Torfaen s Empty Property Strategy & Procedure

Transcription

1 Torfaen s Empty Property Strategy & Procedure Strategy The Benefits of adopting the Strategy The Position in Torfaen Incentives and Support Enforcement Options Targets Objectives Identifying and monitoring Working in Partnership Action Plan Procedures Schedule of Enforcement Powers Schedule of Recoverable Land Charges Summary Enforced Sale Procedure Summary EDMO Procedure Summary Compulsory Purchase Order Procedure

2 Forward At a time of recession with a lack of affordable housing and the demands of housing need and increasing homelessness, properties lying empty represent an unjustified wasted and depreciating asset. Empty properties can deprive people of a much needed home; are a blight on our local communities; prevent investment and regeneration; devalue surrounding properties and attract anti-social behaviour. Torfaen s Empty Property Strategy outlines the extent of the problem of empty properties within the County Borough against the national picture, and building upon previous activity, provides a strategic blueprint for action to deal with empty property in Torfaen. It is recognised that the Strategy must be set within a wider regeneration framework and that it is not a panacea to meet all housing need in Torfaen. However, the Council working in partnership with local homeowners, housing associations, private landlords and other interested parties can relieve the housing burden by releasing the potential of some 400 known empty properties in Torfaen. The Council is committed to offering support and advice to owners of empty property and to work with them to find solutions. However, where owners are not willing to cooperate to find solutions then we will use the powers available to us to bring problem empty properties back into use. This is Torfaen s Empty Property Strategy and I hope you will work with us to make it a success. Councillor Gwyneria R Clark Executive Member of Housing, Planning and Public Safety 2

3 Contents The Benefits of adopting the Strategy The Position in Torfaen Objectives Identifying and monitoring Empty Properties Incentives & Support Working in Partnership Enforcement Options Action Plan Targets Appendices: Appendix 1 Schedule of Enforcement Powers Appendix 2 Schedule of Recoverable Land Charges Appendix 3 - Summary Enforced Sale Procedure Appendix 4 Summary EDMO Procedure Appendix 5 Summary CPO Procedure 3

4 The Benefits of adopting the Strategy There are a number of general benefits that should accrue from adopting the Strategy when linked to the wider regeneration agenda: An increased supply of good quality affordable housing. Older buildings brought up to modern standards thus improving the quality of the housing stock. Retaining property that is of architectural and community value. Reducing crime and disorder and the fear of crime through improvements to buildings and their impact on the environment. A positive impact upon house prices within the area. A more sustainable housing market within these areas. Enhancing the vitality of town centres by bringing town centre homes back into use such as accommodation over shops. Contributing to strong, balanced housing markets and community sustainability. It will help to stop the spread of decline to neighbouring housing stock and neighbourhoods. Property owners benefit from a rental income and an improved sales potential, rather than allowing the property to become a wasted asset and be prone to vandalism, arson or squatting. As there is a 50% discount on council tax for owners of empty property in line with legislation, then by bringing these properties back into use it will increase revenue, which could be reinvested in local services. Reduces the costs of intervention for the Council and to other public services such as the Police. A successful Empty Property Strategy compliments Torfaen s Local Housing; Community Safety; Private Sector Housing Renewal; Homelessness; Sustainability and Regeneration Strategies and the National Assembly for Wales Housing Strategy: Better Homes for People in Wales. 4

5 The Position in Torfaen For the purposes of this Strategy an empty property is a property that has been vacant for 6 months or more and which includes:- Domestic dwellings which are unoccupied Non-residential and commercial premises which are unoccupied It does not include dwellings and buildings which are owned by the Council or Registered Social Landlords. Key facts and figures about housing in Torfaen Population 90,300 Number of households 37,600 Number and type of dwellings 39,835 Private rent 6.0% Social rent 27.0% Owned with a mortgage 37.0% Owned outright 29.9% Number of empty dwellings 391 Applicants on housing register/in need Total 309 Gold Band Gold Band Silver 2390 Bronze 164 LCHO Accepted as homeless and in priority need 190 (July 08-June 09) Average price paid for all properties 126,751 Estimated average income 24,300 Sources: Census 2001 WAG Housing statistics 2005 BBC News Website, data on property prices, April 2009 Newport, Torfaen and Monmouthshire Local Housing Market Assessment, May 2007 Annual survey hours and earnings (ASHE)

6 The cost of keeping a home empty The cost of keeping a home empty is nearing 6,000 per year: loss of rent 4,000 dilapidation costs 500 management 300 security 250 insurance 360 Council Tax (50%) 270 Total loss per annum 5,680 Empty property in Wales Information from the 2001 Census returns show that in April 2001 the total number of household spaces or vacant dwellings in all tenures in Wales was around 51,000. This represented approximately 4.24% of the total number of homes in Wales. The national picture was at around 3.29% of the stock. Estimates also suggested that there were around 10,000 properties that were both unoccupied and dilapidated in Wales at this time, which had been vacant for more than 12 months. Empty property in Torfaen An analysis of Torfaen Council Tax data indicates that on 1 April 2009 the County Borough consisted of:- 39,835 domestic dwellings 616 private sector empty dwellings, 391of which had been empty for 6 months or more 2,500 non-domestic properties 359 empty non-domestic properties, 283 of which have been vacant for more than 6 months Information from the District Valuer s Office indicates that there are an additional 853 properties which have been removed from the Council Tax register having been taken out of use. In all likelihood the majority of these properties will have been demolished. There is no evidence of widespread dereliction in Torfaen, but the re-use of a small number of empty properties could make a significant difference to meeting housing need. 6

