North Ayrshire Empty Homes Strategy

Transcription

1 North Ayrshire Empty Homes Strategy 2014 Na Empty Homes Strategy - Approved

2 Contact Us Throughout this document we may refer to papers, research, assessments, other strategies or plans. All of this information is available on request, as are additional copies of this strategy. Comments and views about any aspect of the strategy s structure, content and information are always welcome (see contact details on page 1). We would also like to encourage community involvement in the on-going monitoring and review of this strategy. If you are interested in becoming involved in this, please let us know. Principal Officer (Strategy) Empty Homes Strategy North Ayrshire Council Housing Services FREEPOST SCO2742 Irvine KA12 8BR Telephone: Fax: developmentandstrategy@north-ayrshire.gov.uk This document is available in other formats such as audiotape, CD, Braille and in large print. It can also be made available in other languages on request. 1

3 Contents Introduction... 3 Strategic Framework... 3 Scale of the Problem... 6 Improving our Data Council Tax Database Empty Homes Database Report Empty Homes Website Council s Website Private Sector Advice Line Policy Interventions Scottish Empty Homes Partnership Advice & Assistance Becoming a Landlord Rent Deposit Guarantee Scheme Empty Homes Loans Repairing Lease Empty/Vacant Property Management Empty Homes Buy Back Auction Matchmaking Financial Assistance Council Tax Levy Factoring Abatement Notices Wasteland Notice Dangerous Buildings Abandoned Tenement Buildings Compulsory Purchase Orders Corporate Response Team Measuring Success Action Plan

4 Introduction 1. An empty home is a property in the private sector, which has been unoccupied for more than 6 months. It is not a second or holiday home. 2. Empty homes are a wasted resource. They don t contribute to the local housing market, nor do they address housing need. They are often the target of antisocial behaviour, such as vandalism, fly tipping, graffiti and break-ins, and in turn place a burden on the resources of the Council and the emergency services, who must address these issues. 3. Owners of empty homes also face a significant financial drain including mortgage repayments, insurance costs, council tax and even potential rent loss. 4. Furthermore, these often unsightly and unattractive properties can have a detrimental impact on the visual amenity of the surrounding area, and can cause a reduction in the value of neighbouring properties. The Royal Institution of Chartered Surveyors estimate that adjoining properties to poorly maintained empty homes can be devalued by up to 18%. 5. The North Ayrshire Empty Homes Strategy seeks to bring empty homes back into use, and to stop currently occupied properties becoming empty. 6. Having both assessed the extent of the problem in North Ayrshire, and considered available resources, this strategy adopts, in the main, an advice and assistance based approach to achieving its primary objective. 7. Through the North Ayrshire Scheme of Assistance we will encourage and support owners to explore a range of mechanisms which will allow their properties to be utilised as housing. 8. Nonetheless, we do recognise that some properties have fallen into extreme disrepair, or are having a detrimental impact on the surrounding neighbourhood. In these cases, the Council will consider a corporate response. Strategic Framework National Policy Framework 9. In 2011, the Scottish Government published Homes Fit for the 21st Century. This paper sets out the national strategy for housing over the next decade, focussing on providing affordable housing which meets the needs of all Scotland s people. 10. The paper outlined the Government s ambition; that everyone has a warm and comfortable home, whilst also recognising the role that the housing system 3

5 has to play in enhancing economic growth and social mobility, as well as strengthening our communities. 11. In terms of Empty Homes, the paper estimated there were 25,000 long-term empty properties in Scotland, across all tenures. Even bringing a proportion of these back into use would represent an important contribution to overall housing supply. Single Outcome Agreement 12. The strategic overarching outcomes of this strategy feed directly into the delivery of both the national and local outcomes identified within the North Ayrshire Single Outcome Agreement. 13. Specifically, the strategy seeks to deliver: National Outcome 10 We live in well-designed, sustainable places where we are able to access the amenities and services we need ; Local Outcome 10b Availability of affordable housing has improved. Local Housing Strategy 14. The Empty Homes Strategy is part of the wider North Ayrshire Local Housing Strategy , and as such is informed by its overarching strategic outcomes, specifically: The supply and quality of housing better meets needs and aspirations; Housing is sustainable and contributes to stable communities; and Access to high quality information and advice has improved. 15. As part of the Local Housing Strategy, the Council is also developing a strategy which seeks to address disrepair in the private sector. It is anticipated that this will be adopted by the Council during It should not be assumed that because a property is empty, that it is exempt from the interventions outlined in that strategy. The actions available to the Council as outlined in the Private Sector Improvement Strategy may be adopted to address issues of disrepair in empty homes. Equality Impact Assessment 17. The Council is committed to ensuring equality of opportunity for all North Ayrshire residents, and to addressing any form of discrimination on the grounds of: Age; Disability; Race; 4

