Swindon Empty Homes Partnership

Private Sector Empty Properties Strategy 2003 - 2008

Contents

1. Introduction

2. Why have an Empty Properties Strategy?

-Why are properties left empty

-Benefits

-Significant changes since 1997

3. Scope of Strategy & Key Partners

4. The Process

5. Resources

6. Targets

7. Glossary of Terms

Appendices

1. Introduction

Swindon Borough Council launched an Empty Homes Strategy in 1997 in order to promote the return to use of empty homes in the private sector. The initial focus was on empty homes although, in subsequent years, attention has also been paid to vacant commercial premises with scope for conversion to residential use.

The Strategy has been implemented by Swindon Empty Homes Partnership (comprising the Council and partner Housing Associations).  The Strategy is an example of the enabling role a local authority can play – in this case, acting as a catalyst to promote the return to use of vacant properties. Major achievements since 1997 include:

• Swindon Empty Homes Partnership has played a role in returning over 300 empty private homes to use. (See Appendix One for more details)
• Annual Empty Homes Exhibition has become a regular event (usually held during National Week of Action).
• Private Sector Accommodation Group (Landlord Forum) has been established and meets twice a year.
• Empty Properties Database established.

The original Strategy was  reviewed in 2003. This document sets out Swindon Borough Council’s revised Empty Properties Strategy for the private sector. In order to reflect action on all types of buildings, the title has changed from ‘empty homes’ to ‘empty properties’.

The Empty Properties Strategy is one part of Swindon Borough Council’s Housing Strategy.

The Empty Properties Strategy has been reviewed again in September 2005 and has been influenced by:

• Swindon Borough Council Corporate Plan 2004 – 2007
• Swindon Borough Council Medium term Business Plan December 2004
• The Deposit Draft Local Plan 2001 – 2011
• The Housing Strategy 2003 – 2008
• The Community Strategy 2004 – 2010
• Housing Act 2004

2.

Why have an Empty Properties Strategy?

The documents listed above impart the understanding that Swindon Borough Council is required to promote the social, economic and environmental well-being of its area in order to achieve and realise the vision of creating a town where people are proud to spend time, live, work and visit and achieve a better quality of life in general for all.

The Empty Properties Strategy forms part of the Corporate Plan and the Medium Term Business Plan whereby it is a requirement that at least 50 empty properties are returned to use per year between the years 2003 – 2008.

The Empty Property Strategy also contributes towards achieving Swindon’s Housing Mission as per the Housing Strategy for Swindon 2003-2008 by:

• Meeting all kinds of housing need, and working with partners to develop and provide more affordable housing
• Meeting and exceeding decent homes standard
• Developing new ways to involve tenants and others in improving the housing service
• Maximising income and eliminating waste
• Dealing vigorously with anti-social behaviour and protecting neighbourhoods
• Listening and responding to our customers and partners
• Promoting good quality, cost effective, sustainable supported housing services that give choice and dignity

The Empty Properties strategy contributes towards achieving the themes and priorities from The Community Strategy by:

• Encouraging development including regeneration of existing sites, to achieve excellent environmental standards
• Providing a full range of good-quality homes to meet the growing needs of the local population
• Improving the quality of life in neighbourhoods
• Supporting urban regeneration
• Inspiring and engaging everyone in improving our environment
• Protecting, maintaining and enhancing our environment by providing a clean, safe, accessible and attractive street environment for residents
• Promoting a safer Swindon
• Reducing anti-social behaviour
• Reducing drug-related crime

Swindon remains a high housing demand & high housing cost area. Demand for accommodation within the Borough continues to outstrip supply. In Swindon there is an annual shortfall of 1218 affordable homes per year. The Housing Strategy states that there is a target of developing a further 650 affordable homes between 2003-2008.

Why are properties left empty?

Empty Homes Agency Bulletin in November 2002 stated that ‘Many people leave their property empty because they do not know how to let it.’ (Empty Homes Agency Bulletin, November 2002).

