Agenda Item No____13________ EMPTY HOMES PILOT PROJECT: REVIEW Summary: In October 2011 Cabinet received a Report on Empty Homes as classified on the Council Tax Register and resolved to establish an Empty Homes Pilot Project to identify a way forward in dealing with the issue of long term empty homes in the District. This report reviews the Empty Homes Project and its outcomes. Options considered: Conclusions: N/A The outcomes achieved through the Pilot Project to date are as follows; • • • • • • • • Recommendations: The appearance of the properties/gardens has been enhanced by the use of the statutory notice procedures. Where building condition impacted negatively on adjoining properties, this has been remedied Debts owed to the Council have been recovered from the property owner through the use of the charging order procedure. One property has been brought back into use and one is currently under repair. A record of intervention has been developed that would support an application for a Compulsory Purchase Order on the properties as required. Learning from the pilot will be used in the implementation of the new Empty Homes Policy. The pilot has shown that the willingness of the Council to use CPO powers and the use of other enforcement powers to improve the appearance and condition of the empty homes has achieved results, although in one case further action is required to ensure improvements in property condition are maintained. This process of enforcement action as the Council prepares the CPO case will continue. The learning from the pilot will be used to ensure that the new Empty Homes Policy will be able to deliver a reduction in the number of empty homes and the ability to use a range of enforcement powers including the enforced sale procedure and where appropriate and effective CPO powers. (1) That an Empty Homes Board, led by the Portfolio Holder for Housing is established. (2) That £200,000 is ringfenced to support bringing properties back into use through the use of enforcement methods including enforced sale and CPO powers. LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW (Papers relied on to write the report and which do not contain exempt information) ODPM Circular 06/2004 Compulsory Purchase and the Crichel Down Rules ODPM Empty Property : Unlocking the Potential Report to Cabinet: 31/10/11 Action on Empty Homes Cabinet Member: Wards affected Contact Officers telephone number and email: Trevor Ivory All Nicola Turner & Emma Duncan 01263 516222./516045 Nicola.turner@north-norfolk.gov.uk emma.duncan@north-norfolk.gov.uk 1. Introduction 1.1 On 31 October 2011 Cabinet considered the issues surrounding long term empty properties in the District in response to statements made at a national level by Ministers regarding the wasted resource represented by long term empty properties. The report proposed that a small scale pilot project be undertaken to attempt to bring properties back into use where an informal approach had not succeeded and in particular to “establish whether the Authority’s preparedness to use such [statutory] powers can bring about positive outcomes in a community through direct intervention and/or encouraging the owners of other long term empty properties to address the issue themselves”. The Council identified 3 properties in Weybourne for the pilot and, if other options to bring those properties back into use failed, authorised the use of Compulsory Purchase Order (CPO) powers. This report is a review of the work undertaken to date and outcomes achieved by the pilot project to date. 2. The Project 2.1 Project Key Objectives The following objectives were identified for the pilot project; • • • • • 2.2 To enhance the appearance of the properties/gardens thus reducing their negative impact on neighbours and the wider community/neighbourhood. To address issues relating to defects in the buildings affecting adjoining owners. To recover any debt owed by the property owner to the Council where possible. To bring the properties back into use. To produce a record of intervention that would support any future application for a Compulsory Purchase Order. The properties selected for the pilot The properties had been empty for periods ranging between a year and 16 years at the time of the report to Cabinet. The properties were externally in a relatively poor condition and this was generating complaints from neighbours. Although the Council had made contact with the owner, limited formal or informal action had been taken in respect of the individual properties. 3. Approach Adopted 3.1 Following the Guidance issued by the Secretary of State (ODPM Circular 06/2004) an incremental approach to bringing the empty properties back into use was adopted to ensure that there was a sufficient evidence base for any CPO application made. 3.2 This involves moving through informal methods (letters/discussions) to formal action using the full breadth of the Council’s statutory powers (s215 notices, Building Act Notices, Prevention of Damage by Pests Notices and Housing Act Notices) and finally taking legal proceedings to force a property to be brought back into use (ie enforced sale or compulsory purchase). 