Private Sector Empty Homes Report
September 2012
1
Contents
Policy Context
3
Empty Homes Data for Castle Point
4
A Comparison with other Areas
12
Risk of Empty Homes in the Future
14
Implications for Castle Point
16
Potential Strategy Options
18
Conclusions
22
2
Policy Context
The Government’s Housing Strategy (Laying the Foundations: A Housing Strategy for
England) states that over 700,000 homes in England are empty, and over 300,000 of
those have been empty for over six months. Many empty homes are being renovated or
sold, or will otherwise come back into use relatively quickly through the normal
operation of the market.
But a neglected empty home can quickly start to cause problems for neighbours,
depressing the value of adjacent properties and attracting nuisance, squatting and
criminal activity. This creates additional burdens on local authorities and the emergency
services.
The reasons homes are left empty are often complex – and can include inheritance, the
cost of financing repairs, inability to achieve a desired sale or rental price, and stalled
redevelopment or a decision to retain the property to benefit from house price
increases. The impact of empty homes is, however, felt very directly by the people
living closest to them, so tackling empty homes is best achieved by locally led
interventions.
In order to address this, the Government’s housing strategy sets out the following
approach to tackling empty homes in England:
Additionally, the Government also expects the planning system to assist in bringing
empty homes back into use. Paragraph 51 of the National Planning Policy Framework
states that local planning authorities should identify and bring back into residential use
empty housing and buildings in line with local housing and empty homes strategies and,
where appropriate, acquire properties under compulsory purchase powers.
There is not currently a local Empty Homes Strategy for Castle Point, this will need to
be developed as a consequence of work carried out to understand the scale of the
issue in Castle Point.
3
Empty Homes Data for Castle Point
The source of information used within this report is the Council Tax system and the
Council Tax Base return for October 2011.
Any variations in figures shown result from the different points in time at which
information has been produced.
Figure 1: Summary of key information
1
2
3
4
Number of properties on the valuation list – October 2011
Total unoccupied (3&4)
Unoccupied but paying council tax
Unoccupied but exemption from council tax granted
Statistics relating to Exemptions:
5 With potential to last more than one year
6 Former occupant deceased (limited to 6 months once probate
issued)
7 Former occupant moved into hospital or home
8 Property taken into possession by mortgage lender
9 Paying council tax with potential to remain empty for greater
than one year
10 Total number of properties with potential to remain empty for
greater than one year (5&9)
37,491
903 2.40%
237 0.63%
666 1.80%
329 0.88%
230 0.63%
77 0.21%
17 0.05%
123 0.33%
452 1.21%
There were 37,491 dwellings on the valuation list for Council Tax purposes, in Castle
Point at October 2011.
The number of properties with potential to remain unoccupied for periods over one
year, as a proportion of overall properties on the valuation list is relatively small at
1.21% (452).
However, of these properties a significant proportion will have very sensitive reasons
for being unoccupied (lines 6&7, 307 or 0.81%).
The remaining properties predominantly pay a council tax charge and their reason for
being unoccupied is not recorded.
4
Long-term empty homes – unoccupied but chargeable to Council Tax
Figure 1 shows that at October 2011, there were 237 properties within Castle Point
which were unoccupied, but where Council Tax was chargeable. This section considers
the distribution of these homes according to their location and size.
Figure 2: Empty properties by ward and expressed as a % of housing provision
Overall Proportion by ward
Total
LT Empty
% LT
Properties
Empty of
Ward
Mainland
Appleton
Boyce
Cedar Hall
St Georges
St James
St Marys
St Peters
Victoria
Total Mainland
2,741
2,595
2,493
2,298
3,142
2,650
2,708
2,454
21,081
20
21
18
4
18
15
8
17
121
0.73%
0.81%
0.72%
0.17%
0.57%
0.57%
0.30%
0.69%
0.57%
Canvey Island
C Is Central
C Is East
C Is North
C Is South
C Is West
C Is Winter Gardens
Total Canvey Island
2,879
2,806
3,105
3,090
1,947
2,597
16,424
15
14
20
57
5
5
116
0.52%
0.50%
0.64%
1.84%
0.26%
0.19%
0.71%
Grand Total
37,505
237
0.63%
Figure 2 shows that the number of unoccupied properties on Canvey Island is higher as
a proportion of stock than on the Mainland. Canvey Island South Ward has a notably
higher proportion of long term empty homes where Council Tax is chargeable
compared to all other wards.