7 Housing need in Torfaen An important element of housing requirements is housing need households lacking their own housing or living in housing which is inadequate or unsuitable, who are unlikely to be able to meet their needs in the housing market without some form of assistance (Bramley & Pawson, 2000). Torfaen Borough Council in partnership with Monmouthshire County Council and Newport City Council Commissioned ORS to undertake a housing market assessment in The study provides a comprehensive overview of current and future housing requirements and housing need. The Joint Local Housing Market Assessment calculated the following 5-Year housing requirements by housing type for Torfaen: - Housing Type Net Housing Affordable Requirement Market Intermediate Social Torfaen 2,278 1, % 100.0% 63.4% 10.7% 25.9% This Provides evidence that we need to create suitable opportunities to meet the housing requirements of 832 households who are not in a position to satisfy their housing need in the open housing market, over the next 5 yr period this equates to approx 166 affordable dwellings per year. The calculation doesn t take into account un-met need in previous years so we have to ensure that additional units are delivered to meet the back log of need. Meeting the housing requirements of the local authority can be achieved through a number of ways, for example through seeking affordable dwellings on all new build developments, working with partners to develop affordable homes or through bringing empty properties back into use, thus enabling them to become active properties within their markets. 7

8 Objectives To reduce the number of long-term empty properties (i.e. void more than 6 months) that are having a detrimental effect upon the communities in which they are situated. To continue to identify the true situation with regard to the number, distribution and ownership of vacant property throughout the Borough, and to establish if any trends exist as to the reasons for these voids. To set out the strategic direction for the Empty Property Strategy and empty property work Borough-wide. To set out the roles and responsibilities of a range of departments, organisations and agencies involved in the implementation of the strategy and empty property work. To set out an action plan with targets to deliver the strategy up to To establish changes in the nature and extent of vacant dwellings throughout the Borough as an on going process. To devise and identify best practice and best value strategies that are designed to bring empty property back into use and to seek to incorporate these strategies into Torfaen s Housing Renewal Strategy. To maximise the re-use of empty homes and thereby contribute to minimising the need for future development of Greenfield sites and protection of the environment. To improve the existing built environment. To support area renewal programmes. To assist in the provision of good quality, affordable housing. To ensure that the housing stock meets the range of needs that the residents of Torfaen require, whilst providing a choice of accommodation and neighbourhood. To raise awareness of the issues surrounding empty homes.

9 Identifying and monitoring Empty Properties Using the council tax database A reporting and recording procedure has already been set up where a list of empty private sector properties is forwarded to the Public Health Team on a monthly basis. Co-ordinating activities in respect of empty properties The Public Health Team within the Department for the Environment, currently co-ordinates activity relating to empty properties (except council owned properties both domestic and commercial). Empty properties register Currently, an Empty Property Register is being set up and consists of a list of known problem empty properties in Torfaen. Properties brought to the attention of the Public Health Team are risk assessed and added to the Register. Any property found to be insecure or creating a nuisance will become the subject of enforcement action to secure a remedy. GIS mapping system The empty domestic properties held on the Register have been linked to the GIS Mapping System. This system enables properties to be plotted against an Ordnance Survey Map of the Wards of Torfaen. This provides a visual indication of the location and category of all the empty properties in Torfaen. A Planning/GIS technician was appointed in August 2005 who is responsible for mapping empty non-domestic properties as well as domestic properties on the GIS system as part of the Local Development Plan. The information will be updated on a monthly basis. Further development and analysis of the Empty Properties Register through GIS mapping will provide invaluable advice for the development of future action initiatives. Advice sought from others There are many sources of advice and information regarding empty properties service. In order to effectively advise owners of the options available to them, the Council must be aware of the services provided by external agencies, such as the Association of Letting and Managing Agents (ALMA). Liaison with such agencies can provide Officers with the confidence to advise owners of the schemes and options available. The exchange of best practice initiatives with other Local Authorities is another source of information that has already proved beneficial in relation to empty properties, in particular for the development of enforcement procedures. Information and advice regarding empty properties is also readily available from advice and research centres including the Empty Homes Agency and the Joseph Rowntree Foundation. 9

