Empty Homes Strategy - Milton Keynes

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2019 - 24 Empty Homes Strategy

Transcript of Empty Homes Strategy - Milton Keynes

What are we trying to achieve 4
How will it be achieved 4
Empty Homes Premium 5
Empty homes back to use 9
Appendices 11
Executive Summary
Milton Keynes was built to meet the aspirations of people to live in a good home at a price
they can afford to rent or buy. This aspiration becomes more challenging with so many
wasted homes.
In Milton Keynes over 2000 homes have been empty for six months or more, 600 of these
have been vacant for over two years and of these 123 properties are currently unfurnished.
Empty and unfurnished properties are currently subject to a premium council tax rate which
was increase from 150 to 200% from April 2019. Often these homes are brought back into
use without council intervention but unfortunately, this is not always the case. This strategy
sets out the work that needs to be carried out to try and prevent homes becoming long term
empty in the first place, and looks at a range of intervention tools that can be used to
encourage and ultimately force owners to bring empty properties back into use.
The Empty Homes Strategy is part of the Council’s wider Housing Strategy and every
empty home brought back into use will contribute towards increasing housing supply. The
Empty Homes Strategy is a key component in helping us create great places to live.
A property is considered to be long term empty if it has been unoccupied for six months or longer. This strategy is aimed at privately owned long term empty properties but can also apply to other public bodies and registered providers where an empty property they own requires attention. There are a number of reasons why a property may become empty:
The property is being re-possessed
The owner is being cared for elsewhere or is in hospital
The owner has passed away and the property is undergoing probate
The property is being renovated
The property is being marketed for sale or rent
The owner does not have the time/skills/ finance or the inclination to manage the property
Properties that remain empty for a long time can have significant and adverse consequences for local communities. They can:
What is an ‘Empty Home?’
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Become an eyesore and blight the local area
Attract anti-social behaviour, vandalism and arson
Encourage fly-tipping, accumulations of waste and pests
Be open to adverse possession or squatting
Represent a wasted resource of capital or rental income and a home for a family in need
Properties that reach this point are unlikely to be brought back into use without external
intervention. It is important for the Council to understand why properties become empty
and/or remain empty so that we can work with the owners to help return properties to use
and prevent them from becoming a problem for the community.
Every empty property is a waste which could be a home for someone. As of May 2019, there were 781 families living in temporary accommodation in Milton Keynes and nationally there is a housing shortage which is driving up prices and rents. This strategy aims to:
Reduce the number of homes becoming empty in the first instance
Increase the housing supply
Reduce the impact that empty homes may have on the wider community and improve the built environment by bringing neglected land and buildings that are unoccupied back into use
Reduce the need for Greenfield development by using existing housing stock and ensuring housing needs are meet across all tenures
Contribute to Milton Keynes Council's stock of good quality and affordable housing
The primary data source for empty homes is council tax records. It is sometimes difficult to obtain an accurate picture of the position because there are different circumstances that exempt properties from council tax liability, and the figures change from month to month. The priorities for the strategy are to:
Work in partnership with internal stakeholders to ensure accurate records of empty homes are produced and maintained
Monitor trends in empty homes
Reduce the number of empty homes
Proactively return properties to use through Council schemes and enforcement action
Refer to the Action Plan in Appendix 2 for detail on how the above priorities will be met.
What are we trying to achieve?
How will it be achieved
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The empty homes premium was implemented on 1 April 2017; the scheme imposes a 50% additional charge* on the standard Council Tax of properties that have been empty and unfurnished for two years or more. Further to this, The Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018 gives a Local Authority the power to increase the premium to a maximum of 100% premium over the normal rate of council tax from April 2019, 200% premium from April 2020 and 300% premium from April 2021. This came into force in November 2018. The premium will be applied when a property has been empty for two years, irrespective of how long its current owner has owned it. Therefore, it is possible for an individual to buy a property which has already been empty for two years and be liable for the premium immediately. This may occur for instance, when an individual does not occupy the property on purchase because they are renovating the dwelling prior to moving in. If the property is occupied for a period of six weeks or less, it is regarded as not having been occupied for the purpose of the two-year period, occupancy of a long-term empty property for more than six weeks ‘resets the clock' for this purpose.