5
18
-
896
688
1,058
312
122
28
1
3,105
515
614
975
589
323
59
12
3
3,090
94
357
1,039
261
161
30
5
1,947
5
6
3
1
2
6
5
1
8
3
6
2
2
1
1
15
14
37
4
9
3
2
2
57
4
1
5
5
1
-
8
1
17
13
15
37
28
14
7
5
2
121
1
20
1
5
Grand Total
102
927
932
550
239
49
6
1
2,806
Total for C Island
191
987
1,186
325
167
18
5
2,879
Winter Gardens
West
4
15
South
18
-
North
1
1
3
1
2
1
2
1
East
3
8
4
2
1
Central
St Peters
2
1
7
5
-
1
3
2
2
6
4
2
1
21
Total for Benfleet
St Marys
4
3
4
3
1
1
2
-
1
2
6
7
2
1
1
23
539
231 1,961
979 7,505
754 6,198
299 2,781
120 1,475
44
561
4
61
2,454 21,081
Victoria
St Jam es
67
288
859
964
343
132
53
2
2,708
Cedar Hall
91
264
1,040
843
286
102
21
3
2,650
83
185
962
750
253
160
97
3
2,493
47
182
979
688
386
409
50
2,741
20
137
546
1,109
636
437
200
76
1
3,142
Boyce
Empty Over 12months
A
B
C
D
E
F
G
H
61
143
1,143
760
166
25
2,298
30
122
434
803
611
327
220
48
2,595
Appleton
Number of properties
A
B
C
D
E
F
G
H
St Georges
Figure 3: Long-term empty homes by ward and council tax band
220 2,018 2,557
727 4,300 6,261
920 6,110 13,615
175 2,212 8,410
479 1,491 4,272
64
248 1,723
12
41
602
4
65
2,597 16,424 37,505
2
1
2
5
56
21
26
7
3
2
1
116
69
36
63
35
17
9
6
2
237
6
In the Benfleet area, vacant properties typically fall within Council Tax bands C and D.
This is reflective of the nature of wider housing stock in this area, which comprises a
significant proportion of homes valued at this level.
On Canvey Island the majority of vacancies fall within Council Tax bands A to C,
reflective of slightly lower property values on Canvey Island. In Canvey Island South
Ward there are 37 band A properties vacant. Most of these are caravans at Thorney
Bay. These have skewed the results for both Canvey Island South Ward and Canvey
Island more generally.
Long-term empty homes – Exempt from Council Tax
Figure 1 showed that there were 666 homes at October 2011 that were empty and
exempt from Council Tax. It was estimated that 329 of these homes had the potential to
be vacant for longer than one year.
Figure 4: Unoccupied, exempt properties by period of exemption at April 2012
Period of un-occupation
0 - 6mths
No. of exempt
properties
482
6mths - 1 year
82
1 year - 2 years
50
2 years - 5 years
36
5 years - 10 years
9
over 10 years
4
Total
663
Figure 4 demonstrates that the majority of empty homes exempt from Council Tax have
been vacant for a period of less than one year. However, at April 2012 there were 99
Council Tax exempt properties in Castle Point that have been vacant for more than one
year.
The Council Tax Base (CTB) return is made to Communities and Local Government on
an annual basis, based on information at a specific date in October. The return
includes a breakdown of properties which have been granted an exemption. The
number of exemptions granted which relate to unoccupied properties included within
the return for October 2011 is shown at figure 5.