10 Incentives and Support There are a variety of housing grants available in Torfaen, subject to funding. These include Torfaen Renovation Grants, Disabled Facilities Grants and grants which are available only within declared Renewal Areas. Torfaen Renovation Grants Owners of properties over 20 years old and which are in serious disrepair may be able to get a Renovation Grant to help meet all or part of the costs of the work. They are discretionary grants which are available to property owners, subject to there being sufficient funding available to the Council. The grants are means tested and subject to a priority assessment system. Generally, owners will need to have lived in and owned their property for at least three years before they become eligible for assistance, however, there are some exceptions to this requirement, e.g. first time purchasers and properties located within Renewal Areas. The maximum grant limit is 20,000 and applicants are required to live in their properties for a minimum of five years after the completion of grant-aided work. Grants funded by the Welsh Assembly Government for whom the Local Authority Act as managing agents. Group Repair Grants A Group Repair Grant is a form of financial aid available to property owners within a declared Renewal Area. They can be used to carry out repairs to the fabric of privatelyowned houses. Each Renewal Area operates a ten-year rolling programme during which property owners will be invited to participate in the Group Repair scheme on a street-by-street basis. Group Repair Grants are only available to those who are invited to participate by the Council and not to everyone living in the area. The most anyone will have to pay is 25% of the costs. Renewal Area Enveloping Schemes A Renewal Area is one identified as having poor housing conditions, coupled with social, economic and environmental needs. The aim of declaring a Renewal Area is to halt the decline of an area and to increase public confidence by improving housing conditions, renovating properties and creating attractive places in which to live. Renewal Areas comprise mostly private properties which are in poor condition and Enveloping Schemes provide real scope to improve the housing and general amenities of the area. 10

11 Disabled Facilities Grants This is a means-tested local government grant to help towards the cost of adapting homes to enable people to continue to live there. A DFG is paid when the Council considers that changes are necessary to meet the needs of the occupants and that the work is reasonable and practical. 11

12 Working in Partnership In order to achieve the objectives of the Strategy we have and will continue to work closely with our partners to ensure co-ordinated service delivery and an end use for each problem empty property. Housing Renewal Team Working with other teams within the Local Authority is vital to ensure that a joined up coordinated approach is used to tackle problem empty property. Resources and efforts are being combined to ensure that properties are targeted within the wider regeneration schemes for the County Borough. Legal Services Legal Services are responsible for pursuing legal action and charges against properties and assisting the Public Health Team in preparing cases for enforcement action. In order to ensure a quick legal process whenever possible we will send monthly updates to Legal Services to advise them of the likely need for their resources so that officers time can be planned more effectively. Council Tax The Council currently receives invaluable support from inter-departmental working between the Public Health Team and Council Tax. The Team currently receives monthly electronic reports from Council Tax listing the addresses of empty properties (6 months plus), the name of the owner and the date the property became vacant. Details of the billing address are also now being requested. In return the Team notify Council Tax of any properties found occupied on visits, and of properties brought back into use. Owners of empty property All owners have a responsibility to ensure that their property does not affect that of their neighbours or of the wider community. Empty properties can cause nuisance and devalue neighbouring property. We will work therefore with owners wherever possible to ensure that empty properties are not causing a nuisance to neighbours and are safe and secure as possible. We will take formal action where owners will not work with us, to achieve these aims. Community Safety Partnership The CPS has a responsibility for ensuring that empty properties do not contribute to antisocial behaviour. They have the power to board up a property if it is being used for illegal purposes or if it represents a danger to the public, for example, an arson threat. The CPS can also co-ordinate action against owners of properties that refuse to make them less commodious to vandalism, crime or anti-social behaviour. 12

13 Registered Social Landlords Housing Associations are key partners in bringing empty properties back into use and the Welsh Assembly Government and the Empty Homes Agency recognise and endorse this partnership working. The Clarence Hotel is a prime example of an empty property being brought back into modern day use from partnership work between the Council and a Housing Association. The multi-million pound redevelopment of the Clarence Hotel by Eastern Valley Housing Association, in partnership with Torfaen CBC, comprises 13 units of rented flats alongside extensive conference and office facilities. As a result, the Hotel is not just a place in which people can live, but also one in which people can work and meet. The redeveloped building has thus regained its status as an important community facility, a true mixed-use scheme. Private sector landlord forum Torfaen Council has been working closely with the National Landlords Association in Wales and its neighbouring authority in Monmouthshire to combine efforts and create a Landlord Forum to co-ordinate work with private sector landlords. This would look at Houses in Multiple Occupation licensing schemes and private sector leasing schemes, amongst other key issues. If this were to be realised, a presentation would be given to this group as individuals on this group may own some of the empty properties around the Borough. Furthermore, by developing partnerships with this group could also present a solution for bringing empty homes back into use. 13

