May
2007
THE EMPTY HOMES AGENCY
Monthly News Bulletin
Empty Homes Agency, 195 – 197 Victoria Street, London, SW1E 5NE Tel: 020 7828 6288 Email:
[email protected] Statements in this newsletter are for guidance only and the Empty Homes Agency will not accept liability for losses resulting from reliance on them. Professional advice should always be obtained.
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A Word…. Joined-up Empty Homes Strategy Lies, damn lies & BVPI 64 Moving on… EPP Conference and AGM
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A Word…
David Ireland, Chief Executive
Dear all, In January I wrote about the new phenomenon of leaving new-build city-centre flats empty. It has been coined “buy to sit”, “buy to leave” or my favourite “buy to let rot” Back in January I said that I would await more evidence before I was convinced it was more than a local problem. Well four months on I’m convinced. Reports have suggested 30% vacancy in Salford Quays. Some great work by Leeds city council confirmed that 18% of new flats in Leeds had been empty for more than a year. And now reports that vacancy rates of new flats in Liverpool are running at 35% The government has also acknowledged the problem. In last weeks Communities and Local Government Committee Housing Minister Yvette Cooper was moved to say I’m worried about 'buy to leave' as properties were bought and not let as owners were merely concerned with making a profit on increases in house prices. There was no evidence of new built homes were being left vacant, 30 per cent of flats in Leeds City centre were vacant in contrast to a vacancy rate of 4.3 per cent for the city." She has reason to be worried. These flats should be contributing to housing supply not sitting empty. Resolving this problem is going to be an important one for many of us, and will present some new challenges. I’m not persuaded by the “let’s CPO‘em” approach advocated by some in the last few weeks. Unlike most other empty homes we have faced before, these are in good condition, generally well managed and not creating a nuisance to anybody. Arguably the owners are keeping them empty to preserve their condition and protect the value of their investment. Forcibly bringing them into the social housing sector would, I would imagine, create as many problems as it would resolve. Keeping properties empty may indeed preserve their condition, but it’s not much of a long-term business model. Councils and housing associations and managing agents all have a role to play in offering management and lettings services, and finding tenants. Getting empty homes back into use is as much about promoting occupation as it is about disincentivising non-occupation. Thank you all for your support for our campaign to save BVPI64. I never knew that local government performance indicator could raise such passions. We have a had a huge mailbag of responses many from worried empty property officers who feel that
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without a national performance indicator measuring what they do local interest in their work will dry up. I hope to have some news for you on this in the next bulletin, but with the Local Government White Paper advocating reducing the total number of national indicators to 200 from an estimated 1200 at the moment the long term future of national performance indicators is very much under review. On the subject of data two local authorities have provided some very useful advice on using council tax data. Nigel Ward of Epping Forest outlines how to obtain the most accurate assessment of the numbers of empty homes from the council and Martyn Clemence explains how Windsor and Maidenhead share information on empty to homes to good effect. Finally if you haven’t already heard NAEPP are running the second national conference later this month. You can see details later on in this bulletin. This is great news for all empty property practitioners and if you haven’t already booked a place it’s not too late to do so.
David Ireland Chief Executive Empty Homes Agency Tel: 020 7963 6883 Email:
[email protected]
Joined-up Empty Homes Strategy
Most of us rely on raw data from council tax as a starting point for identifying empty homes. We also use them as a resource for obtaining, or verifying, information in order to locate the owners of these properties. Do we do enough to reciprocate? A couple of years ago, in Windsor and Maidenhead, we noticed that the owners of empty properties frequently had council tax arrears; often quite substantial. I approached our Revenues and Benefits Team with the suggestion that details of any arrears should be included with the empty homes data they routinely supply to us. They liked the idea in principle but were of the opinion it would breach the Data Protection Act 1998.
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A thorough search of relevant legislation revealed section 237 of the Housing Act 2004, which is reproduced below: 237 (1) Use of information obtained for certain other statutory purposes A local housing authority may use any information to which this section applies-
(a) for any purpose connected with the exercise of any of the authority’s functions under any of Parts 1 to 4 in relation to any premises, or (b) for the purpose of investigating whether any offence has been committed under any of those parts in relation to any premises. (2) This section applies to any information which has been obtained by the authority in the exercise of functions under(a) section 134 of the Social Security Administration Act 1992 (c. 5) (housing benefit), or (b) Part 1 of the Local Government Finance Act 1992 (c. 14) (council tax).