7
Figure 5: Council Tax Base Return Unoccupied Exemptions October 2011
Class
Exemption
Period
Dwelling where major works or structural alternations
Max 1 year
A
are required, underway or recently completed
Vacant (up to six months)
Max 6mths
C
A dwelling left unoccupied by people who are detained
Indefinite
D
Dwelling previously the sole main residence of a
Indefinite
E
person who has moved into a hospital or care home
Dwellings left empty by deceased persons
*Max 6mths
F
*6 months maximum once probate has been awarded
An unoccupied dwelling where the occupation is
Indefinite
G
prohibited by law
Previously the sole residence of a person who is the
Indefinite
I
owner or tenant and has moved to receive personal
care
Property taken into possession by mortgage lender
Indefinite
L
Total
Oct 2011
60
277
1
77
230
1
6
14
666
Exemption classes A and C above are fairly transient. They are the product of the
housing market, providing the start and end of property chains, and enabling movement
in both the sale and rental markets.
Exemption class D, G & I are insignificant in terms of numbers but may be significant in
terms of social and environmental impact.
Exemption class F is open ended but once probate is awarded is limited to 6 months.
Given the ageing population, and the high level of home ownership in Castle Point, it is
inevitable that the level of exemptions made against class F will remain at least
constant in Castle Point, if not increase slightly.
Less than 100 of the properties included in figure 5, were granted an exemption for a
period in excess of a year. The following table provides a breakdown of these
properties by ward and council tax band.
8
1
1
1
1
-
-
2
1
1
1
1
1
1
-
1
-
1
1
3
1
1
1
1
-
1
-
-
-
-
1
3
-
6
-
-
2
1
1
-
4
-
1
1
3
2
-
5
4
1
-
2
-
1
-
-
-
-
-
-
4
9
10
2
2
27
3
4
4
1
12
1
1
1
3
1
4
1
-
3
12
6
-
1
1
-
-
1
1
-
2
-
-
1
1
2
4
3
6
2
3
15
2
-
1
1
1
1
1
-
-
1
25
2
3
1
8
8
9
-
-
1
1
1
4
-
-
1
2
2
-
-
2
-
-
1
1
1
-
-
Grand Total
7
2
3
West
1
2
-
South
Central
Total Mainland
Victoria
St Peters
St Marys
St James
St Georges
-
8
-
1
-
-
3
-
-
Cedar Hall
1
1
-
-
1
3
3
1
Total C Island
1
-
-
Winter Gardens
-
North
-
East
1 year to 2 years
Band A
Band B
Band C
Band D
Band E
Band F
Band G
Band H
Total
2 years to 5 years
Band A
Band B
Band C
Band D
Band E
Band F
Band G
Band H
Total
5 years to 10 years
Band A
Band B
Band C
Band D
Band E
Band F
Band G
Band H
Total
Boyce
Appleton
Figure 6: Unoccupied Exempt Properties by ward and Council Tax band
8
12
18
10
2
2
52
4
6
10
6
1
27
-
1
1
2
1
1
1
1
1
-
3
6
9
Totals
Band A
Band B
Band C
Band D
Band E
Band F
Band G
Band H
Total
-
-
-
3
1
-
-
1
2
2
-
4
5
-
1
1
4
3
1
10
1
1
-
-
1
1
-
1
1
5
2
4
1
12
1
2
1
3
-
3
1
1
-
6
6
-
-
1
1
2
2
8
14
15
2
3
44
-
1
1
2
1
4
3
-
2
2
2
1
-
8
7
-
1
1
2
9
2
5
16
1
4
1
1
1
8
-
-
-
-
2
3
-
1
1
-
1
2
1
-
4
Grand Total
1
2
1
3
Total for C Island
Winter Gardens
West
South
North
East
Central
Total for Benfleet
Victoria
St Peters
St Marys
St James
St Georges
Cedar Hall
Boyce
Appleton
Over 10 years
Band A
Band B
Band C
Band D
Band E
Band F
Band G
Band H
Total
4
4
6
13
14
16
3
1
47
15
22
30
18
3
3
91
Figure 6 shows that long term empty homes typically fall within bands B to D in the Benfleet area, and in bands A to C on Canvey Island.
