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Head Office: Northern Office:

The Empty Homes Agency The Empty Homes Agency


195-197 Victoria Street PO Box 3609
London Barnsley
SW1E 5NE S75 1WW
Phone: 020 7828 6288 Phone/Fax: 01226 390 093
Fax: 020 7828 7006 Mobile: 07719 798 033
Email: info@emptyhomes.com
Web: www.emptyhomes.com

What should your Local Authority/Council be doing about empty


properties? What can you do?

There is currently no duty on local authorities to produce an empty property strategy -


however, this does not mean that they should be resting on their laurels. The Government
has initiated several new policies that state quite clearly that empty properties will not be
tolerated such as:

 The introduction of a discretionary power available to local authorities to impose


100% Council Tax on long-term empty properties. Currently owners receive a 50%
discount. The power is set to be introduced from April next year.

 Zero-rated VAT on refurbishment of properties empty for more than 10 years - 5% on


those empty for more than three years. EHA is currently campaigning for VAT to be
harmonized so that both new build and refurbishment of all empty properties is set at
5%. The present situation is that properties empty for more less than three years
attract a rate of 15% on the cost of refurbishment whereas new build is zero-rated.

 The introduction of a scheme for space above shops where the owner receives 100%
Capital Allowance over three years on high street properties that are refurbished and
then let for 7 years.

 Empty Homes Management Orders - consultation has just ended on this and the
results are awaited. The intention would be to allow local authorities to purchase a
lease on a property where the owner will not be co-operate in bringing the property
back into use voluntarily. The property would then be let for social housing.

 The Office of the Deputy Prime Minister commissioned The Empty Homes Agency,
KPMG Management Consultants and Drivas Jonas to write guidance on bringing
empty properties back into use. The guidance, "Unlocking the Potential" has been
written for both owners and local authority officers and is available free on the ODPM
website - www.odpm.gov.uk

 ODPM have also introduced a new Best Value Performance Indicator to ensure that
local authorities have the re-use of empty properties as one of their priorities.

 ODPM are also looking to introduce legislation next year that will enable local
authorities to share information held by the Council Tax departments with other
departments. This will make identifying empties easier.

Empty properties are not just a wasted housing resource but also have a degenerative
effect on the properties and communities surrounding them. An empty property will
increase fears of crime; cause damage to the property next door, encourage fly-tipping and
vermin as well as denying someone the most basic of human rights - having access to a
home.
Head Office: Northern Office:
The Empty Homes Agency The Empty Homes Agency
195-197 Victoria Street PO Box 3609
London Barnsley
SW1E 5NE S75 1WW
Phone: 020 7828 6288 Phone/Fax: 01226 390 093
Fax: 020 7828 7006 Mobile: 07719 798 033
Email: info@emptyhomes.com
Web: www.emptyhomes.com

If you spot a property that has been empty long-term there are a list of questions
that you should ask your local Council:

 1. Does the Council work in partnership with Housing Associations to bring


empty properties back into use via a Private Sector Leasing Scheme? A Private
Sector Leasing Scheme is a facility for a housing association to be funded to buy a
lease on a private property from an owner. They pay the owner guaranteed rent
throughout the period of the lease regardless of whether it is empty at any stage. The
property is then used to house tenants from the housing association or Council
waiting list. Proposals to make this scheme compulsory of the owner will not co-
operate are being discussed and legislation to that effect is likely in 2005. Mercian
Housing Association in Birmingham is one housing association that operates such a
scheme even providing - in some cases - furnished accommodation for those who
need it.

 2. Does the Council give empty property grants to owners of empty properties?
The Council has the ability to give grants, loans and even mortgages to owners of
empty properties to enable tem to refurbish them and bring them back into use.
Usually the grant or loan will have a condition attached tat the property is then let to
someone on the housing waiting list. However, the intention is that Councils address
the problem of housing right across their area and should also look at setting the
condition that they are offered for private sale or rent at affordable levels. The Council
should have written a new Empty Property Grant policy - ask to see a copy.
Cotswolds District Council revisited their grant policy and decided that their priority
was not necessarily to bring back empty properties into use for social housing but to
provide affordable accommodation for local people. One developer bought into the
scheme, which provided ten new homes at affordable rents for local people priced out
of the housing market.

