When Negotiation Fails. Empty Homes Training Ltd.

Empty Homes When Negotiation Fails Presented by: Andrew Lavender

Background Number of vacant dwellings in England in 2010, stood at 737,000, 300,000 000 long term empty properties Wales 50,000 empty properties, 26,000 long term National house build lowest level lsince 1923 (122,000 ) Wales needs to build 14,200 homes per year, until 2016 Bi Bringing i empty properties back kinto use, helps hl maximise i occupation of existing stock Estimated that empty & commercial properties in England & Wales (incl. spaces above shops) have the potential for around 420,000 homes. 8 out of 10 empty properties are privately owned

National & Regional Statistics Empty Homes > 6 months Isle of Anglesey 716 Blaenau Gwent 900 Bridgend 1,820 Caerphilly 1.074 Cardiff 2,289 Carmarthenshire 1,954 Ceredigion 597 Conwy 1,050 Denbighshire 893 Flintshire 868 Gwynedd 1,308 Empty Homes > 6 months Merthyr Tydfil 817 Monmouthshire 1,482 NeathPort Talbot 1,248 Newport 2,078 Pembrokeshire 1,000 Powys 60 (1,217) Rhondda Cynon Taf 3,000 Swansea 1,881 Torfaen 295 Vale of Glamorgan 817 Wrexham 260 Wales 26,407 (2.1% 2.5%) * Council Tax Returns & Shelter Cymru July 2009

Background Why deal with empty homes: Blight communities, attract vandals dl and squatters (broken window syndrome) Regeneration Reduce pressure to build ongreenfield sites Re using existing buildings more cost effective than new build Help alleviatehomelessness (4.5millionhousing waitinglists England & 90,000 in Wales Cost to owner of keeping property empty 8k a year Detrimental affect on the neighbourhood Tie up LA resources and the emergency services Often the cost of returning property back into use is less than 6K

When Negotiations Fail Enforcement Options There is no cure all pill, must look at a range of solutions and use the most appropriate ate Councils have a range of powers at their disposal to secure the improvement of properties To deal effectively with the problem takes a corporate approach and using the most appropriate p legislation to deal with the problem. Planning is a key partner in dealing with empty homes Cannot secure the occupation of the property, but can make the owner take responsibility for their property

Main Legislation Used for Empty Properties Town & Country Planning Act 1990 Building Act 1984 Housing Act 1985 & 2004 Environmental Protection o Act 1990 Prevention of Damage by Pests Act 1949 Local Government (Miscellaneous Provisions) Act 1982

Section 215 Town & Country Planning Act 1990 Land Adversely Affecting the Amenity of Neighbourhood Adverse affect on the amenity of the area Serve notice (discretionary) Owner and occupier of the land Requiring such steps to remedy condition (includes land & buildings (S.336)) Can be used in conjunction with other powers (HA 2004 & Listed Building Notices etc) Amenity (Broad Concept) Not formally defined in legislation or guide It is a matter of fact and degree and common sense Factors to Consider Visible from a public domain Condition of the site Impact on the surrounding

Section 215: Town & Country Planning Act 1990

Section 79 Building Act 1984 Building or structure is by reason of its ruinous or dilapidated condition, o seriously detrimental e ta to the eamenities tesof neighbourhood Require the owner to execute such works or repair or restoration or, if he elects Demolition of the building or structure and removal of rubbish or other material resulting from or exposed by the demolition. n.b. cannot include general waste other than demolition waste or exposed by demolition. Rubbish : The expression does not include chattels: McVittie v. Bolton Corpn. [1945] K.B.281. What would we do with chattels in the property? Has effect, subject to the Planning (Listed Buildings and Conservation Areas) Act 1990 relating to listed buildings, buildings subject to building preservation notices and buildings in conservation areas.

Section 79 Building Act 1984

Building Act 1984 Powers Section 77 Dangerous or dilapidated buildings building or structure is in such a condition, or is used to carry such loads, as to be dangerous, the authority may apply to a magistrates court to require the owner to undertake remedial work Prosecute for non compliance Level 3, 1,000 or undertake WID & recover expenses Has effect, subject to the Planning (Listed Buildings and Conservation Areas) Act 1990 relating to listed buildings, buildings subject to building preservation notices andbuildings in conservation areas. Section 78 Dangerous building Emergency Works Dangerous and immediate action is necessary Give notice to owner & occupier, if reasonably practicable Works in default and recover costs through Magistrates Court / Enforced Sales Procedure Grounds of appeal that LA should have proceeded under Section 77 BA 1984

Section 78 & 79 Building Act 1984

Housing Act 2004 Options for Action Improvement Notice (s11)* Prohibition Order (s20)* HazardAwarenessNotice (s28) Emergency Remedial Action (s40) (Cat 1 imminent risk) Emergency Prohibition Order (s43) (Cat1) Demolition Order (s265 1985 Act as amended) (Cat 1) Clearance Area (s289 1985 Act as amended) (Cat 1) * Both INs and POs can be suspended dd

Turner Street, Margate: Housing Act 2004

Empty Dwelling Management Orders Creates right of possession not ownership Vacant for minimum 6 months (Exemptions) Proposal extend to 2 years Application to the Residential Property Tribunal Interim EDMOs secure occupation with consent of proprietor (12 months) Final EDMOs secure occupation, no consent necessary (7 years) renewable Properties need to be in reasonable condition recover monies