14 Enforcement Options Nuisance arising from premises Under the Environmental Protection Act 1990 abatement notices can be served in respect of statutory nuisances caused by a property s structure or the condition of the land associated with it. Notices must be served on the owner of the property and can require certain works to be undertaken within a specified timescale. Failure to comply with the requirements of the notices, subject to appeal, will allow the Council to pursue the matter summarily in the Magistrates Court and/or carry out works in default to abate the nuisance. This power rests with Environmental Health Officers. Rats, mice harbouring on land Section 4 of the Prevention of Damage by Pests Act 1949 enables the Council to serve notices on the owner or occupier of the land to ensure the premises are free from rodents. The notice can specify treatments to control pests and structural repairs to be carried out to secure the property against rodent ingress. If the notice is not complied with, the Council may carry out the work in default and recover any expenses by placing a charge on the property. This power rests with Environmental Health Officers. Dangerous, unsecure or dilapidated property Several sections of the Building Act 1984 can be used to secure premises against unauthorised entry and are appropriate for use in the case of empty properties. Section 76 provides a shorter procedure for premises which are in such a state as to be prejudicial to health or a nuisance and where the use of notices under section 80 of the Environmental Protection Act 1990 would cause undue delay. Notices served under this section of the Building Act state that the Council intend to carry out specified work to remedy the situation. Seven days are provided for the owner to make an appeal and within nine days of serving the notice, the Council can commence work in default and recover reasonable costs from the owner. If an empty property is in such a condition as to be considered dangerous then notices can be served under section 77 or 78 of the Building Act Section 78 is only used in emergency situations and it is recommended that the Council seek to notify the owner of their intended action prior to undertaking the emergency measures. Notices served under section 77 require the owner of the property to carry out any work necessary to obviate the danger or to demolish the structure. Any expenses incurred by the Council can be recovered from the owner of the premises via the Magistrates Court. For ruinous and dilapidated buildings, notices can be served under section 79 of the Building Act 1985 where conditions are seriously detrimental to the amenities of the neighbourhood. These powers rest with the Environmental Health Officer. 14

15 Section 29 of the Local Government (Miscellaneous Provisions) Act 1982 enables the Council to undertake works on an unoccupied property to secure it against unauthorised entry. Normally a period of 48 hours notice of the Council s intention to carry out works would be given to the owner. If the owner is absent or the works are needed urgently, the notice period can be waived. Reasonable costs incurred by the Council may be recovered from the owner of the property via the County Court. These powers rest with the Environmental Health Officer. Unsightly property If it appears to the local planning authority that the amenity of a part of their area, or of an adjoining area, is adversely affected by the condition of land in their area, they may serve on the owner and occupier of the land a notice under section 215 of the Town & Country Planning Act 1990.Although this option does not culminate in a final use for the property, it is a tool that will be considered as an interim measure to make the situation more tolerable for neighbouring property owners. This power rests with Planners and Environmental Health Officers. Property requiring demolition Demolition Orders remain available to Local Authorities under Part 9 of the Housing Act 1985 as amended. They are a possible response to a category 1 hazard where this is the appropriate course of action. The location of adjacent buildings is a key factor in determining the viability of this option and the process involves undertaking a neighbourhood renewal assessment. Property being used for substance misuse The Council can take action under the 2002 Police Reform Act if an empty property is being used for substance misuse. Derelict or abandoned empty property COMPULSORY PURCHASE Section 17 of the Housing Act 1985 empowers local housing authorities to compulsorily purchase a house, or houses, for the provision of housing accommodation (whether by the local housing authority or someone else) and this power can be used to acquire empty houses. In practice the power involves the use of procedures set out in the Acquisition of Land Act Section 54 of the Housing Act 1985 provides a specific power of entry for the purpose of survey and examination and section 15 of the Local Government (Miscellaneous Provisions) Act 1976 provides a similar power. These powers rest with the Director of Service and are subject to confirmation by the National Assembly for Wales. For summary procedure see Appendix 5. ENFORCED SALE Where there is a financial charge registered in Part 2 of the Register of Local Land Charges a Local Authority is empowered to enforce that Charge and has all the powers and remedies available to a mortgagee under the Law of Property Act The Council 15

16 can enforce the sale of an empty property, where it has secured a debt in excess of 500 against the property. The Council s Housing, Planning, Community Safety, Overview and Scrutiny Committee decided on 30 th April 2009 upon a trigger for the consideration of enforced sale if visits occurred over the year and or works in default had been carried out in excess of 3,000. The debt is normally the result of enforcement action to remove nuisances associated with empty properties (see above) but information regarding all debts owed to the Council is considered. The property can be sold at auction or tenders invited by a deadline date. For summary procedure see Appendix 3. EMPTY DWELLING MANAGEMENT ORDERS The Housing Act 2004 provides for Local Authorities to take over and manage an unoccupied dwelling from the owner, where the owner has turned down offers to bring the property back into use and can offer no good reason why the property should remain empty. These orders enable the Council to gradually increase the pressure on the owner without taking a heavy-handed approach from the outset. In many cases they Councils have not had to apply for the full order, since owners have tended to take their own action once aware of the implications. If the Council has to use the full EDMO powers, it can lease the home to meet housing need without the owner s permission. For summary procedure see Appendix 4. The Housing Health and Safety Rating System The Housing Act 2004 introduced a new risk based system to assess the suitability of housing called the Housing Health and Safety Rating System (HHSRS). This replaced the old fitness standard which had been the method of assessing housing for approximately 80 years although this was subject to some amendment over that time. HHSRS is based upon risk assessment against 29 defined hazards that may be found in a property. Housing practitioners are required to assess the likelihood of a hazard causing harm over a 12 month period and the health outcomes, should such an incident take place. Regard must be taken as to whether there are any vulnerable groups that may be affected by a hazard but, the methodology allows for a property to be rated whether it is occupied or not. The assessment leads to a score for a particular hazard and the score is then put into a series of bands ranging from A-J. Bands A-C are termed Category 1 hazards whilst bands D-J are termed Category 2 hazards. A Local Authority is under a duty to deal with any Category 1 hazard whilst it also has a power to deal with Category 2 hazards. Whilst predominantly applicable to occupied houses to protect the health and safety of residents the HHSRS allows vacant properties to be assessed as to their impact upon health and safety and places a duty on Local Authorities to take action where Category 1 hazards exist. 16