They are generally distributed across the borough, although there appears to be slightly higher concentrations in Canvey Island North
Ward and St. James Ward, Hadleigh.
10
Conclusions
At October 2011 there were 903 vacant properties in Castle Point. It was expected at
that time that 452 of these properties would be vacant for more than one year, 329 of
which would be exempt from the payment of Council Tax. Analysis of unoccupied
properties currently exempt from the payment of Council Tax showed that there were
99 properties at April 2012 that had been unoccupied for more than one year. There
were particular concentrations of these properties in Canvey Island North Ward and St.
James Ward. Should the Council choose to pursue a strategy to bring long-term empty
homes back into use it should consider prioritising these two wards, as it is these wards
where the social, environmental and economic impacts of long-term empty homes will
be most significant.
11
A Comparison with Other Areas
The Homes and Communities Agency Empty Homes Toolkit allows local authorities to
understand the issues associated with Empty Homes in their area, compared to those
issues being experienced elsewhere. This section sets out the outputs of the Toolkit for
Castle Point.
The Empty Homes Toolkit plots each Local Authority on a coloured grid, where the
horizontal axis represents the rank of the Local Authority according to the number of
privately owned vacant dwellings, and the vertical access represents the rank of the
Local Authority according to the number of homeless people.
Figure 7: Empty Home Toolkit
Each of the four coloured quadrants of the grid broadly
indicates different issues. Red - there is high
homelessness and a high number of empty homes;
Orange – there is high homelessness but a low number
of empty homes; Yellow – there is low homelessness
and a high number of empty homes; and Green – there
is low homelessness and low numbers of empty homes.
Castle Point is identified by the toolkit as falling within the Green quadrant of the grid,
with a below average number of vacant properties, and a below average number of
homeless people. Figure 8 shows a map of England with each district colour-coded
according to the quadrant into which they fall. It is clear from this map that many other
parts of Essex including Braintree, Chelmsford, Colchester, Southend, Tendring and
Thurrock have far greater issues in relation to empty homes than Castle Point. London
also appears to have significant issues in relation to both empty homes and
homelessness with most boroughs categorised as red or orange.
In areas of low homelessness and low levels of empty homes such as Castle Point, the
Empty Homes Toolkit highlights the importance of ensuring that social exclusion does
not become an issue, with those who fall into housing need being forced out of the
borough to find suitable accommodation. The percentage of households in receipt of
housing benefits in Castle Point has increased from around 7% in 2004 to around 8.4%.
It is these households who are at risk of being excluded from the local community
should the availability of property become restricted. There is an insufficient supply of
empty homes to address this issue.
12
Figure 8: Districts in England colour-coded by the HCA Empty Homes Toolkit
Conclusions
Compared to other areas there are relatively few empty homes in Castle Point. There is
however an increasing proportion of people receiving housing benefits. There is a risk
that constraints on the availability of property will make these people vulnerable to
social exclusion, having to move elsewhere to meet their housing needs. The supply of
empty homes is insufficient to address this.
13
Risk of Empty Homes in the Future
Castle Point is a relatively desirable area, close to London with good transport links into
the Capital and also to nearby towns. House prices in Castle Point are significantly less
than those in London, and properties are generally of a good size for families and
couples and normally have gardens.
The Greater Essex Demographic Forecasts show that there is a historic trend of
migration into Castle Point, and it is expected that this will continue into the future with
demand from migrants likely to outstrip potential supply.
The risk of Empty Homes becoming a significant issue in the foreseeable future is
therefore low.
This is not to say however that there will not be Empty Homes within Castle Point,
including some properties that will take over a year to come back into occupation.