Empty Dwelling Management Order

Enforced Sales Procedure (ESP) Enforced Sales, not a procedure to deal with problem properties per se Procedure to deal with recovery of outstanding debt following actions that have created a land charge against a property Can be used in relation to registered & unregistered land ( 100K max) Generally, takes priority over other mortgages and private debts Can be used for recovering debts, where the LA has completed works in default (caveats) & Council Tax debt

Twin Track Approach (Enforced Sales) There are two tracks to the enforced sales procedure. Legislation that t enables the recovery of dbtth debt through h the use of the Law & Property Act 1925 via the District Land Registry. Other debts such as Council Tax debts that are recovered through the County Court (Charging Order or Bankruptcy) It very much depends on which legislation the LA uses as to which track is the most appropriate. It is far more beneficial to use the Law & Property Act 1925 approach rather than go through the County Court procedure. The reason for this includes: It is more streamlined (sell property within 5 6 months of demand being served) The LA charge takes priority over any mortgage, ensuring recovery of funds Canbe used againstunregistered land (up to 100K) and registered land. Can be used on owners that cannot be found or the land is unregistered or the owner is deceased. These issues would cause considerable difficulty through the County Court approach.

Status of the Range of Legislation Principal Statutory powers confer charge on all estates and confer L&PA 1925 Housing Act 1985 & 2004 Building Act 1984 Does not bind all estates and interests - Section 7 Local Land Charges Act 1975 applies Section 215 Town & Country Planning Act 1990 Section 29 Local Government (MP) Act 1982 not suitable Prevention of Damage by Pests Act 1949 Environmental Protection Act 1990 More complex issue over service

Council Tax / Section 215 T&CP Act 1990 Enforced Sales Procedure (County Court) This method can be used for Council Tax debts & other debts Council Tax debt (only) obtain liability order (Magistrates Court) Obtain Interim Charging Order from County Court Obtain Final Charging gorder from County Court Advertise intentions in local and national press Instigate Order of Sale and sell in accordance with standard procedure Recover debt rest of money paid into Court

77 Eastern Esplanade, Margate

Compulsory Purchase Orders Primary powers to acquire land/property compulsorily, where owner not willing to sell by agreement Section 17 Housing Act 1985 (enabling) acquire under used or ineffective used property land must show that there is a general housing need in area need to show a quantitative or qualitative housing gain Section 226 Town & Country Planning Act 1990 (amended by Planning & Compulsory Act 2004) acquire land or buildings (will allow improvement or redevelopment to take place) must contribute to promotionoror improvementofof economic, social & environmental well being can be used where empty property affects the street scene Section 47 Planning (Listed Buildings & Conservation Areas) Act 1990 Section 93 Local Government & Housing Act 1989 (Renewal Areas)

Compulsory Purchase Orders Considerations Threat of CPO is often enough Ownership does not need to be established Normally requires a resolution by full Council If a CPO is unopposed, Government Office will confirm, if no errors Can be time consuming (6 months to 18 months) Must prepare a statement of reasons Public enquiry, if challenged hll d( (cost) Council will have to pay market value Compensation to owner for severance or injurious affection, disturbance and other losses, usually 75%b 7.5% basic home loss payment Section 215 T&CP 1990, HA 2004, Listed Building Repairs Notice Section 226, LA can avoid paying stamp duty

Fort Road Hotel & Arcadian, Margate

Arcadian & Fort Road Hotel

Arcadian

Warren Court Hotel, Arthur Road, Margate

Warren Court Hotel, Arthur Road, Margate Warren Court Company owned ( 600K) Section 79 BA 1984 & Section 215 T & CP Act 1990 Compulsory Purchase Order Appealed voluntary sale Mortgagee ( 116K) KCC provided funding for purchase Town & Country Housing Group HCA funding 1.6 million T&CH funding 1.2 million Thanet DC 318,000 Thanet DC gifted land Warren Court converted into 8 apartments & development of 12 new high quality homes

Loan to Let & Compulsory Purchase Order 28 & 32 Bellevue Road NUE Loan 120,000 Developers contribution 100,000000 Total development 220,000 5 unitsof accommodation 34 Bellevue Road, Ramsgate Unregistered Land CPO Sell the property p to developer

No Use Empty Initiative: Achievements by Approach Compulsory Purchase Orders, Enforced Sales Procedure or Empty Dwelling Management Order CPO ESP Prosecution for non compliance of Notice or undertaking the works in default and using the County Court or Enforced Sales Procedure to recover costs Statutory Notices under a range of legislation. Owner has right of appeal. Works in Default or Prosecution Enforcement (Notices Served on Owner) CPO, EDMO & Enforced Sales 3% After exhausting of voluntary assistance, threat of appropriate enforcement action is raised with owner Threat of Enforcement Threat of or Actual Enforcement 11% Financial i Assistance / Other Assistance Grants 6% (Loans, grants, home improvement agency, private & sector leasing) Interest Free Loans 18% Other (Auctioneer, sale of LA land, PSL) 7% Advice and Guidance (Development advice, tax andvat vat, reduced fees to sell via auctioneer, guidance on extent of works, guidance on planning, raising finance) Advice & Guidance 58%

Any Questions? Andrew.Lavender@htlc.co.uk