Weighting
COMPANY
Office locations
Legal status
Financial position
Office local to client/project?
Staff details, qualifications etc.
Management structure
Proposed person for project
2
2
5
5
1
1
35
PROJECTS
General experience/portfolio
Procurement route
Recent projects of similar value from local office
Recent projects of similar type, time period, quality
from local office
5
5
10
OTHER
Awards
Quality management systems
References
Health and safety policy and record for past 3 years
Insurance details
1
1
1
5
1
PRICE BID
As % of lowest bid
100
GRAND TOTAL
There may also be other considerations. For
example, the location of their office may be
important if the project is complex and may
need regular attendance on site. Reflecting the
fact that each of these criteria may have different
levels of importance to you, you may wish to
‘weight’ them. It is not necessary to reveal to
advisors how you propose to rate them, although
it is advisable to emphasise that price is not the
only consideration.
Score
Total
20
200
If the advisors do not supply you with all of
the information you need, such as omitting
their track record, you may wish to consider
not assessing their application. If they cannot
demonstrate attention to detail at this stage this
may recur at a later stage.
Once you have selected a professional advisor,
you then need to prepare a legal agreement to
cover the works. This should include:
A4 Developing skills
47
3 Assessing feasibility
• The scope of works. This should set out
what is and is not needed and by when.
• Fee arrangements. This should set out how
much is to be paid for the services and
when. This should cover both the base fee
and any arrangements for expenses and
payment of Value Added Tax (VAT).
• Individuals who are to work on the project.
You should ensure that the staff have suitable
qualifications and experience for the nature
and scale of work you are appointing them
to do.
• What steps can be taken if you want to vary
your specification or the work is substandard in some way.
48
Empty property: unlocking the potential
Legal advice should be sought in structuring
this agreement. It may therefore be best to
appoint a legal advisor first so that they can
help you draft the legal agreement with other
specialist advisors.
The process set out above is indicative only.
A number of the professional organisations
referred to above publish guidance on how to
appoint specialists from that profession and
operate telephone help-lines to assist you. In
some cases they produce separate guidance
aimed at larger and smaller projects.
Part B
Prioritising investment
A4 Developing skills
49
3 Assessing feasibility
Introduction
The whole of Part B is relevant to Local Authority
officers and owners concerned with more than
one property. It considers how to prioritise
investment. This is important to ensure that the
time and money you have available is used to
best effect. Part B is broken down into
two Sections:
• Section B1 – Developing an Empty Property
Strategy. This section considers the importance
of setting out your investment priorities
within an Empty Property Strategy and the
main steps involved in preparing and
publicising an effective Strategy.
• Section B2 – Gathering, recording and
interpreting information on empty properties.
This Section considers how to select priority
projects for investment.
You should read each of these Sections in turn.
In theory an Empty Property Strategy is needed
against which investment is prioritised. However,
in practice, a Strategy is often best informed by
information about the empty properties you are
dealing with. An iterative approach is therefore
needed, as illustrated in Figure 5.
Figure 5: Prioritising investment
Developing an
Empty Property
Strategy
Gathering,
Recording
and Interpreting
information
on empty
properties
Introduction
51
In prioritising investment you are likely to need
to call on a range of skills and you may therefore
need to refer to Part A. Once you have read
Part B and produced an Empty Property Strategy
you should then be in a position to select
individual empty properties to bring back into
use. This is covered in Part C.
52
Empty property: unlocking the potential
B1 Developing an Empty
Property Strategy
This Section is relevant both to Local Authority
officers and owners concerned with more than
one empty property. It considers how to develop
and publicise an Empty Property Strategy. This
Section is broken down into:
• B1.1 – What is the purpose of an Empty
Property Strategy and how should it be
structured?
• B1.2 – What steps need to be taken to
develop and publicise an Empty Property
Strategy?
may need to work with in bringing empty
properties back into use28.
It is important that an Empty Property Strategy
is tailored to the purpose for which it is intended.
Given the different roles fulfilled by a Local
Authority and an owner, the content and purpose
of an Empty Property Strategy is likely to differ.
However, there are a number of essential
elements that should be set out within the
Strategy, including:
• Why you are planning to invest in bringing
empty properties back into use.
• The steps that are proposed.
What is the purpose of
an Empty Property Strategy
and how should it be
structured?
B1.1
An Empty Property Strategy is an important
tool in setting out the basis on which you have
chosen to prioritise investment in the empty
properties with which you are concerned.
It can enable you to set out, in one document,
your aims and objectives for bringing empty
properties back into use and how you may go
about achieving this. Writing this down in such
a way that other people can understand your
proposals is a good way of ensuring that they
are clear and focused. An Empty Property
Strategy is also important in securing the buyin of other people and organisations that you
• The benefits that should flow from the
Strategy’s implementation. This should
include any targets set.
• The investment needed in terms of both
time and money and the timescales over
which this investment is to be made.
• How achievements against the objectives set
in the strategy are to be measured 29.
• How and when the Strategy is to
be reviewed.
An example of the contents of a Local Authority
Empty Property Strategy and the steps taken to
prepare it are shown in Case Study 8. An owner
could also use a number of its features.
28
Further information on partnership working can be found in Section A3.
29
Further information on reviewing the outcomes of projects can be found in Section C7.
B1 Developing an Empty Property Strategy
53
Case Study 8
Developing an Empty Property Strategy (1) –
Preparing an effective Local Authority Empty Property Strategy
Plymouth City Council’s Empty Property Strategy 2002-2007) was prepared by the Council’s Empty
Homes Officer in 2001 and launched in 2002. The contents of the Strategy, which won the Empty
Homes Agency’s 2002 award for the best Empty Property Strategy, are summarised below:
• Introduction. This is a précis of the national picture on empty properties and provides a context for
the Strategy.
• Objectives. The objectives for the Strategy are clearly set out in list form and include improving the
existing built environment, supporting area regeneration programmes and providing good quality
affordable housing.
• Background. This provides a brief history of Plymouth’s action on empty properties to date and details
of Plymouth’s Empty Homes Partnership, which brings together a range of partners to bring empty
properties back into use.
• Issues. This considers the main reasons why empty homes are on the Government’s policy agenda,
the steps being taken by Government and the impact of these on Plymouth.
• Plymouth’s Empty Homes. This covers Plymouth’s specific empty homes challenges, including the
scale of the problem and local property market conditions. It also covers whose ownership the
properties are in.
• Targeting the problem. This covers databases, mapping and research. It provides an explanation of
how private sector empty properties are mapped, which priority properties have been entered on to a
direct database and why, an explanation of priorities together with a chart detailing empty properties
by ward and area.
• Identifying Solutions. This identifies who the Local Authority will need to work with and how it should
go about it. This includes both Council Departments and other organisations. It includes details of
different funding programmes and when they apply. It also provides a flowchart setting out how the
Council’s Empty Homes Officer can deal with a range of different empty property situations.
• Programmes And Initiatives. This covers specific strategic proposals to bring empty properties back
into use including area-based regeneration initiatives and grant programmes. It outlines the steps
currently being undertaken and future steps proposed in each case.
• The Way Forward. This sets out the Council’s main objectives and targets, linking these in with the
Best Value process.
54
Empty property: unlocking the potential
Whilst drafting the Strategy, the Registered Social Landlord
members of Plymouth’s Empty Homes Partnership and appropriate
Council officers were consulted informally on sections of the
document relevant to them. The draft Strategy was then sent to
160 individuals and organisations with a questionnaire survey for
their response. Many of the suggestions included in the returned
questionnaires were incorporated into the document. The Strategy
took nearly six months from its inception to the final draft and it
is estimated that the Empty Homes Officer dedicated around 90
hours to the production of the Strategy, including its research,
writing, consultation and publication.
The Strategy replaced Plymouth’s first five-year Empty Homes
Strategy for 1996-2001, during which time the Empty Homes
Partnership and it’s programmes and initiatives had expanded
considerably, with 800 homes brought back into use over that
period. Also, the property market and the funding regimes
available to target empty properties had developed significantly.
It was important to rewrite the document to reflect these
developments and to report back on the progress achieved during those five years. It was also essential
to link in with other emerging City-wide strategies relevant to empty homes in order to maximise the
impact of resources and effectively plan for the future. Production of the Strategy has helped to clarify
and inform on the nature of Plymouth’s empty homes and on the role, objectives and priorities of the
Empty Homes Officer and Partnership. It has also raised the profile of empty homes in Plymouth, with
increased interest from Councillors, developers and the general public.
What steps need to be
taken to develop and publicise
an Empty Property Strategy?
B1.2
In the same way that the structure of an Empty
Property Strategy is likely to differ for Local
Authorities and owners, the approach taken to
developing and publicising it is also likely to
be different. There are, however, a number of
essential steps that apply in both cases.
These include:
30
• Identifying the case for investment. The first
step should be to set out the basic issue that
you are seeking to address and the reasons
for doing so. It should include the scale of
empty property concerned and its impact.
The Case for Action document that forms
part of this guidance should assist you. As
part of the iterative process that is needed
in preparing an Empty Property Strategy
(see above), you can also use information
gathered about empty properties to inform
this stage30. It is important to recognise that
Further information on gathering details on empty properties can be found in Section B2.
B1 Developing an Empty Property Strategy
55
3 Assessing feasibility
Anecdote 3
Developing and publicising an Empty property strategy (1) – Securing buy-in from key stakeholders
“In preparing an Empty Property Strategy it is essential to outline what benefits each party should gain
from bringing empty property back into use. You have to demonstrate that it will be a ‘win-win’ situation
for an owner, the Local Authority and other stakeholders, including the local community. To help convince
owners it can be helpful to introduce them to other owners you have been able to help so that they can
get a first hand insight into the potential support and assistance available from the Local Authority.”
Keith Gunner, Empty Property Policy Officer, Southampton City Council
56
decisions by those responsible for approving
investment are unlikely to be made solely
on the basis of the case for investment but
also set against other competing objectives.
It is therefore essential that you make the
case as strongly as possible. This is
illustrated in Anecdote 3.
It may also be helpful in each case to set
interim milestones so that progress can be
measured more regularly and steps can be
taken to rectify any difficulties early in the
process. Alongside the targets it is important
to set out how progress is to be measured.
You should consider how you will:
• Setting goals and targets. These should
capture the main objectives you and your
stakeholders wish to achieve through the
Strategy. The goals should be broad strategic
objectives. The targets should be quantifiable
wherever possible so that progress can be
measured. For example, one of the goals of
a Local Authority Empty Property Strategy
may be to reduce the need for temporary
housing. The associated target may be that
within the next three years, 50 people or
families can be taken out of temporary
housing and placed in empty homes brought
back into use under the Strategy. For an
owner, one of the goals may be to secure
financial returns with the associated target
being to secure 10% profit on costs expended.
– Report progress. This should be reported
to stakeholders. For Local Authorities, it
should be featured in relevant reports to
Senior Officers and Councillors. For owners,
this should be to senior staff and Board
Members. It is also helpful to record any
good practice and media coverage
obtained from specific projects.
Empty property: unlocking the potential
– Account for and address any
underperformance against targets.
Interim review arrangements would be
beneficial against interim milestones set. This
should also provide the flexibility to adjust
the Strategy to respond to changing needs.
Targets should take into account any wider
targets set by the Local Authority, such as
under Best Value, or targets set by other
organisations, such as the Greater London
Assembly’s target on bringing empty
properties back into use. The Government is
proposing to establish Regional Housing
Strategies, which may also include empty
property targets. Colleagues within the Local
Authority’s Housing Strategy Department
should be able to advise you as these
proposals are taken forwards. It is important
to be realistic about targets in light of the
resources available. An example of a Local
Authority setting targets is shown in Case
Study 9. An owner may also be able to set
similar targets of bringing a certain number
of properties back into use each year.
Creating project prioritisation criteria. It is
important to prioritise investment in order to:
• Make effective use of the time and
money available.
• Build momentum.
• Demonstrate positive outcomes to reinforce
the case for investment to stakeholders.
The approach to be taken is likely to be different
for Local Authorities and owners. A Local
Authority’s priorities are likely to be set against
two main factors. On the one hand, a Local
Authority’s Best Value performance is assessed
against the number of empty properties brought
Case Study 9
Developing an Empty Property Strategy (2) – Setting targets
To accompany its Private Sector Housing Strategy, the London Borough of Hammersmith and Fulham
produced an Action Plan, which sets targets for the reuse of privately owned empty properties. The Action
Plan, which was approved in July 2002, has the central objective of reducing the number of long-term
empty properties across the Borough by 50% and cutting the average length of time that properties
remain empty. It does this by prioritising investment at properties that have been empty for the longest
time. These properties include most of the eyesores and derelict empty properties in the Borough that are
a cause of concern for residents and local businesses. The Council’s target is that, by 2012, there will be
no privately owned properties that have been empty for over five years. It has identified 565 empty
properties currently falling into this category. Of these, 480 properties have been empty for between 5
and 10 years and 85 properties have been empty for 10 years or over. This alone means that each year,
on average, over 50 properties need to be brought back into use. However, the Council also needs to
focus on properties that are currently empty for less than five years or properties that are at risk of becoming
empty so that these do not fall into the long-term empty category. The Council has set annual targets of
bringing 200 properties back into use each year and it will be reviewing its success at the end of the year
to determine how effective it has been and whether new approaches are needed to meet its overall target.
B1 Developing an Empty Property Strategy
57
3 Assessing feasibility
back into use. This would naturally draw focus
towards those projects on which limited
assistance is needed from the Local Authority31.
For example, ones involving the Local
Authority introducing a third party such as a
Registered Social Landlord to take the lead on
the reuse or conversion of the property. On the
other hand, the Local Authority’s duty to
address properties in serious disrepair means
that significant time and money may be tied up
in bringing a property back into use. A balance
therefore needs to be struck between both of
these factors. Case Study 10 shows how one
Local Authority identifies which properties
represent a high priority. An owner could
adopt a similar approach.
Case Study 10
Prioritising investment
The East Riding of Yorkshire Council attaches importance to bringing all empty properties back into use.
However, it has to make effective use of the time and money is has available. To assist the Council in
prioritising its investment, it has therefore developed a set of priorities. Numbered from 1 to 7, where 1 is
of highest priority, the list enables the Council to determine the importance of an empty property of which
it becomes aware and with what level of urgency it needs to take steps to bring it back into use.
The priority list is:
1 Over 6 months and causing nuisance with history of complaints or notices served and in a priority area.
2 Over 6 months and in a priority area.
3 Over 6 months and causing nuisance with history of complaints or notices served not in a priority area.
4 Over 6 months and in poor condition not in a priority area.
5 Over 12 months not causing nuisance and not in a priority area.
6 Less than 12 months not causing nuisance and not in a priority area.
7 Less than 6 months not causing nuisance and not in a priority area.
Although every project is in practice reviewed on its merits to ensure that all circumstances are taken
account of, the Council has found this priority list to provide a helpful starting point when it becomes
aware of an empty property.
31
58
Further information on Best Value for empty property can be found in Best Value Performance Indicators 2002/2003 and Code of
Guidance: Application of BVPI64.
Empty property: unlocking the potential
For an owner, priorities are also likely to be
determined based on a number of considerations,
including:
• Financial considerations. Those projects with
the higher financial returns or needing least
financial investment may be targeted initially.
• Risks. Those properties where there is a risk
of legal action from the Local Authority or
third parties may be a high priority 32.
• Profile. Those properties that have a poor
public reputation and may consequently
receive greater public profile may be a
higher priority.
• Building momentum. It may be better to
identify some of the properties that can be
brought back into use relatively easier. This
need not mean that the properties are the
least challenging in terms of their state of
repair. Instead it may mean that some
properties are initially sold to a third party,
such as a private landlord or a Registered
Social Landlord, until sufficient skills and
experience are developed for you to bring
other properties back into use yourself.
Each of these factors and any others that are
appropriate should be weighed up in assessing
those properties that should be tackled as a
high priority.
• Writing the strategy. The potential contents
of an Empty Property Strategy are considered
in Section B.3.1, above. For Local Authorities,
it may be possible to ask other Local
Authorities with similar characteristics if you
can have a copy of their Strategy to inform
the preparation of your own. Being part of
a network with other Local Authority officers
involved in empty property work should
assist in this33. It is, however, important to
note that each Local Authority has unique
characteristics, which need to be reflected in
the completed Strategy. The Strategy also
needs to effectively integrate with other
strategies. For a Local Authority, its Housing,
Neighbourhood Renewal, Regeneration and
other strategies may be appropriate. For an
owner, the Empty Property Strategy may
need to link to or be part of a wider
property strategy.
• Publicising the Strategy. Once formal
endorsement has been obtained (see below),
the Strategy can then be publicised. For an
owner, the Strategy may remain an internal
document and publicity is therefore only
likely to be to internal stakeholders. For
example, for a retailer, this may be brought
to the attention of retail managers since they
may have an important role both in identifying
conversion opportunities and bringing them
forwards. On the other hand, bringing an
empty property back into use may demonstrate
a ‘social responsibility’. It may therefore be
appropriate to bring it to the attention of
external stakeholders, including Local
Authorities and the public. For a Local
Authority, there is likely to be some internal
awareness raising, but with the majority of
emphasis placed on publicity to owners and
32
Further information on legal action can be found in Section C1.5. Further information on third party legal rights can be found
in Section C.3.2.1.
33
Further information on networking opportunities can be found in Section A4.3.1.
B1 Developing an Empty Property Strategy
59
3 Assessing feasibility
other external parties. Internal communication
will be important since officers involved in
regeneration projects may be asked to
advise on an empty property but not have
detailed experience to apply. If they are
aware of specialist Empty Property Officers
they can ask directly for their support.
External publicity can also be important,
particularly for Local Authorities that need to
raise awareness with owners, property
developers, Registered Social Landlords, the
public and other parties34. For both internal
and external publicity purposes, endorsement
from relevant stakeholders can help give
credibility and should therefore be capitalised
on in raising awareness. It may also be
helpful for the Strategy to be ‘glossy’ and
graphically designed to make it more ‘reader
friendly’. The importance of publicising an
Empty Property Strategy is illustrated
in Anecdote 4.
A workable Strategy cannot be a standalone
document developed by a single person.
It should reflect the objectives of all relevant
stakeholders. It is therefore essential to engage
with stakeholders throughout the development
of the Empty Property Strategy. For a Local
Authority, there is a range of internal and
external stakeholders that need to be brought
on board35. For an owner, there may also be
stakeholders. For example, if you are within
Anecdote 4
Developing and publicising an Empty Property
Strategy (2) – Securing effective publicity
“Effective publicity is critical to a successful Empty Property
Strategy. It is quicker and more cost effective than longwinded investigation in reaching a large number of property
owners. Those that respond are also likely to be more
receptive to the advice and information you have to give.
Bristol City Council has used many different methods of
advertising that have been both paid and free. These include
commercial radio, local press, cable television, bus advertising,
videos at local shopping centres and hospitals, leaflets
(pictured), posters, payslips, newsletters and landlords
associations. In some cases we have shared advertising with
neighbouring local authorities to reach the maximum number
of owners of empty properties.
Tony Barnett, Empty Property Officer, Bristol City Council
60
34
Further information on publicising Local Authority empty property work can be found in Sections B2.2 and C7.
35
Further information on the people and organisations a Local Authority needs to work with in bringing empty properties back into use
can be found in Section A3.1.
Empty property: unlocking the potential
the property team of a retailer then the retail
managers should be involved in setting
the Strategy.
If you are a Local Authority officer, a range of
resources may be needed to bring empty
properties back into use, including:
Effective stakeholder engagement is needed at
all stages and may include:
• The time needed to provide advice and
support. Whose time is this? How many
people is it likely to involve? Is it likely to
involve new appointments or secondments?
• A workshop with all interested parties as
part of the goal setting and target setting.
• Regular progress reports at key stages in the
preparation of the guidance.
• Securing endorsement of the draft Strategy.
Regular consultation during the development
of the Strategy should enable this to be
achieved relatively quickly. However, sufficient
time should be allowed recognising that it
may need to be factored into a reporting
cycle for a Committee, Cabinet or Board.
• Involvement in publicising the Strategy.
It is also important to have regard to resource
availability.
Bringing empty property back into use requires
the investment of time and money. It is also
important to quantify the resources that may be
needed before taking steps to bring individual
empty properties back into use. This can enable
the most to be achieved with the time and
money available.
• Financial investment. A budget is needed for
any grants or loans made by the Local
Authority. Although loans should be repaid
in due course, it is important to have a
budget available initially. It is advisable for
the Local Authority to have a clear grants
and loans policy 36.
• Marketing and promotion. Much of the
awareness raising is likely to involve free
publicity, such as using the Local Authority’s
newsletter and tapping into other organisations’
promotional activities. However, a marketing
budget does need to be allocated. For example,
this may cover the cost of producing posters
and printing the Empty Property Strategy37.
• Legal action to bring a property back into
use. The Local Authority may incur costs of
building or refurbishment works in using its
legal powers. Although it may be possible
to recover these costs at a later stage, either
from the owner or by securing the sale of
the property to a third party, they would
need to be met in the first instance. Although
decisions on investment can be made on an
ad-hoc basis, this is unlikely to enable a
36
Further information on preparing a grants policy can be found in Preparing an Effective Grants Policy: A Briefing Note.
37
Further information on Local Authority marketing and promotion can be found in Sections A1.2 and C7.3.
B1 Developing an Empty Property Strategy
61
3 Assessing feasibility
prompt response, which may be essential if
a property poses an immediate danger. It is
therefore advisable that a dedicated budget
is set aside within the Local Authority which
can support the initial investment in bringing
properties back into use and any repayments
by owners or sale proceeds are repaid into
it. In this way it can provide a flexible ‘fund’.
It may be difficult to quantify the time and
money needed to bring all of the empty
properties with which you are concerned back
into use. However, a broad estimate is better
than no estimate.
As an owner, you need to consider the time
involved in bringing empty properties back
into use and the fees for any professional
advisors needed.
In practice, there may be a range of demands
on your time and money. This may mean that
you do not have the resources needed to bring
all of the empty properties with which you are
concerned back into use in one go. It is
therefore important to prioritise investment.
62
Empty property: unlocking the potential
Targets are a good means of assessing your
success in bringing empty properties back into
use. They can also be an important way of
demonstrating the benefits that can be achieved
as a result of the time and money invested. In
arriving at suitable targets you should set
challenging objectives, but ones that are
also realistic.
The process of developing an Empty Property
Strategy is summarised in Figure 6. There are
no set rules on how long this may take. For a
Local Authority, a rule of thumb is around six
months from the initial analysis through to
publicising a final, approved version. Within
this, sufficient time needs to be allowed for
effective consultation, including relevant Committee
and Cabinet cycles. It may, therefore, take
longer than six months. For an owner, the
nature and scope of consultation needed is
likely to be less and as such it should generally
take less time to develop the strategy. It should,
however, be borne in mind that the Strategy
should be ‘kept alive’ by making it capable of
being up-dated on a regular basis.
Figure 6: Preparing an empty property strategy
Setting goals
and targets
Consider
resource
requirements
Creating project
prioritisation criteria
Stakeholder
inputs
Writing an Empty
Property Strategy
Publicising an Empty
Property Strategy
B1 Developing an Empty Property Strategy
63
3 Assessing feasibility
B2 Gathering, recording and interpreting
information about empty properties
• Contact details for the owner, if
appropriate 38.
This Section is relevant both to Local Authority
officers and owners. It considers the information
needed to enable investment to be prioritised
and the best methods through which to record
and interpret it. This Section is broken down into:
• Details of anyone else who may have a
legal interest in the property39.
• B2.1 – What information is needed about
empty properties?
• The property’s address, including its
postcode.
• B2.2 – Gathering information about
empty properties.
• The property’s use. This should include its
current use if space could be used more
beneficially or its previous use if it is
unoccupied. It may also be appropriate to
record any use for which Planning
Permission has been granted40.
• B2.3 – Recording information about
empty properties.
• B2.4 – Interpreting information about
empty properties.
You should read each Section in turn.
What information is
needed about empty
properties?
B2.1
To enable effective decisions to be made on
bringing empty properties back into use, a
range of information about each properties is
likely to be needed. As a minimum this
may include:
• The size of the property. This may relate
just to the area of the property, although for
larger properties it may also include the area
of the land 41.
• A description of the property. For example,
a 1930’s semi-detached house or a 19th
Century complex of mill buildings. Photographs
of the property may also be helpful.
• The period for which the property has
been empty.
• Details of any complaints made or notices
served against the property.
38
Further information on identifying the owner of an empty property can be found in Section C1.2.
39
Further information on third party legal interests can be found in Section C3.2.1.
40
Further information on consents can be found in Section C4.