6 Religion or belief; Gender; Gender Reassignment; Sexual orientation; and Maternity & Pregnancy. 18. The equality impact of this strategy is included within the overall Equality Impact Assessment carried out for the Local Housing Strategy

7 Scale of the Problem 19. There are a variety of reasons for homes becoming empty. 20. The current housing market conditions could be contributing to the problem. Owners may be marketing their empty properties, but due to the economic downturn find it difficult to attract prospective purchasers. Alternatively, owners may be unable to pay the costs associated with selling their home. 21. Other reasons for properties being empty include owners: not knowing what options are available to assist them bring their property back into use; being unwilling to let their properties; or having moved into residential care. 22. Empty homes can quickly fall into disrepair, and the longer they remain empty the greater the disrepair is likely to become. Eventually the owner may find the cost of repairing the property too expensive to allow it to be brought back into use. 23. Research indicates that more than 15% of empty home owners cannot afford necessary repairs (Scottish Executive Central Research Unit, 2001). 24. In order to identify the scale of the problem within North Ayrshire, analysis of the Council Tax register has been supplemented by the findings of an Empty Home Owners Survey. The survey was issued to everyone in receipt of a Council Tax discount for an empty home. A response rate of 27% was achieved. 25. In June 2013, 1864 homes received a Council Tax discount, indicating they are empty. Of these 62% are either Council Tax exempt (for example because the property is being renovated) or vacant (empty for less than 6 months). The remaining 634 units (34%) are classified as empty homes for the purpose of this strategy (see Table 1). 6

8 Table 1: Properties within North Ayrshire receiving a council tax discount Source: North Ayrshire Council, Council Tax Register (June 2013) 26. Further analysis of the Council Tax database indicates how long properties remain empty (see Table 2). Most are empty for less than a year, with 78% being occupied within 3 years. 27. Nonetheless, just over 1 in 5 empty homes remain so for more than 3 years. It is these properties that are most likely to be having a detrimental impact on the local area and community. Table 2: Length of Time Empty Time Empty %Empty (NB: Numbers are rounded) 6 months 1 year 54% 1 year 2 years 12% 2 3 years 12% 3 4 years 6% 4 5 years 6% 5 6 years 2% 6 7 years 8% Source: North Ayrshire Council, Council Tax Register (June 2013) 28. Table 3 provides a breakdown of the % of empty homes by sub housing market area. Whilst the highest proportion of empty homes is found on Arran, there is a significant number within the North Coast area. This is also the sub housing market area with the highest affordable housing shortfall in North Ayrshire. 7

9 Table 3: Empty Homes as a Percentage of Households within Sub Housing Market Area Sub Housing Market Area Total empty homes by SMHA No of Households per SHMA % of Empty Properties within SHMA Isle of Arran 121 2, % North Coast 320 9, % Irvine , % 3 Towns , % Garnock Valley , % Source: Council Tax Register/Local Housing Strategy The empty home owners survey provides stock profile (see Table 4). A key finding was that 64% of all empty stock is a one or two bedroom home. 30. Considering the impact of Welfare Reform, and the increasing demand for smaller housing, this represents a significant potential solution to addressing housing need. Table 4: Number of bedrooms in surveyed empty properties Number of Bedrooms Percentage 1 Bedroom 24% 2 Bedrooms 40% 3 Bedrooms 24% 4 Bedrooms 10% 5 Bedrooms 1% 6 + Bedrooms 1% Source: Empty Homes Owners Survey The empty home owners survey also identifies why North Ayrshire properties are empty. Owners were asked to choose which reason that was most relevant to them (see Table 5). Table 5: Reasons for Empty Homes Why is the property empty? Percentage I am trying to sell it 25% It is being renovated 13% It needs work which I cannot afford 12% Second home 8% Other 8% I am trying to let the property 7% I intend to renovate it 6% I don t want the trouble of tenants 6% I am waiting for the right time to sell 5% I want to let it but I don t know how 5% Building/Safety issues 2% Planning issues 1% Legal dispute over ownership 1% Owner in hospital/care home 1% 8

