Cabinet
31 October 2011
Agenda Item No_______9_____
ACTION ON EMPTY HOMES
Summary:
At the present time there are over 1400 empty homes in
North Norfolk as classified on the Council Tax Register.
A number of these homes have been empty for many
years and despite contact being made with owners no
action has been taken to either bring the properties back
into occupation or sell them. This report therefore seeks
authority from the Cabinet to pilot an approach whereby
the Council seeks to take direct action to bring long-term
empty properties back into use through exploring the
use of Compulsory Purchase powers.
Conclusions:
Long-term empty properties cause blight on a local area
through their neglect, often resulting in complaints from
neighbours and parish councils. Such properties also
represent a loss to local communities, often where there
are high levels of demand for housing – either from local
residents or second / holiday home owners. Over a
number of years the Council has sought to bring
pressure to bear on the owners of such properties either
through incentives such as an Empty Homes grant or
the use of enforcement powers. However, despite such
interventions by the Council there are a number of longterm empty properties where the authority might have to
be prepared to take more direct action, eg forcing a sale
or through the use of Compulsory Purchase powers, if
any real progress is to be made in securing the future
occupation of such properties.
Recommendation:
Cabinet Member(s)
a) That Cabinet agrees to the use of the Housing
Renewal Grant budget for 2011/12 to pilot an
approach / develop the Council’s understanding
of exercising Compulsory Purchase powers to
acquire and sell on a long-term empty
property(ies) in the district so as to inform future
policy development and interventions to address
an issue which generates concern in local
communities.
b) Cabinet approves the making of compulsory
purchase orders (“CPOs”) under Section 17 of
the Housing Act 1985 (as amended) on the land
and buildings described in the exempt appendix
to this report and their submission to the
Government Office for confirmation.
Ward(s) affected
Cabinet
Cllr K Johnson
31 October 2011
All
Contact Officer, telephone number and email:
Steve Blatch, Strategic Director
Tel:-01263 516232
Email:- steve.blatch@north-norfolk.gov.uk
1.
Introduction
1.1
At the present time there are over 1400 long-term empty properties in North
Norfolk, as recorded on the Council Tax Register. Many of these properties
have been empty for many years and present a blight on local communities
resulting in complaints from neighbours and Town / Parish Councils
concerned about the unkempt appearance of the properties, overgrown
gardens, the potential for anti-social behaviour and the impact on
neighbouring property values. Often such properties are in communities
where there is a high level of demand for housing either from local residents
and/or second / holiday home owners.
1.2
Whilst there has been concern at a local and national level for some time
about the waste represented by long-term empty homes given the demand for
housing and concerns about rates of new development, much of which is on
greenfield land; the Council’s historic approach in attempting to tackle this
issue has largely been reactive when acting on complaints about such
properties or by responding to enquiries from the owners of such properties
about whether there is any grant finance available to support investment
aimed at bringing such properties back into use.
1.3
More recently through the New Homes Bonus and a number of statements
made by Government Ministers, there is a renewed national focus on empty
homes and therefore officers have reviewed the Council’s position with
respect to this issue with the objective of achieving more positive outcomes
both at a local community and district level.
1.4
This report therefore seeks authority to use the 2011/12 Housing Renewal
Grant budget to pilot a more robust and interventionist approach to tackling
empty homes through sanctioning the use of Compulsory Purchase powers to
acquire and sell on one or two long-term empty properties in the district.
Through a limited pilot, the Council can establish whether the authority’s
preparedness to use such 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.
2.
The Council’s current approach
2.1
Over a number of years the Council has considered its ability to reduce the
number of empty homes in the district. Going back five or more years there
was a high level of empty homes in the district because of the long-term
empty properties on the former RAF West Raynham and, more recently, RAF
Coltishall sites. However, in most towns and villages there are a number of
long-term empty dwellings which, to varying degrees, cause concern to local
Cabinet
31 October 2011
people. In 2006/07 the Council employed, on a one year contract basis, an
Empty Homes officer who developed a database of long-term empty
properties and made contact with owners to establish their future intentions
for their properties. In a small number of cases, either through the provision
of advice or threatening to use enforcement powers, positive outcomes were
achieved with owners either undertaking works or being prepared to sell their
properties for future occupation.
2.2
Over the same period, the Council has operated an Empty Homes Grant
scheme where grants of up to £25,000 have been available to owners of
empty properties to bring their properties back into use, with the Council
having nomination rights into the property for a period of five years. The
operation of the Empty Homes Grant scheme has been supported by an
annual budget of £150,000; although in most years this budget has been
underspent due to low levels of take up. In the period 2006/7 to 2010/11, the
Council awarded 18 Empty Homes Grants.