41
Further information on measuring properties can be found in Section C3.2.1.
B2 Gathering, recording and interpreting information about empty properties
65
• The condition of the property. This may
initially be a general observation, such as
the property is in a poor condition. If a
Condition Survey has been undertaken the
results of this should be used 42.
• Local area information. This could include
details of the local property market in which
the property sits and whether it falls within
any strategic regeneration areas.
There may be additional information you wish
to gather. For a Local Authority officer, it is
advisable to check with other Departments to
establish what information they may find helpful
so that the database can be used more widely.
Gathering information
about empty properties
B2.2
It is important to identify as many empty
properties as possible so that you have a clear
perspective of the issues faced. Local Authorities
and owners will need to use different techniques.
These are considered in turn.
66
B2.2.1 Techniques available to
Local Authorities for identifying
empty properties
Local Authorities generally need to identify all
empty properties in their area43. This can
involve significant time. There is no single way
to identify potential empty properties. A range
of techniques is therefore needed. These include:
• A tour of the area. This is an important
starting point and it may be helpful to do
this with other colleagues to benefit from
their local knowledge. This may help identify
more obvious empty properties 44. However,
it is likely to have limitations since some
properties may not have obvious signs of
being empty.
• Working with Local Authority colleagues.
A range of Local Authority Departments may
deal with empty properties in the course of
their work45. They are therefore likely to hold
a record of the location of the properties
concerned. Working in partnership with
colleagues can help both to initially identify
potential empty properties and ensure that
they notify you of any other empty properties
that later come to their attention. It is,
however, important to note that there are
legal rules governing the way in which
information is shared within a Local Authority46.
42
Further information on assessing the condition of a property can be found in Section C.3.1.1
43
This guidance deals mainly with privately-owned empty properties, although your role is likely to extend to publicly-owned empty properties
as well. Although many of the techniques referred to in this section are equally valid you should seek appropriate specialist advice.
44
Further information on identifying empty properties can be found in Section A1.2.
45
Further information on the Local Authority Departments likely to be involved in empty property work can be found in Section A3.
46
Further information on information sharing can be found in Section A3.1.
Empty property: unlocking the potential
• Working with other organisations. A number
of organisations may hold information on
empty properties. These include:
– The Post Office. Sorting Offices sometimes
keep lists of empty properties, if it is
apparent that the property is no longer
occupied or access cannot be gained.
Although, they are legally restricted from
sharing details of specific properties, they
may be prepared to give general
information, such as that there are 25
empty properties in the postcode area
B44. This can then enable you to build
up a picture of where the strongest
concentrations of empty properties exist.
You could then write to all properties in
that area outlining the Local Authority’s
work on empty property. Any letters that
are returned to you by the Post Office
may indicate that the property is empty.
Other techniques can then be taken to
confirm this. This approach can be built
into a wider publicity strategy for the
Local Authority’s empty property work
(see below).
– Local Property Agents. If an Agent has
been instructed to sell or lease a property
then there is a realistic prospect that it
may be brought into use and is not
therefore covered by this guidance.
In such cases, the Agent is also legally
limited in the information it can supply.
However, Agents have a wider knowledge
of the local area and may identify empty
properties on a day-to-day basis and may
be prepared to share this information
with you.
– Solicitors. For a variety of reasons,
Solicitors may have responsibilities for
empty properties. For example, it might
be that the owner has passed away or
moved into residential care. Although
Solicitors have special legal duties that may
prevent them from sharing information
on the location or owner of empty
properties, it may be possible to provide
information to them that they can share
with any owners that they are acting for.
Details of local Solicitors can be obtained
from the Law Society.
– Utilities providers. If an owner or occupier
of a property has moved out, or they
have failed to pay bills, the utilities supply
may be cut off by the provider. Although
utilities providers are generally not
permitted to share information on empty
properties, you could also ask them to
forward information to owners if they
hold contact details for them. A good
starting point to identifying utilities
providers in your area is to contact the
Utilities Regulating Bodies.
– Refuse collectors. They may identify
properties where rubbish has not been
put out for a period of time. In some
cases, the organisations responsible for
refuse collection are part of the Local
Authority. In other cases they are private
firms. The Local Authority’s Environmental
Health Department should be able to
provide contact details in each case.
– Private landlords, property developers
and Registered Social Landlords. These
B2 Gathering, recording and interpreting information about empty properties
67
3 Assessing feasibility
are likely to come across empty properties
in their day-to-day work.
– Emergency services. The local Police and
Fire services are likely to come across
empty properties in the course of their
work. Working with them can be helpful,
as shown in Case Study 11.
• Launching a publicity campaign. This can be
very effective in identifying empty properties
by raising public awareness, since local
businesses and residents are often in a good
place to identify empty properties in their
communities. There are a number of
techniques that could be used, including:
As with working with Local Authority colleagues,
it is important to work in partnership with all
of these organisations47.
– Securing coverage in local newspapers or
journals. This can convey a lot of
information to a broad audience. To
avoid the expense of paid advertising,
you could tap into the topical interest
Case Study 11
Identifying empty properties (1) – Local Authorities working with other agencies
In Newcastle, Newcastle City Council, the local Police and Fire Services and other parties have come
together to form the Newcastle Arson Task Force. Its objective is to identify empty properties and ensure
they are made secure as quickly as possible to avoid incidents of arson and other damage, such as
vandalism. Operational fire fighters and beat police officers often have to deal with empty properties on a
day-to-day basis. The arrangements in place enable them to report these to dedicated officers in the
Local Authority. The officers then take steps to bring the property back into use and recover the associated
costs from the owner. The benefit of the Task Force is that it makes use of the local knowledge held by
the Police and Fire Services as well as forging closer links with them to give communities greater confidence
that the public sector is working together to actively address issues of anti-social behaviour.
47
68
Further information on partnership working can be found in Section A3.
Empty property: unlocking the potential
Case Study 12
Identifying empty properties (2) –
London Underground posters
Posters can be an effective publicity tool. During the
Empty Homes Agency’s London Week of Action in
October 2002, several Local Authorities developed
a poster to be displayed in the London Underground.
The poster (pictured) highlighted the problems posed
by empty properties and gave details of how members
of the public could report empty properties they
were aware of. This was in a highly visible location,
thereby maximising its potential effect.
around empty property and issue press
releases and, ideally, develop feature
articles. This is generally free of charge,
although it does need the investment of
time. In addition to local commercial and
free newspapers, you could also use the
Local Authority’s paper if it has one.
– Securing coverage on radio or television.
This can also reach a broad audience.
Similarly, to avoid the costs of advertising,
you could use an interview or news item.
This is likely to be relatively brief and it
is therefore important to focus on
important messages.
– Producing leaflets and posters. This can
convey messages quickly to a broad
audience. In order to be effective, they
need to include a relatively small amount
of information so it is also important to
focus on key messages. An example of a
poster used to raise awareness of empty
properties is shown in Case Study 12.
– Posting information on the Local
Authority’s website. This is only likely to
reach those people using the website,
which may be a relatively small crosssection of your target audience. However,
it can help reinforce other publicity
messages and is generally free of charge.
It is advisable to work with your IT
Department to ensure that search terms
such as ‘empty homes’ and ‘empty
property’ lead directly to information on
your work.
– Establishing a telephone ‘hotline’ for
members of the public to report empty
properties. This can be very effective,
since it provides an easy way for people
to report empty properties. For example
neighbours may wish to report an empty
property without having to complete
formal records. It is important that the
hotline number is actively marketed and
staffed. As such, it should form part of a
wider publicity campaign. You could also
B2 Gathering, recording and interpreting information about empty properties
69
3 Assessing feasibility
Case Study 13
Identifying empty properties (3) – Empty property hotline
A property in Malvern Road in the London Borough of Brent was a former bed-sit that had lain derelict
for a number of years. In October 2000, it was identified as being in need of attention through the London
Empty Homes Hotline and was referred to the London Borough of Brent. The Council’s Empty Property
Officer identified the owner and worked with them to secure planning permission to convert the property,
select a Registered Social Landlord and enter into a lease agreement with them. A grant of around
£500,000 was secured towards the total project costs of around £1.2 million. The project, which comprises
27 flats, should be completed by Summer 2003. All the flats are to be used for affordable housing for the
first 10 years with 6 remaining permanently as affordable housing.
consider setting up a hotline jointly with
other Local Authorities. For example, in
London, Local Authorities can link into
the London Empty Homes Hotline, which
is part-funded by the Great London
Assembly and operated by the Empty
Homes Agency. An example of a property
brought back into use as a result of a
hotline enquiry is shown in Case Study 13.
– Events – These could be targeted at a
narrow audience, for example speaking
at a Landlords seminar, or at a wider
audience, by organising a week of
different linked events. Suitable events
might include the launch of a successfully
completed project48.
It may be best to use a number of these
approaches to achieve an effective publicity
campaign as well as others you feel are
appropriate, subject to available resources. In
structuring a publicity campaign you need to
70
consider the extent of coverage you can obtain
and the associated time and money that need
to be invested. It is advisable to obtain assistance
from the Local Authority’s press office and to
link this into an Empty Property Strategy to
help justify the investment made in the context
of the benefits that can be derived from bringing
empty properties back into use49. Some market
research may also help, such as establishing
the readership profile of each of the local
magazines and journals. Use of ‘real life’
examples may help to highlight and explain
the issues and motivate people to become
involved. This is shown in Case Study 14.
It may also be beneficial to integrate the
publicity campaign with that of other
organisations, thereby benefiting from the
associated press coverage. For example, each
year the Empty Homes Agency runs both a
National Week of Action and a Week of Action
dedicated to London. With all of these forms of
publicity, it is important to make the audience
aware of how you can be contacted.
48
Further information on promotion based around successful schemes can be found in Section C7.3.
49
Further information on preparing an Empty Property Strategy can be found in Section B1.
Empty property: unlocking the potential
Case Study 14
Identifying empty properties (4) – Maximising publicity
The London Borough of Harrow was involved in bringing a 1930’s semi-detached house in the Kenton
area of the Borough back into use. The property, which had been empty for 29 years and was in a state
of severe disrepair, was reported to the Council by local residents. A local newspaper, the Harrow Observer,
ran an article on the Council’s empty property work, focusing particularly on the successful reuse of this
property. This in itself brought valuable attention to the Council’s empty property work. However, the
article was then read by a reporter for BBC London Daily News who approached the Council and then
came and filmed a television feature that was broadcast on a number of news editions. The use of a
particularly interesting case study therefore led to considerable publicity, helping the Council to raise the
profile of bringing empty properties back into use.
requests with the work of other Local Authority
Departments both to save costs and to avoid
‘information overload’. For example, you could
link into housing benefit mailings to private
landlords.
These techniques are summarised in Figure 7,
although other techniques may be appropriate.
It is advisable to apply all of these techniques,
subject to available resources. However, it is
important to note that these may still not
identify all empty properties in the area. For
example, space may be capable of more
beneficial use, although the owner has never
actively considered this.
B2.2.2 Techniques available to owners
for identifying empty properties
Identifying empty properties is not a one-off
exercise. It is important to continue to use these
techniques at appropriate intervals to keep this
information up to date. In addition, if you are
regularly contacting other people and organisations
for information, it is important to develop a
good working relationship, offering them
advice and support for their empty property
work subject to the legal rules on data sharing
(see above). If you are contacting people or
organisations outside the Local Authority, it is
also advisable to combine any information
50
As an owner, your objective is to identify those
properties in your ownership that are empty.
The starting point should therefore be to
establish all of the properties that you own.
You should then apply the empty property
definition to these 50.
In some cases identifying the properties in
your ownership may be straightforward.
However, in other cases it may be more
difficult. For example, incomplete property
records may exist.
Further information on the characteristics of an empty property can be found in Section A1.1.
B2 Gathering, recording and interpreting information about empty properties
71
3 Assessing feasibility
Figure 7: Identifying empty properties
Marketing
and
publicity
Touring
the
area
•
•
•
•
•
•
Post Office
Local property agents
Solicitors
Utilities providers
Refuse collectors
Private landlords, property
developers and Registered
Social Landlords
• Emergency Services
Techniques for
identifying empty
properties
Working
with other
people and
organisations
In practice, you should seek to identify not
only those properties that you own, usually
referred to as ‘freeholds’, but also any properties
over which you have similar long-term rights.
For example, a ‘long lease’ may permit building
and refurbishment works.
Information on such properties may be contained
in a range of documents and records, including:
72
Empty property: unlocking the potential
•
•
•
•
•
•
Newspapers/journals
Radio/TV
Flyers/posters
Local Authority website
Telephone hotline
Events
Working with
Local Authority
colleagues
• Housing Management
• Environmental Health
• Planning and Building
Control
• Regeneration, Economic
Development and Housing
Strategy
• Property and Estates
• Council Tax and Rating
• Legal documents. For example, deeds or
leases may contain useful information.
• Property records. These may show some
details on the property interests of a business.
For example, it may be possible to identify
empty properties in your ownership by
considering those properties where rent is
not being paid.
whether a property is empty, you are likely to
be particularly interested in whether the property
is occupied and, if it is, whether the space is
being used beneficially.
• Checking your own Council Tax and Rates
payments, to determine whether you are
benefiting from exemptions or discounts51.
Colleagues within your organisation, if
appropriate, may also be able to provide details.
Once you have identified the properties in
your ownership, you then need to establish
whether they are empty. In establishing
If you do not know whether the property is
occupied you could inspect it and make
enquiries of the neighbours52. It is important to
note that a lack of occupation may not mean
that legal rights do not exist over the property 53.
Case Study 15
Recording and interpreting information on empty properties (1) – Empty property database
Empty property officers at Brighton & Hove City Council have worked with their IT Department to develop
an IT-based empty property database. The database (pictured) records a range of details, including how
the empty property was identified, its owner (if known) and a description of the property. This enables the
Council to build up a detailed picture of information on empty properties in the City.
The information can be used by the Council to
identify the total number of empty properties in the
area, specific locations in the District with high
concentrations of empty properties and other
patterns. The database also produces a range of
reports including detailed reporting of the Council’s
Best Value performance. The benefits of the
database are therefore both its simplicity and its
ability to generate helpful information from basic
details on each property. The database has been
posted on the Empty Homes Agency’s website for
free use, along with instructions on how to use it.
51
Further information on Council Tax and Rates can be found in Section C3.2.2.
52
Further information on inspecting a property can be found in Section C3.2.1.
53
Further information on legal rights over a property can be found in Section C3.2.1.
B2 Gathering, recording and interpreting information about empty properties
73
3 Assessing feasibility
Recording information
about empty properties
B2.3
Given the number of properties you may
potentially be dealing with, it is important to
have a flexible tool to record information. This
is so that it can be used later to interpret the
information and so that other empty properties
can be added later if needed. It is advisable to
use an IT-based empty property register or
database of some form since this generally
gives more flexibility for both data storage and
interpretation than a paper-based system. It can
also enable different databases to be linked so
that information can be shared54. Although a
complex database could be used, a basic
electronic spreadsheet may be adequate.
An example of an empty property database
developed by a Local Authority is shown in Case
Study 15. Although this includes information
specific to a Local Authority, owners dealing with
more than empty property may also find it useful55.
Interpreting information
about empty properties
B2.4
Once you have recorded information on the
empty properties with which you are concerned,
you can begin to interpret it. The issues you
examine could include:
74
• How many empty properties are there?
• Do empty properties represent a significant
proportion of the total properties with which
you are concerned? For a Local Authority,
what proportion of the total amount of
empty homes and commercial property
within the area does this represent? This
calculation can be based on the number of
properties or their size. For a Local Authority,
although you could use the number of
empty properties identified above, even
with all of the techniques considered you
may not have identified all of the empty
properties with which you are concerned.
This should therefore be considered alongside
the Local Authority’s annual Housing
Investment Programme return which can
give a more ‘global’ figure. For an owner,
what proportion of the total number of
properties owned does this represent? This
can also be based on numbers or size.
• Where are the empty properties? For example,
are there particular clusters or ‘hot spots’ of
empty properties? Although you can begin
to build a picture of location from postcodes,
you should be able to analyse the information
in a more meaningful way if you have a
more sophisticated method. For example, an
empty property database could be linked
into a Geographical Information System
(GIS), which can overlay properties onto a
map. An example of a Local Authority
mapping tool is shown in Case Study 16.
54
In doing so, Local Authorities need to take account of legal restrictions on information sharing, further details of which can be found
in Section A3.1.
55
Further information for owners on keeping good property records can be found in Property Solutions.
Empty property: unlocking the potential
Case Study 16
Recording and interpreting information
on empty properties (2) – Geographical
information systems
Leeds City Council uses an IT-based Geographical
Information System (GIS) to translate its empty property
database into a mapping tool. This is particularly
useful to provide visual images showing ‘hot spots’
with high concentrations of empty properties or empty
properties of a particular type, such as privately rented.
This then informs the Council in selecting areas where
its investment should be targeted and in demonstrating
to stakeholders the nature and scale of the issues
faced. The GIS tool is flexible and can be updated to
show changing patterns of empty properties over time
and how many empty properties have been brought
back into use. The Council has found the tool to be
very helpful both in assisting in prioritising its work
and providing a visual tool to demonstrate to
stakeholders the extent of empty property issues to
be addressed.
• What are the characteristics of the empty
properties? For example, are there a
considerable number of shops with surplus
space above them? Alternatively, do Listed
Buildings or properties in Conservation
Areas pose a particular problem?
• What condition are the properties in? How
does this compare with the general condition
of properties in the area and nationally? The
findings of the 2001 English House Condition
Survey should be available from ODPM
during 2003, which should assist in this.
• How long have the properties been empty?
It may be helpful to grade this. For example,
you could use categories of less than 6 months,
6 months to 3 years, 3 years to 10 years and
10 years and over. If you do this, you then
need to monitor it at intervals since properties
may move from one category to another over
time if they are not brought back into use.
• What impact do these empty properties
have? This should include both the financial
and non-financial impacts from either the
Local Authority’s or owner’s perspective.
For example, for a Local Authority, what
B2 Gathering, recording and interpreting information about empty properties
75
3 Assessing feasibility
potential would empty properties present in
reducing the number of people in temporary
accommodation? Alternatively, for an owner,
what are the financial costs or lost
opportunity costs associated with holding
these empty properties56? The Case for Action
highlights some of the important issues to
be considered.
56
76
From the above tests and others that you think
are appropriate, you should be able to build
up a picture of the empty properties with
which you are concerned. This is an important
step in enabling you to prioritise investment.
This then needs to be fed back into the Empty
Property Strategy (see above).
Further information on assessing the costs of holding empty property can be found in Section C3.2.2.
Empty property: unlocking the potential
Part C
Bringing an empty property back into use
Introduction
Part C is relevant both to Local Authority
officers and owners. It considers the steps that
need to be taken in bringing an individual
empty property back into use. The reuse or
conversion of empty property can be complex.
It involves a number of stages that flow in a
logical order. Whilst not every stage will be
relevant to every project or to every party
involved, it is advisable to have an understanding
of the overall process before commencing any
project. For example, the type of end use
selected could affect the project’s feasibility.
Part C is broken down into seven Sections:
• Section C1 – Brokering reuse or conversion.
This Section is most relevant to Local
Authority officers. However, it should also
be of interest to owners in understanding
the tools available to a Local Authority.
It considers the steps that can be taken to
broker the reuse or conversion of an empty
property, including techniques for identifying
an owner, the advice, grants and other support
that can be offered to an owner and the use
of the Local Authority’s legal powers as a
last resort.
• Section C2 – Working up a scheme. Sections
C2 to C6 are of most relevance to the owner
of an empty property. However, they should
also be of interest to a Local Authority officer
who may be providing grant or other support
throughout the project. It may also be
relevant to a Local Authority officer if they
are proposing to use legal action since this
may later lead to the Local Authority acquiring
an interest in the property or undertaking
works prior to securing its sale from the
owner to a third party. This Section considers
the main steps involved in working up a
scheme for an empty property, including
selecting an end use and preparing an
initial design.
• Section C3 – Assessing feasibility. This Section
considers how to assess the feasibility of
bringing an empty property back into use.
This is an important step before committing
significant time and money. It also identifies
approaches that can be taken if the initial
proposal is not feasible.
• Section C4 – Securing consents. This Section
considers the consents that may be needed
to enable a property to be brought back
into use and the main steps involved in
securing them.
• Section C5 – Undertaking the building or
refurbishment works. This Section considers
the various stages involved in undertaking
building and refurbishment works from
appointing and briefing a building contractor
through to reviewing the completed works.
• Section C6 – Securing an end user. This
Section considers the steps involved in securing
an end user, ranging from identifying a suitable
party through to ongoing management
responsibilities, if appropriate.
• Section C7 – Reviewing project outcomes.
This Section is relevant both to Local
Authority officer and to owners. It considers
the importance of reviewing the outcomes
and lessons learned from a project and how
they can be capitalised on.
Introduction
79
Other steps may need to be taken on a caseby-case basis. Some of these stages follow on
from one another in order. For example, works
cannot start until consents are secured. Some
of the stages can, however, overlap. For example,
it is possible to secure an end user on a
conditional ‘pre-sale’ agreement before
consents are secured and works started.
This process is summarised in Figure 8.
80
Empty property: unlocking the potential
Figure 8: Bringing empty properties back into use
Brokering
reuse or
conversion
• Advice
• Grants
• Loans
Working up
an initial
scheme
• Revise scheme
(if appropriate)
Assessing
feasibility
• Initial discussions
• Outline consent
(if appropriate)
Securing
statutory
consents
Undertaking
building/
refurbishment
works
• Conditional pre-sale/
pre-let agreements
Securing an
end user
Reviewing
project
outcomes
Introduction
81
C1 Brokering reuse or conversion
This Section is most relevant to Local Authority
officers. However, it should also be of interest
to owners in understanding how a Local
Authority may become involved in bringing
empty properties back into use. It considers
the steps that can be taken to broker the reuse
or conversion of an empty property and in
what circumstances they are likely to be most
appropriate. This Section is broken down into:
• C1.1 – When is it appropriate to broker the
reuse or conversion of an empty property
and what steps should I take?
• C1.2 – What techniques are available to
identify an owner?
• C1.3 – What should I do when the owner
has initially been identified?
• C1.4 – What should I do if the owner is
prepared to bring the property back into use?
• C1.5 – What can I do if the owner cannot
be identified or will not take steps to bring
the property back into use?
You should initially read Section C1.1, which
then explains when it is appropriate to refer to
the other Sections.
When is it appropriate to
broker the reuse or conversion
of an empty property and what
steps should I take?
C1.1
Once a Local Authority has identified that a
project is a priority for its investment, the
starting point should be to encourage the
owner to bring it back into use 57. Techniques
to assist you in identifying the owner can be
found in Section C1.2. If you can identify the
owner, you should make them aware of the
problems posed by their empty property and
the steps they should take to address them.
This is covered in Section C1.3. Hopefully the
owner will then take steps voluntarily to bring
the property back into use. If this is the case,
they may need assistance from the Local
Authority, such as advice, grants or loans, in
which case you should refer to Section C1.4.
Once initial support has been provided, it is
important to remain in touch with the owner,
or any third party to which the property has
been sold. This helps ensure that the property
is successfully brought back into use and
enables it to be counted towards the Local
Authority’s targets as part of the Empty
Property Strategy 58.
57
Further information on prioritising investment can be found in Part B.
58
Further information on reviewing project outcomes can be found in Section C7. Further information on Empty Property Strategies can
be found in Section B1.
C1 Brokering reuse or conversion
83
3 Assessing feasibility
In some cases, it may not be as straightforward
to bring empty properties back into use.
For example:
• There may be several parties with an
interest in the property and it is not possible
to reach agreement with all of them.
• It may not be possible to identify the owner.
• The owner may say that they will take steps
to bring the property back into use but may
do nothing in practice.
• The owner may not be willing to bring the
property back into use. For example, if they
are holding on to the property for
speculative gain.
84
Empty property: unlocking the potential
In this case you should refer to Section C1.5.
This process is summarised in Figure 9.
Figure 9: Brokering arrangements to bring empty properties back into use
Able to
identify owner?
No
Yes
Owner prepared
to bring property
back into use?
No
Yes
No
Are warnings
acted on?
Commence
legal action
Yes
Urgent
works required?
Offer package
of assistance
Yes
Advice
Financial
assistance
Use legal powers to
undertake works
No
Compulsory
Purchase
Will owner
repay costs?
Yes
Recover
costs
No
Enforced
Sale
C1 Brokering reuse or conversion
85
3 Assessing feasibility
Identifying the owner of
an empty property
C1.2
For a Local Authority, identifying the owner of
an empty property can be challenging. A range
of techniques may therefore need to be used.