10 Source: Empty Home Owners Survey The empty home owners survey also asked which service interventions would be the most attractive to owners, and what would provide the greatest incentive to them in terms of bringing their properties back in to use (see Table 6). Table 6: Incentives that would encourage owners to have their homes occupied Incentive Percentage None of those listed 18% Grants for repairs/renovation 18% Guaranteed rental income 15% Advice on finding a buyer 12% Advice on finding a tenant 8% Advice on becoming a landlord 6% Loans for repairs/renovations 6% Advice to manage repairs 5% Management services for repairs 5% Other 3% Advice on accessing private finance 2% Legal advice/mediation 2% Source: Empty Home Owners Survey More generally, other findings from the empty home owners survey report that: 79% of owners are unsure as to when their property will become occupied; 51% of respondents state that their property required some form of repair work; 55% of owners would be willing to work with the Council to bring their property back into use; and 26% of respondents stated that owners should be free to do what they want with their empty properties, even if it caused a nuisance to others. 9

11 Improving our Data 34. In order to accurately and meaningfully implement the Empty Homes Strategy it is vital that we have access to high quality, relevant information, which can be kept up to date. Council Tax Database 35. The North Ayrshire Council Tax database is the primary resource for obtaining information on the number and location of empty homes within North Ayrshire, and legislation exists to allow this data to be shared corporately. 36. Home owners are able to claim a Council Tax exemption for the first 6 months a property is empty. This period is intended to allow owners the opportunity to address disrepair or any other issue which may be contributing to the property being empty. 37. The Council counts properties as empty homes, where they remain unoccupied at the end of this exemption period. 38. In order to ensure the Council Tax information is as accurate as possible, the Council are undertaking a review of all properties which are coded as being in receipt of an empty homes council tax discount. This exercise will be carried out during Nonetheless, only properties where owners have sought a Council Tax discount for an empty home can be identified through the database. Properties which are empty, but where owners have not sought a discount, may constitute a hidden problem in terms of identifying the number and scale of empty homes. 40. Therefore, we have employed a range of other mechanisms to supplement the Council Tax information, and assist in the gathering and updating of empty homes data. Empty Homes Database 41. The Council intends to collate all the relevant information in a central database, which can be accessed by various corporate departments, who have a role in addressing issues arising from empty homes. 42. The centralised resource will allow various Council departments to update the information held on empty homes as it is received. Report Empty Homes Website 43. North Ayrshire Council participates in the Report Empty Homes website, set up by the Scottish Empty Homes Partnership ( 10

12 44. This website allows anyone with internet access to report empty homes within their local community. The referral is then automatically directed to the Council. 45. Local residents can also link to the Report Empty Homes Website from the Council s own website ( Council s Website 46. Residents can also use the contact us function within the Council s website ( to report Empty Homes. Private Sector Advice Line 47. Empty home owners, or those affected by empty homes, can call the Council s Private Sector Advice Line ( ) for advice and assistance. 11

