Transcript Empty Homes Presentation

Making the Best Use of Our
Empty Homes
by
Steve Grimshaw
Regeneration Project Manager
www.no-use-empty.org
Empty Homes
Why Deal With Them?
Empty properties constitute a wasted
resource that could provide homes as
well as reduce the pressure for new
housing growth.
They also often have a negative impact on
local neighbourhoods by their visual
appearance, and a tendency to attract
graffiti, vandalism, squatting and
antisocial behaviour and are a
disincentive to investment
There are 23,331 empty properties in
Kent & Medway, 8,500 long term empties.
www.no-use-empty.org
What we set out to achieve
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No Use Empty (NUE) Launched 2005 to improve
the physical environment in four coastal districts
of Kent - Dover, Shepway, Swale and Thanet by
bringing empty properties back into use.
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NUE extended County wide – 2009
THREE APPROACHES ADOPTED
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Interest free loans (loans to sell / rent)
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Partnership fund (works in default and CPOs)
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Direct Purchase
www.no-use-empty.org
Loan Scheme
• Kent County Council and 9 LAs – interest free loans
• Maidstone & Ashford due to join loan scheme (not Canterbury / Medway)
• Loans - £25,000 per unit, maximum of £175,000 per applicant.
• Properties must be sold or let on completion (decent homes standard)
• Loan period (development 2 years, let 3 years)
• Do not offer loans where property will be occupied by applicant (FSA)
• Secured as a financial charge against property
• Maximum LTV 90%, independent valuation (charged to applicant)
• 100% of the funding provided upfront (staged, if maximum loan)
• Properties expected to meet the decent homes standard on completion
www.no-use-empty.org
Loan Scheme – Investment vs Leverage
Loan
Scheme
Thanet DC
Dover DC
Funding By
Individuals
(<3 units)
Shepway BC Developers
(> 3 units)
Dartford BC
Sevenoaks
Total
No. of
Units
% of
Units
Value NUEI
Loan £
Leverage
Total
Investment
% of
Loan
% of
Leverage
% of
Total
Project
93
29%
£2,238,840
£4,905,575
£7,1441,415
38%
43%
41%
229
71%
£3,673,000
£6,493,991
£10,166,991
62%
57%
59%
322
100%
£5,911,840
£11,399,566
£17,311,406
100%
100%
100%
Swale BC
Tonbridge &
Malling BC
Gravesham
Tunbridge
Wells BC
www.no-use-empty.org
Loan Scheme – Statistics
• Average renovation cost per unit = £43,526 (often very worst properties)
• KCC average investment per unit £17,987
• Average cost per unit £2,866 (interest and management cost) – Loan Scheme
• Repayment to date £ 1.7 Million (low default rate x 2 loans)
• 11% Loan to Sell (2 years) & 89% Loan to Let (3 years)
• Only 20% of application forms returned & 88% of them approved
• For each £1 spent on interest and administration, this translates to £20.63 being
spent in local economy (labour & materials) – created/sustained over 330 jobs
www.no-use-empty.org
Old School House (Loan to Sell)
www.no-use-empty.org
Warehouse (Loan to Rent)
Derelict Warehouse (Dover)
• NUE Loan £175,000
• Developers Contribution
£161,000
• Total development £336,000
• 6 x 2 bed apartments
• 2 x loft apartments
• high spec - private
courtyard, allocated parking,
security gates and video
entry system
www.no-use-empty.org
NUE & Affordable Housing Loan Scheme
NUE Scheme has been be extended to 2016/17
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Total Capital Fund - £12 Million over 5 Years
Target of a minimum 200 empty homes back into use per year
NUE Affordable Homes Project 2012-2015
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£1M Capital Funds secured December 2011 (KCC Regeneration Fund)
£790,000 confirmed by Homes & Community Agency (HCA)
Looking to work with Amicus or other interested RSLs
Total £1.79 Million
Proposed Loan Terms
• Maximum loan £25k per unit, maximum loan per applicant £250,000
• Interest free loans up to 3 years (loans to let)
• Must be let through Registered Provider (RSL / HA) – 5 year lease
• Must meet Decent Homes Standard
www.no-use-empty.org
Partnership Scheme
Provide funding to facilitate:
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Compulsory Purchase Orders
Works in Default (Building Act, Housing Act, Town and Country Planning Act)
Empty Dwelling Management Orders
Direct Purchase (CPO or otherwise)
Supported by Consultant :
• A floating resource to the district councils (virtual team)
• Identifying the most appropriate course of action for most difficult properties
• Providing professional & technical guidance on implementing course of action
• Working with EPO to encourage other departments engage actively
www.no-use-empty.org
No Use Empty Initiative: Achievements by Approach
Compulsory Purchase Orders,
Enforced Sales Procedure or Empty
Dwelling Management Order
CPO
ESP
Works in Default
or
Prosecution
Statutory Notices under a
range of legislation.