These could include:
• Working with Local Authority colleagues.
Other Departments may have previously
attempted to contact the owner and may
therefore be able to provide contact details,
subject to the legal restrictions regarding the
sharing of information by a Local Authority 59.
Having this dialogue is important anyway.
For example, if they could not themselves
locate the owner, they may be able to
advise you of the techniques they have
already used without success to save you
time and money.
• Writing to the property or attaching a leaflet
or poster to it. The owner may have mail
redirected or they might call to the property
on an intermittent basis and make contact
with you. It is advisable to write on several
occasions, using stronger language each
time to emphasise the importance of the
owner making contact to review their options
for the property (see below). A leaflet or
poster has the added benefit that it may be
seen by passers-by, who may know the
owner and be able to provide you with
contact details. An example of a poster used
for this purpose is shown in Anecdote 9.
59
86
• Contacting people or organisations in the
local area, which may provide you with
alternative contact details to try. This can
include a variety of people, such as:
– Neighbours.
– The Neighbourhood Watch Coordinator,
details of whom can be obtained from
signs in the area or from the local Police.
– Local community groups, details of which
are likely to be held by the Local Authority.
– Local shopkeepers. For example, the
local newsagent may have previously
delivered newspapers to the property.
– Local Councillors, which may have helpful
local knowledge. In rural areas the local
Parish Councils may provide the relevant
point of contact.
– Places of worship.
• Contacting other organisations, including:
– Local healthcare providers. You could
contact Doctors, Health Trusts and
Primary Care Trusts if you suspect that
the owner may be elderly. Although they
are limited from providing information
about the owner, they may be prepared
to contact the owner on your behalf.
Contact details for local healthcare
providers can be obtained from the
National Health Service.
Further information on the Local Authority Departments involved in empty property work and information sharing restrictions can be
found in Section A3.
Empty property: unlocking the potential
– HM Prison Service. In a similar manner to
local healthcare providers, if you suspect
that the owner is in prison, HM Prison
Service may be prepared to contact them
on your behalf.
• Undertaking searches. There are three main
potential sources of information:
– The Electoral Roll, which may record
details of the owner or other previous
residents at the property.
– Land title searches .
60
– A Companies House search. This may be
appropriate if you suspect that a company
owns a property, which may be the case
both for commercial premises and
residential premises held as an investment.
The search should tell you the name of
senior staff and provide a registered
company office that you could then
contact if it is different to the empty
property’s address.
In each case, the objective is to identify
alternative contact details for the owner or
other people or organisations with an interest
in the property. Each of these searches can be
undertaken within a relatively short timescale.
Local Authorities can have direct access facilities
with HM Land Registry, which provides sameday land title results if information is available.
A fee is generally payable for land title and
Companies House searches.
• Using a detective agency. If you know the
owner’s name you may be able to trace
them via a detective agency. Although a fee
is generally payable for this service, it may
be possible to agree a ‘no find, no fee’
arrangement. Before commissioning a
detective agency it is important to establish
that they are reputable, that the methods
that they intend to use are legal and that
they will respect the Local Authority’s duties
regarding information sharing.
• Serving a notice on people that you suspect
may have details of the owner. There are
two main legal powers under which this can
be undertaken:
– Under Section 330 of the Town and
Country Planning Act 1990, a Local
Authority can request information about
the ownership of the property from
anyone with an interest in the land61.
– Under Section 16 of the Local Government
(Miscellaneous Provisions) Act 1976, a
Local Authority has a wider power to
request information about the ownership
of a property from anyone it suspects
may have it.
Failure to comply with either provision may
represent a criminal offence. In practice, it can
be difficult to demonstrate that a party has
information and therefore the threat of legal
action may not be taken seriously. However, it
is worth considering as a last resort. In both
60
Further information on land title searches can be found in Section C3.2.1.
61
Further information on parties with potential legal interests over the property can be found in Section C3.2.1.
C1 Brokering reuse or conversion
87
3 Assessing feasibility
cases the notice needs to be carefully drafted
and appropriate specialist advice should
therefore be obtained.
These techniques are summarised in Figure 10,
although other techniques may need to be
used on a case-by-case basis. If these techniques
prove successful you should refer to Section
C1.3. It may, however, be the case that having
tried all of these techniques you have been
unable to identify the owner. In that case you
should refer to Section C1.5.
What should I do when
the owner has initially been
identified?
C1.3
Once you have identified the owner of an
empty property, you need to let them know
that the property has come to your attention
and that you are proposing to take action to
bring it back into use. You should highlight:
Figure 10: Identifying the owner of an empty property
• Housing Management
• Environmental Health
• Planning and Building
Control
• Regeneration, Economic
Development and Housing
Strategy
• Property and Estates
• Council Tax and Rating
Working with
Local Authority
colleagues
• ‘Section 330’
• ‘Section 16’
88
Empty property: unlocking the potential
Writing to
or posting
a notice on
the property
Contacting
other people
and
organisations
Techniques for
identifying an
owner
Serving a
notice on people
with an interest
in the property
•
•
•
•
•
•
•
•
Neighbouring
Neighbourhood Watch
Community groups
Shopkeepers
Councillors
Places of worship
Healthcare providers
HM Prison Service
Undertaking
searches
Using a
detective
agency
• Electoral Roll
• Land title
• Companies House`
• The problems being caused by the property,
the basis on which the Local Authority is
taking action and the minimum steps that
the owner needs to take. You should also
set out the costs that the owner may currently
be incurring by holding an empty property
and the risks to them of doing nothing, such
as potential legal action by the Local Authority.
• The assistance that the Local Authority can
provide in helping to bring empty properties
back into use. This can take a number of
forms, including advice and financial
assistance62. In a number of cases, owners
may be reluctant to respond to enquiries by
the Local Authority. Anecdote 5 shows how
a toolkit of information may be helpful in
demonstrating how a Local Authority can
provide practical and tangible assistance.
• The powers available to the Local Authority
if the owner does not take voluntary steps
to bring the property back into use. It is
important to explain to the owner the
implication of legal action, including both
losing their ownership of the property and
losing entitlement to any grants for which
they may have been eligible.
Anecdote 5
Brokering reuse or conversion (1) – A Local Authority toolkit
“Following feedback from owners and other partners we work with in bringing empty properties back into
use, East Riding of Yorkshire Council decided to produce an Empty Property Advice and Information
Pack. It contains a range of information including:
• How to report an empty property.
• Details of the Council’s ‘Opening Doors’ grant scheme.
• A number of guidance booklets produced by the Government.
• Details of the Council’s approved landlord and tenant scheme.
• Details of Local Property Agents.
• Information on how feedback can be given on the contents of the pack.
The Pack was issued in December 2002 and since then we have received over 350 enquiries, which is
significantly more than we had anticipated. The feedback on the Pack has been very positive and there
was clearly the need for a tool of this nature to help raise awareness amongst owners and other partners
of how the Council can assist them in bringing empty properties back into use.”
Sue Dixon, Senior Environmental Health Officer, East Riding of Yorkshire Council
62
Further information on the advice available from a Local Authority can be found in Section A3. Further information on financial
assistance available from a Local Authority can be found in Section C3.3.1.
C1 Brokering reuse or conversion
89
3 Assessing feasibility
When contacting the owner, it is important to
be sensitive to their circumstances. For example,
an owner may have wished to bring the property
back into use but may not have been able to
afford to do so and was not aware of the grant
support potentially available. This initial stage
is therefore about assessing the owner’s general
attitude towards the property concerned and
aspirations regarding bringing it back into use.
Notification of your intentions may be
undertaken either by writing or through a
discussion or meeting with them. A face-to-face
dialogue can be helpful if possible. However,
when discussions or meetings are held, it is
important that all matters covered are
documented in case it later needs to be relied
upon in taking legal action (see below). If the
owner responds positively and intends to bring
the property back into use voluntarily you
should refer to Section C1.4. However, if they
ignore the proposals or do not take steps to
bring the property back into use, you should
refer to Section C1.5.
What should I do if the
owner is prepared to bring the
property back into use?
C1.4
If the owner is prepared to bring the property
back into use, you then need to assess the
package of support that may be appropriate.
As identified above, this may take the form of
advice and financial assistance. However, you
need to decide on a case-by-case basis what
form of support is appropriate, tailored to the
owner’s specific needs. This is illustrated in
Anecdote 6.
Anecdote 6
Brokering reuse or conversion (2) – Tailoring solutions
“Every property is different and every owner has different circumstances. The Empty Property Officer
therefore needs to tailor bespoke packages to help each owner. There is no ‘one size fits all’ solution.”
Nick Murphy, Executive Director of Housing and Regeneration, Southampton City Council
90
Empty property: unlocking the potential
In some cases the owner may state that they
are prepared to bring the property back into
use, but in practice do not do so. In other
cases, owners may only act once it is seen that
a Local Authority is serious about taking legal
action. This is illustrated in Case Study 17. It is
important to have a clear policy to apply in
such situations since other owners may act
similarly if the Local Authority does not take
action. The policy should be clearly stated
within the Local Authority’s Empty Property
Strategy. You should therefore consider
whether a set period of time is allowed for the
owner to take action prior to the Local Authority
commencing legal action (see below). Alongside
any proposed action, it remains important to
continue to attempt to negotiate with an owner.
This is both needed by the legal powers being
used and to avoid the time and money involved
in taking legal action if possible. This process
is often referred to as ‘twin-tracking’. If the
owner then takes reasonable steps voluntarily
to bring the property back into use the legal
action can be stopped.
What can I do if the
owner cannot be identified or
will not take steps to bring the
property back into use?
C1.5
If the owner is unlikely to take steps to bring
the property back into use voluntarily, it may
be appropriate for the Local Authority to use its
legal powers to achieve this. This is shown in
Case Study 17
Brokering reuse or conversion (1) – The benefits of using legal powers
The London Borough of Harrow was seeking to bring back into use a property that had been empty for
eight years. The 1930’s mid-terraced house in South Harrow, which had fallen into disrepair and caused
concerns amongst neighbours, was reported to the Council by the London Empty Homes Hotline63. The
Council’s Empty Property Officer identified the owner and issued correspondence trying to get them to
bring the property back into use voluntarily. However, no action was taken. After a number of attempts to
get the owner to take positive steps to bring the property back into use, the Council resolved to use its
compulsorily purchase powers. Shortly after the owner was notified, he approached the Council with
proposals to bring the property back into use. Until that point the owner did not take the Council’s proposals
seriously. However, once the Council had taken practical steps to bring the property back into use itself,
the owner responded. The willingness on the part of the Council to use its legal powers as a last resort
was therefore critical to securing the reuse of the property. Works on the property should be completed
by Summer 2003.
63
Further information on the London Empty Homes Hotline can be found in Section B2.2.1.
C1 Brokering reuse or conversion
91
3 Assessing feasibility
Anecdote 7. Initially, the owner should be
warned if contact details are available for them.
Even if they have not previously made contact,
you should issue warnings to demonstrate that
reasonable efforts have been made before
resorting to legal action. You should seek advice
from the Local Authority’s Legal Department on
how many warnings is appropriate, although
this is likely to be at least 2 or 3.
If these warnings are not acted on, there are
two main routes you could go down. To select
between these you should establish whether
urgent works are needed to the property. If
this is the case, the Local Authority may be
able to use its legal powers to undertake them
itself. This is considered in Section C1.5.1.
Alternatively, if urgent works are not needed
but the property is targeted for being brought
back into use for other reasons, such as bringing
a number of properties into a single ownership
or to address an acute local housing need, then
the Local Authority could use its Compulsory
Purchase powers. This is considered in
Section C1.5.2.
Compulsory Purchase has the added benefit
that it generally guarantees that the property is
brought back into use, where the use of the
Local Authority’s legal powers may only result
in urgent problems being addressed. The
disadvantage of Compulsory Purchase is the
time involved, which, even if an appeal (see
below) is not involved, could take between
20-24 months. In contrast, an Enforced Sale
Procedure can be undertaken more quickly at
around 9-12 months. The benefits and
disadvantages of each route therefore need to
be considered at an early stage before any
form of legal action is taken.
Anecdote 7
Brokering reuse or conversion (3) – Dealing with difficult properties
“There are some empty properties cases where the owner is not willing to bring the property back into
use and incentives will just not work. In 2001, we dealt with an owner who had bought a property in
Fulham as an investment. Since capital values were increasing at a fast pace, he chose to keep the property
empty to retain maximum flexibility when he wanted to sell it. After three years of lying empty the property
had fallen into disrepair and became an eyesore. The owners of neighbouring properties made complaints.
Incentives did not work in this case and so we served a notice on him under Section 189 of the Housing
Act 1985, requiring the property to be made fit for human habitation. Since the owner had to spend money
on the property to comply with the notice this forced him to re-evaluate his plans. The status quo was no
longer an option. He chose to sell the property straight away. Four months later the property was restored
and brought back into use.”
David Ireland, Private Housing Services Manager, London Borough of Hammersmith and Fulham
92
Empty property: unlocking the potential
Whichever route is used, you should firstly
establish that reasonable endeavours have been
made to identify the owner and encourage them
to bring the property back into use voluntarily.
It is important that this can be demonstrated if
necessary. For example, the owner may challenge
the steps proposed by the Local Authority and
it may be necessary to demonstrate to the
Courts that the action proposed is appropriate.
This therefore emphasises the importance of
using all of the techniques identified above and
documenting all of the outcomes.
A Local Authority could adopt both approaches
in different circumstances. Appropriate specialist
advice should therefore be obtained from the
Local Authority’s Environmental Health or Legal
Departments to assess the most suitable
technique for each project. In either case, it is
important that legal action is undertaken as
quickly as possible to ensure credibility of the
Local Authority’s actions and to recover any
costs of works undertaken, if appropriate.
Case Study 18
Brokering reuse or conversion (2) –
Developing preferred partner relationships
The Investors in Leeds Register is an initiative by
Leeds City Council to match private landlords and
developers seeking to purchase empty properties in
suitable locations. The initiative is available to landlords
and developers, approved or ‘accredited’ under the
Leeds Landlords Accreditation Scheme. In order to
gain accreditation they need to meet a number of
criteria, such as agreeing to respond to repairs
within a set timescale. The initiative consists of a
register of these selected investors who have expressed
an interest in purchasing additional properties within Leeds into their portfolio. They are asked to declare
which districts within the City they are interested in investing in and the details are then put onto the
Investors in Leeds database. Owners of long-term empty properties are contacted throughout the city
and issued with an area specific schedule of the appropriate investors in order that they can then consider
contacting and negotiating the sale of their property with these interested parties.
This initiative has proved to be an essential element to the Council’s Empty Property Strategy and has
resulted in many dozens of empty properties returning back into use, especially in areas where Local
Property Agents show little interest in representing property.
An example of a project where the Investors in Leeds Register has been used is at a property in the
Beeston area of the City (pictured). The property became empty in June 1998 and the Council’s Empty
Property Officer established contact with the owner. Information from the Register was supplied to the
owner in May 1999 and as a result of this the owner entered into negotiations with one of the landlords
on the list. By May 2000 the property was brought back in use.
C1 Brokering reuse or conversion
93
3 Assessing feasibility
It is therefore advisable to keep a list of preferred
partners to work within under either approach,
as illustrated in Case Study 18. Given the time
and cost considerations of both of these routes
it may also be in the interests of the Local
Authority and its partners to ‘wrap up’ as many
properties as possible within a single action if
possible. For example, this could involve
commissioning building or refurbishment
works or progressing a Compulsory Purchase
proposal for a group of properties.
C1.5.1 Using legal powers to
undertake works
A range of legal powers may enable a Local
Authority to undertake works to a property.
Before using these powers, you should establish
both if there are sufficient grounds for their use
in that case and whether legal action is reasonable
in the circumstances. In doing so you need to
consider the costs and risks associated with
bringing the property back into use and weigh
these against the benefits identified through the
Empty Property Strategy. If the use of the
power is later challenged by the owner it is
important to be able to demonstrate this. The
main legal powers available are summarised in
Figure 11. There are other powers applying in
special circumstances. For example, additional
powers exist in relation to contaminated land
and Listed Buildings, which are not covered in
this guidance. In addition, separate powers also
exist in some comprehensive regeneration
areas and, for historical reasons, in some parts
94
Empty property: unlocking the potential
of London. If there are not legal grounds to
intervene, there may be nothing that the Local
Authority can do at this stage. If more than one
power is available, you should select which of
these to use. In selecting between the powers
available, some of the factors you should
consider include:
• Some can be used more quickly than others,
which may be important in addressing empty
properties that pose an immediate danger.
• Some enable the Local Authority to register
a ‘charge’ against the property, which can
be important in recovering any costs incurred
by the Local Authority. This is not possible
in all cases.
• Some may not directly lead to the property
actually being brought back into use. For
example, under Section 215 of the Town
and Country Planning Act 1990, a Local
Authority can need an owner to remedy
land that affects the amenity of an area.
In addition, the owner has the discretion in
some cases to demolish the property in
order to address its poor condition. Under
Part 31 of the Town and Country Planning
(General Permitted Development Order)
1995, the Local Authority does have the
power to revoke the ability to demolish in
certain cases. Although neither of these
powers directly need the property to be
brought back into use, they can address
some of the problems they pose.
Figure 11: Local Authority legal powers
Problem
Legislation
Power granted
Dangerous or dilapidated
buildings or structures
Building Act 1984, Sections 77 and 78
To need the owner to make the property safe (Section 77) or
enable the Local Authority to take emergency action to make the
building safe (Section 78)
Housing Act 1985, Sections 189 and 190
To need the owner to make the property safe. Section 189 applies
if the property is Unfit for Human Habitation. Section 190 applies
in other cases of serious disrepair
Unsecured properties (if it
poses the risk that it may be
entered or suffer vandalism,
arson or similar)
Building Act 1984, Section 78
To allow the Local Authority to fence off the property
Local Government (Miscellaneous
Provisions) Act 1982, Section 29
To need the owner to take steps to secure a property or allow the
Local Authority to board it up in an emergency
Blocked or defective
drainage or private sewers
Local Government (Miscellaneous
Provisions) Act 1976, Section 35
To need the owner to address obstructed private sewers
Building Act 1984, Section 59
To need the owner to address blocked or defective drainage
Public Health Act 1961, Section 17
To need the owner to address defective drainage or
private sewers
Public Health Act 1961, Section 34
To need the owner to remove waste so that vermin is not attracted
to the site
Vermin
(if it is either present or there
is a risk of attracting vermin
that may detrimentally affect
people's health)
Prevention of Damage by Pests Act,
Section 4
Public Health Act 1936, Section 83
Environmental Protection Act 1990,
Section 80
Building Act 1984, Section 76
Unsightly land and property
affecting the amenity of
an area
Public Health Act 1961, Section 34
(see above)
To need the owner to remove waste from the property
Town and Country Planning Act 1990,
Section 215
To need the owner to address unsightly land or the external
appearance of a property
Building Act 1984, Section 79
To need the owner to take steps to address a property adversely
affecting the amenity of an area through its disrepair
C1 Brokering reuse or conversion
95
3 Assessing feasibility
In establishing whether legal powers apply in
each case, there are tests set out within each
Act and in some cases accompanying guidance
produced by the Government. In some cases
this is periodically reviewed. For example, the
Government is currently seeking to replace the
Fitness for Human Habitation standards with
the Health and Safety Rating System. It is likely
that an inspection of the property will be
needed as part of this assessment64. In some
cases the Local Authority may need to select
between a range of remedies and it is therefore
important to obtain appropriate specialist
advice from the Environmental Health
Department or Legal Department.
Once the decision has been reached to take
legal action, it is necessary to follow the
procedures that apply to the legal provisions
selected. These may differ. However, there are
a number of general stages that may be involved.
Firstly, the Local Authority needs to serve a
notice, setting out the intention to take legal
action if action is not taken within a set period
of time. The period in which the owner can
respond varies depending on the power used,
although it is typically between 4 to 12 weeks.
The notice should be served on the owner, if
they have been identified, or attached to the
empty property if the owner cannot be identified.
It is important that the notice is served in the
appropriate way for it to be valid. It is also
important to document the date and time that
96
the notice is served and photograph it in place.
You should also check at regular intervals that
the notice is still in place. These steps should
help to demonstrate that reasonable endeavours
have been made to bring the Local Authority’s
proposed use of legal powers to the owner’s
attention.
In some cases, a notice stating that the Local
Authority is minded to take action is needed
before the main notice requiring the owner’s
action is served. In other cases, a notice may
not be needed at all if immediate action needs
to be taken to protect the public. It is important
to follow the relevant procedures for each
power correctly otherwise the notice may be
void. This reinforces the need to obtain
appropriate advice.
During the notice period, the owner generally
has the opportunity to appeal to the Magistrates’
Court. However, once the notice period has
expired and the owner has expressed no interest
in bringing the property back into use, the
Local Authority may then step in and undertake
the works itself with a view to reclaiming the
cost from the owner on their completion.
Prior to undertaking the works it is important
to establish that relevant consents are in
place65. It is also important to go through an
appropriate process in selecting the building
contractor to undertake the works since the
intention will be to recover the costs from the
64
Further information on property inspections can be found in Section C3.2.1.
65
Further information on securing consents can be found in Section C4.
Empty property: unlocking the potential
owner66. Provided the project is feasible, you
can progress to appointing a building
contractor to undertake the building or
refurbishment works.
Once the works are completed, you should
then attach a ‘charge’ to the property on the
Local Land Charges Register. This should ensure
that the owner cannot sell the property with
the benefit of the works undertaken. You should
then write to the owner asking for recovery of
the debt and the intention to use further powers
if no response is received within a specified
period. The time again depends on the specific
power used. If the owner does not repay the
costs within the time frame set, the Local
Authority may be able to secure the Enforced
Sale of the property to a third party and thereby
recover its costs at the point of sale. The owner
would be entitled to the remaining sale proceeds.
A special process needs to be followed to use
the Enforced Sale Procedure67. An example of
its effective use is shown in Anecdote 8.
Anecdote 8
Using legal powers (1) – Enforced Sale
“Empty properties have been a significant problem in
Manchester, particularly in the Moston, Levenshulme
and Crumpsall areas of the City. Whilst compulsory
purchase is an appropriate tool to use in clearance
areas, we have found that the Enforced Sale Procedure
is a quicker, more accessible means of regenerating
an area that is not to be demolished. Manchester
City Council has used the Procedure extensively in
problem areas and by working in partnership with a
number of Registered Social Landlords.
This process has been effectively used on over 300 properties. In many cases, this has resulted in the
property being brought back into use through the owner’s own refurbishment or onward sale with the
threat of action sufficient to prompt them to tack action. An example of a project successfully brought
back into use is at a property in the Moston area of the City (pictured). This property had been unoccupied
for nine years since the last resident passed away with no surviving heirs. Work had to be carried out to
make watertight the slate roof, which was causing rain to enter the adjoining properties. The property
was referred into the Enforced Sale Procedure and a notice served in March 2000. The property was sold
at auction in December 2000 to a private purchaser who refurbished the property to a high standard.”
Eamonn Boylan, Deputy Chief Executive, Manchester City Council
66
Further information on appointing a building contractor can be found in Section C5.
67
Further information on the Enforced Sale Procedure can be found in Enforced Sales Procedure: Good Practice Guide.
C1 Brokering reuse or conversion
97
3 Assessing feasibility
The Government is also currently considering
introducing Compulsory Leasing. The Empty
Homes Agency should be able to advise you on
progress. Compulsory purchase and enforced
sale have both been used by Local Authorities
in successfully bringing empty property back
into use.
C1.5.2 Compulsory purchase
Compulsory Purchase could be used if the
Local Authority is satisfied that purchasing by
agreement has failed and there would be a
clear public benefit to be achieved through
purchasing an empty property. An effective
Empty Property Strategy can help to demonstrate
that Compulsory Purchase, if selected, is in the
public interest. Although the Local Authority
pays for and takes ownership of the property,
it is possible to structure a legal agreement
with a third party that purchases the property
from the Local Authority when the Compulsory
Purchase is approved or ‘confirmed’.
68
98
A special process needs to be followed which
can take a significant period of time and
generally involves an inquiry before an
Inspector68. Owners and anyone else with a
legal interest in the land have a right to be
heard and raise objections. This emphasises the
importance of working closely with local
stakeholders, including the community, so that
they fully buy into the Local Authority’s empty
property work.
If a property is acquired compulsorily, the
owner has a legal right to receive compensation
based on the principle that he should be neither
better, nor worse, off in financial terms after
the acquisition than before. This means, in
general terms, that the owner has a right to
receive compensation for the value of the land
taken plus any losses and costs incurred as a
result of being disturbed from occupation of
the property and reimbursement of Surveyors’
and Solicitors’ fees.