 3. What enforcement measures does the Council use if the owner refuses to co-
operate? If the empty property is causing problems of nuisance in terms of decay,
infestation or crime, the Council can issue notices to the owner to carry out necessary
repair works. Quite often the responsibility of carrying out repairs will force to owner to
sell. In some cases they might decide to repair the property and then rent it out.
Action on the part of the Council is vital to setting this into motion.

 If the owner refuses to co-operate, the Council can force the sale of the property
either by a Compulsory Purchase Order or - much quicker and easier - Enforced Sale
Procedure. However this is a very last resort. The former means that the Council buys
it for social housing; the latter means that it is sold on the open market at auction.
Leeds City Council have set up a scheme where they work with selected private
partners who then buy the properties to let for social housing.
Head Office: Northern Office:
The Empty Homes Agency The Empty Homes Agency
195-197 Victoria Street PO Box 3609
London Barnsley
SW1E 5NE S75 1WW
Phone: 020 7828 6288 Phone/Fax: 01226 390 093
Fax: 020 7828 7006 Mobile: 07719 798 033
Email: info@emptyhomes.com
Web: www.emptyhomes.com

 4. Do they have a Private Sector Landlord Forum? A Government priority is the


improvement of the private rented sector. This is easier to achieve if the Council has a
lot of contact with private landlords. For instance, many private landlords are happy to
take housing benefit tenants if they have the assurance that their claim is being
processed. The Housing Benefit Manager at Eastbourne Borough Council therefore
designed a form that both tenant and landlord can sign to enable the landlord to
discuss the tenant's claim with Housing Benefit. Woking Borough Council have an
excellent Landlord Forum, which means more access to good quality housing for
everyone.

 5. Does the Council operate a 'homesteading' scheme? There are areas across
the country suffering from low demand for housing. In some cases streets upon
streets of good quality housing stands empty. These empty properties are a financial
burden to the Council or housing association that owns them. The Council is able to
dispose of these properties for a nominal sum - having sought permission form the
Secretary of State - to provide housing for local people. Newcastle City Council set up
a very successful scheme. They offered flats for properties for sale for 50p each. The
conditions attached were that the chosen applicants were local families with at least
three children (indicative of a particular housing resource shortage), they must buy
two flats and be able to raise a mortgage for the considerably reduced purchase
price. The Council paid for the flats to be converted into single houses and to be
refurbished completely. The result was families with houses, a regenerated area as a
result of the refurbishment and re-occupation and a cure for the Council's financial
headache.

If none of these questions are answered you should write to your local Councillor
explaining that the empty property is reducing the value of the surrounding properties. It will
also be increasing fears of crime in the area as well as attracting fly-tipping. If you live next
door to the property include your fears of potential damage to your own property such as
water ingress and vermin infestation as well as the reduced security for your own home.

Allowing owner to leave properties empty and deteriorating costs the local authority money
in terms of extra expenditure on:

 Clearing rubbish from the property in case of health hazard

 Inspecting the property to ensure that the property is safe

 Increasing crime and fears of crime resulting in additional policing or complaints

 Creating undesirable pockets of housing putting more stress on housing provision

 Lost Council Tax revenue if they give the owner 50% discount

 Boarding up if the property becomes unsafe


Head Office: Northern Office:
The Empty Homes Agency The Empty Homes Agency
195-197 Victoria Street PO Box 3609
London Barnsley
SW1E 5NE S75 1WW
Phone: 020 7828 6288 Phone/Fax: 01226 390 093
Fax: 020 7828 7006 Mobile: 07719 798 033
Email: info@emptyhomes.com
Web: www.emptyhomes.com

 In your letter ask how the local authority can justify such expenditure when central
government is telling them to work with owners either voluntarily - or in some cases -
using enforcement action - to bring empty properties back into use.

Summary

If you spot or live next door to an empty property:

 Contact your Local Authority - ask to speak to the person responsible for private
sector empty properties.

 Ask what they will do about the property. Have they already contacted the owner?
What enforcement action will they be taking if the owner will not co-operate?

 If you are still dissatisfied write to your local Councillor - copying the letter to the Local
Authority and The Empty Homes Agency asking for their proposals for private sector
empty properties and also justification of the wasted expenditure.

 If you still have no joy contact us.

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