17 Action Plan Establish a corporate commitment to reducing empty homes in the County Borough of Torfaen. Ensure information held on Empty Properties and housing need is accurate. Write to all owners of empty properties in the Borough explaining the Council has a policy in dealing with empty properties and opening discussions with owners on their options. Promote and provide a range of information to owners of and those affected by empty homes. This may include information on lettings and estate agents and advice on the various financial packages available on the market, such as equity release schemes and low interest secured loan packages. Also guidance can be provided on renting out a property, the requirements of planning and building regulations, the auction process, VAT incentives and helping to find a reliable building contractor. Establish an Empty Homes Partnership with Registered Social Landlords as the key way of bringing empty properties back into use, following Empty Homes Agency advice and best practice. Allocate a dedicated post to Empty Properties or give team or individual responsibility for implementing the Strategy. Use enforcement powers to secure, make safe or demolish long term dilapidated empties. Develop innovative housing renewal policies through grant aid and low cost loans and targeting Social Housing Grant. Work with partners to assist empty property schemes and build on existing relationships with Torfaen Strategic Housing Forum and other organisations. Compile an Empty Properties Catalogue detailing empty properties in the Borough. The aim of which is to inform those persons who have declared an interest in purchasing and developing properties within the Borough. If a person or organisation expresses an interest in the purchase of a property within the catalogue, the Council on their request can forward these details onto the owner. This poses the owner with another option, to sell the property privately. Consult with head of finance to consider changes to existing council tax payment arrangements to owners of empty property to incentivise their re-use. For example, the levying of double council tax on some long term empty homes and removing all discount for second and holiday homes. Decide priorities for strategic targeting of empty properties. Continue research with other local authorities and the Empty Homes Agency to look at best practice and innovation. Ensure Council website is kept up-to-date with Empty Property information. Publicise successes with empty properties in local press. 17

18 Targets The Strategy will approach empty properties based on the following target groups: Short term empty dwellings Advice, information and persuasion for those empty for less than 2 years. Long term empty dwellings Intervention for those that have been empty for over 2 years. Intervention will be on a priority basis:- Empty for 10 years or more Empty for between 5 10 years Empty for between 2 5 years Problem empty dwellings Intervention for those that are a problem due to their condition, location and where they have a detrimental effect on local amenity. Problem buildings Intervention where they are in a ruinous and dilapidated condition. Priority will be given to those empty properties: In prominent or key locations In areas of high demand and low availability Whose vacancy may affect local trade Which contribute to the economic and social deterioration of a locality Which undermine the sustainability of the community Where the Community Safety Partnership deem community safety to be a significant issue. Performance Indicators The Welsh Assembly Government has a national performance indicator for empty dwellings. It is the number of private sector dwellings that have been vacant for more than 6 months at 1 April that are returned to occupation during the year as a direct result of action by the council expressed as a % of all private empties vacant for more than 6 months at 1 April. In 2004/05, performance against the WAG Performance Indicator was 2.62%, which represented 10 dwellings brought back to use. The baseline figure was 383 dwellings that had been empty for more than 6 months at 1 April. This was achieved through grant aid advice to owners of vacant properties and statutory action. The target is 3% (12 properties) and the target is 5% (19 properties). 18

19 Appendix 1 - Schedule of Enforcement Powers Problem Legislation Power Land or property detrimental to the amenity of the neighbourhood. Town & Country Planning Act 1990, S.215 Building Act 1984, S.79 Public Health Act 1961, S.34 Require owner to carry out specified work to improve look and condition of property. Blocked or defective drainage. Public Health Act 1961, S.29 Local Government (Miscellaneous Provisions) Act 1976, S.35 Building Act 1984, S.59 Rodents or harbourage for rodents. Prevention of Damage by Pests Act 1949, S.4 Require owner to carry out specified works to remedy blockage/defect. Require owner to carry out specified works to rid land/property of rodents. Waste accumulating on land. Premises in such a state as to be prejudicial to health or a nuisance. Council required to purchase land or property. Council owed money following work in default. Building in ruinous/dilapidated condition and seriously detrimental to the amenity of the neighbourhood. Environmental Protection Act 1990, S.80, 59 Housing Act 1985, S.17 Law of Property Act 1925, S.101/103 Building Act 1984, S.76 Require owner to remove waste to authorised site. Purchased by Compulsory Purchase Order or by agreement. May provide for enforced sale of property. Require owner to renovate or demolish. 19