The effective use of Compulsory Purchase
powers is shown in Anecdote 9.
Further information on the use of these powers can be found in Compulsory Purchase Procedure Manual and Compulsory Purchase
Orders: A Guide to Procedures.
Empty property: unlocking the potential
Anecdote 9
Using legal powers (2) – Compulsory Purchase
“Westminster City Council has been actively using its
compulsory purchase to bring empty properties back into
use since 1995. At that time, our Councillors felt that it was
essential to be prepared to use legal powers if the
circumstances dictated since owners were often unwilling to
bring a property back into use, even if grants were available.
We therefore adopted a zero tolerance approach and
communicated this openly through our Empty Property
Strategy and associated publicity. We have found that this
has sent an important message to owners and other parties
and that they are now generally more proactive in considering
reuse or conversion opportunities once we contact them.
One project where compulsory purchase has been
successfully used is on the Brindley Estate. Central to the
project was the development of 100 new flats on land
previously occupied by an empty and derelict public house,
an empty and derelict office block and a small garage. The
Council’s strong policy on the use of compulsory purchase
and its experience in using it enabled the land to be assembled in less than two years. Although a
significant length of time this is much better than could have been the case.”
Steve Bradley, Compulsory Purchase Manager, Housing, Westminster City Council
C1 Brokering reuse or conversion
99
C2 Working up a scheme
This section is most relevant to owners of
empty properties. However, it may be also be
of interest to Local Authority officers. It considers
the main steps involved in working up a scheme
for an empty property. This Section is broken
down into:
• C2.1 – Selecting an end use.
• C2.2 – Preparing an initial design
and specification.
You should read each section in turn.
C2.1 Selecting an end use
It is important to know the end use planned
for a property as early as possible since this
may affect the design and specification of the
project (see below). There are two main forms
of end use available:
• Sale. Some properties are sold outright, with
all rights passing permanently from the owner
to the purchaser. This is generally referred
to as a ‘freehold’ sale. Other properties are
sold for a long but fixed period of time,
such as 99 or 125 years, with the property
passing back to, or ‘reverting to’, the owner
at the end of this period. Although the
owner’s consent may be needed in certain
circumstances, for instance if the purchaser
wishes to make structural alterations, the
purchaser generally has the flexibility to do
69
what they wish with the property and the
owner generally has few obligations.
Although this is legally classed as a lease
(see below) and is often referred to as a
‘long lease’, in practice its characteristics are
similar to those of a freehold. The rent
payable under a long lease, referred to as a
‘ground rent’, is generally low, with the
main payment or ‘consideration’ for the
lease being a one-off sum paid up-front in
return for the long-term rights.
• Lease. This involves the landlord granting a
tenant the right to use the property for a
period of time. In return the owner generally
has a number of ongoing management
responsibilities69. The length and terms of a
lease can vary. Some are for a fixed number
of years, typically between 2 and 30 years.
It is also possible to establish a relatively
short-term lease, such as for 6 months, that
can be renewed time after time at the owner’s
and tenant’s discretion as the previous lease
comes to an end. This is generally referred
to as a ‘periodic tenancy’. There are standard
forms of lease established under law to
bring continuity and to protect the interests
of both the landlord and tenant(s). For
example, there are generally legal provisions
setting out the advanced warning period
needed by both parties before a lease can
be brought to an end. Leases automatically
take the form of an ‘Assured Shorthold
Tenancy’ unless otherwise specified. This
means that:
Further information on management responsibilities under a lease can be found in Section C6.3.
C2 Working up a scheme
101
3 Assessing feasibility
• You have a guaranteed right to bring the
lease to an end after 6 months if you need
to. No legal grounds need to be proven and
two months advanced warning is needed.
• If the tenant has failed to pay their rent for
more than two months you can bring the
lease to an end immediately.
• You can charge a full market rent.
This therefore offers significant flexibility70.
Leases do, however, need to be planned
carefully and appropriate legal advice
should therefore be obtained.
Although sales and leases are the main forms
of end use, some other forms also exist. For
example, ‘shared ownership’ enables an individual
who cannot afford to buy a property outright
to buy a share in it and pay a rent over the
remaining element. If they later have more
money available, they may be able to increase
the proportion of the property they own and
therefore pay less rent. Over time the tenant
may therefore become the owner. Shared
ownership schemes have been established by
some private sector landlords, although the majority
are operated by Registered Social Landlords.
Under the Commonhold and Leasehold Reform
Act 2001, another form of holding an interest
in property was introduced. ‘Commonhold’
involves each occupier of a flat in a block
owning the flat outright and collectively owning
the common parts. The date has not yet been
102
confirmed when this will come into effect. You
should therefore take appropriate advice from
a Solicitor or Local Property Agent71.
In selecting an end use you need to consider
two main factors:
• What does the local property market demand?
You need to consider a number of factors,
such as:
– Does the market want to buy or to rent?
– What types and size of homes is the market
demanding? For example are two-bedroom
flats or three-bedroom semi-detached
houses preferred?
– Does the market want furnished or
unfurnished accommodation?
If you do not have a good knowledge of the
local property market yourself, this can be
gained from discussions with Local Property
Agents. In reality, you need to think about
what will be in demand once your project is
completed, as the market may be different
between now and that point. However, in
practice it may be difficult to predict this and
you therefore need to make an informed
judgement based on current market characteristics
and available data or advice on market trends.
70
Further information on Assured Shorthold Tenancies can be found in Letting your Home and Assured and Assured Shorthold
Tenancies: A Guide for Landlords.
71
Further information on appointing a professional advisor can be found in Section A4.3.2.
Empty property: unlocking the potential
• What are my objectives? These may include:
– Maximising financial returns. It may be
that you are looking for the option that
provides the highest financial returns.
There is no set rule on whether a sale,
lease or other form of end use offers the
best financial returns, as this generally
depends on the specific characteristics of
the project. An initial feasibility assessment
may be needed or a Local Property Agent
may be able to advise you. If you are
leasing accommodation you may incur
bad debts and voids which need to be
reflected in any such decision72.
– Releasing money up front. You may wish
to secure a financial return up front. For
example, if a project has been fully or
partly funded through a loan, it may be
necessary to repay this once the project
is completed. A sale generally involves
receiving the full sum up-front. However,
shared ownership could also involve an
up-front payment, with further income
coming in later years.
– Minimising responsibilities. A lease may
need the landlord to manage the property
on an ongoing basis. Although a specialist
Managing Agent could be appointed, this
may still act as a distraction and the owner
would still be responsible for any bad
debts or voids incurred.
72
It may be that what is demanded by the market
and your own objectives conflict with one
another. For example, selling the property may
be the most desirable option if your objectives
are securing a one-off receipt and minimising
responsibilities. However, the market may need
leased property. It may therefore be appropriate
to sell the project to another organisation that
is prepared to offer leases. Alternatively, you
may be prepared to lease the property, but
prefer to have a single point of responsibility.
As such you could appoint a Letting or Managing
Agent to reduce the burden of co-ordinating
separate leases on your behalf. However,
although this may reduce not remove the risk
of bad debts or voids it is unlikely to remove it
entirely. Alternatively you could therefore grant
a single lease to an ‘intermediary’, such as a
private landlord or a Registered Social Landlord,
which would pay you for a guaranteed income
(and potentially an up-front ‘premium’) and
then enter into sub-leases. It is important to
note that the rent paid by the intermediary may
be less than the combined rent from individual
tenants since they are bearing some of the
management responsibilities and financial risks
in your place.
Given the importance of selecting the right end
use, appropriate professional advice should be
taken, such as from a Solicitor or Local Property
Agent. Figure 12 summarises the end use options
considered above.
Further information on assessing feasibility can be found in Section C3.
C2 Working up a scheme
103
3 Assessing feasibility
Figure 12: Selecting an end use
Owner objectives
Form of end use
• One-off income
• No risk of bad
debts/voids
• No management
responsibilities
• One-off income and
periodic rent
• Some risk of bad
debts/voids
• Some management
responsibilities
• Periodic income
• Risk of bad
debts/voids
• Management
responsibilities
Sale
Shared
ownership
Lease
Preparing an initial design
and specification
A specification is a description of what you
want the completed project to be like and a
design is a visual interpretation of this. The
initial design and specification for the project
should set out the main principles for the
project, such as:
104
Empty property: unlocking the potential
• One-off payment
• Management
responsibilities
• Initial payment and
ongoing rent
• Some management
responsibilities
Intermediary
C2.2
• Number of rooms.
Market needs
• Periodic rent
• No/few management
responsibilities
• Internal layout.
• Access points.
• Car parking.
It may also provide some initial proposals on
the external appearance of the property. For
example, balconies may be added.
The initial design and specification is generally
informed by a number of factors:
• Requirements to secure consents. Except if
minor works are needed, an initial design
and specification is unlikely to include all of
the details needed to secure consents73.
However, the principles sought by the Local
Authority should be taken on board at this
stage. For example, there may be planning
guidelines on the maximum number of car
parking spaces and the design of
affordable homes.
• Grant funding requirements. Organisations
providing grant funding may specify certain
requirements. Each organisation should be
able to provide advice on this74.
• Other guidance. There is a range of optional
guidance on design principles. For example,
the Commission for Architecture and the
Built Environment (CABE) has produced a
range of guidance on securing high quality
design and the benefits that this can bring.
• The space available. It may be necessary to
measure the property in order to inform
the design75.
• Other requirements. There may be specific
requirements that you wish to see adopted
within the initial design and specification.
For example, you may wish to include a single
secure entrance to a property since it enables
security costs to be kept to a minimum.
For mixed-use projects, these factors need
particular care since each use may have its
own considerations as well as specific factors
applying to mixed-use projects. For example,
separate access may be needed for each use
and additional insulation may be needed to
minimise noise.
When a project is being designed, it is
important to note that the design not only has
an impact on the initial cost of the building or
refurbishment works, but also on the running
costs for the property. For example, balconies
may need to be repainted every 5-10 years,
which has an associated cost. Although the
owner may not incur the running costs, if the
property is to be sold or rented out, these may
need to be reflected in the sale price or rent.
As such it is advisable to consider the ‘wholelife’ implications of the design and specification.
An appropriately qualified building professional,
such as an Architect or Surveyor, should be
able to provide advice on this.
73
Further information on securing consents can be found in Section C4.
74
Further information on grants can be found in Section C3.3.1.
75
Further information on measuring a property can be found in Section C3.2.1.
C2 Working up a scheme
105
C3 Assessing feasibility
This Section is most relevant to owners of empty
properties. However, it should also be of
interest to Local Authority officers. It considers
how you can assess the feasibility of a proposal
to bring an empty property back into use76.
This Section is broken down into:
• C3.1 – Why is it important to assess the
feasibility of bringing a property back into use?
• C3.2 – How can I assess the feasibility of
a project?
• C3.3 – What steps can I take to improve the
feasibility of a project?
and refurbishment works only to find that there
is no demand for the completed flats or houses
or that a third party’s legal right has been
infringed and they plan to take legal action
against you77. As such, it is an important step in
establishing whether the project can go ahead
and whether the investment is worthwhile.
In some cases, the feasibility assessment may
show that the project is not feasible as it is
currently proposed. It may therefore be possible
to take steps to improve the feasibility of the
project, as considered in Section C3.3. Even
having taken these steps the project may remain
unfeasible and you may therefore need to
consider the approaches suggested in Section C3.4.
• C3.4 – What can I do if the project
remains unfeasible?
You should read Sections C3.1 and C3.2 initially,
which will then highlight if you need to refer
to Sections C3.3 and C3.4.
Why is it important to
assess the feasibility of bringing
a property back into use?
C3.1
A feasibility assessment may itself involve
significant investment of time and money.
However, this is likely to be much less than
incurring the fees for a detailed planning
application or the cost of undertaking building
How can I assess the
feasibility of a project?
C3.2
A feasibility assessment is generally approached
in at least two phases. An initial assessment is
often undertaken at a high level. The objective
is generally to determine whether there are any
issues that make the project unfeasible without
investigating these in great detail. For example,
the costs of the project may outweigh projected
income. Alternatively, a third party may have
placed a legal provision on a property, restricting
conversion to a residential use. If no major
barriers to feasibility are identified at this stage,
a more detailed assessment can be undertaken.
If barriers do exist, it may be possible to take
steps to address them. For example, a grant
76
Further information on working up an initial scheme can be found in Section C2.
77
Further information on undertaking building or refurbishment works can be found in Section C5.
C3 Assessing feasibility
107
3 Assessing feasibility
could be secured to offset some of the costs of
a project. Alternatively, legal steps could be
taken to address a legal restriction such as a
restrictive use covenant (see below). Approaching
a feasibility assessment on a staged basis can
therefore be helpful.
• Is it possible to bring the property back
into use without breaching any third party
legal rights?
In assessing the feasibility of a project, there
are three main tests that need to be met:
• Can an end user be secured?
• Is it practically possible to bring the property
back into use? For example, can the property
physically accommodate a residential use
and can the necessary consents be secured?
• Are there sufficient financial returns? Does
the project achieve the level of financial
returns needed by the owner?
• Is it deliverable? For example, does the owner
have access to finance and the necessary
skills and authority to deliver the project?
All of these, which are considered in turn,
need to be met for a project to proceed.
C3.2.1 Is it practically possible to bring
the property back into use?
In satisfying this test it is important to consider
a number of factors:
• Can the property physically accommodate
the specification needed?
All of these, if appropriate, need to be
satisfactorily met for the project to proceed.
They are addressed in turn.
Can consents be secured?
There are a number of consents that may apply
to bringing an empty property back into use.
The cases in which consents are needed are
not always straightforward and it is therefore
important to discuss this with the Local Authority.
Securing consents may also give rise to costs,
including application fees and the costs of
additional investment requested as part of the
consent, such as contributions to affordable
housing. Progressing without consents may,
however, give rise to legal action by the Local
Authority. You should therefore establish at the
feasibility stage if consents are likely to be
needed and what steps are likely to be needed
to secure them78. It may also be beneficial to
secure an ‘outline consent’ if possible at the
feasibility stage to give greater confidence
before making significant investments.
• Can necessary consents be secured?
• Can the property be put into an acceptable
state of repair?
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108
Further information on securing consents can be found in Section C4.
Empty property: unlocking the potential
Can the property be put into an acceptable
state of repair?
If the physical condition of a property is poor,
significant works may be needed to bring it up
to an acceptable standard. This may in turn
entail significant costs. In establishing whether
it is possible to restore the property, a property
inspection or survey may need .to be undertaken.
There are a number of different types of
property survey, depending on the purpose
and level of detail needed79. A Condition Survey
is generally appropriate in this context and
assesses any areas where the building conditions
need to be addressed and the nature and extent
of the building or refurbishment works needed
to bring the property up to an acceptable state
of repair.
• Other timber, such as beams.
When undertaking a Condition Survey there
are a variety of issues on which it may need to
comment. It should therefore be undertaken by
an appropriately qualified building professional,
such as a Building Surveyor80. General items on
the initial checklist are likely to include:
• The condition of any utilities provision or
mechanical or electrical facilities, such as
lifts or ventilation systems.
• Ceilings.
• Lighting.
• Smoke detectors.
• Sanitary ware.
Any unusual features or areas of concern such
as damp and evidence of cracking should be
noted. The need for additional surveys may
also be noted. For example, these may need
to consider:
• The structure of the property. For example,
it may be necessary to check the quality of
foundations.
• Ground conditions. This may in turn break
down into different surveys considering the
ability of the ground to support additional
weight, the risks of flooding and whether
any contamination is present.
• Walls and partitions.
• Roof.
• Floors.
• Windows and doors.
• Skirting.
• Whether any hazardous materials, such as
asbestos, are present within the building.
If you are involved in a property inspection
you need to ensure that you follow appropriate
Health and Safety practices to ensure you are
not personally placed at risk or that you do not
place others at risk. For example, it may be
79
Further information on different types of property survey can be found in Understanding Property Surveys.
80
Further information on appointing professional advisors can be found in Section A4.3.2.
C3 Assessing feasibility
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3 Assessing feasibility
necessary to wear a hard hat and give prior
notification to colleagues of the times you
intend to be on-site. The building professional
responsible for undertaking the survey should
be able to advise you on the appropriate
Health and Safety procedures in each case.
In addition, if you are a Local Authority officer,
you need to have the legal right to enter the
property. If you cannot secure the owner’s
permission, you may be able to use one of the
Local Authority’s legal powers 81. In other
circumstances you should not enter the property,
including any land or gardens, without permission
from the owner. If you are in doubt, advice
should be obtained from the Legal Department.
Is it possible to bring the property back
into use without breaching any third party
legal rights?
Although you may be the owner of a property,
other parties may have legal rights over it.
These may prevent you from bringing the
property back into use or need the agreement
of the other party before a project can be
progressed. Progressing without their approval
may lead to the party benefiting from the right
taking action to stop the project, claim damages
or, in extreme cases, seek a criminal conviction.
It is therefore important to understand the legal
rights that may exist over a property. These
may include:
• A lease or other occupancy rights. Although
there may be no occupier in the property,
there may be a lease or other agreements in
place granting occupancy rights. In addition,
the party benefiting from the right may have
passed some or all of these to other parties,
81
110
such as through a sub-lease. There may
therefore be a string of people or organisations
potentially benefiting from occupancy rights.
• Squatters. If squatters are present on the
property, their rights are protected by law.
This is a complex legal area and a special
legal procedure needs to be used to evict
them. You should seek legal advice in
these circumstances.
• Rights of neighbours. Owners or occupiers
of neighbouring properties may have express
rights or rights implied by law. Situations
may include party walls and easements such
as a right to natural light or a right of entry
benefiting the neighbouring property
(see below). Although rights of light may be
unlikely for empty property, sometimes
reuse of empty property may also involve
new building works that may need
consideration of such matters.
• A mortgage lender. A mortgage may have
been secured on the property to raise
finance when the property was originally
acquired or at a later stage. Under the
mortgage agreement, the lender is likely to
have reserved certain rights over the property,
such as re-entry or repossession, which may
restrict works to the property or a sale or
lease without their prior consent.
• An easement. This may give another party
the right of a benefit from the property, such
as a right of way, or the right to restrict the
use of the property, generally referred to as
a restrictive use covenant. Some easements
are contained in legal agreements. Others
Further information on contacting an owner can be found in Section C1.2. Further
information on Local Authority legal powers can be found in Section C.1.5.
Empty property: unlocking the potential
are implied by law, such as a right of light to
a neighbour’s property (see above). Sometimes
rights date back many years, such as requiring
a contribution to repairing the local church.
Other legal rights may exist that need to be
considered carefully with a Solicitor on a caseby-case basis.
In assessing whether legal rights may affect a
project’s feasibility, you need to take three
main steps.
• Establish what legal rights exist. There are a
number of ways in which you can try and
find out about rights that may affect the
property. These include:
– Visiting the property. For example, it may
be obvious that squatters are in occupation.
– Making enquiries. For example, neighbours
may be able to advise you if they believe
they have a right of way over the property.
– Examining legal documentation, such as
deeds and leases.
– Undertaking legal searches. As a starting
point you should undertake a Public
Index Map Search at HM Land Registry,
which should establish whether the
property is classed as ‘registered’ or
‘unregistered’. The practical distinction is
that there is generally more information
available on registered land and property.
If it is registered, you can request an
82
Office Copy Entry. If it is unregistered,
further details are not held at HM Land
Registry and you then need to search
both HM Land Charges Register and the
Local Land Charges Register held by the
Local Authority’s Planning Department.
In each case, these searches may identify
people with other interests and further
searches and enquiries may be needed.
– Reviewing relevant legislation.
It is important to use all of these approaches.
For example, a legal search is unlikely to
record information on boundary disputes
that may be ongoing with neighbours.
However, on some projects it may not be
possible to identify all of the legal rights
despite using all of these techniques. For
example, a legal agreement may have been
entered into by a previous owner on an
unregistered site, but may not come to light
until a later stage, potentially when the
project is underway or completed. You
therefore need to make best endeavours to
identify any third party legal rights and then
consider with your legal advisor what the
risk may be of unidentified risks arising at a
later stage. It may also be possible to obtain
insurance to cover this risk if all reasonable
steps have been taken 82.
• Determine whether these rights affect the
feasibility of the project. This may be
relatively straightforward. For example, a
restrictive use covenant generally specifies
the uses that are not permitted for the
Further information on insurance can be obtained from the Association of British Insurers (ABI).
C3 Assessing feasibility
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3 Assessing feasibility
property. In other cases it may be more
difficult, particularly if all of the legal rights
may not have been identified.
detailed design and specification83. This may
include consideration of factors such as:
• Floor-loading capacities.
• Take steps to address any legal rights that
affect feasibility. Before taking legal steps to
address these rights it is advisable to approach
with the party benefiting from them. They
may be prepared to remove or relax the
right to enable the project to proceed. For
example, it is generally in the interest of a
mortgage lender for the value of a property
to be maximised and it is therefore likely
that agreement can be reached around
bringing an empty property back into use.
If the party benefiting from the right cannot
be identified or is not willing to remove or
relax the rights, it may be possible to take
legal action to bring the right to an end. For
example, it may be possible to demonstrate
that a restrictive use covenant no longer
fulfils the purpose for which it was
originally intended.
• Position and configuration of load bearing walls.
• Fire resistance.
• Floor-to-ceiling heights.
• Flexibility of the internal spaces.
• Provision of staircases and lifts.
• Availability of natural light.
• Sound and thermal insulation.
• Existing internal services, including lighting,
power, heating, ventilation, communications
and sanitary ware.
• Capacity of utilities.
Determining what legal rights may exist and
what steps can be taken to address them can
be a complex area and advice should therefore
be obtained from a Solicitor.
Can the property physically accommodate
the specification needed?
The characteristics of the property should have
been identified through the Condition Survey
(see above). For example, this should have
established how many rooms there are in the
property and their layout. However, further
survey work is likely to be needed to inform a
83
112
• Fire precautions and means of escape.
• Disabled access.
In addition, if the project comprises a mix of
uses, you may also need to consider:
• Separate entrances.
• Separate refuse facilities.
• Separate utilities.
Further information on preparing a detailed design and specification can be found in Section C5.2.
Empty property: unlocking the potential
In order to establish whether the property is
suitable for being brought back into use, a
number of surveys may therefore be needed,
including:
• A Measured Survey. This considers the
internal dimensions in more detail, including
matters such as floor-to-ceiling heights and
whether the space in individual rooms is
sufficient for modern living standards. To
ensure consistency a Measured Survey should
be undertaken in line with recognised
guidelines. A suitably qualified professional,
such as a Surveyor, should therefore undertake
it. The output of a Measured Survey should
be a set of scaled floor plans of the property
that can then be used by other professional
advisors to develop designs and cost the
works needed. Increasingly Measured Surveys
result in IT-based designs that can easily be
shared with other professional advisors.
• A Utilities Survey. This considers whether the
utilities supply to the property is adequate
for the proposed end use. Telephones are
often excluded, as a new or upgraded
telephone service is generally relatively less
expensive than other utilities upgrades. You
therefore need to make appropriate enquiries
separately for this. A Utilities Survey can
also establish the costs of any upgrades and
reconnection charges if needed.
Your building professional should be able to
advise which surveys may be needed.
Can an end use be secured?
Clearly the project cannot progress without a
reasonable prospect that an end user can be
secured when it is completed. The realism of
whether an end user can be secured should
have been tested whilst working up the initial
design and specification. However, it is important
to check this as part of the feasibility assessment.
C3.2.2 Are there sufficient
financial returns?
From the owner’s perspective, the financial
returns from a reuse or conversion process
generally forms a critical part of the decision to
undertake the project. If the project costs more
than the income that can be derived from selling
or leasing the completed flats or houses then
the project is unlikely to proceed.
The returns from bringing a property back into
use are usually calculated using a ‘Residual
Appraisal’. This involves calculating the income
that can be secured from the completed project
and subtracting from this the costs associated
with bringing the property back into use. This
should include the works themselves and other
associated costs, such as fees.
If the outcome from the Appraisal is zero or is
a positive figure then a financial return may be
achieved. Alternatively, if the outcome is a
negative figure there may not be a financial
return on the assumptions made. In this case,
steps may need to be taken to improve the
project’s feasibility (see below).
An example of a Residual Appraisal is provided
in Figure 12. This is for illustrative purposes
only and specialist advice, such as from a
Surveyor, should be obtained in preparing
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3 Assessing feasibility
Residual Appraisals. Other sources of income
or costs may need to be included on a case-bycase basis. For example, for the conversion of
space above shops a provision may need to be
made for reduced business due to disruption.
Alternatively, if you plan to purchase a
neighbouring property to create a larger project,
relevant costs need to be included, such as the
purchase price, Stamp Duty and fees.