Our experience with landlords of empty properties has shown that properties tend to be left empty for the following reasons:

• Owner either in long term care or deceased
• Concerns regarding the possibility of a bad tenant and damage to the property by tenants
• Reluctance to let to people claiming Housing Benefit due to potential for non-payment of rent
• Lack of time and finance to carry out necessary refurbishments to bring Property up to a standard suitable for letting or selling
• Personal desire to leave property empty
• Lack of knowledge about options available including how to let a property, leasing schemes, grant assistance, landlords accreditation scheme
• Property developers “sitting” on properties awaiting redevelopment

The Empty Properties Strategy focuses on providing methods for overcoming the above obstacles and also to find ongoing solutions for returning empty properties back into use.

Benefits

Empty properties are a wasted resource particularly when there is a housing shortage in Swindon. Empty properties can contribute to the degeneration of an area including undermining community spirit. In addition to a negative visual impact, empty properties can attract crime and anti-social behaviour.  An effective empty properties strategy will lead to a range of tangible benefits for people in the Swindon area. The following summary lists some of the ways in which the Community gains.

Economic Benefits

1.Local employers & employees gain from an increased supply of housing.

2.Owner of the property gains an income from property (according to Royal Institution of Chartered Surveyors, an empty property costs an owner more than £6,000 per annum once lost rental income is taken into account).

3.Council Tax revenue for Local Authority increases helping to keep costs down for all Council Tax payers.

Social Benefits

1.Increase in supply will contribute to meeting local housing demand (including helping to tackle homelessness and reduce use of bed and breakfast accommodation).

2.Increase in choice of housing (both in terms of type of housing and location of accommodation in Swindon area).

3.Increase in quality of accommodation will enhance quality of life including knock on benefits relating to health & education issues.

Environmental Benefits

1.Returning vacant properties to use is a sustainable form of development (making the most of existing resources). Under the new Strategy, sustainability issues will be taken one stage on. In addition to promoting the return to use of empty properties, there will be more emphasis on encouraging ‘green’ measures including promotion of grant funding - examples include ‘Warmlets’ (grants for improved insulation in private lets) and Government grants for renewable sources of energy.

2.Reduction in anti-social behaviour associated with empty properties – crime (including vandalism, squatting and arson).

Swindon Borough Council’s Vision aims to make progress in four areas:

• Economy
• Environment
• Equality
• Education

As part of the Borough’s Housing Strategy, the Empty Properties Strategy contributes to this Vision. This document clarifies who is responsible for what and maps out a partnership approach aiming to build on the successes of the initial strategy.

Changes since 1997

At the National level, a number of significant developments have taken place since the Empty Homes Strategy was launched. These include:

Best Value

The Local Government Act 1999 requires each local authority to produce a Best Value Performance Plan. Best Value can be defined as the continuous search by local authorities to improve the quality, efficiency and effectiveness of all their services for the public. This includes the introduction of a performance indicator specifically covering private sector empty properties;

BVPI 64 – ‘the number of private sector vacant dwellings that are returned into occupation… as a direct result of action by the local authority’.

Planning Policy Guidance Note 3 (PPG3) - Housing

The new PPG3 was published in March 2000. Within a context of promoting the use of previously developed land rather than greenfield land, it states that local authorities should give priority to returning empty properties to use.

In order to support the aims of the Government in prioritising the use of previously developed land, local planning authorities are required to carry out assessments of their urban areas in order to determine the extent of housing opportunity. This process is known as an Urban Capacity Study.  Studies of this nature should incorporate an in depth look at opportunity provided by empty homes and other vacant or under-utilised space (including above shops).   

Urban White Paper

This was published in November 2000 and included the introduction of changes to Value Added Tax (VAT) and Capital Allowances. These came into force following the 2001 Budget and aim to provide financial incentives to return vacant/under-utilised properties to residential use.

Parliamentary Select Committee on Empty Homes (2002)

The Select Committee Inquiry supported calls for more emphasis by local authorities on dealing with empty properties.

The Local Government Act 2003

This Act includes two significant changes relating to empty property work:

• Councils will have the discretion to reduce or remove Council Tax discounts for long term empty properties
• Councils will be able to share a limited amount of personal and non-personal Council Tax information for the purpose of implementing an empty property strategy.

The Homelessness Act 2002

The Homelessness Act 2002 states a Council’s Housing Strategy should focus on developing linkages (including the contribution empty property work can make to tackling homelessness).

Launch of National Association of Empty Property Practitioners (NAEPP)

The Association was established in 2001 and aims to develop a national organisation to support locally based officers.

