‘Encouraging empty property back into use’  

Contents

• Aims of the strategy
• Introduction
• Empty property in Bath & North East Somerset
• The National Picture
• Action in Bath & North East Somerset
• Options for empty property owners
• Corporate and partnership working
• Measuring performance

Introduction

Bath and North East Somerset has a population of approximately 169,000 people. The Authority covers 352 square miles and is diverse in nature.  It includes the city of Bath, the towns of Keynsham, Radstock and Midsomer Norton and 49 rural parishes.  The population is spread, with roughly 50% living in Bath, 25% in the three towns and the remaining 25% in the rural areas.  A large part of the rural area comes within the Bath and Bristol Green Belt and includes parts of two Areas of Outstanding Natural Beauty.  The city of Bath is a World Heritage Site.

There are approximately 71,000 dwellings in the area.  The breakdown by tenure is as follows:

 Source: Census 2001

Property prices are the highest in the South West region, with the average house costing £222,115 in September 2003.  The private-rented market is also very strong, with rent of £800 per month for a two-bedroom house being commonplace. 

Bath and North East Somerset is a very popular place to live and has a buoyant housing market.  Property prices have risen over the years and developers are on the constant search for opportunities to meet the growing need.  As less new build opportunities become available it is inevitable that developers look to existing unused spaces and empty properties for housing development. 

Empty properties meet this criteria and should be capitalised as a significant source of new housing stock.  Many developers have successfully achieved schemes re-using empty spaces throughout the district, however a number of private sector empty properties still remain empty.

Bath and North East Somerset launched its first Empty Property Strategy in October 1999.  Since then nine private sector empty properties have been brought back into use, with the help of landlord renovation grants.  As we enter a new financial year and a potential change in the housing market, we can reflect on the last 3 years where we saw a growth housing climate and many empty spaces brought back into use.  The changing climate calls for evolving policies and strategies to combat empty property issues and to face the challenges ahead.

Empty Property in Bath and North East Somerset

Residential properties can become empty for a number of different reasons, most commonly when the property is for sale or in between tenancies. The empty property strategy focuses on those properties which have been empty for six months or longer. 

The table below illustrates the number of properties empty for six months or longer at 1st April 2003

Source of raw data: Information provided by local authorities to ODPM on Housing Investment Programme returns.

Historically it has been difficult to accurately record the number of empty properties. Many un-used spaces, which may have historic use as residential dwellings, have fallen into major disrepair and are no longer Council Tax banded.  For instance, there may be Georgian properties with empty basements. This is also the case for empty space above commercial premises, which may not have been considered for residential development.

The Housing Survey 2000 establishes that the affordable housing need in 2006 will be 2667 dwellings (this includes 935 households planning to leave the area due to a lack of affordable homes). In addition, the Council’s Homeseekers Housing Register has over 3,000 clients wishing to access affordable housing.  Between 2000 and 2005, the Council will, through its investment programme, have enabled the provision of an additional 540 affordable homes.  Despite this effort, the shortfall remains at 2127 homes.

Given the housing demand in the area and the shortage of suitable sites, looking to develop empty space above commercial is a serious option and should be explored fully.  It is part of the Empty Property Officers role to work closely with commercial estates, identifying those unused spaces, which lend themselves to residential dwellings.  There are many issues to consider when looking at space above commercial property.  For instance, the space could be locked within the existing commercial tenants lease, or the property could be a Listed building or subject to a planning change of use, which puts constraints on how the property can be used.  Working in partnership with other Council departments to improve information on those ‘hidden’ empty properties is an essential part of the Empty Property Strategy and will be covered later in this strategy.

The Empty Property Strategy has an important role to play in the development of our district, and links closely to other Council policies such as the Housing Strategy, Temporary Accommodation Strategy, The Affordable Housing Strategy, The Homelessness Strategy, Community Safety, the Community Strategy and the Local Plan.  Bringing empty properties back into use is an integral part of the Council’s Vision and Values and helps make Bath & North East Somerset a better place to live and work.

The National Picture

Empty properties are not a unique problem to this region.  It is estimated nationally there are 729,770 homes still empty across the country.

*HIP 2002 Raw data Regional and England grossed totals Total vacant dwellings at 1 April 2002

The government has acknowledged that empty homes are an important issue and wasted resource for some time. It has introduced a number of measures to improve the empty homes situation.

Empty Homes Agency – Launched in 1992 in response to the large number of empty homes the Empty Homes Agency is an independent campaigning charity,  working across the country with Local Authorities, Registered Social Landlords and in the private sector tackling empty property issues and campaigning for new powers to help utilise the wasted empty properties.