20 There are category 1 or 2 hazards at the property. Housing Act 2004, Part 1 Require owner to remedy defects to protect health and safety of occupants. Vacant building open to unauthorised access. Building Act 1984, S.29 Require owner to make secure and prevent access. Council may take emergency action. Empty Dwelling Housing Act 2004, S.132 Council may make seek an Interim EDMO and then make a Final EDMO. N.B. Most of the above powers allow the Council to carry out works in default of the owner and recover costs. Many have powers of prosecution for non-compliance. All are subject to appeal. 20

21 Appendix 2 Schedule of Recoverable Land Charges STATUTORY PROVISION Building Act section 59 (leaking or insufficient cesspool, private sewer etc.) - section 79 (ruinous or dilapidated building) PRIORITY CHARGE (over other charges) Yes INTEREST (whether it accrues) No Environmental Protection Act section 80 (abatement of statutory nuisance) Yes Yes Housing Act section 11 (Improvement notice Category 1 Hazard) - section 12 (Improvement notice Category 2 Hazard) - section 40(2) (Emergency remedial action) Yes Yes Prevention of Damage by Pests Act section 4 (destroy rats or mice) Yes Yes Public Health Act section 83 (cleanse and disinfect premises) Yes Yes Town and Country Planning Act section 215 (land adversely affecting the amenity of an area) No No Local Government (Miscellaneous Provisions) Act section 29 (prevention of unauthorised entry) No No 21

22 Appendix 3 Summary Enforced Sale Procedure The Enforced Sale Procedure (ESP) is a process by which the Council brings about the sale of a privately owned house. It is used as a means to sell on a long-term vacant house to a new owner, in circumstances where the present owner is either unwilling or unable to deal with the house and its associated problems. By bringing about a change in ownership, it is hoped that a new owner will be more willing and able to invest in the property, and ensure its likely re-occupation, upkeep and proper use. The basis for using ESP is where there is a financial Charge registered in Part 2 of the Local Land Charges Register. This gives a Local Authority the power to enforce that Charge. Consequently, the Council has all the powers and remedies available to a mortgagee under the Law of Property Act Section 101(i) of the Law of Property Act 1925, confers on a mortgagee a power of sale. An Order of the Court is not necessary as the legislation itself provides that power. But the main principle for its operation in Torfaen under this procedure is for reasons of regeneration. In order for a property to be considered suitable for ESP under this procedure, it must satisfy certain criteria. STAGE 1 Determine whether the property fulfils the ESP criteria. To do so it must be: a dwelling vacant registered with the Land Registry a property where debt is owed to the Council, and the debt is registered in Part 2 of the Local Land Charge Register of sufficient priority within the context of the Council s regeneration strategy. Other factors will influence the decision on whether a property should be considered for ESP, namely: is it in a neighbourhood renewal area the length of time the property has been vacant the impact on adjacent properties and occupiers environmental impact on the local neighbourhood property market value impact impact on the Council s services, and those of other agencies 22

23 the amount and length of time of a debt whether an owner is traceable, and responsive STAGE 2 Trace owner of empty dwelling. The following may usefully assist: serving Local Government (Miscellaneous Provisions) Act Sec 16 Notices Land Registry Empty Property Database Neighbours Council Tax (last year) Property files Other Council departments and agencies Once an owner is identified, they should be contacted in order to offer advice, clarify the problems the property poses, and discuss and offer potential solutions. This may include: Voluntary sale or leasing, either privately, or to an interested RSL Consequences of letting the property go, including its market value depreciation Effects on the neighbourhood Loan or renovation grant availability to repair the property Advice about letting and becoming a landlord Contacting relatives or others who may be able to assist STAGE 3 Liaison with other departments and agencies, particularly those with an enforcement or financial role, together with all other legitimate means, to put pressure on the owner to deal with the property. For example: Other Departments enforcement actions (especially Planning, Building Control and Highways) Exemptions or relaxations for Council Tax payment should be re-considered 23