Housing Act 2004 will start to come into force from October 2005 onwards and will significantly impact various areas of housing including the issue of empty properties.

These changes all have a direct bearing on the revised Empty Properties Strategy. In addition, there have been significant changes at the local level since 1997. These include:

Local Plan (2011) Review

The First Deposit Draft, which was subject to formal public consultation between September and November 2002, included more emphasis on encouraging the re-use of previously developed land and buildings drawing particularly on PPG3 and an extensive urban capacity study. The Housing Chapter of the Plan does place greater emphasis on empty property related issues:

• Policy H12 states proposals for sub-division of dwellings into smaller units of residential accommodation shall be permitted (subject to conditions).
• Policy H13 states conversion of upper floors of commercial premises to residential use shall be permitted (subject to conditions).
• Policy H14 states conversion of vacant office space to residential use shall be permitted (subject to conditions).

A Revised Deposit Draft is expected to be available for public consultation in March 2006. Further information on planning related matters is available from Lawrence Murphy (Senior Planner) on Swindon 466476.

Community Plan/Local Strategic Partnership

Key Council policies (including the Housing Strategy) should feed into the Community Plan. The aim of the Plan is to ensure ‘Swindon is a great place to live, work and visit’.

The Local Strategic Partnership has the responsibility (among other things) to ensure all strategies, including this one, link together and drive Swindon forward in a common direction.

Local Agenda 21

‘The Seeds of Change’ document represents the Council’s first step towards formulating a Local Agenda 21. Since 1997, Swindon Borough Council has employed an Agenda 21 Co-ordinator to promote sustainability issues. Work on returning empty properties to use contributes to Swindon’s Local Agenda 21.   

Crime & Disorder Partnership

The Partnership was established in 1998 and overlaps the Empty Properties Strategy in terms of the impact of anti-social behaviour & crime associated with empty property. Under the revised Empty Properties Strategy, there will be more emphasis on the linkage between the two initiatives (including scope for more joint working).

The New Swindon Company

Since the launch of the original Strategy in 1997, it has been determined that empty property problems & opportunities have been concentrated in the inner urban wards.  Based on this trend, there are ongoing talks to highlight the potential for joint working with the New Swindon Company.

The revised Empty Properties Strategy will be promoted to ensure appropriate linkages are developed in order to enhance overall effectiveness. The Strategy incorporates recommendations arising from:

• Best Value Review 2002
• Internal Audit 2002.

Appendix Two contains a summary of key recommendations in the Best Value Review and the Internal Audit

3. Scope of Strategy/Key Partners

As one strand of Swindon Borough Council’s Housing Strategy, the Empty Property Strategy is specifically aimed at the private sector.

The Empty Properties Strategy aims to work with owners of non-local authority properties to:

• promote the return to use of vacant residential properties
• explore the potential for converting redundant/under-utilised commercial properties to residential use.

In the case of Council owned housing, empty properties are dealt with under the Housing Revenue Account Business Plan. For more information on this, please contact Bernie Brannan (Director of Housing) on Swindon 464376 or Arlene Griffin (Housing Needs Manager) on Swindon 464387.   

Other Council owned premises are covered by the Asset Management Plan process. More information can be obtained from Tony Bamford (Principal Valuer) on Swindon 463569

The Empty Properties Strategy will continue to rely on working with a range of partners.

Key External Partners

a.The general public – in particular, the Strategy relies on residents to report empty properties. When publicising the Strategy, we will encourage people to refer empty property details (including making use of the existing ‘Empty Homes Hotline’). In this context, the Strategy is Community based (including the participation of individuals & groups who would otherwise have little or no contact with SBC).

b.Owners of local property – seeking the co-operation of the owner is central to the success of the Strategy. During the first phase of the Strategy, a Private Sector Accommodation Group was established. The Group meets twice a year and brings together individuals and organisations involved in the private rented sector. One of the aims of the Group is to ensure empty properties are returned to use.

c.It is recognised that developers (large & small) operating locally have a key role to play particularly in terms of renovation of stock.

d.Partner Housing Associations – they have a track record of developing and managing affordable housing locally. As Registered Social Landlords, they are eligible for grant funding for the purpose of providing quality accommodation at the right price.  

e.Estate Agents/Commercial Agents –  private sector links are an important source of information on properties / route to owners & developers.