Current Government Legislation -With the introduction of The Housing Green Paper (Quality and Choice – A Decent Home for All) and The Urban White Paper (Delivering an Urban Renaissance) the Government is showing strategic commitment to improving empty properties.  The modernisation of the Local Government Finance Green Paper and the 2001 Budget all contain positive measures to encourage empty properties back into use including:

VAT reductions on:

• Renovation costs on dwellings empty for three years or more
• Converting a non-residential property into a dwelling
• Converting a house into flats
• Tax relief for converting residential space above shops for letting

Some measures that may come into force in the near future:

Giving discretionary power to the local Authority to charge 100% Council Tax to owners of empty properties. At present empty property owners receive a  50% discount.  This loss of this reduction will be a strong incentive for owners to ensure their properties occupied as the average Council Tax in Bath & North East Somerset is £939.08p (based on Band C property). Bath & North East Somerset Council will end the reduction for empty properties from April 2004.

The Government is currently looking into other solutions to help solve the empty homes problem.  In May 2003 the Office of The Deputy Prime Minister issued a consultation paper entitled Empty Homes: Temporary Management Lasting Solutions. The consultation paper proposes the Local Authority acquire the empty property for a period of time, carry out essential works enabling the property to be let for affordable housing. Currently a number of Local Authorities are taking part in a voluntary pilot scheme.

Options for Empty Property Owners

Individual grant allocations are intended to achieve the aims of:

• preventing homes from standing empty
• providing decent housing
• achieving good value for money 

There are several different types of grant available:

• Temporary Social Housing Grant – grant is paid by a housing association to cover the costs of works in order to bring the property up to a lettings standard, the property is then let out for 2 to 29 years
• Other Housing Grant – the housing association will purchase a property and renovate the property to a letting standard, providing permanent social housing
• Empty Property Grant – Maximum amount of £2,000 assistance offered to owners of properties empty for longer than 1 year.  Owners will need to submit a prescribed application form detailing proposed works and improvements to be carried out by a specific date.  The property will have to be let out for the following 3 years as a condition of the grant

Other Options the Empty Property Officer can assist with: 

• Bath & North East Somerset Deposit Bond Scheme – a guarantee that if there is any damage or rent arrears at the end of the tenancy the landlord will be able to claim against the bond
• The Good Landlord Guide – a written guide to assist those wishing to manage the letting of their own property.
• Providing advice on the letting of properties; Bath & North East Somerset Accreditation Scheme; and the renovation or sale of an empty property
• A feasibility study around Voluntary Housing Association Leasing scheme  has been completed and procedures set up. This is not yet operational, but is anticipated to be brought in within the next few years
• Other financial assistance initiatives – on occasions the Council may offer assistance to owners and landlords of empty properties

Corporate and Partnership Working

The Empty Property Officer is the facilitator and point of contact for the owner of an empty property and members of the public who identify an empty property and want to know more.  It is the role the Empty Property Officer to communicate the benefits of bringing an empty property back into use and to convey a message that having empty properties in an area with high demand for housing is not acceptable.

Housing Services focus on working with private sector property owners and landlords. This section will be able to assist with Legislation, local standards, enforcement and other appropriate action including Compulsory Purchase Orders.

Council Tax retains a large amount of information on private sector dwellings. This can help the Empty Property Officer identify hidden empty properties and those under renovation.  A good working relationship with this department can significantly assist with identifying and engaging with owners of empty properties.  It can also be a tool to proactively prevent properties remaining empty for long periods as the Council Tax Team are often notified at the early stages of a property becoming empty.

Development Control can play a pivotal role in breathing life into an empty property.  Planning permission is required where a property will undergo a change of use or where it is to be converted into flats.  We aim to work closely with Development Control to help clients understand the system and make their plans realistic.

Building Control is able to identify and highlight issues at the start of the project.  Under their guidance, issues can be addressed at early stages to avoid delays.

Historic Buildings Team can provide informal pre-application advice to owners or their agents on proposals requiring conservation area consent or listed building consent.

Property Services manage a large stock of commercial property mainly in central Bath.  On occasions some of this stock has empty or underused space within it, suitable to be used for residential purposes.  We are currently working with Property Services and in partnership with local Registered Social Landlords to regenerate this space, providing affordable housing, supported accommodation and temporary accommodation.  It is important this work continues, as the Local Authority should be leading by example.

Registered Social landlord (RSL’s) Principally five development partners: The Guinness Trust, Knightstone, Orbit, Somer Group and Western Challenge.  There may also be opportunities to work with other RSL’s specialising in the provision of housing for more specific needs.  If a project is going to be developed for social housing it will be these bodies who will take over the management of the building and tenancies upon completion.

Landlords Association of Wessex meet regularly to discuss private rented sector rented issues.  This is a good way to access private landlords and bring empty property issues to the forefront.

Town and Parish Councils and the community as a whole.  On a local level we hope the Town and Parish Council’s will adopt an enthusiastic approach to regenerating empty and unused spaces. Often it is the community that is the first to know about an empty property and can be most affected by a property being left empty, prone to vandalism, anti-social behaviour and falling into disrepair. Our aim is to work with internal and external partners and with the community as a whole achieving practical solutions to empty property issues