The inputs to a Residual Appraisal need to be
considered carefully. For an initial feasibility
assessment, it may be possible to use information
from other similar projects and standard figures
and percentages. However, as the design and
specification becomes more detailed, it is
important to use information specific to the
project since all properties are different. Not
only are they likely to have unique characteristics,
but also property values can vary from one
location to another and even from one side of
the street to the other. A basic Residual Appraisal
can be undertaken on paper using a calculator
or using an IT-based spreadsheet. However, as
the project becomes more detailed, more
sophisticated software is likely to be needed
which can calculate finance costs and undertake
sensitivity analysis automatically. It is therefore
advisable to obtain specialist advice on preparing
a Residual Appraisal, particularly as the
feasibility assessment becomes more detailed.
It is also important to consider carefully the
outcome from the Residual Appraisal, as it can
be sensitive to small variations in its inputs. For
example, a ?% higher interest rate on a loan
may significantly increase the finance costs.
A contingency allowance is generally built in to
take into account such ‘unknowns’. However, it
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Empty property: unlocking the potential
is also advisable to test the sensitivity of the
outcome of the Appraisal to variations in its
inputs. This is generally referred to as ‘sensitivity
analysis’. This can be undertaken in two ways.
Firstly, you could alter one or more of the
inputs by a fixed amount or a percentage and
examine the resulting variation in financial
returns. For example, the sale price of each flat
in a project could be reduced from £70,000 to
£65,000. Secondly, you could consider how much
a particular input can vary before the project
fails to achieve acceptable financial returns.
The outcome of the Residual Appraisal should
not be considered in isolation. The financial
returns associated with bringing empty properties
back into use should be weighed against the
risks of holding them empty. Although some of
the costs of holding an empty property may be
reflected in the Residual Appraisal, legal action
may present risks as grants that could otherwise
have been accessed are unavailable and the
full costs of restoration need to be met.
Information within a Residual Appraisal is generally
based on the best available information at the
time the Appraisal is undertaken. However, in
practice, income and costs are likely to vary
over time. For example, inflation may impact
on the cost of works and variations in interest
rates may impact on finance costs. Alternatively,
market conditions may improve or decline,
affecting the income that can be achieved. It is
therefore important that as the project progresses,
the Residual Appraisal is re-run at appropriate
stages, to monitor any variations in inputs and
their impact on financial returns. Appropriate
steps can then be taken to address any issues
at the earliest possible opportunity.
Income
There is a range of income headings to be
considered as part of a Residual Appraisal.
• Sales proceeds/rent. This could be derived
either as a one off sum on selling the
property, generally referred to as a ‘capital
receipt’, or a periodical rental income. Since
every property is unique, a Local Property
Agent is generally the best source of
information on potential sale and rental
values (see below). They should be able to
advise on both current values and market
trends. They may also be prepared to
informally discuss values with you even if
they have not been instructed. In considering
market values it is important to take into
account the character that the building may
have, since this may be more attractive than
a newly-built property, as illustrated in
Anecdote 10. If all or part of the property is
rented out, an income is received periodically.
However, a Residual Appraisal considers the
total financial returns generated by a project.
It is therefore important to establish the total
value of that periodic income, which is
known as ‘capitalising’ it. To do this, you
need to multiply the annual rental income
by a factor that reflects the amount that a
third party would be willing to pay today
for the right to receive this income. This is
important even though you may not be
proposing to sell the project. For example, a
bank may need evidence of this to support
borrowing. In simple terms, the appropriate
multiplier or ‘capitalisation rate’ is determined
by dividing 100 by the percentage ‘yield’.
For example, if the yield is 12.5%, the
multiplier would be 8. This assumes that the
property will be leased to a series of tenants
in perpetuity. A low yield produces a high
multiplier, which when applied to an annual
rental income generates a greater capital
value. The appropriate yield depends on the
relative attractiveness to an investor of
receiving the income stream generated.
This in turn depends on a number of factors
such as the financial strength of the tenant(s),
the potential for growth in the rental income
and the potential for growth of the value of
the property over the period of the lease.
For example a prime London flat leased to a
large company for visiting staff would
generally attract a lower yield and hence a
higher capitalised value than poor quality
housing stock leased to individuals. A Local
Property Agent is also generally the best
source of information on yields. Rents are
often quoted on an amount per square metre.
If this is the case you need to calculate the
annual rental income by applying this to the
area of the property over which rent can be
earned. Rental values for residential property
are generally calculated on the ‘Gross Internal
Area’ of a property whereas any costs of
building or refurbishment works (see below)
are generally based on the ‘Gross External
Area’. This broadly reflects the fact that
works may need to be undertaken to the
entire building, including its structure, whereas
only the internal areas of the property can
be occupied. For an initial appraisal you
could assume 10-15% difference between
these two figures. However, as the feasibility
study becomes more detailed exact
measurements need to be obtained through
a Measured Survey (see above).
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Anecdote 10
Improving feasibility (1) –
Securing premium values
“A sensitive restoration can create premium values
by utilising the character of the building. Urban
Splash have successfully brought a number of
disused buildings back into use, such as the Tea
Factory in Liverpool for a mix of retail, leisure, office
and residential uses, the Collegiate in Liverpool
(pictured) and the Britannia Mills building just off
Manchester’s Bridgewater Canal. In total over 450
homes have been created through our conversion
projects as well as a range of other uses.”
Tom Bloxham MBE, Chairman, Urban Splash
• Allowance for bad debts/voids. If a property
is being leased, there may be occasions
where a tenant does not pay their rent on
time or at all. There may also be occasions
where the property or part of it is not
occupied, for example if one tenant has left
and the new tenant has yet to move in.
Within the Residual Appraisal, it is therefore
important to make an allowance for any
‘bad debts’ and ‘voids’ that may arise. In an
initial feasibility study around 5-10% could
be allowed, although this depends on the
type of accommodation and you should
discuss this with a Local Property Agent.
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Empty property: unlocking the potential
• Cost savings. There are a number of potential
costs associated with owning empty property
that could be saved by bringing a property
back into use. This should therefore represent
a form of income associated with the project.
Owning an empty property is likely to give
rise to a mixture of one-off costs and running
costs incurred on an annual or more
frequent basis. One-off costs may include
the cost of boarding-up the property to
prevent vandalism and other damage.
Running costs may include:
– Council Tax or Rates. Council Tax is
payable on residential properties and
Rates on commercial properties. A Council
Tax exemption is generally available for
the first 6 months that the property is
empty, after which 50% of the Council
Tax is payable. For Rates, the initial
exemption is generally for 3 months, with
50% also payable after this period.
Eligibility for exemptions and discounts is
more complex in practice. For example it
can depend on whether the property is
furnished or unfurnished, if it is a Listed
Building and the status of the applicant.
It is therefore advisable to contact the
appropriate Department within the Local
Authority or consult a Tax Advisor to
obtain further advice. The Government is
proposing to give Local Authorities
flexibility to reduce or waive Council Tax
discounts on empty properties after the
initial exemption period has passed. It is
therefore also advisable to obtain advice
on the status of this.
– Security. To meet an owner’s legal duty to
protect the safety of the public (see below)
and to prevent vandalism and damage,
an empty property should be kept secure.
In addition to initial boarding up costs,
ongoing security may therefore be
necessary. For example, a security firm
may be appointed to inspect the property
periodically.
– Maintenance. The building is likely to
need some maintenance throughout the
time it is empty. This may be in the form
of keeping the grounds tidy and free of
rubbish or ensuring that electrics are
maintained to a safe standard.
– Insurance. Empty properties generally
need to be insured. This is likely to include
building insurance to protect against any
damage and public liability insurance in
case people are injured whilst on the
premises. There may also be specialist
insurance such as to cover any machinery,
such as lifts. It can be difficult to secure
insurance for empty properties because
of the risks they pose. As such insurance
premiums are often higher.
– Value Added Tax (VAT). This is generally
payable on the costs of any maintenance
or security works on an empty property
and any associated fees. This is generally
levied at 17.5%. It may be possible in some
cases to recover VAT costs (see below)
although it is advisable to include these
within an appraisal unless specific advice
has been obtained.
There may be other costs on a case-bycase basis. In addition, there may also be
‘hidden’ costs not identified above. For
example, the owner may gain a poor
reputation as a result of a property lying
in disrepair. As with calculating rental
income, running costs need to be
‘capitalised’ to determine the equivalent
costs at today’s date, which can then be
added to the one-off cost savings to
determine the total costs saved. Running
costs can be capitalised by applying a
multiplier that makes an allowance for
the interest that could have been earned
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had this money been saved. Unless you
have firm plans to bring the property
back into use or sell it, it is advisable to
assume that these costs would be incurred
in perpetuity. As such the multiplier that
should be applied is 100 divided by the
percentage saving rate that you could
obtain from a lender if the same money
had been receiving interest in a savings
account. For example, if the saving rate
is 5%, then the multiplier is 20. In an
initial appraisal it is advisable to adopt
the Bank of England base rate for the
saving rate. In a more detailed appraisal
you could ask a Bank, Building Society
or other lender.
– Grants. Any grants secured towards the
costs of the property (see below) would
represent income in the Residual Appraisal.
Costs
There is a range of costs to be considered as
part of a Residual Appraisal:
• Building or refurbishment works. These could
include works to the property’s structure as
well as any internal works needed. It may
also include associated costs, such as furnishings
or landscaping, if appropriate. At the initial
feasibility stage it is usually sufficient to base
this on the Gross External Area (see above)
of the completed project (in square metres)
multiplied by a standard rate (in £ per
square metre). Building professionals, such
as an Architect or Surveyor should be able
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to advise you of appropriate standard rates.
As the feasibility assessment becomes more
detailed, specific costs need to be worked
up based on the project design and
specification prepared. A Residual Appraisal
does not include an allowance for the
external maintenance costs of a property,
which are generally borne by the end user 84.
• Contingency – This is a provision to reflect
unknown costs. However well a project is
planned and researched, there can be
additional costs that are not anticipated. For
example, the project could take longer to
secure consents than anticipated or works
may be delayed due to poor weather. This
may result in additional costs. Alternatively,
unforeseen costs could arise, such as finding
asbestos once initial works to ‘gut’ the
property have been undertaken and needing
to take appropriate steps to remove it. The
level of contingency allowance should depend
on the complexity of the project and the
level of detail available. Within an initial
appraisal, a contingency level of around
15-20% may be appropriate. As the appraisal
becomes more detailed and therefore as the
information becomes more accurate, it may
be possible to lower this to 5-10% or lower 85.
This should be applied to the cost of works.
A qualified building professional should be
able to advise on an appropriate rate.
• Professional fees. These are the fees incurred
by professional advisors in relation to the
building or refurbishment works. For an
84
Further information on securing an end user can be found in Section C6.
85
Further information on refining cost information can be found in Section C5.2.
Empty property: unlocking the potential
initial appraisal this is generally based on a
percentage of the building or refurbishment
costs. The level depends on the complexity
of the project and therefore the nature of
professional advice needed. For example on
a relatively basic project this could be around
10% for an Architect, Quantity Surveyor and
Project Manager86. For a more complex project,
this could increase to around 12-15%, to allow
for the costs of appointing other advisors
such as Engineers. The fee rate may also be
affected by the size of the project. Larger
projects can give ‘economies of scale’ and
therefore, they generally have lower fee
rates than small projects. As the feasibility
assessment becomes more detailed you can
ask a sample of advisors for estimates of
their fees based on the design and
specification set.
• Other costs. There are a number of potential
costs falling into this heading, including:
– Survey costs. There could be a range of
surveys needed on a project, including a
Condition Survey, Measured Survey,
Transport Assessment, Environment
Impact Assessment and Asbestos Survey.
– Costs of securing consents. This may
include any applications fee to the Local
Authority and any fees payable to
professional advisors. These are usually
recorded distinct from the professional
fees above, which relate to the
implementation of the works. It should
also include any costs that may be
associated with a planning agreement,
such as contributions to public space or
community facilities if appropriate.
• Agency and legal fees. An allowance will
need to be made for fees involved in
identifying and entering into agreements
with potential purchasers or tenants from
the owner’s perspective. These are separate
from the purchaser’s costs identified above.
As a rule of thumb 1.75% of the sales receipts
or 17.5% of the annual rental income should
be allowed at the initial feasibility stage.
As the feasibility assessment becomes more
detailed, you should secure fee quotes.
• Marketing and promotion costs. To raise
awareness of the project with potential
purchasers or tenants, some form of marketing
or promotion is generally needed87.
• Purchaser’s costs. A purchaser or tenant of
the completed property will generally incur
costs associated with the transaction, which
they are likely to take them into account by
deducting them from the amount they are
prepared to pay to buy or rent the property.
It is therefore advisable to make an allowance
for them within the costs. Whether the
owner in practice pays these depends on
the circumstances of the project and the
negotiations held. These costs typically include:
– Stamp Duty. This is a tax payable on
both purchases of property and leases.
The rate of Stamp Duty payable is
generally calculated as a percentage of
86
Further information on appointing professional advisors can be found in Section A4.3.2
87
Further information on marketing to support sales and leasescan be found in Sections C6.2 and C7.3.
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the purchase price. However, if staged
payments are made, such as an initial
purchase deposit and a final lump sum,
these need to be added together. Similarly,
an up front payment or ‘premium’ for a
lease may be subject to Stamp Duty in
addition to the first year’s rent to calculate
the Stamp Duty payable. The Stamp Duty
rates for 2002/3 are summarised in Figure
13. These depend on the value of the
property, the form of end use and its
location. For example, the rate payable
on acquiring properties in designated
disadvantaged areas is reduced 88. The
Government is also considering further
reforms to modernise Stamp Duty. It is
therefore advisable to consult a Tax
Advisor or Local Property Agent who
should be able to tell you what rate
should apply.
– Valuation and legal fees. As a rule of
thumb, these generally amount to around
1.75% of the income, although you
should check this with advisors.
• Cost of finance – If some of the funding for
the project needs to be borrowed, interest
will need to be paid. The interest rate
generally varies from project to project,
depending on the risks perceived by the
lender relating to both the project and the
owner. In an initial feasibility assessment,
you could use the Bank of England base
rate (see above) plus 3-4% for loans secured
on the property. This could be varied
dependent on the scale and risk of the
88
120
project, with larger or less risky projects
likely to secure more favourable borrowing
rates. As the feasibility assessment becomes
more detailed, you should be able to ask a
lender to specify the rate at which they are
prepared to lend. The length of time over
which you need to borrow the money also
needs to be determined. It is unlikely that
the total loan needs to be drawn down in
one amount since costs are generally incurred
throughout the project rather than at the
outset. In addition, income may be received
before completion of the project, for instance
if the project is phased. As a rule of thumb,
you could assume that the total sum which
needs to be borrowed is needed over half
of the length of the project. You therefore
need to get appropriate specialist advice
from a building professional. If a £500,000
project, including fees and other costs, is
going to take a year to complete, the interest
payable at a borrowing rate of 7% per
annum would in simple terms be 500,000
(the cost) x 0.07 (the interest rate) x 0.5
(half the period), giving £17,500. As the
feasibility assessment becomes more detailed
you need to establish a detailed statement of
income and costs on a quarterly or monthly
basis and calculate the borrowing needed at
each period of time. This is generally referred
to as a ‘cash-flow’ statement. This also needs
to reflect the fact that, in practice, the lender
generally calculates interest on a ‘compound’
basis. This means that you may need to pay
interest not only on the original sum borrowed
but also on any interest incurred but not
yet repaid.
Details of disadvantaged areas can be obtained from the Inland Revenue or at www.inlandrevenue.gov.uk/so.
Empty property: unlocking the potential
• Tax. This can be a significant cost. It is
therefore important to consider both the tax
status of:
– The owner. If flats or houses are sold or
rented, the owner may be liable to pay
tax on any profits generated. For an
individual and some forms of business
this would generally be through payment
of Income Tax on rental income and
Capital Gains Tax on sales. For other
forms of business this would generally be
through payment of Corporation Tax on
both rental income and sales. Some
organisations, such as charities, may not
be needed to pay tax. If Income Tax or
Corporation Tax is payable, it may be
possible to benefit from tax allowances,
often referred to as ‘capital allowances’,
on the conversion of space above shops
to flats for rent. This means that Income
Tax or Corporation Tax is only payable
on the person or organisation’s profit
after allowing for 100% of the cost of
works, subject to the costs all being eligible.
This, in effect, acts as a refund of a
proportion of the project costs, equal to
the rate of Income Tax or Corporation
Tax paid. Further details on the potential
savings and eligibility criteria can be
found in Figure 1389. In addition, tax
allowances can be obtained on works to
decontaminate land, although this is not
considered within this guidance. Tax
allowances need to be considered carefully
since you normally need to pay for works
89
initially and recover the allowance at a
later stage when tax returns are made.
– The project. VAT is generally payable on
construction materials and professional
fees associated with the refurbishment or
conversion of an empty property. It is
calculated as a percentage of particular
costs and is generally paid by the owner
to the provider of the goods and services
in addition to the base costs. The rate of
VAT payable, which is summarised in
Figure 13, depends on the type of property
and how long it has been empty. For
example, Listed Buildings and some longterm empty properties benefit from
reduced rates. In addition residential
properties that are being consolidated
into a smaller number of units or subdivided into a larger number of units can
also benefit from a reduced rate of VAT.
If an owner is registered for VAT, which
may be the case for a business, it may be
possible to recover some or all of the
VAT incurred by charging it on the sale
or lease of the property. A special process
needs to be followed. Any VAT received
from the purchaser or tenant, less any
VAT paid to the providers of goods and
services in relation to the works undertaken,
then needs to be paid to HM Customs &
Excise. This process is generally not possible
if the owner intends to occupy the property,
since there is no third party to pass the
VAT on to. In addition, passing on VAT
Further information can be obtained in Capital Allowances for Living-Over-The-Shop Schemes and 100% Capital Allowances for Flats
Over Shop: Inland Revenue Briefing Note 15.
C3 Assessing feasibility
121
3 Assessing feasibility
would represent an additional cost to the
occupier, which may mean that they
would be prepared to pay less to purchase
or rent the property. Where the zero rate
applies to properties empty for over 10
years, the standard rate of VAT needs to
be initially paid before it is reclaimed at
the completion of the project. For all of
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Empty property: unlocking the potential
these reasons, it is therefore advisable to
include VAT costs in full within the initial
appraisal. VAT rules are different for a
Local Authority and appropriate specialist
advice should therefore be obtained if the
Local Authority has acquired a property
using its legal powers.
Figure 13: Maximising tax allowances
Stamp Duty
The 2002/3 rates of Stamp Duty applying to sales of property or premiums on a lease are summarised in
the following table:
Sale price
Up to and including £60,000
£60,001 to £150,000
£150,001 to £250,000
£250,001 to £500,000
£500,001 or more
Location
Disadvantaged areas
No Stamp Duty payable
No Stamp Duty payable
1%
3%
4%
Other areas
No Stamp Duty payable
1%
1%
3%
4%
The rates of Stamp Duty payable as a percentage of the first year’s rent on leases are summarised in the
following table:
Length of lease
Stamp Duty rate
Less than a year
1 to 7 years
Over 7 years to 35 years
Over 35 years to 100 years
Over 100 years
£5
1%
2%
12%
24%
Stamp Duty is generally not payable on leases with an annual rent of £5,000 or less.
VAT
The rate of VAT applying to different types of property are summarised in the following table:
Period property empty
Type of property
Conversion of
non-residential
properties to a
residential use
Up to 3 years
17.5%
From 3 years and a day to 10 years 17.5%
Over 10 years
17.5%
Residential
reuse with no
other special
treatment
Listed Buildings
(residential only)
Consolidating/
Sub-dividing
a residential
property
17.5%
5%
0%
0%
0%
0%
5%
5%
0%
C3 Assessing feasibility
123
3 Assessing feasibility
Capital allowances
The benefit of Capital Allowances depends on the cost of the works and the amount of tax paid. For
example, if a person invests £10,000 to refurbish an empty flat over a shop, if Income Tax is paid at 22%,
the allowance is worth £2,200. If at least £10,000 is subject to Income Tax at 40%, the allowance is
worth £4,000.
To be eligible the property should:
• Have been built before 1980.
• Not have more than 5 floors in total.
• Have been originally constructed so that the upper floors were primarily for residential use.
• Have been either unoccupied or used only for storage for at least 1 year before the conversion work starts.
There are also rules on the ground floor use. In addition, the completed flats should:
• Be leased for at least 7 years.
• Have separate access from the ground floor use.
• Not involve an extension, unless it is essential to provide access.
• Not be valued for rental purposes in excess of a specified rent level at the date the conversion works
are due to take place. The rent limits range from £350-480 per week in London and £150-300 per
week elsewhere. If the property market rises whilst the works are underway, this does not lead to
Capital Allowances needing to be repaid.
Figure 14 over the page shows a worked
example of how an initial appraisal, based on
indicative inputs for the rental of a 1,000 square
metre property, under the assumption that VAT
124
Empty property: unlocking the potential
is not recoverable and an Empty Property
Grant is available from the Local Authority of
about £11,500.
Figure 14
Total
Borrowing rate (1)
Size of property (sq m) (2)
Length of project (years) (3)
Cumulative
Notes
4%
1,000
2
Income
Sales (4)
£N/A
Rentals
- Annual Rental income (per sq m) (5)
- Yield (6)
- Total rental income (7)
£15
10%
Less allowance for bad debts/voids (8)
10%
Cost savings
- One off savings (9)
- Annual savings (10)
- Total cost savings (11)
£150,000
£150,000
£[(2)*(5)*100/(6)]
£15,000
£135,000
£[(7)*(8)]
£13,500
£148,500
£[(9) + (1/(1)*(10))]
£11,394
£158,500
£1,000
£500
Grant (12)
Total income (13)
Costs
Building/refurbishment works
- Cost of works (per sq m) (14)
- Total cost of works (15)
10%
Professional fees
- Rate (18)
- Cost (19)
10%
Other costs (20)
Cost of Finance (23)
Total costs (24)
£[(4)+(7)+(8)+(11)+(12)]
£100,000
£100,000
£[(14)*(2)]
£10,000
£110,000
£[(15)*(16)]
£11,000
£121,000
£[((15)+(17))*(18)]
£5,000
£126,000
£22,050
£148,050
£(21)*((15)+(17)+(19)+(20))
£11,844
£159,894
£[(1/2*(3))*((1)+4%)*((15)+(17)+(19)+(20)+(22))]
£159,894
£[(15)+(17)+(19)+(20)+(22)+(23)]
£100
Contingency
- Rate (16)
- Cost (17)
VAT
- Rate (21)
- Cost (22)
£159,894
17.5%
Nil
£[(13)-(24)]
Indicates the information which needs to be researched to complete the appraisal
C3 Assessing feasibility
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3 Assessing feasibility
C3.2.3 Is it deliverable?
and some owners have legal rules setting
out authority levels. Decisions to invest time
and money in the reuse or conversion of an
empty property may therefore need to be
taken at a senior level, such as by Senior
Local Authority Officers, or Councilors or
Board Members. It is important to establish
what approvals are necessary not only for
the feasibility stage but also the stages
that follow.
This element is often underestimated or even
disregarded. However, for a project to be
feasible it is important to ensure that you have:
• Access to finance. Although bringing an
empty property back into use may generate
a profit, projects generally need expenditure
before income can be generated. It is also
important to note that grant payments are
generally made in arrears so that you may
need sufficient money to fund the project
initially90. As the owner, you either need
sufficient funding of your own or to take a
loan. However, a feasibility study that shows
a project can deliver financial returns does
not guarantee that a lender will offer you a
loan. For example, you may have no track
record of a project of this scale. If you cannot
draw together the necessary funding and
further grant funding cannot be obtained,
you may need to sell the property to a third
party that does have the financial strength.
A Local Authority Officer should be able to
provide advice on this91.
What steps can I take
to improve the feasibility of
a project?
C3.3
After an initial feasibility assessment or even
after assessing the feasibility in detail, it may be
that the project appears not to be feasible.
However, this does not necessarily mean that it
cannot go ahead. There are a number of
techniques that could potentially be used to
improve its feasibility. These include:
• Changing the financing arrangements.
• The requisite skills. A blend of skills will be
needed to bring empty properties back into
use. It is important to ensure that you have
or have access to all of the requisite skills92.
• The necessary authority. Prior to progressing
with a project, it is important that you have
the necessary authority. Local Authorities
126
• Changing the design and specification.
• Adopting a range of techniques.
These are addressed in turn. Not all of these
techniques will be appropriate in every case.
For example, it may not be possible to phase a
90
Further information on grants can be found in Section C3.3.1.