The aim of the empty homes premium is to stop owners from keeping properties empty and return long term empty properties back into use to assist in increasing housing supply and maximising the Council's New Homes Bonus entitlement.
Exemptions
50% Premium is not applicable if;
A dwelling which is the sole or main residence of a member of the
armed forces who is absent from the property as a result of such service;
An annex deemed unoccupied because it is being treated by the occupier
Of the main dwelling as part of that main dwelling.
Empty Homes Premium
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The Private Sector Housing Team will work in partnership with the revenues service sharing information on empty homes to create an accurate database of the premium empty homes and those properties that have been empty for two years or more.
Properties that have been empty for two years or more and the premium empty homes will be targeted and assessed for intervention, initially working with the owners to establish why the property is empty and investigating how we can bring the property back to use perhaps utilising the schemes and enforcement powers that are available to the Council.
Properties that have been empty for six months to two years will be risk assessed and
prioritised for intervention. Early engagement with the owners may prevent properties from
becoming long term problematic empties. In addition, any complaints the Council receives
about an empty home will be prioritised for action according to the length of time they have
remained empty and the impact they have on the neighbourhood.
Our starting point is to always engage with owners by talking directly to them or where possible arranging a face to face meeting at the empty home. We will provide information and discuss the options that are available to them to assist in bringing the property back into use. Owners of empty homes should be aware that while the Council would prefer to work with them, taking no action is not an option. Owners of an empty home have responsibility for it and should act accordingly, if they are unable or unwilling to bring the property back to use by working with us, the property will be assessed for enforcement action.
Every empty home that is brought back into use effectively increases the housing supply and provides somebody with a home. Milton Keynes is an area of high housing demand with a high number of homeless families and single people. The Council will encourage owners of empty homes to consider this factor and offer support and advice on the options available to assist in returning their property to use.
Partnership working
Engagement
Encourage
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Enforcement action is designed to ensure the reoccupation and / or refurbishment of an empty home and where the owner fails to engage with the Council, formal action can be instigated. There is a range of legislative powers available to the Council to deal with immediate and specific issues such as disrepair, vermin, fly-tipping, nuisance and insecure or dangerous buildings. In addition, there are other powers that can be used to deal with empty properties in the long term to ensure that they are returned to use. A full list of the legislative powers can be found in Appendix 3.
Housing Act 2004
If a category 1 hazard is identified the Council has a duty to take appropriate action to reduce the hazard to an acceptable level. Enforcement action includes serving Improvement Notices to secure necessary repairs or improvements, Prohibition Orders to prohibit the use of all or part of a dwelling, or Emergency Remedial Action and works undertaken in default of the owner. The Council will place a charge on the property for any costs incurred in carrying out enforcement action and may also take legal action to recover the charge.
Empty Dwelling Management Orders (EDMOs)
EDMOs are powers enabling the Council to take over the management of an empty home. The Council can then carry out repairs and subsequently let the property. The costs of the repairs may be recovered by the Council from the rent. These may be suitable where, despite the Councils best endeavours, the owners have failed to bring a home back to use and it is cost effective for the Council to intervene. An interim EDMO allows the Council to take control of an empty property for one year, during which the Council can carry out necessary works to enable the dwelling to be let to a tenant, but the Council cannot grant a tenancy without the consent of the owner. A final EDMO allows the Council to continue to manage the dwelling for a period of seven years during which the Council has the power to grant tenancies without the consent of the owner.
Building Control
Officers from the Building Control team can take action under the Building Act where the property is structurally unsafe or dangerous. They also have powers to deal with ruinous and dilapidated buildings and neglected sites affecting the amenity of the area. For a full list of these powers refer to Appendix 3.
Enforce
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Planning
Planning Officers can take action under the Town and Country Planning Act 1990 section 215, requiring an owner of on empty property to undertake works where the condition of their property and/or land is detrimental to the amenity of the area.