24 Debt recovery processes should be actively chased Involvement of mortgage lenders if property mortgaged (e.g. breach of occupation conditions, validity of buildings insurance policy) STAGE 4 Statutory enforcement notices, which the Council should or could serve, will usually be actively pursued. The carrying out of Works in Default and the consideration of prosecution, as appropriate, should also be taken to a conclusion, in line with the Enforcement Policy. Evidence and a record of how and when a notice was served, by whom, and the person(s) on which it was served are essential. The notice must have been served correctly, in accordance with statutory provisions, and on the correct person(s). A list of statutory notice actions where debts from Works in Default can be registered in Part 2 of the Local Land Charge Register is given in Appendix 2. N.B. 1: Some actions create debt which does not accrue interest. N.B. 2: Although some enforcement actions do not permit entry in the Local Land Charge Register ( NO in column 2), the debt can still be recovered if the property goes to sale through ESP. N.B. 3: Some other debts, such as Council Tax, which are personal rather than property based, are neither registrable nor recoverable through this process. N.B. 4: Debts are affected by the Limitation Act, in that any debt over 12 years old (generally from the date when the expense was incurred) is no longer recoverable. Thus, any attempts to recover debts through Local Land Charges or by using ESP, are not permissible after this time has passed. STAGE 5 The first step in pursuing the legal process for ESP is to serve a notice under Sec 103(i) of the Law of Property Act The Council may not exercise the power of sale unless and until this Notice (requiring payment of the mortgage money), has been given, and a default of payment has been made for 3 months after the service of the Notice. The Council must also write to the owner, and any other Chargees, stating that it intends to carry out an enforced sale. If another Chargee should pay the outstanding money, this prevents the Council taking priority over their charge. Likewise, if at any stage prior to the actual sale of the property, the owner should pay the outstanding debt, then ESP is no longer an option. 24

25 Once default of payment is apparent, the Council can apply to the Land Registry for registration of the Charge, claiming priority over all the other Charges. When the Charge Certificate is returned from the Land Registry, the property can be marketed for sale. Another letter should be sent to the owner and any Chargee to warn them again that the charge is to be enforced. STAGE 6 Once the Charge has been established, the land continues to be subject to the Charge even if it has passed to subsequent (possibly entirely innocent) owners. All debts owed to the Council on the property are recovered on sale. In addition, reasonable costs incurred by the Council in pursuing the sale can also be deducted. Thus, reasonable legal, surveying, marketing and administrative costs are recoverable. Once a property is in the agreed ESP programme, it should be referred to Legal Services. The following information must be included with the referral: Property address Name of current owner and address (as per Land Registry) Details of each Notice served on which debt is still outstanding Legislation, Act and Section Date of service Full name and address of Person(s) on whom Notice served Description of works required Details of outstanding debts created by Works in Default Dates Work carried out (start and finish dates if known) Cost of works Date registered in Part 2 of the Local Land Charge Register Copies of any relevant correspondence sent to, or received from, the owner Where the debt is paid but there appears to be no other positive progress, Compulsory Purchase Order action may be considered as being the only appropriate alternative course of action. Once the Land Registry has issued the Charge Certificate to the Council, via Legal Services, then the property can be marketed for sale. 25

26 STAGE 7 As the Council at no time takes possession of the ESP property, it has no more rights of access than it does for other private houses. So, whilst the Council may exercise its legitimate Powers of Entry from time to time, using the proper procedures, it is not able to permit viewings of the property to potential purchasers. The Council has a duty to secure the best possible price on sale. This means that marketing techniques have to be sufficiently wide to ensure that a proper competitive bidding process takes place. Properties will be marketed and advertised widely including in the local press, and sealed bids will be invited by a deadline date. Alternatively, properties may be considered to be put up for sale by auction. 26

27 Appendix 4 Summary EDMO Procedure STAGE 1 Determine whether the property fulfils the EDMO criteria. Dwelling empty 2 years or more No contact from owner after 4 letters It is practically possible to bring the property back into use No statutory action required (If so, do these first) No debts on property or < 1,000 The size and location of the property makes it a suitable rental property The property is privately owned The house does not fall into any prescribed exceptions No likelihood that the property will be brought back into use in the next 6 months without the Council intervening Re-occupation of the property would be in the interests of the community Confident that the property will be rented out easily at market The owner has been generally evasive and uncooperative There has been a history of complaints regarding problems at the property e.g. -house open to unauthorised access -mail accumulating behind the front door -property not maintained regularly -overgrown garden(s) -causing a statutory nuisance to neighbouring property STAGE 2 Write to owner of empty dwelling. Send EDMO1 to owner s address with copies to the empty property address. 27

28 STAGE 3 Inspect property as per written arrangement. If the owner attends appointment: Carry out full internal and external inspection and if possible take measurements of rooms Take photographs of inside and outside of house Ensure that questionnaire is completed and returned Ensure RFI is completed and returned, if possible on site If owner does not attend: Carry out full external inspection and take photos Speak to neighbours to establish suitability for re-occupation Send EDMO2 to owner s address with copies to the empty property address with a notice of intended entry under s.239 of the Housing Act 2004 STAGE 4 If owner still does not attend the visit prescribed in the s.239 notice apply for a warrant from the magistrates court. Send EDMO3 to owner. STAGE 5 Organise for locksmith to attend property to change locks on specified date and organise rechargeable works order. Get two copies of keys. Enter property by force if necessary and carry out full inspection. Arrange police presence, if necessary. - Carry out full internal and external inspection (if possible take measurements of rooms) - Make a note of all fittings and their condition - Assess and make inventory of contents to consider potential storage costs 28