91
Further information on the advice available from a Local Authority can be found in Section A3.
92
Further information on developing skills can be found in Section A3.
Empty property: unlocking the potential
small project. In some cases more than one of
these techniques may be needed (see below).
Other possible ways of improving the feasibility
are also highlighted throughout the guidance.
For example, it may be possible to secure the
waiving of a legal restriction over the property
or work with the Local Authority’s Planning
Department to ensure that the scheme for
which planning permission is granted can
deliver financial returns.
C3.3.1 Changing the financing
arrangements
A number of steps could be taken to improve
the financing of the project. These include:
• Phasing the project. This may improve the
financial returns of the project. You could
consider testing the market initially by
bringing forward part of the project. This
may reveal that end users are willing to pay
more than originally estimated. It may also
enable some income to be generated to
help support expenditure on the later
phases so that less borrowing is needed.
• Improving the project’s cash-flow. This is
important since it may affect finance costs if
the project is funded from borrowings. You
could consider delaying or staggering
expenditure. For example, some advisors
may agree to work on a success-based fee
or only be paid on the completion of the
93
project. In addition, steps could be taken to
secure income earlier. For example, you
could secure pre-sale or pre-lease agreements
over flats or houses before the project is
completed. It is however, important to note
that fee levels and sale or rental values
respectively may be adjusted accordingly.
As such this may only present a cash-flow
benefit rather than significantly improving
the project’s financial returns.
• Securing grant funding. This would represent
an additional income to the project and may
assist if the financial returns are not sufficiently
high. Further information on potential sources
of grant funding can be found in Figure 15.
Other grants may be available for specific
types of projects or for voluntary organisations93.
Each grant programme is different and has
different application arrangements. Some
have an outline application as well as a
detailed application. However, it is advisable
before applying for grants to have initial
discussions with the grant-making body to
establish whether the project is likely to be
eligible, what amount of grant is reasonable
and what requirements may be placed on
any grant. For example, a Local Authority
grant may be in return for the right to
nominate people on the Local Authority’s
waiting list to the accommodation. It is
important to note that any offer of grant is
generally subject to a legal agreement that
may stipulate a number of things:
Further information on grant funding sources can also be found in Urban Renaissance Toolkit: An Urban Route Map and Directory
of Information.
C3 Assessing feasibility
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3 Assessing feasibility
– The grant may be withdrawn or need to
be repaid if the project is not completed
or if variations are introduced from the
proposals approved by the grant-making
body. For example, if you plan to the
property but later sell it, you may need
to pay some of the sales income to the
grant-making body.
– The payment arrangements are typically
quarterly or monthly in arrears. The cost
of works therefore need to be met
initially before grant is received.
– Monitoring reports may need to be
prepared to demonstrate progress to
support the payment of grant.
These should therefore be considered as part
of any initial discussions. It may be possible to
secure help from the grant-making body in
94
128
preparing the application. Local Authority
officers may also be able to assist in preparing
grant applications to other grant providers.
You can also obtain specialist advice from grant
consultants, sometimes on a ‘no grant, no fee’
basis. In some cases, grants programmes
specifically need you to work in partnership
with other organisations. In other cases, this is
not a specific requirement. However, it is always
advisable to secure the support of relevant
parties to your application. For example, if you
are applying for a Local Authority grant, the
support of a local Councillor or MP may be
helpful. This reinforces the need to work in
partnership to bring an empty property back
into use 94. An example of the benefits of grant
funding is illustrated in Case Study 19, which
enabled grants towards both the conversion of
space above shops and shop frontage
improvements.
Further information on partnership working can be found in Section A3.
Empty property: unlocking the potential
Case Study 19
Improving feasibility (1) – Securing grants
The Seaside Road area of Eastbourne was historically a
retail area. However, due to a range of factors, including
competition from a new shopping centre, retailer confidence
fell and a number of properties became empty. In 2000, the
Council identified that a comprehensive approach was
needed to address the high level of empty properties, both
in terms of empty retail premises and space above existing
shops. It therefore structured a grants package with English
Heritage, through the Heritage Economic Regeneration
Scheme, offering grants towards both residential conversions
and improvements to shop frontages.
In total the Council has invested over £250,000 in the
Seaside Road area, which has led to over 20 properties
being brought back into use. One of the properties (pictured) had space above a shop which had been
empty for about five years. This was brought back into use through a partnership between Eastbourne
Borough Council and the James Butcher Housing Association, providing two affordable homes. The total
cost of the project was about £150,000, which was part-funded by £90,000 of Social Housing Grant
from the Local Authority and £25,000 through the Heritage Economic Regeneration Scheme. James
Butcher Housing Association funded the remainder.
C3 Assessing feasibility
129
3 Assessing feasibility
Figure 15 – Securing grant funding
Source
Grant
Description
Local Authorities
Empty Property Grant
A number of Local Authorities make grants available to help bring
empty properties back into use. These vary in their nature and
scale. However, their typical format is to provide a proportion of the
project costs up to a maximum ceiling. For example, they may
provide 50% of the costs up to a total of £20,000. Local Authority
officers involved in empty property work should be able to provide
advice on grants available from the Local Authority.
Regional Development
Agencies (RDAs)
Single Regeneration Budget (SRB)
There are a number of SRB programmes operating in specific
areas across England. Some of these include grant support to help
bring empty properties back into use. The RDA or a Local Authority
officer involved in empty property work should be able to advise
you whether your property falls within an existing SRB area and, if
so, put you in touch with the organisation responsible for
administering the programme on behalf of the RDA. Grants are
typically in the range of £10,000 to £100,000, although each
project is assessed on its merits.
Gap funding
The RDAs are currently able to offer 'gap funding' to some mixeduse projects. There are rules limiting the proportion of residential
accommodation (which should be less than 50% measured by
floorspace) and the level of gap funding available as a proportion of
total project costs. Further information on eligibility can be
obtained from the RDAs or at www.bridgingthegap.uk.com.
The Government is planning to launch a new gap-funding
programme aimed at housing in 2003. This will permit gap funding
for residential projects of up to 60% of project costs. RDAs should
be able to advise you on the status of this. Grants are typically in
excess of £100,000, although each project is assessed on
it merits.
Repair and Conservation Grants
This is available to Grade I and Grade II* properties. There are
no typical grants as these are tailored to the specific project
requirements.
Heritage Economic Regeneration Scheme
(HERS)
Grants are available to fund the repair and improvement of shop
frontages, the refurbishment of derelict buildings for new uses and
the transformation of empty space above shops into new homes
and businesses. This is available to significant groups of Grade II
Listed Buildings in Conservation Areas and unlisted buildings in
Conservation Areas that make a major contribution to local
character. Funds are targeted on deprived areas that have not
benefited from other conservation-led regeneration schemes.
These schemes also need the Local Authority to work in partnership
to support an application. Grants are typically between £15,000
and £100,000.
London Grants Scheme
This is available to Grade II properties in London. Grants are
typically between £1,000 and £65,000.
English Heritage
130
Empty property: unlocking the potential
– Securing ‘soft’ loans. Local Authorities
now have wide-ranging powers to provide
financial support to owners or other
parties bringing empty properties back
into use. In addition to grants (see above)
this can also include ‘soft’ loans. This
means that they are at a lower rate of
interest than the market rate and this
could therefore reduce the cost of repaying
interest on any borrowing. It is at Local
Authorities’ discretion whether they offer
loans and the starting point should
therefore be to contact the Local Authority95.
C3.3.2 Changing the design
and specification
The specification of the project and its costs
are generally linked. A number of steps could
be taken to vary the design and specification
of the project which may therefore improve
financial returns. These include:
• Reviewing the scale of the project. This may
assist if the financial returns are not sufficiently
high. The approach taken may depend on
the particular project. In some cases a larger
project may prove more feasible. For example,
it may be possible to achieve ‘economies of
scale’ by negotiating a more favourable
borrowing rate and spread fixed costs, such
as surveys, more thinly. Therefore you could
investigate whether additional properties
could be brought into the project or some
new build accommodation could be introduced.
The later approach was taken in Case Study
20. Acquiring property is however outside
the scope of this guidance and appropriate
advice should be obtained on this. In other
cases, a larger project may be less feasible.
For example, it may trigger a requirement
for affordable housing96. A balance therefore
needs to be struck.
• Introducing other uses. This may improve
the feasibility of the project in two ways.
Firstly, it may improve the financial return
of the project, since other uses may crosssubsidise the residential elements of the
project. Secondly, it may be more acceptable
to the Local Authority’s Planning Department.
For example, a change of use may have
been resisted due to a loss of potential
employment space, but the inclusion of
some employment-generating uses along
with residential uses may be acceptable.
This could take the form of discrete uses or
mixed units such as ‘live-work’ accommodation.
The changing attitudes towards mixed-use
projects are illustrated in Anecdote 11.
The introduction of non-residential uses may
need additional steps to be taken outside
the scope of this guidance. For example,
some retail or leisure uses may need
operating licences and businesses generally
have different lease arrangements to
residential property. As such appropriate
advice should be sought.
95
Further information on contacting a Local Authority can be found in Section A3.2.
96
Further information on securing consents can be found in Section C4.
C3 Assessing feasibility
131
3 Assessing feasibility
Case Study 20
Improving feasibility (2) –
Innovative use of property
In 1999, The Metropolitan Housing Trust Group was
planning to convert former offices and storerooms
above a retail store in Tottenham. However, the
Group identified that the project did not achieve
adequate financial returns due to the relatively high
associated conversion costs. The Group therefore
worked with the Local Authority, the London
Borough of Haringey, to consider options through
which the feasibility could be improved.
It was agreed that building an additional storey on top of the building would create adequate financial
returns whilst being acceptable to the Local Authority in planning terms. The Group therefore applied for
and secured a planning consent on this basis to provide 26 flats for shared ownership. The project was
completed in early 2003, with most of the flats already sold and the remainder in the process of being
disposed of.
Anecdote 11
Improving feasibility (2) – Mixed-use projects
“Mixed use projects are becoming increasingly attractive for property developers and investors as the
principles of integrating different uses, such as access and security, are now much better understood.
In addition, the benefits that flow from mixed-use projects can be beneficial, such as less dependence
on one tenant group, diversification of income and a more vibrant environment with residents automatically
acting as purchasers in retail units for example.
Ken Dytor, Chief Executive, Urban Catalyst
132
Empty property: unlocking the potential
Partial demolition. This may improve the
financial returns of the project. Subject to
securing appropriate consents, it may be
possible to demolish part of a property and
rebuild it, whilst refurbishing the remainder.
For example, it may be that the façade of an
historic building is retained whilst the
remainder is demolished and rebuilt at a
greater density.
C3.3.3 Adopting a range of techniques
Bringing an empty property back into use can
be challenging. It may therefore be appropriate
to adopt a range of techniques to improve its
feasibility. This is illustrated in Case Study 21.
What can I do if the
project remains unfeasible?
C3.4
If you have attempted to improve the feasibility
of the project, but it remains unfeasible, a number
of alternative approaches could be considered
in preference to no action being taken:
• Selling the property to another party. It may
be that another party is able to overcome
the barriers to feasibility. For example, a
Registered Social Landlord or a voluntary
organisation may be able to access grant
funding not available to private individuals
or be able to undertake building or
refurbishment works more cheaply because
it is undertaking a greater number of projects
Case Study 21
Improving feasibility (3) –
Adopting a range of techniques
The former Smithfield Fish Market is a complex site,
including Grade II Listed elements, lying to the north
of Manchester City Centre. The property developer,
Ician, a joint venture between AMEC and Crosby,
recognised that careful consideration would need to
be given to ensure that a feasible project could be
brought forward. Given that the overall project
involves over £50 million of investment, a range of
steps have been taken to achieve this.
Ician has worked closely with Manchester City Council both in its capacity as the landowner and the
planning authority. It has secured an outline planning consent for a mix of uses, including over 270 homes,
offices, shops, an art gallery, a café/bar and a jazz club. This aims to both create a vibrant project and
contribute to the project’s financial returns by cross-subsidisation. Some of these uses are included within
new build accommodation, taking full advantage of the site area. The project is also phased, with the
objective that the success of the first phase will help push values higher in later phases. Grant funding is
also being applied for. The overall project, branded Ician Northern Quarter, should play an important role
in the wider regeneration of Manchester City Centre.
C3 Assessing feasibility
133
and can generate ‘economies-of-scale’.
A Local Authority involved in empty
property work may be able to assist you
in identifying a potential purchaser.
• Bringing the property back into a nonresidential use. For example, this may be
appropriate in cases where planning
permission cannot be achieved for a
conversion project or if a restrictive use
covenant prevents use for housing97.
If a Local Authority assists in projects where
the building is brought back into use for a
non-residential use or rebuilt, this may still be
able to be counted towards its Best Value
performance provided that it can be
demonstrated that reuse was not feasible in
any other format98.
• Demolish and rebuild the property.
134
97
Further information on legal restrictions over property can be found in Section C3.2.1.
98
Further information on Best Value can be found in Section B1.
Empty property: unlocking the potential
C4 Securing consents
This Section is most relevant to owners of
empty properties since they are generally
responsible for securing any consents needed.
However, it should also be of interest to Local
Authority officers involved in empty property
work since they may be able to assist the owner
in demonstrating the regenerative merits of a
project in support of an application. This Section
is broken down into:
• C4.1 – What consents may be needed?
• C4.2 – What is the application process and
how are applications assessed?
• C4.3 – What decisions can be reached by a
Local Authority?
You should read each Section in turn.
What consents may
be needed?
C4.1
Before building or refurbishment works start,
it may be necessary to secure one or more
consents99. Progressing without appropriate
consents may lead to the Local Authority taking
legal action, such as an injunction to stop works,
a requirement to pay damages or a criminal
conviction. It is therefore important to establish
the consents needed as early as possible,
generally at the feasibility stage100. The consents
that are most likely to be needed are:
• Building Control Approval. This deals with
the health and safety of people in and
around buildings and ensures that building
and refurbishment works are carried out to
a satisfactory standard. It therefore covers
issues such as the safety of the building
structure, insulation and glazing as well as
heating systems, fire safety and facilities for
disabled people. When a property is
physically altered or is subject to a change
of use, Building Control Approval may be
needed. Although some minor works are
exempt from Building Control Approval, not
all are. For example, consent may be needed
if cavity insulation is inserted into a wall.
• Planning Permission. This deals with the use
and physical appearance of a building and
how it affects its surroundings. When a
property is physically altered or is subject to
a change of use, planning permission may
be needed. In some situations planning
permission is automatically granted and
applications do not therefore need to be
made. Situations include some minor works,
such as small extensions, porches and
fences. It also includes the conversion of
space above some ground floor shops and
offices to a single flat. However, in some
circumstances, these automatic permissions
are removed and applications need to be
made in the normal way. For example, this
can be the case in Conservation Areas
(see below).
99
Further information on undertaking building or refurbishment works can be found in Section C5.
100
Further information on assessing feasibility can be found in Section C3.
C4 Securing consents
135
3 Assessing feasibility
Other consents may also be needed depending
on the circumstances of the project, such as
Listed Building Consent and Conservation Area
Consent if the property falls into one of these
categories. The Local Authority Planning and
Building Control Departments should be able
to advise you on the appropriate consents in
each case101.
If you have only become the owner of a
property over recent years, it is advisable to
review whether any previous applications have
been made or consents granted to bring the
property back into use. Consents may already
be in place that may be used without needing
to re-apply. Alternatively, applications may
previously have been refused and understanding
the reason for this decision may save both time
and money if you are making a fresh application.
This information can be obtained by contacting
the relevant Local Authority Department.
What is the application
process and how are
applications assessed?
C4.2
In order to secure consents, an application
needs to be made to the appropriate Local
Authority Department. The application process
varies for each form of consent. However,
applications are usually made on a standard
form, which requires a range of basic
information on the project, including:
101
136
• Details of the applicant.
• The location of the property.
• The nature and scale of the project proposed.
• Whether the project constitutes a change of use.
• In addition to completing the application
form, drawings and floorplans are generally
needed. A planning application for a larger
or more complex project may also need to
be accompanied by additional surveys and
reports, such as a Transport Assessment or
Environmental Impact Assessment. The Local
Authority’s Planning Department should be
able to advise you of any surveys or reports
needed and the issues to be addressed
in them.
If projects are relatively small and basic, a
building professional such as an Architect or
Surveyor may be able to prepare the application
on your behalf. However, if the project is more
complex, a specialist Planning Consultant or
Building Control specialist may be needed.
They have experience in securing consents and
should know what information the Local
Authority needs to assess the application.
In general, fees are payable to the Local
Authority with Building Control and Planning
applications. However, in some cases, such as
for some voluntary organisations, these fees
may be refunded at a later stage. You therefore
need to confirm with the Local Authority what
fees are payable.
Further information on the consents that may be needed and the processes involved can be found in Planning: A Guide for
Householders, Planning Permission: A Guide for Business and Building Regulations Explanatory Booklet.
Empty property: unlocking the potential
Bringing an empty property back into use can
involve a significant investment of both time
and money. It is therefore always advisable,
before making an application, to discuss the
proposed project with an officer from the
relevant Local Authority Department. They
should be able to advise you whether the
project is likely to be acceptable and any
requirements that are likely to be placed on a
consent (see below)102. You should also discuss
the project with the Local Authority’s Empty
Property Officer, if it has one, as they may be
prepared to write a supporting statement to
accompany an application.
In the case of a planning consent, once ‘in
principle’ support has been obtained from the
Local Authority to the proposed project, you
may also be able to submit an outline application.
Although it does not guarantee that a full consent
will be secured and is not possible if a change
of use is proposed, an outline consent can give
greater certainty that the project is likely to be
acceptable to the Local Authority. A Local
Authority planning officer should be able to
advise you if it is appropriate for your project.
Once the Local Authority receives an application,
it is formally logged. This represents the start
date for considering the application by the
Local Authority. The Local Authority has a
target of assessing Building Control applications
within 5 weeks from that date and Planning
applications within 8 weeks. For smaller
projects this is often achieved. However for
more complex or contentious projects, such as
a change of use, this may take several months
102
or longer. It is therefore advisable as part of the
initial discussions with the Local Authority to
ask whether they envisage an extension
beyond the target approval time.
Initially, a Local Authority officer will visit the
property and note any relevant details.
Assessment of applications is then made against
a range of policies. For Building Control
Approval these are generally contained within:
• Approved Documents. These specify a range
of minimum standards for building or
refurbishment works. For example, Part M
of the Approved Documents deals with
access and facilities for disabled people.
• Circulars. These cover specific issues not
covered in the Approved Documents. For
example Circular 8/99 deals with Radon gas.
• Other guidance. Other organisations
produce useful guidance material that may
be of relevance. For example the Building
Research Establishment has produced
guidance on building on contaminated land.
For a planning consent the relevant policies can
be found in a range of documents including:
• The Development Plan. This sets out the
land-use policies for the area and is the
most important reference point for the Local
Authority in assessing a planning application.
It is reviewed periodically, usually every
5 years. In some Local Authorities there is
one document referred to as a ‘Unitary
Further information on partnership working can be found in Section A3.
C4 Securing consents
137
3 Assessing feasibility
Development Plan’. In other Local Authorities
there is a ‘Local Plan’, which needs to be
read alongside the ‘Structure Plan’ prepared
by the County Council. In London, in addition
to their Unitary Development Plans, Local
Authorities should also have regard to the
Greater London Assembly’s London Plan,
which sets out City-wide land-use policies.
The types of policies within a Development
Plan that are likely to affect an application
to bring a property back into use are those
such as loss of employment space if
conversion is proposed. It is important to
note that the Government proposes to amend
the nature and scope of Development Plans
and you should therefore seek advice from
the Local Authority to check the status of
these proposals. The relevant Development
Plan can be obtained through the
Local Authority.
• Planning Policy Guidance (PPG) and Circulars.
These are produced by the Government and
set out its policy on particular topics. For
example, PPG6 deals with retail uses and
therefore applies to some mixed-use
projects. Alternatively, Circular 6/98 deals
with when affordable housing may be
required as part of a planning agreement.
• Supplementary Planning Guidance. This is
produced by the Local Authority and sets
out detailed policies to accompany the
Development Plan or policies developed
since it was prepared. These often include
car parking standards and provisions
regarding the number and size of rooms in
residential projects.
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Empty property: unlocking the potential
• Other documents. A range of guidance is
produced by organisations to which Local
Authorities often refer. For example, the
Commission for Architecture and the Built
Environment (CABE) has produced a
number of guidance documents on high
quality design.
Although it is generally not appropriate to read
all of these documents, it is important to
understand the main policies that may affect
empty property proposals. In doing so, you
may then be able to take steps to maximise the
chances of securing a consent. For example,
some planning policies need clear evidence of
a lack of demand for a property’s previous use
before conversion to residential may be permitted.
In this case, you could start marketing the
property early in the feasibility stage to
demonstrate this, as well as reducing the time
involved in bringing the project forwards. You
should therefore carefully discuss policies with
the Local Authority officers or seek the advice
of a Planning Advisor, an Architect or Surveyor.
Planning applications are also subject to
consultation with a range of parties, including:
• The public. In particular the Local Authority
may consult neighbours or other parties
who may be directly affected by the proposal.
A range of publicity is used, including direct
mail, newspaper articles and signs attached
to lampposts, to bring the proposal to the
public’s attention.
• Other Local Authority Departments. For
example, the Highways Department may be
asked to comment on any increase in traffic
that may arise.
• Other organisations. A range of organisations
may be consulted depending on the nature
of the project. For example, English Heritage
is generally consulted when a Listed
Building is involved.
The extent of issues that need to be considered
in assessing applications reinforces the
importance of obtaining appropriate
professional advice.
Once the application has been assessed, a
Building Control officer is able to make the
Local Authority’s formal decision. A Planning
Officer is also able to do this for most minor
projects. However, in more complex or
contentious cases their recommendation may
need to be referred to the Planning Committee
or Cabinet. In some cases, the application also
has to be referred to the Government, which
will scrutinise the Local Authority’s decision.
What decisions can be
reached by a Local Authority?
C4.3
Having assessed an application, there are three
main decisions that a Local Authority can reach:
• An unconditional consent. If this is the case,
you can proceed to undertake building or
refurbishment works. However, in practice
an unconditional consent is unlikely.
• A consent subject to certain conditions or
agreements. A range of conditions or
agreements may be applied to a consent.
Some conditions set out further approvals
needed by the Local Authority prior to the
works commencing or after they are completed.
For example, an archaeological survey may
be needed under a Planning Permission
before works can start. Alternatively, a
standard condition in a Building Control
Approval is that the property cannot be
occupied until a final inspection is made of
the completed building or refurbishment
works. Agreements generally relate to specific
works that have to be undertaken to satisfy
a Planning Permission, such as contributions
towards improving community facilities.
They are often referred to by the legal
provisions under which they are made, such
as a ‘Section 106’ or ‘Section 278’ agreement.
Dependent on the nature of the conditions
or agreements specified by the Local
Authority, you need to determine whether
these enable you to proceed with the
project immediately or if they need to be
dealt with first. If you believe that the
conditions or agreements needed are too
onerous, it may be possible to appeal against
the Local Authority’s decision. The Local
Authority officer dealing with the applications
should be able to advise you if this is
possible. However, if you are successful this
generally results in the whole application
needing to be reassessed rather than it being
amended. This approach therefore needs to
be considered carefully (see below). It is
advisable instead to work closely with the
Planning Department to reach a mutually
C4 Securing consents
139
acceptable solution. A Local Authority
officer specialising in empty property work
may be able to help broker an agreement.
• A refusal. If an application is refused, a
project is generally not able to go ahead.
It is therefore initially important to understand
the reason for the refusal. Then you could
consider two routes. Firstly, if it is possible
to do so, you could address this issue and
reapply. For example, this may be appropriate
if the layout of the project is unacceptable.
Secondly, you could appeal against the
decision. To do so you need to have valid
grounds. Advice on appeals can be obtained
from the Local Authority. Either approach
can involve significant costs and this
therefore emphasises the importance of
working closely with the Local Authority
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Empty property: unlocking the potential
when formulating the proposal and obtaining
appropriate specialist advice from the outset
(see below). Although it could take a long
time to do, it may be possible to make a
case, as part of the review of the Development
Plan, for your property to be allocated for
residential use if conversion was not or is
unlikely to be permitted. The Local Authority
should be able to advise you of the timetable
for reviewing the Development Plan.
Once any conditions or agreements are
resolved, if appropriate, you can proceed to
undertaking building or refurbishment works.
However, it is important to bear in mind that
consents are generally valid for a fixed period
of time and works therefore need to be started
in good time.