Owner has right of appeal.
Enforcement
(Notices Served on Owner)
Prosecution for non compliance of Notice
or undertaking the works in default and
using the County Court or Enforced Sales
Procedure to recover costs
CPO, EDMO & Enforced Sales 3%
After exhausting of
voluntary assistance,
threat of appropriate
enforcement action is
raised with owner
Threat of Enforcement
Financial Assistance / Other Assistance
(Loans, grants, home improvement agency, private
sector leasing)
Other
(Auctioneer, sale of LA
land, PSL) 7%
Advice and Guidance
(Development advice, tax and vat, reduced fees to sell via
auctioneer, guidance on extent of works, guidance on
planning, raising finance)
Threat of or Actual Enforcement
11%
Grants 6%
&
Interest Free Loans 18%
Advice & Guidance
58%
www.no-use-empty.org
Training / Mentoring
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Empty property officers are from a wide range of backgrounds and the level of
knowledge and experience varies considerably
Training courses (Low Cost)
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When negotiations fail
Compulsory Purchase Orders
Enforced Sales Procedure
Empty Dwelling Management Orders
Rd SAP, Decent Homes, Residential Property Tribunals
HHSRS, Enforcement HA 2004, Part L Building Regulations
Tracing People, Asbestos, Electrical / Gas, Freehold/Leasehold
Harassment & Illegal Eviction, Pace, Fire Safety, Mental Capacity
Individual LA Training (in house - Legal, Planning, Env Health & Building Control)
In total, over 830 Officers have attended the courses
On the job training/ guidance as cases progress
www.no-use-empty.org
Informal Advice & Website (www.no-use-empty.org)
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Awareness
Newsletters, leaflets, mail outs
Developed databases for the authority
Estate agents / management agents, builders & developers
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Advice & guidance always first course of action
Open day empty property owners in each area
Vat implications empty 10 years 0%, more than 2 years 5%
Capital Allowance Scheme (flats above shops etc)
Home improvement agency, list of builders etc
Advertise their property for sale for free / Auction reduced fees
Advice on method of disposal or options if renting
Guidance on planning – maximise profit etc
FOI request, will act as a referral service for an interested party.
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Website
One stop resource for empty property owners and practitioners
Hotline and web reporting of empties
Extensive case studies
www.no-use-empty.org
Maximising New Homes Bonus
• New Homes Bonus for new homes by match funding the additional
council tax raised for new homes and empty properties brought
back into use, with an additional amount for affordable homes, for
the following six years (3 years left)
• Amount per ”new” home - 6 years council tax, at national average
for band e.g.
 £1, 439 p.a. over 6 years for current Band D
 £8,634 total at current council tax rates
• Expensive homes generate bigger bonus
• £350 flat rate extra p.a. per new affordable home
 = £2,100 over 6 years
• Some LAs only now undertaking data cleansing (Liberatar / Capita)
www.no-use-empty.org
Achievements to date
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Strong partnership arrangements between KCC and the 12 District Councils
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Increased output, knowledge, expertise of professional staff and development and
sharing of good practice.
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Extended the Initiative to all Authorities in Kent and gained National Recognition
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To date returned 2,201 long term empty back into use
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Bristol & West of England Authorities have adopted
the “No Use Empty” model and branding.
Adopting Loan Scheme Eden (6LAs)
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Regeneration & Renewal Partnership Working Award 2011
Chartered Institute of Housing 2012 (Runner Up )
www.no-use-empty.org
Question ?
• What can we do to encourage closer joint working
throughout Kent & Medway and to continue to attract
funding to deal with empty homes?
• Are LAs maximising their NHB?
• Are LAs robust in their recovery of debts against empty
homes?
• What more could the No Use Empty Scheme do to help
bring empty homes back into use?
www.no-use-empty.org
Thank you for listening
[email protected]
(01622) 221906
[email protected]
07867987550
www.no-use-empty.org
Steve (Suggestions) – do not put this slide up
• What level of funding should be available for the affordable housing loan
scheme to make it viable for the owner. Are the suggested levels reasonable
– discuss the scheme
• Government just announced additional funding for Empty Homes /
Affordable housing limited info available
• Working closer with RSL partners to deal with empty homes (buy and
renovate) or lease peppercorn rent – renovate property recover monies
through rent / element of profit
• Empty shops, space above permitted developments
• Would the LA that have achieved significant NHB, ring fence some monies
towards empty homes – goes into central pot.
• Maximise NHB if the LA is not already doing this - letters, visit properties,
Liberator
• Robust debt recovery in relation to empty homes
www.no-use-empty.org