2.3
In addition to the above, in a small number of cases the Council has served
notices on owners of long-term empty properties under planning legislation so
as to improve the appearance of such properties through the tidying of
gardens, removal of abandoned cars etc; however in such cases this has only
brought about a short-term improvement in the situation rather than a
permanent outcome.
3.
Proposed approach
3.1
The Council’s Housing Services Team, whilst no longer having a dedicated
Empty Homes Officer, is still allocating resources to attempting to address the
issue of Empty Homes. Given the financial rewards associated with bringing
empty homes back into occupation through the New Homes Bonus, improved
working arrangements are being developed between the Housing Services
and Council Tax teams in an attempt to further reduce the number of longterm empty properties in the district. Contact is therefore made with the
owners of such property so as to try and understand the reasons why
properties remain unoccupied. The reasons for long-term empty properties
are many and varied and may be due to the long-term care arrangements of
an elderly owner, properties being the subject of probate or family dispute, or
allowed to remain empty for tax or capital gains reasons. In this respect there
are some sensitivities around the Council seeking to intervene in such
matters, although in the majority of cases it is believed that some prompting
of property owners is required if any positive action / outcome is to be
achieved in seeing properties being brought back into use – either through
significant investment / refurbishment by owners or through the owners being
prepared to sell the property.
3.2
However, whilst the Council has historically operated both a carrot and stick
approach to the issue of empty homes, there are a number of long-term
empty properties where, despite the efforts of the Council over a prolonged
period, no action has been taken by the owner to either bring the property
back into use or in them being prepared to sell the property.
3.3
Against this background, and such properties being the subject of regular
complaints from neighbours and town / parish councils, it is suggested that
the authority should be prepared, in a small number of cases, to take more
direct action to force the sale of a property or to acquire a property through
use of Compulsory Purchase powers with the objective of selling the property
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31 October 2011
into the local housing market through the sale of the property through an
agent or auction.
3.4
The Council has not previously used Compulsory Purchase powers and
therefore authority is sought to use £200,000 of the uncommitted 2011/12
Housing Renewal budget to pilot an approach on one or two properties to
establish whether more frequent use of such powers in the future could
achieve better outcomes in terms of reducing the number of long-term empty
properties in the district in the future.
3.5
An exempt appendix attached to this report details three long-term empty
properties in the district which have been the subject of ongoing complaints
from neighbours where this approach could be piloted over the next few
months with the objective of developing a strategy to address this issue in the
future.
4.
Financial Implications and Risks
4.1
It is proposed that £200,000 of the Housing Renewal Grant capital budget for
2011/12 be used to support a pilot project to acquire one or more long-term
empty properties in the district through the use of Compulsory Purchase
powers with the objective of selling these homes into the local housing
market.
4.2
It would be proposed that the £200,000 would be “recycled” over time in that
it would be anticipated that a large proportion of the expenditure incurred in
purchasing properties through a Compulsory Purchase Order would be
recovered when the property was subsequently sold on. The pilot would seek
to establish what other costs might be incurred by the authority in exercising
such powers – eg legal costs, any basic loss or compensation payment to be
paid to the property owner, costs incurred in tidying up the outside of
properties – eg clearing gardens, sheds etc prior to sale, auction costs,
Stamp Duty etc. Other than a general tidying of gardens in advance of sale,
as much to improve the level of amenity for neighbours and to provide safe
access for prospective purchasers, it would not generally be proposed that
the Council incurred any costs in improving the properties in advance of sale
ie they would be sold as seen for improvement. However, this matter can
also be considered further in the context of the pilot approach proposed.
4.3
The pilot would allow an understanding of such costs to be developed and
assessed against the New Homes Bonus payments which would accrue to
the authority through bringing such properties back into use.
4.4
The delivery of a limited pilot involving no more than two or three properties
would allow the Council to properly identify any risks associated with such an
approach before developing any long term strategy in the future. In this
respect it is suggested that the risks to the authority are minimal and can be
reasonably contained.
5.
Sustainability
5.1
A proposal which involves bringing long-term empty homes back into use is
highly sustainable. Securing the occupation of such properties – for
permanent residential, second home or holiday use will bring benefits to local
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31 October 2011
communities and the use of the properties will also bring additional revenue
into the District through Council Tax receipts and New Homes Bonus
payments. Bringing long-term empty properties back into use, even in small
numbers, may also limit demand for new build properties in some
communities.
6.
Equality and Diversity
6.1
The report does not directly raise any equality and diversity issues, but in
some circumstances may increase the availability of homes / properties for
local people.
7.
Section 17 Crime and Disorder considerations
7.1
Bringing long-term empty properties back into occupation will reduce issues
of blight, anti-social behaviour and an improved local environment,
addressing the concerns of local communities affected by such properties.