C5 Undertaking building or
refurbishment works
This Section is most relevant to owners since
they are generally responsible for commissioning
building or refurbishment works. However, it
may also be of interest to Local Authority officers.
For example, if grants have been offered to a
project, they may need to check that building
or refurbishment works are progressing
satisfactorily. This Section is broken down into:
take full responsibility for the works without
more detailed design being needed. You can
therefore refer to Section C5.3. In other cases,
more substantive works may be needed, both
internally and to the external building fabric.
The works may therefore need to be carefully
designed before they can be started. There are
two main ways in which this can be achieved:
• C5.1 – Selecting how to commission
building or refurbishment works.
• A ‘traditional’ approach. In this case an
Architect or other building professional is
appointed as a professional advisor103. This
may be the same advisor who provided
advice at the feasibility stage or a new
appointment104. They would work with you
to finalise the designs and you would then
separately appoint a building contractor to
undertake the works.
• C5.2 – Finalising the design and specification.
• C5.3 – Appointing a building contractor.
• C5.4 – Undertaking the works.
• C5.5 – Ensuring the property is ready
for occupation.
You should read each Section in turn.
Selecting how to
commission building or
refurbishment works
C5.1
The nature and extent of works involved in
bringing an empty property back into use will
vary. In some cases, nothing more may be
needed than a coat of paint. It may therefore
be possible to appoint a building contractor to
• ‘Design and build’. In this case, a single
organisation would generally finalise the
design with you and then proceed to
undertake the works themselves once the
designs are approved.
Some people prefer the two distinct roles that
the traditional approach involves, since the
advisor is generally not motivated by the
profitability of the works and is able to provide
an independent ‘challenge’ to proposals put
forward by the building contractor. Other
people prefer the single-point responsibility
offered by a design-and-build package, which
can sometimes result in lower costs. There are
also other alternative arrangements, particularly
103
Further information on appointing a professional advisor can be found in Section A4.3.2.
104
Further information on assessing feasibility can be found in Section C3.
C5 Undertaking building or refurbishment works
141
3 Assessing feasibility
for more complex or specialist projects. The
advantages and disadvantages of each route
need to be considered on a case-by-case basis
with appropriate advice obtained from a
building professional.
Depending on the nature and scale of the
works needed, it may also be that one firm
cannot undertake all of these on its own.
Building contractors often appoint other firms
to undertake specialist parts of the works, such
as electricians. You therefore need to decide
whether to appoint one organisation to
co-ordinate all of the work or manage each of
these relationships yourself, with the support of
your professional advisors. Although the ‘lead’
building contractor is likely to charge for
co-ordinating all of the other building contractors,
they should have experience of managing
these relationships. Again, you should discuss
the advantages and disadvantages of each
option with a professional advisor.
The remainder of this Section assumes that a
traditional approach is taken with a lead building
contractor. In this case, a number of steps
would be involved:
• Finalising the design and specification.
• Appointing a building contractor.
• Undertaking the works.
• Ensuring the property is ready
for occupation.
105
142
These steps correspond to the following
sub-sections.
Finalising the design
and specification
C5.2
Before building or refurbishment works can be
started, you need to provide the building
contractor with sufficient details so that they
can understand the nature and quality of the
works you need, the budget you have available
and any specific timescales you are working to.
An initial design and specification should
already have been prepared to inform the
feasibility assessment105. However, this is unlikely
to be of a sufficient level of detail to enable
building or refurbishment works to go ahead
unless only minor works are needed. Three
main steps are therefore likely to be needed:
• Finalising the design. This will generally not
be a one-off process unless the works are
basic in nature. It may involve numerous
iterations both around matters of detail,
such as how many flats will the building
accommodate, as well as fine-tuning, such
as what type of kitchen will be fitted. The
design stage is often split into three substages. At the feasibility stage of a project an
initial design will usually have been prepared,
typically identifying the number of rooms
and a broad layout. The next level of detail
is often referred to as ‘scheme design’, which
Further information on working up an initial design and specification can be found in Section C2.2.
Empty property: unlocking the potential
is generally needed to secure consents106.
A scheme design generally fixes the internal
walls and access points, although specific
materials may not yet have been selected.
The final stage is generally referred to as
‘detailed design’ and involves the selection
of specific building materials and internal
finishes. This is the level of detail needed
for a building contractor to cost the works
needed (see below). The approach of
splitting the design stage down into substages should help to assess whether the
design is emerging to the specification
originally envisaged and enable steps to be
taken as early as possible if costs are escalating.
• Finalising cost estimates. As the design
develops the costs should become firmer.
Depending on the detail within the brief
and the complexity of the project, the initial
cost estimate may have been +/– 15-20% at
the feasibility stage. As your brief is developed
into a scheme design the accuracy should
improve to around +/– 10-15% and as the
detailed design is completed it should reach
around +/– 5-10%. These are only indicative
figures, but a contingency provision has to
be made for items that may not become
clear until works are started, such as defective
plaster on a refurbishment project107. Although
it is sometimes possible to enter into a
Guaranteed Maximum Price agreement with
a building contractor, these generally still
have provisions enabling the costs to be
varied in certain circumstances and therefore
need to be considered carefully with the
assistance of a professional advisor.
• Preparing a detailed implementation plan.
An implementation plan should consider the
tasks to be undertaken and how they interrelate.
This is often set out in a ‘programme’. It is
important that you have a programme both
before starting building works and whilst
they are ongoing. This should allow you to
see what the implications of a variation in
one part of the project will be on its
projected completion date. The programme
should set out the steps involved in the
building or refurbishment works, how long
each should take and whether they are
dependent on another event happening first
before they can be undertaken. If some of
these steps are delayed, it may not affect the
programme. However, others may be more
critical. For example, internal electrical work
may not be possible until the roof is made
waterproof. The programme should help
you to decide where to focus most efforts.
For smaller projects, an Architect or Surveyor
may be able to undertake this. For larger or
more complex projects a specialist Project
Manager may be needed.
These steps need to be addressed in parallel
since they are generally inter-related. For
example, higher quality finishes may entail
additional costs. Your professional advisors
should be able to help you reach an
acceptable balance.
106
Further information on securing consents can be found in Section C4.
107
Further information on making a contingency allowance can be found in Section C3.2.2.
C5 Undertaking building or refurbishment works
143
3 Assessing feasibility
Appointing a
building contractor
C5.3
In order that a building contractor can firmly
understand what the nature and extent of the
works are and what outcomes are expected in
terms of time, cost and quality, you need to
issue them with your final design and specification.
In addition, you need to supply a legal
agreement, setting out the terms under which
they are to be appointed.
The legal agreement is an important document.
Not only does it set out what you are buying
and how much you will pay, but it also
specifies how each party should operate, what
happens in particular circumstances, such as if
the project goes seriously wrong. A number of
different standard forms of legal agreement
have been developed to help simplify this
process and ensure minimum quality standards
are met. These should generally provide an
acceptable basis on which to commission
works to bring an empty property back into
use although some amendments may need to
be made. For example, if you are the owner of
a shop that is operated by a tenant and the
tenant is appointing a building contractor to
undertake the works, you will not be a party to
the agreement. Although some of your rights
may be legally protected, you could seek to
amend the agreement so that the contractor
gives a guarantee or ‘warranty’ to you. It is
important to note that changing the terms
within the legal agreement may represent
additional risks to the building contractor,
which may result in them increasing the price
for the works. For example, if a tight completion
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Empty property: unlocking the potential
date is targeted, additional labourers may need
to be appointed. In practice, therefore, the
legal agreement should be considered at the
earliest possible stage. Specialist legal advice
should be obtained, from a Solicitor, Architect
or Surveyor, in selecting the most appropriate
standard form of legal agreement and any
amendments to this that may be appropriate.
Along with the final design and specification
and legal agreement, the accompanying letter
to the contractor should, as a minimum, need
them to specify:
• The price for which they will undertake
the works.
• Any variations to the works they would
propose and the associated cost and time
implications.
• Whether they can meet the
timescale proposed.
• Whether they are prepared to accept the
provisions within the legal agreement or any
variations they would propose.
A deadline for responses to be received should
also be set.
It is generally advisable to invite more than
one building contractor to put forward proposals
so that you can see how much variation in
price and quality exists. Between three and six
is typically acceptable, although you should
check if any existing rules for appointing
building contractors exist in your organisation.
In selecting which contractors to invite to put
forward their proposals, you or your
professional advisors could:
• Identify similar projects that have
been successful.
• If you are part of a larger organisation, you
may find that there is an existing ‘panel’ of
contractors whose credentials have already
been checked that you could use.
forming a view on overall value for money108.
To ensure a consistent assessment, if any
variations are proposed by the contractor,
either in the scope of works or the terms of
the legal agreement, you need to discuss these
with your professional advisor to establish how
this affects the project brief set (see above).
Once the preferred building contractor
been selected and all other formalities,
the start date for the works, are agreed,
agreement needs to be signed by each
has
such as
the legal
party.
• Contact the Chartered Institute of Building,
which should be able to provide details of
reputable building contractors in your area.
These techniques are generally better than
selecting building contractors direct from
newspapers or magazines as some form of
screening of their experience has usually
taken place.
Once you have an initial list of potential
contractors, it is often best to establish a shortlist
of say three to six contractors to receive the
documentation. You, therefore, need to go
through an exercise of ensuring firstly that they
are willing to take on a project of the nature
and scale you are proposing. In this way, you
should still have a degree of choice if one of
them drops out at a later stage.
C5.4
Undertaking the works
As the works are being undertaken, the main
day-to-day responsibility should rest with the
building contractor. However, you may need to
be available to resolve any queries that may
arise and to monitor works to check any potential
problems that may impact on the time, cost
and quality of the project. Most of this role
could be fulfilled by your professional advisors,
who would then inform you if important
decisions need to be taken.
Ensuring the property is
ready for occupation
C5.5
Having issued the short-listed contractors and
received their proposals, these need to be
assessed. In selecting between responses
received, often the focus is on cost, although
other factors should also be considered in
108
Once the building or refurbishment works are
complete, there are two minor but important steps
needed before the property can be occupied:
Further information on what to look for in selecting a potential building contractor can be found in Choosing a Construction Partner?
C5 Undertaking building or refurbishment works
145
• The Local Authority Building Control
Department needs to inspect the works to
give their consent. All major works should
have been completed to a satisfactory
standard before consent is granted, but some
minor works can remain. The inspection is
usually organised by the Architect. Once the
Building Control Approval is in place, the
Local Authority will issue a Completion
Certificate that then certifies that the
property is safe for occupation.
• Along with your professional team, you
need to satisfy yourself that the works meet
the provisions of the final design and
specification and the legal agreement. Once
you are satisfied that the works are in line
with your requirements, you need to pay
the contractor any final money owing and a
Certificate of Practical Completion can be
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Empty property: unlocking the potential
issued by the Architect. It can be difficult for
any remaining minor works, usually referred
to as ‘snagging’, to be completed after
occupation due to the disruption that this
may cause. These should therefore ideally
be dealt with prior to occupation. However,
if this is not possible, a programme should
be worked up with the contractor to ensure
that snagging works are undertaken as
quickly as possible. It is also a provision in
most legal agreements that the contractor
will have to return at a later stage and
rectify any minor problems arising after they
have left, usually within a further six or
twelve months, or any major defects, usually
within 6 years from the handover date. This
highlights the need to pick a reputable and
long-standing building firm to ensure that
any problems arising later can be addressed.
C6 Securing an end user
This Section is most relevant to owners of empty
properties, although it should also be of interest
to Local Authority officers working with owners.
It considers how to secure an end user for the
property. This Section is broken down into:
• C6.1 – Identifying an end user.
• C6.2 – Entering into legal agreements.
• C6.3 – Fulfilling ongoing management
responsibilities.
You should read each section in turn.
C6.1
Identifying an end user
In working up an initial scheme, the type of
end use should already have been selected109.
For example, the decision may have been
taken to sell or rent the property. Once building
or refurbishment works are completed, specific
end users can be identified and an agreement
formalised110. There are two main stages that
you need to go through:
• Marketing the property. There are often a
lot of other properties available at the same
time. Specialist skills are therefore needed to
ensure your property is marketed to best
effect and to explain to potential purchasers
or tenants the benefits that your property
offers over others. This role is generally
fulfilled by Local Property Agents, who have
experience of acting both for the seller/
landlord and the purchaser/tenant and keep
databases of recent enquiries that they can
search111. They also generally have established
connections with newspapers and often
have their own websites on which properties
can be marketed. In addition to these
relatively standard marketing techniques, it
may be beneficial to undertake additional
marketing. For example, a brochure could
be produced, a show flat or home could be
created or an opening event could be
organised112. The associated costs of doing
this needs to be weighed up against the
potential benefits of securing end users
more quickly, such as paying off a bank
loan earlier and incurring less finance costs.
A Local Property Agent should be able to
advise you on this and it may also be
appropriate to appoint a marketing
consultant for larger projects.
• Vetting potential purchasers/tenants. Once
potential purchasers or tenants have been
identified, it is important to ‘vet’ them. This
is particularly important for leases to ensure
that tenants have the financial resources to
meet the rent payments and that there is no
history of anti-social behaviour. However, it
may also be important for sales of the
109
Further information on working up an initial scheme can be found in Section C2.
110
Further information on undertaking building or refurbishment works can be found in Section C5.
111
Further information on appointing a professional advisor can be found in Section A4.3.2. Further information on the assistance that
a Local Property Agent can provide can be found in Using an estate agent to buy or sell your home.
112
Further information on organising a launch event can be found in Section C7.
C6 Securing an end user
147
3 Assessing feasibility
property. For example, if you have subdivided your home and are planning to sell
parts of it, the potential purchaser could
become your neighbour. References should
be taken and followed up, which should
also help to identify any ‘time wasters’.
Local Property Agents could undertake
vetting as well as tours of the property.
In addition to Local Property Agents, there are
also not-for-profit agencies that provide some
of the services outlined above. They can be
particularly helpful in places with challenging
property market conditions, such as areas with
Low Demand. An example of such an agency
is illustrated in Case Study 22. A Local Authority
officer specialising in empty property work
should be able to tell you if such an
organisation exists in your area113.
To assist in standardising the information made
available when properties are sold, the
Government is proposing to introduce ‘Sellers’
Packs’. These would sit alongside marketing
information and provide potential purchasers
with legal and other details of the property.
Case Study 22
Securing an end user – Using specialist agencies
Barrow Property Link (BPL) is a property brokerage service based in Barrow in Furness, Cumbria. Launched
in October 2001, the aim of BPL is to reduce the level of empty homes in five Council wards. The service
is managed and supported by the B&N Group and operates on behalf of Barrow Borough Council and
the Furness Partnership, with funding assistance from the Neighbourhood Renewal Fund. Once an empty
property has been identified, BPL officers try to locate the owner and then introduce them to organisations
that are seeking to purchase or lease properties in the area, such as developers, Registered Social
Landlords, private landlords or owner-occupiers. BPL’s experience of the local property market enables
them to identify who might be appropriate in each case. Once the two parties are brought together, they
are left to resolve the details and are needed to inform BPL once an agreement has been completed.
12 Howard Street (pictured) is an example of a
property brought back into use through this initiative.
BPL initially became involved with the property, which
is a two-bedroom terraced home, in September 2002.
Very quickly it was able to introduce the owner to a
potential purchaser identified by the Council and the
property has now been brought back into use.
113
148
Further information on contacting Local Authority officers involved in empty property work can be found in Section A3.2.
Empty property: unlocking the potential
need a condition within the legal agreement
that they will only purchase or rent the
property once it is available for occupation.
A Local Property Agent or a non-profit making
organisation along the lines identified above
should be able to advise you when these
proposals might apply.
Entering into
legal agreements
C6.2
Once you have identified a potential purchaser
or tenant, you then need to enter into a legal
agreement with them. There are a number of
provisions that may need to be included within
the agreement, including:
• Financial provisions. For example, for a sale
this would be the purchase price.
Alternatively, for a lease this would include
the initial rent, any up-front ‘premium’ to be
paid and any rent review provisions.
• Timing. This would include the dates on
which the property will be available for
occupation, when occupation will cease (for
leases and long leases) and when payments
will be made.
• Conditions. In some cases, a legal agreement
may be conditional. For example, if you
enter into a pre-sale or pre-lease agreement
before the property is available for occupation,
there is a risk to the purchaser or tenant that
works may be delayed or even not
completed114. As such, they are likely to
Given the potential complexity of these
agreements, standard forms of agreement have
been developed for both sales and leases.
These do not include all of the provisions and
further work is still therefore needed to finalise
a legal agreement that meets the wishes of the
two parties. Appropriate specialist advice
should therefore be obtained from a Solicitor
or Local Property Agent.
Fulfilling ongoing
management responsibilities
C6.3
One a property has been brought back into
use, it is important that it does not fall empty
again since this would lead to the same issues
currently faced. In addition, any grant secured
towards the cost of bringing the property back
into use may need to be repaid in part or in
full115. It is therefore important that the ongoing
management of the property is approached
carefully.
If a property is sold, the owner generally has
no further responsibilities and has little influence
over the future use of the property116. However,
if the property is leased there may be a number
of ongoing responsibilities, including:
114
Further information on when such agreements may be suitable can be found in Section C3.3.
115
Further information on securing grants can be found in Section C3.3.1.
116
A long lease may involve some ongoing management responsibilities and therefore needs to be considered carefully. Long leases are
considered further in Section C2.1.
C6 Securing an end user
149
• Insuring the property.
• Undertaking repairs and maintenance,
typically to the exterior of the property and
any common areas, such as receptions or lifts.
• Ensuring gas appliances, such as cookers,
boilers and gas fires, undergo approved
inspections.
• Providing security services.
The nature of these responsibilities and who is
responsible for them will depend on the
provisions of the legal agreement reached with
the tenant. In some cases, these are the
responsibility of the landlord. Although the
associated costs are often passed on to the
tenant, through a ‘service charge’, the landlord
needs to make arrangements for them to be
undertaken. If the tenant is responsible, the
landlord still needs to ensure that these are
being fulfilled in line with the lease.
150
Empty property: unlocking the potential
Another important feature of managing a
property is to identify replacement tenants if
the property becomes unoccupied for some
reason, such as if tenants do not renew their
lease. If you are not experienced in these
areas, it may be beneficial to obtain advice
from organisations such as the Small Landlords
Association and the National Federation of
Residential Landlords. It may also be helpful to
appoint a specialist Managing Agent. Although
they generally charge a fee for their services,
they should have experience of managing
properties and may bring to bear economies of
scale from the other properties they manage.
For example, they may appoint one maintenance
firm to cover numerous properties. They may
also be more experienced at managing leases
to minimise void periods and bad debts and
hence help to maximise income from the
property. As a result, this may represent better
overall value for money than undertaking the
day-to-day management yourself.
C7 Reviewing project outcomes
This Section is relevant both to Local Authority
officers and owners. It considers how you can
review a project’s outcomes once it has been
completed. The Section is broken down into:
• Assessing whether a Local Authority grant
has been spent in line with the agreement
made with the owner, if appropriate.
• C7.1 – Why should I review project outcomes?
From an owner’s perspective it can help in:
• C7.2 – How can I evaluate project outcomes?
• Assessing whether the level of financial
return identified at the feasibility stage has
been achieved118.
• C7.3 – How can I capitalise on lessons learned?
You should read each Section in turn.
• Identifying lessons that could be used to
improve the Empty Property Strategy and to
apply to other projects, if appropriate.
C7.1
Why should I review
project outcomes?
• Determining whether to make further
investment in the project. For example, in
undertaking additional phases.
Reviewing the outcomes of a project can help
to ensure that the full benefits of bringing empty
properties back into use are captured. It can be
beneficial for a number of reasons.
It is therefore advisable to spend an appropriate
amount of time when a project is completed in
evaluating the outcomes and capitalising on the
lessons learned.
From the Local Authority’s perspective it can
help in:
• Identifying lessons that could be used to
improve the Empty Property Strategy and to
apply to other projects117.
• Determining whether the property has
successfully been brought back into use and
whether it can therefore contribute to the
targets set in the Empty Property Strategy.
How can I evaluate
project outcomes?
C7.2
In evaluating the success of a project, it is
important to consider both things that went
well and things that could have gone better.
For example, a project may have been successfully
bought back into use and fully occupied but
117
Further information on Empty Property Strategies can be found in Section B1.
118
Further information on assessing feasibility can be found in Section C3.
C7 Reviewing project outcomes
151
3 Assessing feasibility
several months of delays were incurred. Are
there steps that could have been taken to
rectify this? It is advisable to focus on whether
any targets set have been achieved, both
against the broad Empty Property Strategy and
the design and specification for the project119.
For example, was the project completed to the
time, cost and quality targets set? What were
the reasons for any under-achievement if
targets were not met? What were the critical
success factors if targets were met or exceeded?
targets need to be reviewed if they are too
demanding or if you think more could be
achieved. This can then benefit other projects.
After this, you can establish what lessons or
good practice have been learned. For example,
could a different approach be taken in the
future or should targets be more realistic?
• A launch or opening event. An example of a
launch event is shown in Case Study 23.
If you have worked in partnership with other
people and organisations in bringing the
property back into use, it may be helpful to
consider these questions together.
How can I capitalise on
lessons learned?
C7.3
If a project demonstrates good practice,
benefits can be gained through publicising it.
This can provide a reward for the efforts made
by the project stakeholders as well as highlighting
the good practice for the benefits of other
parties. There is a range of publicity that could
be used, including:
• Applying for an award. There are a number
of award schemes for regeneration projects,
run by organisations including the Chartered
Institute of Housing (CIH), Empty Homes
Agency, British Urban Regeneration Association
(BURA), National Housing Federation (NHF),
House Builders Federation (HBF), Royal
Institution of Chartered Surveyors (RICS)
and the National Association of Estate
Agents (NAEA)120.
Media coverage. This may be linked to the
launch event or receipt of an award.
If you have an Empty Property Strategy, it is
advisable to review it in light of the project
outcomes. For example, this may mean that
152
119
Further information on preparing a design and specification can be found in Sections C2 and C5.
120
Further information on award schemes can be found in Urban Renaissance Toolkit: An Urban Route Map and Directory of Information.
Empty property: unlocking the potential
Case Study 23
Reviewing project outcomes (1) – Publicity benefits
A property in the London Borough of Haringey (pictured) was
successfully brought back into use by the owner in partnership
with Haringey Council. It was a terrace of four derelict houses,
which, over ten years of being empty, had become a location for
fly-tipping and a general eyesore. Following a lack of action by the
original owner, who was living abroad, the Council threatened to
use its compulsory purchase powers and the owner decided to sell
the property. The Estate Agent selling the property was aware of
Haringey Council’s Renovation Grants and suggested it to the new
owner. The new owner worked with the Council to prepare proposals
for comprehensive renovation works to the properties to create
nine flats for rent. The project was supported by a Renovation Grant
from the Council of £100,000 and it was then, under the terms of
the grant programme, leased to the Council for five years. To
promote the project, the Council organised a launch event. Held in February 2002, the property was
opened by the local MP, with visits to some of the flats laid on. The flats are now fully occupied.
Local Authorities can play a helpful role in
promoting the success of a project. This can
also help Local Authorities in emphasising to
other owners the importance of bringing empty
properties back into use121.
121
If a project has been particularly successful, an
owner could consider expanding it through
additional phases. This is illustrated in Case
Study 24.
Further information for Local Authorities on marketing and promotion can be found in Section B2.
C7 Reviewing project outcomes
153
3 Assessing feasibility
Case Study 24
Reviewing project outcomes (2) – New phases
A row of 26 shops, built in the 1960’s in the Handsworth area of Birmingham, lay empty for a considerable
period before being acquired by the current owner in 1995. The new owner identified that the property,
which lies within walking distance of part of the University of Central England, had the potential not only
for the shops to be brought back into use, but also for the space above to be converted into flats. He
created the Churchill Student Village, with around 100 flats in total for leasing to local students. Making
use of the space above the shops was critical to the financial returns of the original project, which was
successfully completed in 2000. Based on the success of the original project, which is fully occupied, the
owner is now investigating whether planning permission could be secured to build a further two storeys
on top of the property to capitalise on the local demand for student accommodation.
154
Empty property: unlocking the potential
Appendices
Appendix 1 – Useful Contacts
A number of organisations are referred to in
this Handbook that may be able to provide
additional support in bringing empty properties
back into use. The names of each organisation
and contact details are set out below. ODPM
does not guarantee the accuracy of any
information obtained from these organisations.