There are a number of issues that may cause this.
An Ageing Population
Castle Point has an increasingly ageing population, with many of its residents living in
owner occupied accommodation. In particular, the proportion of people over the age of
80 is likely to increase significantly.
Where people have been living on a pension for a long time, there is the risk that their
income has not kept up with the rate of inflation. This, along with the physical effort
required, may prevent some older people from being able to keep up with the
maintenance of their home to a modern standard.
As a consequence, there will always be a number of homes within Castle Point that are
vacant due to the death of the owner. Where a property has fallen into disrepair it may
take longer than usual for that property to sell, or it may remain vacant for a period after
purchase whilst the new owners renovate the property.
Figure 5 showed that at October 2011 there were 230 unoccupied homes exempt from
the payment of Council Tax as a result of the death of the owner. There were a further
60 unoccupied homes exempt as a consequence of work being undertaken to renovate
them. There is the potential for these figures to increase slightly in the future. Where an
increase in empty homes can be associated to these issues, then it should not be a
cause for alarm as they are normal to a functioning housing market.
The Age of the Housing Stock
Most of the housing in Castle Point is relatively modern, having been built in the period
since WWII. Therefore, the likelihood of homes falling into a complete state of disrepair
is unlikely, although related to the matter of ownership outlined above.
There are however areas of the borough where the housing stock is older. This
includes parts of Hadleigh, and along the London Road through Thundersley. There is
a high level of empty homes in Southend, which has a similar housing stock, and there
14
is a risk that the levels of vacancies in similar type properties in Castle Point may
increase, particularly if they have been allowed to fall into a state of disrepair. St. James
Ward, where there were a number of Council Tax exempt properties that had been
vacant for more than one year falls within this area.
There is also a small number of older rough timber cast bungalows on Canvey Island
that may fall vacant over the next few years. Many of these have been identified
through the Strategic Housing Land Availability Assessment for redevelopment.
However, there are issues associated with this. Many of the sites are small, and will
need to be carefully designed in order to achieve both flood resilient design standards
now required on Canvey Island, and ensure the privacy of neighbouring properties. It is
likely that this will see some of these properties remain vacant for a longer period than
would be desirable.
Thorney Bay
It is clear that the caravans at Thorney Bay do not represent a desirable form of
accommodation, and cater for those with transient accommodation needs such as
those on short term employment contracts and those experiencing a family break-up.
There will therefore always be a level of empty homes associated with these caravans.
There are proposals for the site to be redeveloped with traditional homes. In the interim,
there will be a period of time where the empty home rate for the borough will increase.
This will represent the time between the caravans becoming unoccupied and them
being removed from the site.
Conclusions
As a result of the ageing population, it is likely that there will always be empty homes
within Castle Point. Where these have not been maintained to modern standards they
may take longer to re-enter the housing market than normal. However, there is
sufficient demand for property in Castle Point for them to come forward in a reasonable
timeframe.
It is likely that empty homes may take longer to re-enter the housing market in older
parts of Hadleigh, and where older rough timber cast bungalows on Canvey fall vacant.
It may be appropriate to target these types of properties through any empty homes
strategy that is brought forward.
The caravans at Thorney Bay will always act to elevate the empty homes figure for the
borough due to the transient nature of the tenants attracted to the site. There will be a
surge in vacancies at this site prior to its redevelopment for traditional homes.
Vacancies at this site should be monitored separately to other empty homes in order
that an accurate picture of empty housing can be attained.
15
Implications for Castle Point
Financial Implications
For every empty property returned into occupation, a New Homes Bonus equivalent
to the national average band D charge will be paid by the Government. The bonus
will be payable for six financial years and is divided 80/20 between the billing
authority and the respective County Council.
To give this some perspective, if the Council were successful in returning 5 currently
empty band D properties to full occupation, a bonus of £7,250 would be payable of
which £5,800 would be retained by this Council. For six years this would equate to
additional funding of £34,800.