13 Policy Interventions 48. In order to achieve our primary objective (of reducing and preventing empty homes), the Council has identified a series of policy interventions. Scottish Empty Homes Partnership 49. The Scottish Empty Homes Partnership is a project fully funded by the Scottish Government and hosted by Shelter Scotland. 50. The partnership researches, collates and disseminates good practice and lessons learned from empty homes work undertaken across Scotland, England and Wales. The Partnership also acts as a critical friend, in terms of reviewing our policy interventions. 51. The Council will continue to work with the partnership, utilising the wealth of experience and expertise available, in order to ensure that the Empty Homes Strategy remains subject to on-going review. Advice & Assistance 52. The Housing (Scotland) Act 2006 places a duty on all Local Authorities to introduce a Scheme of Assistance. 53. North Ayrshire Council s Scheme of Assistance aims to improve property condition in the private sector. The scheme replaces improvement grants with a range of advice, assistance and information options. 54. In terms of Empty Homes, the Scheme is both our primary method of preventing homes from becoming empty, as wells as our main method of bringing homes back into the viable housing supply. 55. The Scheme allows us to support owners in identifying cost effective methods of addressing condition, maintenance and improvement issues in their homes, provide information on selling empty homes, and give advice and assistance on how to become a landlord. 56. The Council will record all contact to the Scheme of Assistance, in relation to empty homes, as well as detailing the outcome of each case. We will aspire to pursue cases where loss of contact results in no recorded outcome to the case. Becoming a Landlord 57. Some owners may be interested in becoming a landlord but are unsure how to proceed. 58. The Council recognises the role that a good quality private rented sector plays in terms of meeting housing need. We will provide a range of advice, 12

14 assistance and support empty home owners who wish to become landlords, by supplying information on: Landlord Registration; Tenancy Deposits; Choosing a letting agent; Responsibilities and rights; Eviction issues; Managing tenants with arrears or Antisocial Behaviour; Improving property condition; Managing communal repairs; and The Council s Rent Deposit Guarantee Scheme. 59. We will also provide contact details of national groups which landlords may wish to join. These groups represent the interests of landlords and often provide further information and advice as well as training courses. 60. The Council holds a minimum of two Landlord Forums per year. These forums allow landlords the opportunity to network, discuss their issues, and are a mechanism employed by the Council to notify landlords of changes in legislation or provide information on landlord related issues. Rent Deposit Guarantee Scheme 61. The Council s Rent Deposit Guarantee Scheme assists homeless and potentially homeless households gain access to good quality, affordable private rented accommodation. 62. The Scheme may be able to assist empty home owners become landlords, by: Finding them a suitable tenant; Preparing the necessary tenancy documents; Providing a written guarantee in lieu of a cash deposit; and Offering advice and support on relevant housing legislation. Empty Homes Loans 63. The Council has established a loan fund for empty home owners, which provides 0% loans for the purpose of bringing empty homes back into use. The model allows owners to earn an income from the property by renting it out in the private sector. 64. The fund offers interest free loans of between 2,000 and 15,000, to owners of empty homes to help with the cost of repairs. 65. The loan scheme will be subject to on-going review, to ensure that the terms and amounts available are attractive enough to allow for a sufficient uptake by empty home owners. 13

15 Repairing Lease 66. The Scottish Government's "Review of the Private Rented Sector: Bringing Private Sector Empty Houses into Use" notes that the repairing standard may inhibit some landlords from re-letting vacant properties, and considers repairing leases as an effective way of utilising empty homes. 67. A Residential Repairing Lease Agreement is where an empty home owner leases their home to a tenant at a very low rate of rent. The tenant, in turn, becomes responsible for all home repairs. 68. In a Residential Repairing Lease, by mutual agreement, the landlord can be contracted out of their obligation to ensure the house is fit for habitation for the duration of the lease. 69. In general terms a Residential Repairing Lease can be created provided: it is stated as a term of the tenancy that the tenant is responsible for the required repair works; the lease is for a period of not less than three years; and neither party will have the option to terminate the lease within the first 3 years. 70. Landlords who wish to pursue this option should seek independent legal advice before proceeding. Empty/Vacant Property Management 71. An empty home owner who is unwilling to sell in the current market and who is unwilling to become a landlord may wish to consider using an empty property management company. 72. These organisations can arrange for a property 'Guardian' to stay at the property, reducing the threat of a property falling prey to vandalism and theft, and maintaining the property's sale value. 73. If the empty home owner lives out with the area, the Guardian can also allow access to any potential buyers. 74. Guardians are not tenants and only require 3 weeks notice to vacate a property. Empty Homes Buy Back 75. In some exceptional cases, the Council may consider the purchase of empty homes, in areas of very high investment priority, as indicated within the Local Housing Strategy , and current Strategic Housing Investment Plan