Internal Partners

The Empty Properties Strategy has evolved as a corporate initiative reflecting the need for support across service areas for the day to day implementation of the Strategy. Primary responsibility rests with Housing (Development & Sales) and Environmental Services (Residential Services). The former deals with promotion of the Strategy, monitoring and administration while the latter deals with Grants for Letting applications and enforcement action (including Compulsory Purchase Orders).

Within Housing, close liaison will continue between Development & Sales and Homelessness (particularly where the latter is the end user of the property).

In the context of day-to-day work, use has been made of Council Tax and Business Rates data since October 2004 as a source of information on empty properties. The Local Government Act 2003 permits limited information sharing. Also, steps are being taken to work with Client & Revenue Services  to consider reduction or removal of Council Tax discounts for long term empty properties.

Part 2 of this document (Why have an Empty Property Strategy?) maps out National and local changes since the launch of the original strategy in 1997. These developments provide scope for enhanced working across a range of Council Service Areas. During the first phase of the Strategy, an officer group (Empty Homes Working Party) was established. Under the revised Strategy, the Working Party will continue to meet twice a year. The Group is made up of officers from a variety of Council Service Areas:

• Housing
• Environmental Services (Residential Services, Forward Planning, Development Control)
• Resources (Property & Development)
• Borough Solicitor

This is in keeping with the Good Practice Guidance outlined in ‘Empty Property – A Quick Reference Guide’ (NAEPP 2002).

4. The Process

In keeping with the original Empty Homes Strategy, implementation will involve a two stage process:

• Publicity/information
• Follow-up to encourage re-use

Publicity/Information

In order to generate new leads, a range of publicity methods will be used including:

• Council Website
• Publicity in local media relating to annual Exhibition and six monthly Private Sector Accommodation Group Meeting
• Information leaflet & fact sheets on Options
• Publicity via Coalitions

New information on empty properties will be added to the Empty Property Database. It has to be recognised that properties are falling empty and coming back into use all of the time. In this context, the Strategy will focus on properties that fall empty and then remain empty. We consider any property lying empty for over 6 months to be a ‘long-term’ empty property.

Follow up Work

Priority will be given to providing a prompt service to owners.

Contact with owners will be used to find out more about the empty property and the requirements of the owner.  

The Options

It is recognised that properties remain empty for a wide variety of reasons. Similarly, owners circumstances/requirements will vary. Given these factors, the Strategy  aims to offer owners a range of options. These are:

1. Free advice on range of empty property related topics
2. Private Lettings Scheme
3. Private Sector Leasing Scheme is
4. Grants for Letting Scheme
5. Purchase by Housing Association or Council.
6. Compulsory Purchase Order
7. Empty Dwelling Management Orders (EDMO)

(For more information on the options, see Appendix Three)

Private Sector Leasing Scheme is managed by SOHA Housing Ltd. – Landlords sign a lease of 3-5 years handing over the management and responsibility for their property over to SOHA. Landlords are guaranteed rental income for the duration of the lease. Swindon Borough Council nominates homeless tenants as part of our Assured Shorthold Tenancy scheme.

It is apparent in the strategy that we endeavour to make every effort to work with owners. However, when all other options have been exhausted, Swindon Borough Council is willing, as a last resort, to make use of Compulsory Purchase Order as a means of returning long-term, problem empty properties to use. The most recent Compulsory Purchase Order is being made on 48 Rayfield Grove. The Compulsory Purchase report was approved by cabinet in August 05.

EDMOs are expected to come into force early next year (2006). EDMOs will enable Swindon Borough Council to take over the management of empty properties for up to seven years at a time.

5.Resources

Staffing

Swindon Borough Council employs an Housing Enabling Officer (Empty Properties) to co-ordinate and promote the Strategy. At the same time, the Strategy entails a call on the time of officers across Service Areas (see Part 3, Scope of Strategy & Key Partners).