3.3 This methodology was adopted for several reasons; a) Not all properties are empty through a deliberate act by the owner, some are empty because the owner is perhaps unwell or elderly. Alternatively some properties remain empty because of commercial considerations by developers. b) Taking an incremental approach is cost-effective and efficient rather than taking expensive proceedings immediately a resolution can often be achieved in other ways. c) Ensures that owners are treated equitably and encouraged to bring properties back into use themselves. d) When making a CPO the Council is required to demonstrate that it is a “last resort” i. Furthermore the Guidance referred to above makes it clear that “authorities will first wish to encourage the owner to restore the property to full occupation. When considering whether to confirm a compulsory purchase order the Secretary of State will normally wish to know how long the property has been vacant; what steps the authority has taken to encourage the owner to bring it into acceptable use; the outcome; and what works have been carried out by the owner towards it’s reuse for housing purposes”. 4. Action Taken To Date 4.1 In line with the ODPM guidance a number of teams were required to exercise their powers through the pilot project to address the problems creatively and encourage the owner to improve the condition of the properties so that the properties could be brought back into use. 4.2 November/ December 2011 • • • • • • • • • • • 4.3 January/ February 2012 • • • • • • 4.4 Compliance time for Requisition for Information notices expires. Owners return Requisition for Information following threat of prosecution. Housing Team make inspections to determine whether the property is adversely affecting the immediate neighbours and identify work to a property that needs to be completed following consultation with adjoining property owner. Owners undertake work to all three properties including - tidying up gardens, repairs chimneys, installs new windows/doors. Owner notifies the Council that one of the properties is his elderly mother's former home and that he will contest any CPO. Owners appeal s215 notices. March/April 2012 • • • 4.5 Owners contacted and advised about condition of the property and CPO process to be taken if properties not brought back into use. Referencing process for CPO started (identifying all interests in the land by serving notices) Entries placed on Land Charges Register to alert any potential purchasers of the properties as to the Council’s intentions. Office Copy entries obtained to check for legal/beneficial owners and any entries that may be relevant to the valuation. Plans prepared for Orders. Valuation obtained. Owner advises Council that he intends to bring one of the properties back into use and apply for planning permission to develop the adjacent piece of land. Owner of another of the properties sells it and it becomes occupied with new occupant paying council tax. Requisition for Information served on all persons with an interest in the properties. Owner fails to return notices and is advised of criminal sanctions. s215 (untidy land) Notices served requiring general clearance of land and exterior decoration on all 3 properties. Following the owner accruing a debt to the Council (£2000+) an application is made to the Court for a charging order which would give the Council a power of sale over one of the properties and an Interim charging order was granted by the County Court and registered (subject to an objection) at the Land Registry. The Order was discharged by the owner with full payment of debt and Council’s legal costs. Letter sent to the Parish Council to establish their ownership of land adjoining one of the properties and whether they had granted consent for the storage of old cars and a caravan on the land. July 2012 • Appeal against S215 notices heard before the District Judge. The Council successfully defends the appeal and is awarded costs. 4.6 August 2012 to date • • Repair works are currently being undertaken internally to one of the properties. Further S215 notice being prepared for another of the properties following a deterioration of the condition of the garden. 4.7 Two of the properties had been unoccupied and in a poor state of repair for a considerable number of years. The third had generated complaints from neighbours of the property about its appearance. 4.8 It is evident from the action taken by the Council through the pilot project that the owner(s) of the properties are only occupying and improving properties because of the enforcement action taken and threat of enforced sale/CPO since October 2011. The owner(s) have improved the appearance of the properties, undertaken major repairs and one of the properties has been occupied with the occupier paying council tax. The owners whose properties share a party wall with two of the properties also have benefited from the repair works done to the properties and the appearance of the properties in the village has been improved. 