Advantage West Midlands
3 Priestley Wharf
Holt Street
Aston Science Park
Birmingham
B7 4BN
Tel:
Fax:
E-mail:
Web:
0121 380 3500
0121 380 3501
[email protected]
www.advantagewm.co.uk
Architects Registration Board
Weymouth Street
London
W1W 5BU
Tel:
Web:
020 7580 5861
www.arb.org.uk
Association for Project Management (APM)
150 West Wycombe Road
High Wycombe
Buckinghamshire
HP12 3AE
Tel:
Fax:
E-mail:
Web:
Association of British Insurers (ABI)
51 Gresham Street
London
EC2V 7HQ
Tel:
Fax:
E-mail:
Web:
020 7600 3333
020 7696 8999
[email protected]
www.abi.org.uk
Association of Building Engineers (ABE)
Lutyens House
Billing Brook Road
Northampton
NN3 8NW
Tel:
Fax:
E-mail:
Web:
0845 177 3411
01606 784220
[email protected]
www.abe.org.uk
Association of Chief Estates Surveyors (ACES)
23 Athol Road
Bramhall
Cheshire
SK7 1BR
Tel:
Fax:
E-mail:
Web:
0161 439 9589
0161 440 7383
[email protected]
www.aces.org.uk
0845 4581944
01494 528937
[email protected]
www.apm.org.uk
Appendix 1
157
3 Assessing feasibility
Association of Residential Letting Agents (ARLA)
Maple House
53-55 Woodside Road
Amersham
Buckinghamshire
HP6 6AA
Tel:
Fax:
E-mail:
Web:
01494 431680
01494 431530
[email protected]
www.arla.co.uk
British Institute of Facilities Management (BIFM)
67 High Street
Saffron Walden
Essex
CB10 1AA
Tel:
Fax:
E-mail:
Web:
Bank of England
Threadneedle Street
London
EC2R 8AH
British Property Federation (BPF)
7th Floor
1 Warwick Row
London
SW1E 5ER
Tel:
Fax:
E-mail:
Web:
Tel:
Fax:
E-mail:
Web
020 7601 4878
N/A
[email protected]
www.bankofengland.co.uk
British Chambers of Commerce
5th Floor
50 Broadway
St James’ Park
London
Sw1H 0RG
Tel:
Fax:
E-mail:
Web:
020 7152 4046
020 7152 4145
[email protected]
www.chamberonline.co.uk
Empty property: unlocking the potential
020 7828 0111
020 7834 3442
[email protected]
www.bpf.org.uk
British Urban Regeneration Association (BURA)
63-66 Hatton Garden
London
EC1N 8LE
Tel:
Fax:
E-mail:
Web:
020 7539 4030
020 7404 9614
[email protected]
www.bura.org.uk
Building Research Establishment (BRE)
Bucknalls Lane
Garston
Watford
WD25 9XX
Tel:
Fax:
Web:
158
01799 508606
01799 513237
[email protected]
www.bifm.org.uk
01923 664000
01923 664010
www.bre.co.uk
Business in the Community (BITC)
137 Shepherdess Walk
London
N1 7RQ
Chartered Institute of Taxation
12 Upper Belgrave Street
London
SW1X 8BB
Tel:
0870 600 2482
E-mail: [email protected]
Web: www.bitc.org.uk
Tel:
Fax:
E-mail:
Web:
Chartered Institute of Building (CIOB)
Englemere
Kings Ride
Ascot
Berkshire
SL5 7TB
Tel:
Fax:
E-mail:
Web:
01344 630 700
01344 630 777
[email protected]
www.ciob.org.uk
Chartered Institute of Environmental Health
(CIEH)
Chadwick Court
15 Hatfields
London
SE1 8DJ
Tel:
Fax:
E-mail:
Web:
020 7928 6006
020 7827 5866
[email protected]
www.cieh.org.uk
Chartered Institute of Housing (CIH)
9 White Lion Street
Islington
London
N1 9XJ
Tel:
Fax:
Web:
020 7831 4280
020 7278 2705
www.cih.org
020 7235 9381
020 7235 2562
[email protected]
www.tax.org.uk
Citizens Advice Bureau
Myddelton House
115 Pentonville Road
London
N1 9LZ
Tel:
Fax:
Web:
020 7833 2181
020 7833 4317
www.nacab.org.uk
Commission for Architecture and the Built
Environment (CABE)
The Tower Building
11 York Road
London
SE1 7NX
Tel:
Fax:
E-mail:
Web:
020 7960 2400
020 7960 2444
[email protected]
www.cabe.org.uk
Companies House
Crown Way
Cardiff
South Glamorgan
CF14 3UZ
Tel:
Fax:
E-mail:
Web:
0870 3333636
029 2038 0517
[email protected]
www.companieshouse.gov.uk
Appendix 1
159
3 Assessing feasibility
East of England Development Agency
The Business Centre
Station Road
Histon
Cambridge
CB4 9LQ
Tel:
Fax:
Web:
E-mail:
TBA
TBA
http://www.eeda.org.uk
[email protected]
East Midlands Development Agency
Apex Court
City Link
Nottingham
NG2 4LA
Tel:
Fax:
E-mail:
Web:
0115 988 8300
0115 853 3666
[email protected]
www.emda.org.uk
Empty Homes Agency
195-197 Victoria Street
London
SW1E 5NE
Tel:
Fax:
E-mail:
Web:
020 7828 6288
020 7828 7066
[email protected]
www.emptyhomes.com
English Heritage
23 Saville Row
London
W1S 2ET
Tel:
020 7973 3000
Fax:
020 7973 3001
E-mail: [email protected]
Web: www.english-heritage.org.uk
Federation of Master Builders
Gordon Fisher House
14-15 Great James Street
London
WC1N 3DP
Tel:
Fax:
E-mail:
Web:
HM Customs and Excise
New Kings Beam House
22 Upper Ground
London
SE1 9PJ
Tel:
Web:
Empty property: unlocking the potential
020 7620 1313
www.hmce.gov.uk
HM Land Charges Department
Plumer House
Tailyour Road
Crownhill
Plymouth
PL6 5HY
Tel:
Web:
160
020 7242 7583
020 7404 0296
[email protected]
www.fmb.org.uk
01752 636666
www.landreg.gov.uk
HM Land Registry
32 Lincolns Inn Field
London
WC2A 3PH
Law Society
113 Chancery Lane
London
WC2A 1PL
Tel:
Fax:
Web:
Tel:
Fax:
E-mail:
Web:
020 7917 8888
020 7955 0110
www.landreg.gov.uk
HM Prison Service
Cleland House
Page Street
London
SW1P 4LN
Tel:
Web:
020 7217 6000
www.hmprisonservice.gov.uk
House Builders Federation (HBF)
56-64 Leonard Street
London
EC2A 4JX
Tel:
Fax:
E-mail:
Web:
020 7608 5100
020 7608 5101
[email protected]
www.hbf.co.uk
Inland Revenue
Somerset House
The Strand
London
WC2R 1LB
Tel:
Web:
020 7438 6622
www.inlandrevenue.gov.uk
020 7242 1222
020 7831 0344
[email protected]
www.lawsociety.org.uk
London Development Agency
4th Floor
Romney House
Marsham Street
London
SW1P 3PY
Tel:
Fax.
Web:
020 7680 2000
020 7983 4801
www.lda.gov.uk
NHS Executive
Quarry House
Quarry Hill
Leeds
LS2 7UE
Tel:
Web:
0113 254 5000
www.nhs.uk/localnhsservices
National Approved Letting Scheme (NALS)
Warwick Corner
42 Warwick Road
Kenilworth
Warwickshire
CV8 1HE
Tel:
Fax:
E-mail:
Web:
01926 866633
01926 866644
[email protected]
www.nalscheme.co.uk
Appendix 1
161
3 Assessing feasibility
National Association of Empty Property
Practioners (NAEPP)
C/o Empty Homes Agency (see above)
National Association of Estate Agents (NAEA)
Arbon House
21 Jury Street
Warwick
CV34 4EH
Tel:
Fax
E-mail
Web:
01926 496800
01926 400953
[email protected]
www.naea.co.uk
National Federation of Residential Landlords
Executive Office
PO Box 4840
Wimborne
Dorset
BH21 3WZ
Tel:
Fax:
E-mail:
Web:
0845 456 0357
0845 456 0357
[email protected]
www.help4landlords.org
National Housing Federation
175 Grays Inn Road
London
EC1X 8UP
Tel:
Fax:
E-mail:
Web:
162
020 7278 6571
020 7833 8323
[email protected]
www.housing.org.uk
Empty property: unlocking the potential
North West Development Agency
PO Box 37
Kings Court
Scotland Road
Warrington
WA1 2FR
Tel:
Fax:
E-mail:
Web:
01925 400 100
01925 400 400
[email protected]
www.nwda.co.uk
Office of Gas and Electricity Markets (OFGEM)
9 Millbank
London
SW1P 3GE
Tel:
Web:
020 7901 7000
www.ofgem.gov.uk
Office of the Deputy Prime Minister (ODPM)
Eland House
Bressenden Place
London
SW1E 5DU
Tel:
Web:
020 7944 4400
www.odpm.gov.uk
Office of Telecommunications (OFTEL)
50 Ludgate Hill
London
EC4M 7JJ
Tel:
Fax:
Web:
020 7634 8700
020 7634 8943
www.oftel.gov.uk
Office of Water Services (OFWAT)
Centre City Tower
7 Hill Street
Birmingham
B5 4UA
Tel:
Fax:
E-mail:
Web:
0121 625 1300
0121 625 1400
[email protected]
www.watervoice.org.uk
One NorthEast
Great North House
Sandyford Road
Newcastle Upon Tyne
NE1 8ND
Tel:
Fax:
Web:
0191 261 2000
0191 201 2021
www.onenortheast.co.uk
Property Services National Training
Organisation (PSNTO)
18 Southerhay West
Exeter
EX1 1PR
Tel:
Fax:
E-mail:
Web:
Regional Development Agencies (RDAs)
See:
Advantage West Midlands
East of England Development Agency
East Midlands Development Agency
London Development Agency
North West Development Agency
One NorthEast
South East England Development Agency
South West of England Regional
Development Agency
Yorkshire Forward
RICS Regeneration Forum
C/o Royal Institution of Chartered Surveyors
(see below)
Royal Institute of British Architects (RIBA)
66 Portland Place
London
W1B 1AD
Tel:
Fax:
E-mail:
Web:
020 7580 5533/0906 302 0400
020 7225 1541
[email protected]
www.architecture.com
01392 423399
01392 423373
[email protected]
www.psnto.org
Appendix 1
163
Royal Institution of Chartered Surveyors (RICS)
12 Great George Street
London
SW1P 3AD
Tel:
Fax:
E-mail:
Web:
020 7222 7000
020 7334 3851
[email protected]
www.rics.org
Royal Town Planning Institute (RTPI)
41 Botolph Lane
London
SW1V 4BH
Tel:
Fax:
E-mail:
Web:
020 7929 9494
020 7292 9490
[email protected]
www.rtpi.org.uk
Small Landlords Association
78 Tachbrook Street
London
SW1V 2NA
Tel:
Fax:
E-mail
Web:
020 7828 2445
020 7828 2446
[email protected]
www.landlords.org.uk
South East England Development Agency (SEEDA)
Cross Lanes
Guildford
GU1 1YA
Tel:
Fax:
E-mail:
Web:
164
01483 484 226
01483 484 247
[email protected]
www.seeda.co.uk
Empty property: unlocking the potential
South West of England Regional
Development Agency
Sterling House
Dix’s Field
Exeter
EX1 1QA
Tel:
Fax:
Web:
01392 214 747
01392 214 848
www.southwestrda.org.uk
Town and Country Planning Association (TCPA)
17 Carlton House Terrace
London
SW1Y 5AS
Tel:
Fax:
E-mail:
Web:
020 7930 8903
020 7930 3280
[email protected]
www.tcpa.org.uk
Utilities Regulating Bodies
See:
Office of Gas and Electricity Markets (OFGEM)
Office of Telecommunications (OFTEL)
Office of Water Services (OFWAT)
Yorkshire Forward
Victoria House
2 Victoria Place
Leeds
LS11 5AE
Tel:
Fax:
Web:
0113 394 9600
0113 243 1088
www.yorkshire-forward.com
Appendix 2 – Bibliography
A number of documents are referred to in this Handbook that may provide additional support in
bringing empty properties back into use. The names of each document and details of how they can
be obtained are set out below. It should be noted that some of these documents may involve a charge
and that ODPM does not guarantee the accuracy of any materials produced by other organisations.
100% Capital Allowances for Flats Over Shops: Inland Revenue Briefing Note 15 (2001)
Available from: Inland Revenue, Somerset House, The Strand, London, WC2R 1LB.
Tel: 020 7438 6622. Web: www.inlandrevenue.gov.uk/budget2001/revbn15
Addressing the Needs of Run Down Private Sector Housing: A Good Practice Guide (2002)
Available from: PO Box 236, Wetherby, West Yorkshire, LS23 7NB.
Tel: 0870 1226 236. Fax: 0870 1226 237. E-mail: [email protected]
Assured and Assured Shorthold Tenancies: A Guide for Landlords (2000)
Available from: ODPM Free Literature (see above).
Best Value Performance Indicators 2002/2003
Available from: ODPM Free Literature (see above).
Web: www.local-regions.odpm.gov.uk/bestvalue.
Building Regulations Explanatory Booklet (2003)
Available from: ODPM Free Literature (see above).
Web: www.safety.odpm.gov.uk/bregs/brpub/br-booklet
Capital Allowances for Living-Over-The-Shop Schemes (2001)
Available from: National Association of Empty Property Practitioners, c/o Empty Homes Agency
(see below).
Choosing a Construction Partner?
Available from: Confederation of Construction Clients, Room 3/33, St Christopher House,
Southwalk Street, London, SE1 0TE. Tel: 020 7921 1670. Fax: 020 7921 1672.
E-mail: [email protected]. Web: www.ClientSuccess.org
Code of Guidance: Application of BVPI64 (2002)
Available from: National Association of Empty Property Practitioners, c/o Empty Homes Agency
(see below).
Appendix 2
165
3 Assessing feasibility
Compulsory Purchase Orders: A Guide to Procedures (1998)
Available from: Steve Bradley, Housing Department, Westminster City Council, PO Box 240,
Westminster City Hall, 64 Victoria Street, London, SW1E 6QP. Tel: 020 7641 2023. Fax: 020 7641 1904.
E-mail: [email protected]
Compulsory Purchase Procedure Manual (2001)
Available from: HM Stationery Office, Clements House, 2-16 Colegate, Norwich, NR3 1BQ.
Tel: 01603 621000. Fax: 01603 723000. Email: [email protected]
Connecting with Communities Toolkit
Available from: Improvement and Development Agency, Layden House, 76-86 Turnmill Street,
London, EC1M 5LG. Tel: 020 7296 6693. Fax: 020 7296 6666. Email: [email protected].
Website: www.idea.gov.uk/communications
Empty Property: Unlocking the Potential – A Case for Action (2003)
Available from: ODPM Free Literature (see above).
Enforced Sales Procedure: Good Practice Guide (2001)
Available from: Dave Stott, Private Sector Housing, Manchester City Council, PO Box 531,
Town Hall, Manchester, M60 2JX. Tel: 0161 234 4896. Fax: 0161 234 4943.
E-mail: [email protected]
Letting your Home (2000)
Available from: ODPM Free Literature (see above).
Planning: A Guide for Householders (2002)
Available from: ODPM Free Literature (see above).
Web: www.planning.odpm.gov.uk/householders.
Planning Permission: A Guide for Business (2002)
Available from: ODPM Free Literature (see above). Web: www.planning.odpm.gov.uk/guide
Preparing an Effective Grants Policy: A Briefing Note (2003)
Available from: Empty Homes Agency, 195-197 Victoria Street, London, SW1E 5NE. Tel: 020 7828
6288. Fax: 020 7828 7006. E-mail: [email protected]. Web: www.emptyhomes.com
Property Solutions (2002)
Available from: Royal Institution of Chartered Surveyors, 12 Great George Street, London, SW1P
3AD. Tel: 020 7222 7000. Fax: 020 7334 3851. E-mail: [email protected]
166
Empty property: unlocking the potential
Responding to Low Demand Housing and Unpopular Neighbourhoods: A Guide to Good Practice (2000)
Available from: ODPM Free Literature (see above).
Understanding Property Surveys (2002)
Available from: Royal Institution of Chartered Surveyors (see above).
Urban Renaissance Toolkit: An Urban Route Map and Directory of Information (2002)
Available from: LGA Publications, Local Government House, Smith Square, London, SW1P 3HZ.
Tel: 020 7664 3000. Fax: 020 7664 3030.
Using an Estate Agent to Buy or Sell Your Home (2001)
Available from: Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square, London, EC4Y 8JX.
Tel: 020 7211 8000. Fax: 020 7211 8800. E-mail: [email protected].
Appendix 2
167
168
Empty property: unlocking the potential
Appendix 3 – Glossary
A number of terms and expressions used in this Handbook have specific meanings. These are
shown in the table below:
Term or expression
Meaning
Affordable housing
This broadly means a property which is sold or let at less than the
full market rate to people in housing need.
Building contractor
This is the organisation appointed to undertake the building or
refurbishment works needed to bring a property back into use. The
term ‘contractor’ relates to the legal agreement or ‘contract’ that needs
to be signed before works can start.
Change of use
This is where the proposed use of the property is different to its use
prior to becoming empty. The conversion of a disused office building
into flats would generally constitute a change of use. However, bringing
an empty home back into use would generally not constitute a change
of use, even if it had been empty for a significant period of time.
Conservation Area
These are areas with special architectural or historic importance,
generally designated by the Local Authority. Since they can be designated
in areas including relatively modern buildings, it is important to check
whether the property with which you are concerned lies in a Conservation
Area. There are currently around 9,000 Conservation Areas in the UK.
Special procedures need to be followed for proposals to undertake
building or refurbishment works to properties in these areas.
Deeds
This is a legal document setting out details of an owner’s rights over
a property. They are generally prepared when a property is initially
built and explain the rights over the property, including access points
and any party walls and fences.
Greenfield
This is land that has not previously been built on or had its character
changed in some other way, such as by shallow mining. Farming
does not generally affect land being Greenfield.
Appendix 3
169
Term or expression
Meaning
Landlord
See lease, below.
Lease
This is a legal document prepared by an owner (the landlord) granting
rights to another party (the tenant). The lease generally sets out the
nature of the rights granted and the timeframe over which these
rights will exist.
Listed Building
These are buildings with special architectural or historic importance.
They have different ratings dependent on their character and can
either be Grade I, Grade II* or Grade II, with more than 90% falling
in the latter category. They are designated by the Local Authority and
can include relatively modern buildings. It is therefore important to
check whether a property is Listed. There are currently around
450,000 Listed Buildings in England and Wales. Special procedures
need to be followed for proposals to undertake building or
refurbishment works to Listed Buildings.
Low Demand
These are areas with significant concentrations of empty properties
due to an oversupply of housing in the region. In turn, they need a
comprehensive package of regeneration measures. Details of relevant
guidance documents are provided in the Glossary at Appendix 2.
Notice
This is a formal letter or other form of communication that may carry
with it an obligation on the recipient to do something or refrain from
doing something. A failure to comply with the provisions of the notice
may constitute a criminal offence or carry with it some other form
of penalty.
Registered Social Landlord These are organisations regulated by the Housing Corporation and
sometimes referred to as ‘Housing Associations’. They are responsible
for providing affordable housing as well as wider care services. In
some cases they build or refurbish properties and in other cases they
rent accommodation in order to provide these services.
170
Tenant
See lease, above.
Utilities
This is a collective term for drainage, sewage, electricity, gas, water
and telephone services provided to a property.
Empty property: unlocking the potential
Acknowledgements
ODPM would like to thank the following people for their assistance in preparing this guidance:
Advisory Group
Name
Role
Nick Caprara
Empty Property Officer
London Borough of Harrow
Vice Chair
National Association of Empty
Property Practitioners
Managing Director
Chase and Partners
Chairman
RICS Commercial Faculty
Senior Environmental
Health Officer
East Riding of Yorkshire Council
Chair
National Association of Empty Property
Practitioners (from October 2002)
Ian Fletcher
Director, Commercial
and Residential
British Property Federation
Neil Gardiner
Associate Director
Schroders
Jon Hough
Project Leader
(Empty Property)
Leeds City Council
David Ireland
Private Housing
Services Manager
London Borough of Hammersmith
and Fulham
Housing Advisor
Local Government Association
Paul Spence
Promotions and
Systems Manager
Housing Corporation
David Stathers
Policy Advisor
Boots the Chemists
Graham Chase
Sue Dixon
Organisation
Acknowledgements
171
3 Assessing feasibility
Other contributors
172
Name
Role
Organisation
Anoma Amarajeewa
Empty Property Officer
Haringey Council
Tony Barnett
Empty Property Officer
Bristol City Council
Andrew Bennett MP
Chairman
ODPM: Housing, Planning,
Local Government and the Regions
Select Committee
Deborah Blowers
Borough Housing and
Community Services
Manager
Runnymede Borough Council
Tom Bloxham
Chairman
Urban Splash
Denise Blyde
Environmental South
Health Officer
Derbyshire District Council
Steve Bradley
Compulsory Purchase
Manager, Housing
Westminster City Council
Chris Brown
Chief Executive
Igloo Regeneration Fund
Eamonn Boylan
Deputy Chief Executive
Manchester City Council
David Carmichael
Land Manager
Gleeson Regeneration
Dave Carter
Empty Property Officer
Enfield Council
Driss Charrouf
Empty Properties Officer
London Borough of Brent
Mike Dawson
Acting Director of
Environmental Health
and Housing
St Edmundsbury Borough Council
Andrew Dewhurst
Senior Development
Surveyor
AMEC/Ician
Tessa Donovan
Empty Homes Officer
South Gloucestershire Council
Steering Committee
Member
National Association of Empty
Property Practitioners
Empty property: unlocking the potential
Name
Role
Organisation
Neil Dunk
Empty Property Officer
Sheffield City Council
Maggie Drury
Project Manager
Newcastle Private Rented Project
Michael Dry
Environmental Health Officer
Harrogate Borough Council
Ken Dytor
Chief Executive
Urban Catalyst
John Earnshaw
Regional Manager,
Wales and West
HOMES
Peter Gaimster
Housing Development
Officer
Eastbourne Borough Council
David Gibbens
Empty Homes Manager
Exeter City Council
Steering Committee Member
National Association of Empty
Property Practitioners
Empty Property
Policy Officer
Southampton City Council
Chair
National Association of Empty Property
Practitioners (to October 2002)
Joanna Harrison
Development and
Initiatives Officer
East Northamptonshire District Council
Trevor Healy
Service Improvement
Officer
Newcastle City Council
Ashley Horsey
Head of Bed and
Breakfast Unit
Office of the Deputy Prime Minister
Emma Kumar
Housing Advisor
Brighton & Hove City Council
Steering Committee Member
National Association of Empty
Property Practitioners
Ann Lander
Development Manager,
Housing
London Borough of Hillingdon
Jeremy Mason
Empty Property Officer
Derby City Council
Stuart McMinn
Project Manager
Barrow Property Link
Keith Gunner
Acknowledgements
173
3 Assessing feasibility
Name
Role
Organisation
Stephen Miles-Brown
Partner
Knight Frank
Nick Murphy
Executive Director of
Housing and Regeneration
Southampton City Council
Paul Palmer
Empty Property and
Compulsory Purchase Officer
Westminster City Council
Kim Penfold
Director of Strategy
and Information
Harvest Housing Group
Rob Purser
Housing Strategy and
Development Manager
Mansfield District Council
Jackie Rhodes
Empty Homes Officer
Plymouth City Council
Jane Ringer
Policy Officer
Richmondshire District Council
Varsha Saundh
Development Officer
Leicester City Council
Robin Seamore-Taylor
Housing Development
Officer
Redbridge District Council
Steering Committee Member
National Association of Empty
Property Practitioners
Paul Simmons
Development Manager
AMEC/Ician
Debbie Stainforth
Housing Advisor
Brighton & Hove City Council
Dave Stott
Principal Policy Manager
Manchester City Council
John Stuart
Development Manager
Metropolitan Housing Trust
Alan Tallentire
Chairman
Association of Town Centre
Management
Gwyneth Taylor
Housing Officer
Local Government Association
Louise Thompson
Senior Empty Homes
Officer
Mercian Housing Association
Vice Chair
National Association of Empty
Property Practitioners
Environmental Health
Officer
Newark and Sherwood District Council
David Turton
174
Empty property: unlocking the potential
Name
Role
Organisation
Sue Welfare
Senior Housing Officer
Arun District Council
Ronald Whitehouse
Director
Churchill Student Village
Liz Willis
Policy Officer,
Neighbourhoods Team
National Housing Federation
175
Notes
176