Compulsory Purchase Order (CPO)
CPOs can be made under either section 17 of the Housing Act 1985 or section 226(1)(a) Town and Country Planning Act 1990 to acquire land or buildings for housing purposes. CPO is considered a last resort and requires consent by the Secretary of State before it can be approved. The Secretary of State will need to be satisfied that all other available options have been considered and explored before consideration will be given to approve a CPO. If an empty property is acquired an options appraisal will be carried out to determine how best to proceed once a CPO has been approved.
Enforced Sale
Where an empty property has a registered legal charge against it securing funds owed to the Council, the sale of the property can be forced so that the charges can be recovered. Legal charges are placed on a property where ‘works in default' have been carried out following non- compliance with a legal notice requiring works, or when emergency remedial action has been taken. The charge will only become operative if the owner fails to settle the outstanding charge following service by the Council of a demand for payment. A sale can also be enforced where there are substantial council tax charges outstanding.
Options Appraisal
An appraisal will be undertaken when determining the most appropriate course of action to be taken when deciding between:-
Compulsory purchase – leading to the Council taking ownership with the possibility of retaining the property and assimilating it into the Council's existing stock, selling on the open market immediately, or selling following renovation.
Empty Dwelling Management Order – here the property ownership does not pass to the Council but the Council assumes responsibility for the management and letting of the property after appropriate renovation works have been completed
Enforced sale leading to a change of ownership on the open market.
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Empty Home Loans
The Council offers flexible loans to assist bringing empty properties back into habitable use. The loan is essentially a five year, flexible, bridging finance secured by a charge against the property. After work has been completed, the property can be let, used as the owner's residence or sold. During the term of the loan, the owner can choose to make regular monthly payments, occasional payments or no payment at all. The loan and all interest accrued must be repaid at the end of the five year term. The interest rate is variable 5% to 7% and applicants will be credit checked. Terms and conditions apply and loans are subject to availability.
Private Sector Leasing
This is a free and comprehensive leasing scheme for private landlords and owners of empty homes that have a property that is suitable for letting. The scheme offers guaranteed rent each month, regular inspections, 10% higher payments than LHA rate, repairs completed, no administration fees and properties are returned in good condition taking account of fair wear and tear.
VAT Reductions
Properties that have been empty for two years or more can benefit from VAT discount of between 0% to 5% for carrying out works to bring the property back into use. We can provide a letter to confirm how long the property has been empty to support an application for the reduction.
Buy with confidence
The trading standards team in Milton Keynes provides useful advice for those undertaking building works. Their ‘Buy with confidence' scheme has a list of approved traders which can be provided. For further details or to access the list www.milton-keynes.gov.uk or for consumer advice call 03454040506.
Other Useful Websites
Empty Homes www.emptyhomes.com
How can we work with owners to help bring empty homes back to use
Empty Homes is an independent campaigning charity, which exists to highlight the waste of empty property in England and works with others to devise and promote solutions to bring empty homes back into use. Empty Homes Network www.ehnetwork.org.uk The Empty Homes Network (EHN) is the successor to the National Association of Empty Property Practitioners (NAEPP). NAEPP was established in May 2001 to support people involved in delivering empty property strategies. It was launched by empty property practitioners with the support of government ministers, the Housing Corporation and the Empty Homes Agency. The main criterion to be a member is that you are involved in tackling empty property as a part of your job. National Land Use Database www.nlud.org.uk ‘The objective of the full National Land Use Database is to develop a complete, consistent and detailed geographic record of land use in England, extendable to the other countries of the United Kingdom.' Homes England www.gov.uk/government/organisations/homes-england The national housing and regeneration delivery agency for England, enabling local authorities and communities to meet the ambition they have for their areas. Herts, Beds and Bucks Empty Homes Forum Forum with representatives from all the local authorities in Herts Beds and Bucks specifically to discuss and share good practice on empty homes work. For further information contact: Milton Keynes Council Civic Centre 1 Saxon Gate East MK9 3EJ Tel: 01908 691691 www.milton-keynes.gov.uk
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Appendix 1 Premium empty homes data As of May 2019, there are approximately 123 premium empty homes. This figure will increase each month as more empty properties reach the two year threshold for the premium rate council tax to be applied.