Capital (Grant) Funding

Some of the options listed in Part 4 (The Process) entail use of capital funding:

• Housing Corporation (Central Government) – Social Housing Grant for Housing Association Schemes as part of the National Affordable Housing Programme.
• Swindon Borough Council resources – Renovation Grants (Grants for Letting Scheme).
• And commuted sums from Planning process

The availability of grant funding varies over time. For example, over the period 1999-2002, the Strategy benefited from a share of £15 million in Social Housing Grant. In addition to being used to acquire long-term, empty family  houses, this money was used fund schemes such as:

• Camdale Parade, Cricklade Road, Swindon (conversion of vacant first and second floor offices into six, one bed flats)
• Goddard House, Commonweal Road, Swindon (refurbishment of long-term, empty sheltered scheme to create 15 self-contained flats for the elderly).

Since 2002, less capital funding has been available. However, the Approved Development Programme for 2002/03 did include 109 Commercial Road (conversion of long term vacant first and second floor offices into 14 affordable, one bed flats).

Based upon the experience of the first phase of the strategy (1997-2002), and with particular reference to larger scale projects, there will be a strong emphasis on Urban Design principles. In particular, community consultation and quality of design, construction and management will be promoted. This approach is more likely to ensure a sustainable solution. Good practice guidance points to the need to pay attention to broader factors (including economic and social issues) rather than a narrow focus on physical development.

The intention is to make the Strategy flexible enough to deal with variations in capital funding. Whilst access to capital funding enhances the credibility & effectiveness of the Strategy, experience shows that a significant proportion of results have not been linked to grant related options in that they have arisen via Advice & Encouragement (see Appendix One). In this context, the revised Strategy will aim to work more closely with private sector institutions linked to providing finance for refurbishment/conversion of properties.

Similarly, links to Social Enterprises dealing with empty properties will warrant further investigation.

6. Targets

1. In keeping with Best Value Performance Indicator 64, return 50 properties to use every year (the target for 2005/06 is 50 properties).
2. Hold an Empty Properties Exhibition every year and evaluate usefulness of event to participants.
3. Arrange a meeting of the Private Sector Accommodation Group (Landlord Forum) every 6 months and evaluate usefulness of event to participants.
4. Arrange a meeting of Empty Properties Working Party every 6 months as part of an on-going process of promoting strategic linkages.

In addition to these targets, the following will be key activities under the revised Strategy:

1. Maintain Empty Property Database and ensure capacity exists for linking empty property data to broader regeneration related indices.
2. Stay abreast of changes in legislation and Best Practice – including maintaining links with the Empty Homes Agency and the National Association of Empty Property Practitioners (NAEPP).
3. Where appropriate, contribute to lobbying on empty property issues.
4. Review the Strategy on a regular basis to ensure a wide range of options are available.
5. Move towards a system of annual reporting (in addition to private sector properties, request information on Council owned properties).
6. Establish and maintain links with the New Swindon Company. This includes inviting the Company to six monthly Private Sector Empty Properties Working Party meetings.
7. Access to Council Tax register

7. Glossary of Terms

Approved Development Programme - former programme of schemes in local authority area funded by Social Housing Grant from the Housing Corporation.

Compulsory Purchase Order – legal method enabling local authority to acquire a private property. This process is used as a last resort where all other efforts to work with the owner have failed.

Empty Homes Agency – 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 bringing empty and wasted properties back into use.

House Condition Survey – local authorities are legally required to carry out a detailed assessment (every five years) of private sector housing.

Housing Associations – Non-profit making organisations responsible for developing affordable housing in partnership with local authorities.

Housing Corporation – Government Agency responsible for regulation of Housing Associations. The Corporation also allocates Social Housing Grant to Housing Associations (via local authorities).

Local Agenda 21 – At the 1992 Earth Summit, world leaders signed a declaration called Agenda 21 (global action plan for sustainable development). Local authorities are now required to produce a Local Agenda 21 (local action plan).

Local Plan – A statutory document setting out the Borough Council’s policies and proposals for development and land use for a set period.

Regeneration – creative activity addressing economic, social and environmental (physical) problems.

Social Enterprise – competitive business with social aims and social ownership.

Social Housing Grant – public subsidy used by Housing Associations to fund the development of affordable housing.

Social Inclusion Forum/Coalitions – the former is a body established by Swindon Borough Council to promote social inclusion (better quality of life) while the latter are consultative bodies set up to give SBC a better understanding of issues affecting minority groups. There are five coalitions (including a Race Coalition).

