Setting the Scene Dave Stott Associate Empty Homes National Empty Homes Loan Fund Manager

Size: px

Start display at page:

Download "Setting the Scene Dave Stott Associate Empty Homes National Empty Homes Loan Fund Manager"

Simon Anthony
6 years ago
Views:

1 Setting the Scene Dave Stott Associate Empty Homes National Empty Homes Loan Fund Manager

2 Grant from DCLG Grant into Empty Homes Agency Partnering agreement with a National Lender Into a revolving 15 year business plan Loans for private landlords with empty properties Must be made up to decent homes standard Must be let at affordable rents

3 Maximum Term of Loan 5 years Interest rates Fixed 5% Repayable monthly by standing order Maximum loan amount 15k Loan is a subsequent (2nd) charge Loan is paid on completion of the loan application not the works Property to be let at affordable rent (LHA in many areas) Short Hold tenancy agreements accepted

4 There are over 40 Authorities in the scheme at present No capital cost to the authorities They do need to undertake 5 duties To ensure that the applicant is aware of the general terms of the loan this would include payment amounts and contract terms in respect of affordable rents etc. A copy of the Land Registry search for the empty property To verify the property had been empty for 6 months To have seen the property and advise that generally the amount of loan would enable an amount of refurbishment works that would deliver a decent home On completion to advise that the property has been completed as per the loan contract To offer a new tenant from the General Housing waiting list if agreed To ensure the tenant is either paying a rent within a choice based lettings rental scheme or paying an affordable rent and verify that point.

5 This is a national scheme Open to everyone However if the private owners enter the scheme direct into the lender partners they will have to pay admin and valuation fees If they are signposted into the scheme via the Local Authorities who are scheme members there are no fees (Empty Homes Agency pay them) 2 nd or subsequent charge allows the loan to work with other debts Reduced levels of equity and headroom than on the High St

6 This model is specifically targeting a type of empty property Most Authorities are taking action on their empty homes That can be motivated by way of A. grant reward B. Housing Need C. Neighbourhood issues And hopefully all of the above They need to satisfy and demonstrate they have offered all the support and assistance before any tougher action is taken Most Authorities will want to use their partner housing providers within this scheme and that option is well used

7 The NEHLF covers the last option of assistance and support I am going to list the available and powers available to use by the authorities from that point on empty private properties including ex Right to Buys We know the tell tale signs on some of the former RTB s?? When I have finished let no one say there is nothing that can be done on a private empty property Key point is that a proactive enforcement policy only can work as part of a balanced strategy that starts with support

8 The additional options other than the NEHLF Positive action letters Advice Grants Loans Statutory Notices Single CPO CPO Enforced sale Council Tax Enforced Charging Order Sale Empty Dwelling Management Orders PRODS

9 Three stages Raising interventions by increments In line with LGMP 1976 Section 16 request for information Ensures actions are reasonable Complies with Human Rights Act Can resolve on their own/or Leads to further more severe interventions

10 Advice Signposting to resolve the problem Into Homes Into prison Probate No owners/ unregistered Inheritance Problems with sale No idea what to do

11 Grants Not available in many councils One way payment Being phased out if not out already in most parts of the country

12 Loans A few authorities have interest or property appreciation loans up to 20k Now add the National Scheme 5% interest up to 15k Together offering 35k Even at 15k that will address most mid term empties Cannot do much more

13 So as the case moves forward the authority is at the point of assistance into enforcement Any issues will have been addressed and the empty property either put into the right category or the assistance offered to resolve the issue The right climate dictates the move to enforcement. The owners decision not to engage.

14 Housing act 239/241 inspections HHSRS Cat 1 and Cat 2s Power to inspect sometimes enough If served must allow time to complete of in default Debts increase the powers to enforce

15 Into enforcement. Below is a selection of main statutes generally used on Empty Properties PDPA 1949 Land Charged and all titles LGMP 1982 Person Based only EPA 1990 Land Charged but not all titles PHA 1936/60 Land Charged and all titles BA 1984 Land Charged and all titles HA 85/04 Land Charged and all titles T&CPA 1990 Land Charged but not all titles

16 CPO single property Section 17 HA85 Use of RSL or Developer partners Property either sold when vested or refurbished then sold Compensation is 5% more than value Costs of process are not recoverable Open to Public Enquiry Secretary of State approval

17 The Town and Country Planning Act 1990 : Section 226 single and multiple application The Housing Act 1985 : Section 290 Multiple application The Local Government and Housing Act 1989 : Section 93 Renewal Again Compensation is 5% more than value Costs of process are not recoverable Open to Public Enquiry Secretary of State approval

18 Enforced Sale procedure 1925 Law of Property Requires Land Charge Never own the property Preferred owner sale Open Auction Sale Sells property to resolve issues Fully cost recoverable

19 Used when there is only a debt from Council Tax Charging order route Successfully used Never own the property Preferred owner sale Open Auction Sale Use RSL partner if required

20 2004 Housing Act Available since 2006 Must show reason Eidemo (southern) or Edmo (northern) Must be granted Interim from RPT Must have business plan and schedules All Empty Properties Over 2 years empty and not up to let or sale Interim and Final Improve property Occupy property 7years possible 14,21,28

21 Government, Local Government or Corporate State owned property Power to dispose Application to the Secretary of State Can use preferred option on sale Covers Government, NHS and any Public Building

22 All this is available to use on problem properties and the Authority can use more than 1 They are all only processes, They all work, They are tailor made for the issues that are causing problems in the area They need to support your neighbourhood approaches to the benefit of the area They have all been trained and supported to implement the processes there are also financial rewards when they take the actions that resolve the empty properties that are a blight on the area

23 There is obviously a lot more detail about the various options but I hope I have provided you a brief insight to the many options that are available The access to funding for improvements on the empty properties is critical in demonstrating that assistance is available The National Empty Property Loan will fill the void in the toolkit It is available, streamlined and ready to use.

24 Rebecca and Jen

Information for mortgage customers. Mortgages

Information for mortgage customers. Mortgages Hello. This is your guide to TSB mortgages. This guide provides lots of information about our mortgages. Some of it is relevant to everyone but some of it