The return of 5 band D properties to the tax base would also result in council tax
revenue of £1,148 being retained by this Council (Band D charge being £229.59).
There are likely to be costs associated with bringing properties back into use;
however these would normally be covered through the uplift in value that renovation
can bring to a property in a state of disrepair.
Environmental Implications
Empty homes, particularly where they are not being managed, can result in a
deterioration of the quality of the environment. They can attract anti-social behaviour
if they are not properly secured, resulting in a further decline in the state of the
property. Unkempt gardens meanwhile can detract from the quality of the
streetscene and also act to attract fly-tipping, littering and vermin. Empty homes
therefore generate complaints to the Council’s Environmental Health Team, who
have limited powers to deal with them under Empty Dwelling Management Orders.
These can only be applied to homes that have been empty for more than 2 years.
These Environmental implications will have economic and social impacts. Empty
homes that have fallen into a state of disrepair are likely to reduce the desirability of
an area, reducing the values of nearby properties. They are also likely to detract
from the efforts of other residents nearby to keep their properties in a clean and
attractive state, and potentially encourage increased littering and misuse of an area.
Housing Implications
Whilst many of the Empty homes in Castle Point are vacant for a reason, and most
only for short periods, there are just under 100 properties in Castle Point that have
been vacant for an extended period, and are not contributing towards the community
through the payment of Council Tax.
At April 2012 there were 1,321 households on the Council’s housing register, 30 of
which were identified as being in reasonable preference for housing i.e. high need.
Bringing these long term empty homes back into use as affordable housing, or
through the private rented sector would help to address the housing needs of these
16
households in high need of housing. It will also reduce the burden on the housing
service to provide temporary accommodation.
Planning Implications
In a functioning housing market it is normal for there to be empty homes in order to
facilitate property transactions. It would be normal for a vacancy rate of around 3% at
any given point in time. Table 1 shows that the vacancy rate is 2.4% and is therefore
appropriate. There is not therefore a supply of surplus empty homes that can be
counted against the housing requirement when preparing the New Local Plan.
Planning does however have a role to play in creating high quality environments for
people to live. Empty homes, due to their environmental impacts, detract from the
quality of the environment. It is therefore important that opportunities within the
planning system are pursued in order to help bring both short and long term empty
homes back into occupation.
Conclusions
There are positive implications for the Council in bringing Empty Homes back into
occupation. As well as an increase in revenue funding that could be achieved
through the New Homes Bonus and renewed payment of Council Tax, there are also
potential savings to be made in terms of enforcement of untidy sites by the
Environmental Health Team, and spending on temporary accommodation by the
Housing Service. Additionally, there is the potential to help more households in high
need of housing to access accommodation.
Clearly, there will be costs involved in the bringing Empty Homes back into use. This
may include any combination of acquisition costs, renovation costs and legal costs,
depending on the approach taken. However, subject to careful risk management, it
should be possible to ensure that these costs are covered through the resale, or
future letting of the property.
17
Potential Strategy Options
In order to address the issues associated with Empty Homes in Castle Point, in
particular those associated with long-term empty homes, there are a range of
potential strategy options. These include “sticks” to encourage landowners to get
their properties occupied; “carrots” to encourage landowners to invest in bringing
their properties back into occupation; and opportunities for direct intervention by the
Council, alone or in partnership with others.
Apply an Empty Homes Premium
The finance act allows in respect of a long term empty property, “the amount of
council tax payable in respect of that dwelling and that day shall be increased by
such percentage of not more than 50 as it may so specify”. The secretary of state
may specify certain exemptions to this provision.
The definition of a long-term empty property stated within the local government
finance bill is as follows:
“A dwelling is a “long term empty dwelling” on any day if for a continuous period of at
least 2 years ending with that day – it has been unoccupied and it has been
substantially unfurnished”
A billing authority has this additional flexibility from 1st April 2013.