It is significant that we may use any information obtained by the local authority in connection with their administration of council tax for the purposes stated in subsections (1)(a) and (1)(b). Part 4 of the Act, referred to in (1)(a), deals with Interim and Final Empty Dwelling Management Orders. The main legislation permitting us to use council tax data to identify empty homes, or assist in bringing them back into use, arises from section 85 of the Local Government Act 2003, which amended the Local Government Finance Act 1992. The information we can use, however, is restricted to an individual’s name, address, or telephone number. Section 237 of the Housing Act 2004 can be used to justify the release of additional information, but only if it is in connection with the use of EDMOs. Even though we always endeavour to resolve empty properties on an amicable basis, we consider which enforcement powers would be most appropriate at a very early stage. In this respect, EDMOs are regarded by us as the preferred choice. Since we adopted a policy of using council tax arrears as one of the criteria for prioritising empty homes cases, we have been instrumental in recovering a steady stream of money. Last month, for instance, it amounted to a little over £14,500. Obviously this has served to cement a good relationship with our council tax officers, but it has also convinced many other people within the Council of the benefits of a robust empty homes policy and inter-departmental cooperation. As a footnote, we, in common with most local authorities, have never actually made an EDMO. In every instance so far, a letter from the Borough Secretary stating that we will be making an EDMO has achieved a degree of compliance.
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Martyn Clemence Royal Borough of Windsor & Maidenhead
[email protected] 01628 683596
Lies, damn lies & BVPI 64
Do you suffer from that end of financial year feeling? Do you feel listless? Do your eyes glaze over at the thought of preparing BVPI 64 figures? Then, take my miracle cure - refer to the table at the end of this article - but first of all read the text below……. The statistical evidence for BVPI 64 "total number of empty properties within a local authority area" is known to be weak. We know it doesn't take into account: Vacant (brownfield - i.e. previously built on) land having the potential for new housing development. Vacant commercial buildings that have the potential for either conversion or demolition and rebuild as houses or flats (and where business rates are currently being paid). Spaces over shops - those having the potential for self-containment for use as flats (sometimes, it may be necessary to convert loft spaces or extend the space over the shop by extending it, in order to reach the space criteria needed to get planning permission for such use) (and where business rates are currently being paid). There's also the many empty home owners who choose to pay full Council Tax in the (misguided?) belief that Empty Property Teams will not be pro-actively surveying their area to identify empty homes - but will simply rely on lists of empty properties from
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their Council Tax Section. This is all the moreso since the Empty Homes Agency's success in getting the government to change their policy on Council Tax and add a new Section 11A to the Local Government Finance Act 1992 - permitting Council's to charge full Council Tax on empty properties when they have been empty more than 6 months. But, are you aware of all the Council Tax Exemptions and Discounts covering empty homes? If you are not, are you sure you are asking for all the relevant information in order to give a comprehensive response to the BVPI figure? The table below gives what is hopefully a 'comprehensive and easily digestible' summary of the various exemptions and discounts. In some instances, it is easy to see whether the case fits into the 'less than 6 months vacant' or the 'more than 6 months vacant' - whilst in others, you may have percentages in the 'less than 6 months vacant' column or the 'more than 6 months vacant' column. This may vary, depending on the type of local authority you are - rural, urban or in between. The purpose of producing this table is so that Empty Property Officer's can seek information on each category from their Council Tax Department - thereby making the comparison between local authority areas more consistent. Council Tax information Council Tax information is categorised under different headings. These are some of the categories relevant to vacant properties: Exempt Dwellings Some dwellings are exempt from Council Tax, including properties occupied only by students or properties that are vacant. The following details show the appropriate classes for exempt properties. Unoccupied Dwellings Class A: (Newham’s system identifies as 01) Structural alteration or major repair works or dwellings recently erected - exempt for 12 months or up to six months after the refurb work has been completed. Class B: (Newham’s system identifies as 03) Owned by a charitable body and empty less than six months. Class C: (Newham’s system identifies as 04) Unfurnished and empty less than six months. Class D: (Newham’s system identifies as 05) Left empty by someone who has gone into prison. Class E: (Newham’s system identifies as 06) Was previously the sole or main residence of a hospital patient or patient in a home.
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Class F: (Newham’s system identifies as 07 [08 if vacant less than 6 months]) Awaiting probate or letters of administration to be granted - will also be exempt for up to six months after letters granted while dwelling remains empty. Class G: (Newham’s system identifies as 09) Occupation is forbidden by law. Class H: (Newham’s system identifies as 10) Waiting to be occupied by a minister of religion. Class I: (Newham’s system identifies as 11) Previously the residence of a person who is receiving care somewhere other than a hospital, residential care home, nursing home, mental nursing home or hostel. Class J: (Newham’s system identifies as 12) Left empty to provide care to another person. Class K: (Newham’s system identifies as 13) Left empty to student(s) who are resident elsewhere Class L: (Newham’s system identifies as 14) An unoccupied dwelling where a mortgage is in possession under the mortgage. Class Q: (Newham’s system identifies as ?) Which is the responsibility of the bankrupt’s trustee. Class R: (Newham’s system identifies as ?) A dwelling consisting of a pitch or a mooring which is not occupied by a caravan, or as the case may be, a boat. Class T: (Newham’s system identifies as ?) Unoccupied annex to an occupied dwelling.