29 - Carry out full HHSRS assessment - Take photos of inside and outside of house Leave copy of warrant at property. STAGE 6 Complete a schedule of works. Send EDMO4/NOTICE A to owner advising that entry has been gained to property and locks have been changed. Invite owner to office to collect keys. STAGE 7 Carry out a feasibility assessment as to whether property is suitable for an EDMO. If it is suitable then follow the rest of the procedure. If it isn t then stop the process now and consider alternative action. If property deemed suitable for an EDMO then complete RPT application form and apply for an Interim EDMO. STAGE 8 Get authorisation from Head of Service to proceed. Once authorisation has been granted, send file to legal. At this point, check property is still empty. Send out EDMO4.1. Obtain quote for insurance. STAGE 9 Apply to the RPT for an Interim EDMO. Send copy of EDMO file and completed standard application form to the RPT with a covering letter. 29

30 Send a copy of the application to the owner. If the RPT refuse the application, consider alternative action. If the application is granted, continue following the process. STAGE 10 Organise insurance for the property. If the property is leasehold, provision must be made for the payment of any ground rents/service charges. Send EDMO5/NOTICE B (within 7 days of being granted the order) to the owner and all other interested parties advising that an Interim EDMO has been granted. Include a copy of the Interim EDMO order and a copy of the appeals process. Send copies of Interim EDMO to all interested parties. STAGE 11 Carry out a further visit to the property with the Managing Agent. Confirm the following: - Schedule of works required to minimise hazards at the property - Schedule of works to ensure marketability of the house - Approximate total costs of work - Estimated monthly rental income for the house - Likelihood that property will be rented out easily - Professional fees STAGE 12 Complete full schedule of works and include all management requirements. Check property is still empty. 30

31 The Council must make a Final EDMO if they believe that if the order is not made, the dwelling is likely to remain unoccupied. This is also an opportunity to revoke the Interim EDMO if not possible to secure occupation of the dwelling. Before making a Final EDMO, the Council must serve a copy of the proposed order (EDMO6) with a notice (NOTICE C) on each relevant person and set out: - the reasons for making the order - the main terms of the proposed order - a copy of the management scheme - a date for end of consultation period (at least 14 days) STAGE 13 If no response from owner, apply for a Final EDMO. STAGE 14 The Final EDMO comes into force one day after the appeal period and can last up to 7 years. Send copy of the Final EDMO (EDMO7/NOTICE D) to the owner and all interested parties. Include details of appeals notice with a covering letter explaining the reasons for making an EDMO. Also advise that if the furniture is not removed from the house, it will be put in storage and the owner will be liable for all costs incurred. STAGE 15 Read meters and advise Gas/Electricity/Water/Council Tax to put Accounts in to the Council s name. Arrange renovation works with successful contractor. Monitor and sign off works once completed (see Works in Default procedure). Make an inventory of the furniture in the property and arrange to have it removed and placed into storage. STAGE 16 Make arrangements with Finance for payments and account keeping. 31

32 Carry out a full inspection together with the agent. Advise owner that furniture removed and works completed. Hand property over to agent for marketing and letting. It should not be the Local Authority or a RSL that provides this service. Organise payment to contractor for works carried out at property. Advise legal to register charge and EDMO with Land Charges. Send EDMO8. The LA may renew a FEDMO after 7 years if: - They believe that if a further FEDMO is not made the property will remain unoccupied - They have successfully reoccupied the property for the duration of the original FEDMO. 32

33 Appendix 5 Summary CPO Procedure The Compulsory Purchase Order Procedure can be summarised as follows: Establish the history and all available information regarding legal interests in the long-term empty property. Attempt to convince the owner(s) to make the property habitable within a reasonable time or to sell the property on the open market. Explain the possibility of the use of CPO to the owner, seek to acquire the property by negotiation and offer mediation via an independent third party. Obtain an open market valuation for the property by the District Valuer in order to establish the level of compensation to be offered. Establish how a CPO scheme will be financed. Establish a timetable for carrying out CPO procedure. Draft a report including a statement of reasons and a draft CPO for consideration by Cabinet. Subject to Cabinet making a resolution declaring the Council s intention to make a CPO, initiate the CPO procedure. If the owner has made no genuine effort to restore the property to a habitable condition for rent or sale and it apparently cannot be acquired by negotiations continue with CPO procedure. Make the CPO by affixing the Council s Seal, advertising it in the press and serving copies upon all persons with legal interests in the land. Consider any objections to the proposals made within 28 days. If valid objections are received the Minister will direct a CPO Inquiry to be held. On completion of the Inquiry the Inspector will report back to the Minister and the CPO will be confirmed, modified or rejected. Compensation issues are not valid reasons for objection but are dealt with by the Lands Tribunal (website If there are no objections the Minister can confirm the CPO and the Council can serve a General Vesting Declaration or a Notice to Treat/Entry which serves to transfer the legal interests from the then owner to the Council. After this the Council can arrange to formally dispose of the property in order to bring it back into use. 33