An exercise undertaken in February 2012 by colleagues in Revenue Services
identified 123 properties which fell within the definition where an “empty homes
premium” may be applicable. These properties are not exempt properties but are
those which are already paying a charge. The levy would be over and above
existing council tax charge.
18
Figure 9: Potential revenue generation from the application of an Empty Homes Premium
Banding
Band A
Band B
Band C
Band D
Band E
Band F
Band G
Band H
Empty Property Premium
Charge
Current Profile
1,012.98 18
1,181.81 26
1,350.64 36
1,519.47 20
1,857.13 11
2,194.79 7
2,532.45 4
3,038.94 1
123
Collection Assumption/Yield
Distributed to Preceptors as follows:
Essex County Council
Essex Fire Authority
Essex Police Authority
Castle Point Borough Council
Surcharge Options
Total
18,234
30,727
48,623
30,389
20,428
15,364
10,130
3,039
176,934
10%
25%
50%
1,823
3,073
4,862
3,039
2,043
1,536
1,013
304
17,693
4,558
7,682
12,156
7,597
5,107
3,841
2,532
760
44,233
9,117
15,364
24,312
15,195
10,214
7,682
5,065
1,519
88,467
70% 12,385
1,087
66
137
230
1,519
8,858
541
1,114
1,871
12,385
30,963 61,927
22,146
1,353
2,786
4,679
30,963
44,291
2,707
5,572
9,357
61,927
Based on the council tax banding profile of these properties, a maximum surcharge
of 50% would result in additional tax base yield of £62k after allowing for a non
collection rate of 30%. £9k would arise to the Borough Council and £44k to the
County Council.
Under current rules, an empty property would only have to be occupied for a period
of six weeks for the two year qualifying period to recommence, effectively further
limiting the revenue which may be achievable the premium.
This option has limited benefit to the Council in terms of the revenue generated, and
has limited potential to bring an empty home back into use. If there is a good reason
for keeping a property empty and paying 100% Council Tax charges of say £1,519
for a band D property, it is unlikely that an additional payment of £760 is going to
make the owner sell the property for substantially less than he was seeking, or
indeed spend money on renovations to make a property available for rent. This is not
to say that this option should not be pursued in order for the Council to maximise its
income.
Empty Dwelling Management Orders
Where long-term empty properties have become dangerous or are causing a
nuisance to neighbours, the local authority can require owners to carry out repairs. In
some circumstances, local authorities can seek to take direct control of the
management of the property.
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In order to take control of a property, the property will need to have been empty for
over two years and the local housing authority will need to have given property
owners a minimum notice period of three months.
Where a property has been taken into management the Council is able, if
appropriate, to tenant the property. However, any surplus rent, after renovation and
management costs, must be returned to the owner of the property.
Empty Dwelling Management Orders are resource intensive, requiring detailed
investigation and legal work by the Council. If the Council is successful in gaining an
order, it will then need to invest in delivering the necessary refurbishment works.
Whilst such works are re-chargeable to the landowner, it may be the case that
he/she is unable or unwilling to pay. This investment will therefore be collected at a
later date, rather an immediately, through the collection of rents or via a land-charge.
TGSE Empty Homes Grant Scheme
This initiative is being led by Basildon Borough Council as part of the Thames
Gateway Housing Partnership. It is a Government funded initiative being operated in
conjunction with Genesis (a Registered Provider).
Grants for up to £35,000 are given to the landlords of empty homes in return for the
landlord agreeing to lease Genesis the property for a period of five years for use for
affordable housing.
Whilst this scheme has so far been successful in bringing some empty homes back
into use in Basildon, it has not been widely promoted or used in Castle Point. There
would be a requirement for the Council to employ specific resources at identifying
and engaging with the landlords of empty properties in order to encourage them to
engage with the scheme.
Compulsory Purchase
The Council can use its powers as a Planning Authority to acquire long term empty
homes and bring them back into use. This option would require investment on
behalf of the Council to pay the legal costs associated with compulsory
purchase, the acquisition costs and the renovation costs.