Nigel Ward (formerly at L B Newham dealing with Empty properties)) Environmental Health Officer Epping Forest District Council Civic Offices High Street Epping Essex CM16 4BZ (
[email protected])
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Moving on…
The lack of move-on accommodation for the temporarily housed homeless in particular hostel or other homeless service residents, is much discussed and recognised as a national problem. It is estimated that that 45% of hostel bedspaces in England and Wales are occupied by people waiting to move on. As part of it’s remit to increase social housing provision as well as bring empty homes back into use the Empty Homes Agency (EHA) is working with a variety of housing projects, including: Local Authorities, partner housing associations and homeless organisations, some of which provide ‘move-on’ accommodation for homeless people living in temporary accommodation, once they are ready to live more independently. This type of move-on accommodation usually consists of flats and houses, and levels of support offered to residents tends to be lower than for example in temporary hostels. The EHA through it’s empty homes Hotline is able to provide schemes with contact details of owners of ready to let property interested in renting on the social housing market.
How local areas organise access to social housing (including housing associations) is up to them, within a national structure defined by the Communities and Local Government (CLG). While some homeless organistions have a number of local authority and housing association nominations for residents moving on, most hostel residents for example will not be classed as priority cases by local authorities. Access to the private rented sector is therefore increasingly moving up the agenda as a moveon option as access to traditional social housing declines. Fortunately many hostels and housing projects housing the homeless have staff who provide resettlement advice and assistance with finding accommodation to move on to. Local authorities and other providers have also increasingly started to improve the move-on situation through their Homelessness and Supporting people strategies. Homeless charity Crisis recently announced a new on-line resource that lists all the rent deposit schemes in the UK. http://www.crisis.org.uk/nrdf/index.php Central government has already pledged to invest £90 m under it’s Hostels Capital Improvement Programme by March 2008. The key outcome of this investment will be to increase the number of people who move on positively from London hostels for example to a job or training and settled home. CLG will be drawing on the findings of the anticipated recommendations of the Move On Plans Protocol (MOPP) programme, a project of Homelesslink , which has adopted a strategic national focus on the issues surrounding
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move-on at the local level and how to http://www.homeless.org.uk/policyandinfo/issues/rehousing/mopp address them. Clearly these developments reflect how since it first addressed the homelessness issue government attention has shifted towards the prevention agenda, taking an holistic approach and finding what works. Desmond Kilroy London Hotline Manager The Empty Homes Agency Tel: 020 7963 6886 Email:
[email protected]
NAEPP CONFERENCE AND AGM
MAY 10TH, 2007, BIRMINGHAM
If you’re an empty homes practitioner, the McDonald Burlington Hotel in Birmingham on Thursday, May 10th is defiinitely the place to be, for the National Association of Empty Property Practitioners Conference and AGM. An undoubted hightlight of the day will be the Keynote Address by David Ireland entitled
Where next for empty homes work? NAEPP practitioners are currently submitting their own questions to David.
EDMOs will be big on the day, with a presentation from the team from South Oxfordshire that managed to establish the first interim EDMO in the entire universe (as far as we know). Then there’s an afternoon workshop based on case studies to get you answering the question “to EDMO or not to EDMO?”. As well as the Conference there will be a short AGM (for those who wish to go) and a new Camelot Empty Property Practitioner of the Year Award will be presented. (To make nominations – send an email to
[email protected]).
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The list of workshops in full (you can go to 3 out of the 6) is as follows: Workshop 1 – BVPI64: Led by Graham Everett (Watford BC) Workshop 2 – Cross Boundary Empty Homes Initiatives Led by Susan Pledger (Kent CC) and Suzannah Goodson (SE Devon Empty Homes Initiative) Workshop 3 – EDMO Training Facilitator Sue Haigh (Exeter City Council) Workshop 4 – The Camelot “Guardian Service” Presentation by John Mills, MD of Camelot Property Management Services Workshop 5 – Alternatives to Leasing Josie Wainwright (Extralet) Workshop 6 – Empty Homes Agency ‘DIY on CPOs and PRODs Presented by John Earnshaw, Empty Homes Agency Ticket prices start from a very NAEPP Corporate members group For full details of the Conference Papers where you can download Wetherell, on 01392 265865. The Conference is being sponsored has established itsr innovative temporary but effective solution to properties. reasonable £115 per person for booking. visit NAEPP Conference and AGM the booking form. Or phone Kelly by Camelot Property Group which Property Guardian Scheme as one the problems posed by empty
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National Association Of Empty Property Practitioners Annual AGM and Conference, 10th May 2007 Thursday 10th May 2007 at the McDonald Burlington Hotel in Birmingham. (All empty property practioners welcome, not just those that are members of Naepp). For more information please contact
[email protected] or speak to Kelly Wetherell on 01392 265865
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London Week Of Action on empty homes, 9 - 13 July 2007 For more details about the events of London Week or for details of previous events please click here
* * * * * * * * * * * * * For more info please look at our website: http://www.emptyhomes.com/aboutus/events.html
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