Number of premium empty homes by area in Milton Keynes as of May 2019 (Data provided by Council Tax May 2019)
Ashland 1 Medbourne 1
Bletchley 19 Netherfield 11
Bradwell Common 1 North Crawley 1
Broughton 1 Oldbrook 3
Calverton 2 Olney 7
Central Milton Keynes 3 Peartree Bridge 2
Conniburrow 2 Redhouse Park 1
Downhead Park 2 Shenley Church End
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Great Linford 1 Stoke Goldington 1
Greenleys 5 Stony Stratford 8
Heelands 2 Walnut Tree 1
Hodge Lee 1 Whaddon 1
Lavendon 1 Woburn Sands 1
Loughton 2 Wolverton 6
Woughton on the Green
Appendix 2 Action Plan
Strategic Priority Action Target
Work in partnership with internal stake holders to ensure accurate records of empty homes are produced.
Revenues service to share on a monthly basis data on all properties that have been empty for 6 months or more and all premium empty homes.
Accurately record and maintain an empty homes database and case notes - including date empty, category, hazards, other issues, action taken, dates re-occupied.
Empty home categories on PSH database:-
Premium empty home
July 2019
Monitor trends in empty homes
Monitor occupancy status of empty homes highlighting any trends in re-occupation / length of time properties are empty / type of complaints received / type of hazards or issues / type of assistance or enforcement action used that has been successful in returning empty homes to use.
Ongoing
Proactively returning properties to use through Council schemes and enforcement.
Inspect and assess all premium and non- premium empty homes using the priority intervention assessment inspection form.
Proactively undertake the necessary intervention or enforcement action to return properties to use.
Encourage and facilitate flexible empty homes loans to assist owners where necessary.
Properties returned to use - encourage owners to lease through the Council's EPSL scheme
Encourage owners of empty homes to consider Council purchase (subject to conditions).
Assist in maximising income opportunities including NHB and debt recovery.
Ongoing
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Town & Country Planning Act 1990: Section 330
Request for information relating to a property from any person who has an interest in the property
Local Government (Miscellaneous Provisions) Act 1982: Section 29
Where a property is unoccupied and it is not effectively secured against unauthorised entry or is likely to become a danger to public health
Town & Country Planning Act 1990: Section 215
Land and/or property that is detrimental to the amenity of an area
Housing Act 2004
Where a Category 1 and/or Category 2 hazard is identified and an enforcement notice is required to be served to reduce the hazards
Building Act 1984: Section 76
Where a premises is in such a state to be prejudicial to health or a nuisance
Building Act 1984: Section 77 & 78
To deal with dangerous buildings
Building Act 1984: Section 79
To deal with ruinous and dilapidated buildings and neglected sites affecting the amenity of an area
Environmental Protection Act 1990 : Section 79 - 81
Where there is a requirement to abate a statutory nuisance
Prevention of Damage by Pests Act 1949 : Section 4
To keep land free from rats and mice
Public Health Act 1961 : Section 34
Deals with the removal of waste from a property/land
Planning (Listed Buildings & Conservation Areas) Act 1990 : Section 48
Where there are necessary works required for the proper preservation of a listed building
Planning (Listed Buildings & Conservation Areas) Act 1990 : Section 54
Where urgent works are required for the preservation of a listed building
Building Act 1984 : Section 59 Deals with the provision and repair of
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Housing Act 2004 : Section 133 – 136
Grants powers to take over the management of a property using Interim Empty Dwelling Management Orders (EDMO) and Final EDMOs
Law of Property Act 1925 : Section 103
The Local Authority can force the sale of a property to retrieve an outstanding debt owed to them
Housing Act 1985 : Section 17 Town & Country Planning Act 1990 (as amended by the Planning & Compulsory Purchase Act 2004): Section 226 Planning (Listed Buildings & Conservation Areas) Act 1990 : Section 47
Grants powers for the Local Authority to pursue a Compulsory Purchase Order
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