The costs associated with this could be managed as follows:
1) The Council could acquire and undertake the works themselves, and sell the
properties on the private market, generating sufficient income to make a profit
for reinvestment.
2) The Council could acquire and undertake the works themselves, and enter
into an agreement with a local letting agent to rent the properties privately.
This would generate income over the long term, with the initial investment
taking time to repay.
3) The Council could acquire and undertake the works themselves, using an
element of reinvestment from right to buy sales. These would then become
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part of the Council’s social housing stock, with limited return on the Council’s
part of the investment.
4) The Council could select a local developer to act as a development partner.
They would pay the legal costs and acquisition costs and benefit from the
resale of the homes on the private market once renovated.
5) The Council could select a Registered Provider (Housing Association) to act
as a development partner. This is likely to require the Council to reinvest right
to buy sales in order to secure the re-use of these properties for affordable
rent.
There is no need to select one of these options exclusive to all others, as option 1 for
example may generate the revenue needed to bring forward some properties under
options 3 or 5. A strategy would need to consider the use of compulsory purchase
powers in greater detail if it was a preferred approach.
Options 1 to 3 would require the Council to invest in additional human resources in
order for them to be delivered.
This option provides a clear mechanism for bringing empty homes back into
occupation. However, depending on the approach taken there is a potential
significant investment required by the Council. There are choices to be made with
regard to the Council’s aspirations for meeting the needs of local high need
households through the redevelopment of empty homes. These choices will
determine which of the options is most appropriate, and the level of investment that
the Council should make in dealing with empty homes.
It is unlikely that the resources of the Council are sufficient to deal with all empty
homes in this way. It would be necessary to prioritise investment, potentially having
regard to those areas of concern highlighted in previous sections.
Conclusions
There are options available for bringing empty homes back into use. It is likely that
these options will need to be used in combination to bring long term empty homes
back into occupation. Both the TGSE Empty Homes Grant Scheme and the use of
Compulsory Purchase Powers will require the Council to direct human and capital
resources towards addressing the issue of Empty Homes. However, there is the
potential for the Council to recoup some or all of the cost of these resources,
depending on the strategy eventually pursued.
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Conclusions
At October 2011, there were 903 empty homes in Castle Point representing 2.4% of
the borough’s housing stock. This is consistent with what would be expected in a
normal functioning housing market, and does not represent a surplus of housing
stock that could be deducted from the Council’s housing requirement.
There are however just short of 100 homes within the borough that have been empty
for more than 1 year and are exempt from Council Tax. Whilst these are distributed
around the borough, there are higher concentrations in Canvey Island North Ward
and St. James Ward. Older properties can be found in these areas, which may have
contributed to these higher concentrations.
It is these long term empty homes, exempt from Council Tax, which should be
brought back into occupation, and should be the priority of an empty homes strategy.
Bringing these properties back into use will generate the Council revenue, and also
reduce expenditure on investigating untidy sites, and on temporary accommodation.
It will also improve the quality of the environment for residents living nearby empty
homes, and potentially secure additional housing for those in preferential need of
accommodation within the borough.
In order to bring these long term empty homes back into occupation, there are a
variety of strategies that can be employed. It is most likely that these will be
successful when used together. The Council would need to refocus resources on
achieving this, although there is the potential to generate revenue to cover these
costs, depending on the approach taken. Given the reducing resources available to
the Council to fulfil its duties, any empty home strategy should probably seek to be
cost neutral over a fixed period of time.
It has been identified that the caravans at Thorney Bay, due to the transient nature of
their occupants, skew the number of empty homes for Canvey Island South Ward in
particular, but also for the borough more generally. The redevelopment of this site
may see a spike in empty homes arising during the period between caravans being
vacated, and caravans being removed from the site. It is recommended that locally
these are monitored separately, so that it is clear to see any changes the levels of
empty homes amongst the traditional housing stock.
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