4.8 An added benefit is that the Council has collected a substantial debt from a person whom would otherwise been unlikely to pay in full. 5.0 Further Proposed Action 5.1 Property 1 This property has been brought back into use following the use of enforcement powers and new windows and doors and other small works undertaken. Council Tax is being paid on this property by the occupant and as this property has been brought into use, will qualify as counting towards any calculation as to whether New Homes Bonus is due to the Council following a reduction in the number of empty homes. The potential deterioration of the property remains a concern however it can be appropriately dealt with by the use of S215 Notices. A neighbour has raised concerns that the property is not in fact occupied and has remained empty despite the works that have taken place and the change of ownership. The Council is currently assessing ways of dealing with this issue. (see exempt annexe) 5.2 Property 2 The external appearance has been improved through the issue of enforcement measures resulting in replacement windows and doors being fitted (see exempt report) The land has been cleared of vehicles (apart from one caravan which has been cleaned), gas cannisters and other rubbish and the garden and adjacent land are now maintained. The windows and doors have been replaced completely. The Council is considering further enforcement methods (see exempt annexe) 5.3 Property 3 The property is sited within a Conservation Area. Substantial repairs were effected quickly following formal intervention, including chimney and party wall repairs. The garden was cleared and rear windows and doors replaced. (see exempt annexe) Further repair work is ongoing at the present time. 5.4 Action will continue on these 3 properties to ensure all are occupied (see exempt report) and it is possible that this will result in applications for a CPO being made. Whilst this work has been undertaken as part of a pilot, it is now appropriate to mainstream the use of CPO powers as the ability to use this power has been shown through the pilot to be an effective tool when combined with other enforcement powers. The use of CPO has been included in the new Empty Homes Policy (to be considered by Cabinet on 3 December). On this basis, the £200,000 of unspent Housing Renewal Budget for 2011/12 which was identified in the Cabinet report on 31 October 2011 to support the CPO pilot will now need to be maintained in order to support ongoing work on enforcement including enforced sale and CPO’s. 6 Conclusion 6.1 The project outcomes are as follows; • • • • • The appearance of the properties/gardens has been enhanced by the use of the statutory notice procedures. Where building condition impacted negatively on adjoining properties, this has been remedied. Debts owed to the Council have been recovered from the property owner through the use of the charging order procedure. One property has been brought back into use and one is currently under repair. A record of intervention has been developed that would support an application for a Compulsory Purchase Order on the properties as required. Learning from pilot will be used in implementation of new Empty Homes Policy. 6.2 The pilot has shown that the willingness of the Council to use CPO powers and the use of other enforcement powers to improve the appearance and condition of the empty homes has achieved results, although in one case further action is required to ensure improvements in property condition are maintained. This process of enforcement action as the Council prepares the CPO case will continue. 6.3 The learning from the pilot will be used to ensure that the new Empty Homes Policy will be able to deliver a reduction in the number of empty homes and the ability to use a range of enforcement powers and also to be able to pursue the application for CPO is a key component of the Council’s approach to bringing empty homes back into use as the willingness to take such action is an effective deterrent. 6.4 It is also recommended that an Empty Homes Board be established led by the Portfolio Holder Councillor Ivory, to meet on a monthly basis, to deliver this part of the Council’s Corporate Plan. It is envisaged that the Board would consist of the all officers from the various disciplines within the Council and the Board would be able to consider individual properties on a case by case basis. This would ensure that when considering how to most effectively bring properties back into use that the Council is able to use all of the enforcement powers it has it its disposal. 7. Financial Implications and Risks The project has ensured a substantial debt has been cleared immediately, when this would not have otherwise have happened. The Council has also recovered its legal costs from the owner (s). In pursuing the use of CPO powers the Council will consider the risks and financial implications of applications for a CPO on a case by case basis. 8. Sustainability Bringing properties back into use is highly sustainable. The additional Council Tax Payments being made bring additional revenue to the Council. 9. Equality and Diversity The project identified that in some circumstances that equality and diversity issues may be engaged in respect of the ability of some elderly residents to maintain and manage property if they are absent from it. 10. Section 17 Crime and Disorder considerations Improving the appearance of these properties and /or bringing them back into use discourages anti social behaviour and addresses the concerns of the community. i ODPM Circular 06/2004 p42 “Compulsory purchase of empty properties may be justified as a last resort in situations where it appears to be no other prospect of a suitable property being brought back into residential use. Authorities will first wish to encourage the owner to restore the property to full occupation. When considering whether to confirm a compulsory purchase order the Sec