16 76. Where buy back is considered, the Council will: seek an independent valuation; pay no more than a fair market value; take account of the length of time empty; assess the condition of property and the level of investment required to subsequently bring the property up to the Scottish Housing Quality Standard; and take account of the issues caused by the empty property. Auction 77. Owners who are struggling to sell their properties may wish to consider auction as an alternative to the more traditional route of selling through an Estate Agent. 78. Those selling at auction can set a reserve price (ie. minimum price at which they will sell). The information in the Home Report will also provide some comfort to those bidding for the property. 79. Empty home owners may find that their homes achieve a satisfactory sale price, as well as a quick sale, through this method. Matchmaking 80. A Matchmaking Scheme seeks to introduce empty home owners who want to sell their property, to people or organisations who may be interested in buying it. 81. The scheme can be used for any empty home, regardless of condition. Some purchasers are interested in buying homes which are in a move-in condition, giving them the advantage of vacant possession. Others are attracted to development opportunities, where some form of repair is required, and where the home is being offered at a more affordable price. 82. The Council will consider the viability of a local matchmaking scheme over the lifetime of this strategy. Financial Assistance 83. In the current financial climate, the availability of grants is significantly reduced. However, the Council understands that even small contributions can help with redevelopment costs. For example, there may be a reduced VAT rate resulting from construction works. 84. Empty home owners are encouraged to seek independent financial advice in order to ensure they are accessing all financial advantages to which they are entitled. 15

17 85. The Council will continue to monitor the availability of grants or other financial incentives and disseminate relevant information through the website ( Council Tax Levy 86. Since April 2005, Scottish Local Authorities have had the power to reduce the council tax discount for long term empty properties from 50% to a minimum of 10%. This reduction was intended to act as an incentive for owners to bring their empty homes back into use. 87. North Ayrshire Council implemented this reduction and the additional income collected as a result has been used locally to help secure additional affordable housing. 88. Currently in North Ayrshire, empty homes, which are unfurnished, may be fully exempt from Council Tax charges for a period of up to 6 months. In North Ayrshire, after the expiry of any initial exemption, a 50% discount is awarded for a further period of 6 months, with a 10% discount thereafter. 89. In addition, the Council Tax (Variation for Unoccupied Dwellings)(Scotland) Regulations 2013 now allow local authorities to introduce a Council Tax Levy. 90. The legislation allows for the discount on empty homes to be removed, and a levy of up to an additional 100% Council Tax to be charged on properties that are classified as empty under Council Tax legislation (ie. the property is not a sole or main residence, nor is it a second home and it has been unoccupied for a continuous period exceeding 12 months). 91. This means that owners of long-term empty homes could be charged double Council Tax for their property. 92. North Ayrshire Council has deferred the decision to vary the discount levy until the empty homes strategy has been operational for 6 months. The Council will continue to monitor the impact of empty homes in the area, and may, in due course, consider introducing such a levy. 93. The introduction of the Council Tax levy will be publicised before introduction. Factoring 94. The Property Factors (Scotland) Act 2011 requires North Ayrshire Council to act as a Property Factor where the Council owns one or more properties in a common block. 95. As a Property Factor the Council has a management right to instruct repairs and maintenance to the common parts of a property. 16

18 96. In the case of empty homes, where essential works are required to factored properties, the Council will complete the works and re-charge the owner for their appropriate share of the cost. Abatement Notices 97. The Environmental Protection Act 1990 s.80, allows the Council to serve notice against empty homes which are causing nuisance. 98. Nuisance is defined as properties which could have a harmful effect on health, for example: unsanitary or filthy conditions; verminous or infested conditions; the emission of smoke, fumes or gasses; and the accumulation or deposit of household waste, excessive dog fouling etc. 99. An Abatement Notice orders the empty home owner to put right the problem that is causing nuisance and sets a time limit in which works must be completed Where the empty home owner fails to meet the requirements of the Abatement Notice, the Council may choose to rectify the nuisance problem and recharge the owner for all costs, or take court action against the empty home owner. Wasteland Notice 101. In order to address issues relating to the visual amenity of an area, where this may be compromised by an empty property, the Council may use powers available under the Town and Country Planning (Scotland) Act 1997 s.179 to serve a Wasteland Notice The Notice may be used for empty homes, where the land surrounding the property, and within the boundary of the property, has been subject to fly tipping The Notice sets out the action that needs to be taken by the owner to resolve the problem, and how long has been allowed for this If the empty home owner fails to take appropriate action in response to the Notice, the Council can choose to rectify the situation themselves. In such instances, the owner of the property can be recharged for all costs incurred by the Council. 17