Urban Design – in Government Guidance and best practice advice, a strong focus on good urban design has emerged since 1997. Key urban design principles include:

• improving and building on local character and identity
• clear definition of public and private space
• promoting ease of access by non-car travel

The New Swindon Company – independent company established by local authority in conjunction with Government agencies. URCs aim to pool the resources of public and private organisations in order to promote regeneration in and around the URC area. The New Swindon Company is focussed upon regenerating Swindon’s town centre.

Appendix One - Targets & Results 1998 to 2003

For each of the first three years of the Empty Homes Strategy from 1998/99 onwards, the target was to play a role in returning at least 50 empty, private properties back to residential use. For 2001/02 and 2002/03, the target was 30 properties. In all five years, the target was either met or exceeded. The tables in this Appendix show results by referral category and the option used. This data should be viewed in conjunction with the following Guidance Note.

Empty Properties Database – Guidance Note

Referral Category

1.Site Visit

2.Council Tax

3.Referral by Council Department (Officer)

4.Referral by Councillor (Member)

5.Referral by general public

6.Approach by property owner

7.Referral by Housing Association

8.Referral by private sector (estate agents/commercial property agents)

Option Category

1.Housing Association Lease (HALS)

2.Housing Association Lease (Shortlife)

3.Grants for Letting Scheme

4.Private Letting Scheme

5.Purchase by Housing Association

6.Purchase by Council

7.Advice/encouragement

Total number of empty properties returned to use:

1998-1999 - 74

1999-2000 - 77

2000-2001 - 50

2001-2002 - 30

2002-2003 - 34

2003-2004 - 45

2004-2005 - 53

Total 363

Over the past seven years, results have been concentrated in the older parts of inner Swindon. This supports the view that empty properties are predominantly (although not exclusively) an inner urban issue.

Appendix Two – Summary of Best Value Review and Internal Audit

In the context of the Empty Homes Strategy, the Best Value Review 2002 recommended the following changes in order to improve service:

• Increase strategic activity on the return of private sector empty property into use.
• Review current Empty Homes Strategy
• Identify more options for returning empty private sector properties back into use.

In 2002, an Internal Audit was conducted the Empty Homes Strategy. The Audit recommendations included the following:

• Empty Homes Strategy should be reviewed to ensure there is greater emphasis on strategic linkages.
• Working procedures should be revised to reflect recent developments
• Enhance links with Client & Revenue Services in order to make use of Council Tax & Business Rates data to identify empty properties
• Revise Database to include conversions of vacant commercial premises

Appendix Three – More Information on Options

1.Free Advice/Encouragement

This option requires no grant funding from the Council (Officer time is key resource). It also serves to highlight the Empty Property Strategy is a broad initiative rather than something purely linked to increasing temporary accommodation or affordable housing.

2.Private Lettings Scheme

This option enables the Council to access private sector rented accommodation in order to provide temporary accommodation for households in priority groups. Advantages for the owner of the property include:

• rents approximating to market levels
• flexibility in terms of length of time property is made available and how the property is managed.

3. Private Sector Leasing Scheme

This option also enables Swindon Borough Council to access private sector accommodation. In contrast to Option 2, under the Leasing Scheme, owners trade rates of return for more guarantees. This Option will suit owners who can make properties available for longer periods (2 years plus) and who do not want to be involved in day to day management/contact with tenants.

4 Grants for Letting Scheme

This Option does entail capital funding (renovation grant).  In addition to enabling the Borough to access private housing, this Option will contribute to private sector renewal (improvements to stock). This Option will suit an owner who requires funding to modernise/convert property. In return for grant, the owner agrees to offer first nomination rights for letting to Swindon Borough Council under the Private Lettings Scheme for at least 9 years.

5. Purchase by Housing Association

This Option relates to both existing residential properties and vacant commercial premises which can be converted to residential use. In partnership with the Council, Housing Associations can acquire properties by making use of a mixture of public subsidy (Social Housing Grant) and private finance. This Option enhances the Council’s capacity to enable provision of long term (secure) affordable housing.

6. Empty Dwelling Management Orders (EDMOs)

EDMOs will allow a Local Authority to secure occupation and proper management of privately owned houses and flats that have been unoccupied for at least six months for up to seven years at a time.