19 Dangerous Buildings 105. The Building (Scotland) Act 2003 s29 and s30 gives the Council authority to serve notice on owners of empty homes, where it is considered the condition of these homes are such that they pose a threat to the safety of the public or to adjacent property Where the level of disrepair is such that it requires an immediate solution, the Council will remove the danger (carrying out all necessary works to do so, which may include demolition) and, where possible, notify the owner of the action being taken In cases where the need to take action is less immediate, the empty home owner will be asked to carry out the necessary works Where owners fail to adhere to the requirements of the notice, the Council will take action to protect those at risk. All costs and expenses in relation to any action taken by the Council will be reclaimed from the owners. Abandoned Tenement Buildings 109. In instances where a tenement block has been entirely unoccupied for 6 months, the Tenement (Scotland) Act 2004 allows any owner of a property within the building to apply to a Sheriff for the power to sell the building The proceeds from the sale will be split between the owners. Compulsory Purchase Orders 111. A Compulsory Purchase Order allows the Council to acquire an empty home without the owner's permission. Orders can be considered only in appropriate cases (ie. where statutory powers exist and a strong case can be made that such an Order is in the public interest) Before it can proceed, a Compulsory Purchase Order has to be confirmed by the Scottish Ministers. Ministers are responsible for assessing the public benefit of an Order against the interests of the people affected. They are also responsible for fully considering any objections to the Order The Council would only consider pursuing a Compulsory Purchase Order in very exceptional cases, and only after all attempts to reach agreement for purchase with the owner had been exhausted. Corporate Response Team 114. The Council will develop a hierarchy of criteria, which will allow us to prioritise the impact empty homes have on their surrounding area, and in turn, identify the best course of action for tackling the problem. 18

20 115. In order to address the issues arising from exceptional cases, where properties are having a significant detrimental impact on the surrounding neighbourhood or environment, the Council will establish an Empty Homes Response Team The Team will meet as required, to discuss and consider how to address significant issues relating to empty homes, on a case by case basis. 19

21 Measuring Success 117. It is not possible to measure the success of the policy interventions outlined in this strategy just by counting how many houses are empty This is because homes are becoming empty for the first time throughout North Ayrshire over the course of any year. The emerging empty homes figure could offset the number of properties which have been brought back into use through policy interventions discussed in this strategy It is also difficult to assess how well something has been prevented (ie. the success of the Strategy in terms of avoiding a home becoming empty). This is because it is very difficult to apply a value or count to something that hasn t happened Improvement of data can also cause the empty homes figure to increase when the actual number of properties which are empty has not changed; it is only that we are better able to identify them Nonetheless, it is important to the Council that we are able to assess the success of our interventions. Therefore, we will assess the number of homes brought back into use as a result of engaging with the Council, or the implementation of the policy interventions discussed throughout this strategy. 20

22 Action Plan Action Output Target Output Date Indicator Frequency Data Type Data Source Baseline Data Prepare information and advice specifically targeted at empty home owners Leaflets, web pages and private sector advice line n/a March 2015 Number of empty homes brought back into use as a result of engagement with the Council Annual Empty Homes database Records in database N/A Set up an Empty Homes Loan fund to assist owners carry out necessary repairs to their properties Loan established and homes brought back into use n/a Ongoing from 2013 Number of loans issued Annual Empty Home database Empty Homes database 0 Set up a corporate Empty Homes Database Better information and data available March 16 Ongoing Establishment of database Once n/a n/a n/a Establish a corporate panel to consider and respond to exceptional empty homes cases which are causing a detrimental effect on the surrounding environment. A joined up approach to addressing properties which are impacting on the neighbourhood 2015/16 Ongoing No of Meetings of Group Annual n/a n/a n/a 21

23 Establish a hierarchy of criteria, to help prioritise empty home cases, and respond appropriately. Clear method of identifying the impact empty homes have on the surrounding area. 2015/16 Ongoing Publication of a hierarchy of criteria Once n/a n/a n/a 22