No Use Empty Initiative Kent County Council Andrew Lavender Capital Project Consultancy

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No Use Empty Initiative Kent County Council
Andrew Lavender Capital Project Consultancy
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What we set out to achieve

• To improve the physical environment in four
  coastal districts of Kent - Dover, Shepway, Swale
  and Thanet by bringing empty properties back into
  use. These districts contain 19 out of the 20
  most deprived wards in Kent and over 3,000 long
  term empty properties.
• Agreed Performance Indicators (PSA Target 3
  Years)
• Return 372 private sector long term empty or
  poorly used properties, including HMOs, into
  occupation as quality accommodation (100
  increase on performance)
• Improve by 15 both residents perceptions of the
  physical environment and business confidence
• Scheme extended in 2009 to all Kent (12
  Authorities)

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Our Approach

• KCC appointed a project manager for the
  initiative
• Undertook initial collection of evidence,
  including residents business survey, survey of
  empty properties, mapping exercise (Empty Homes
  Agency)
• Appointed Tamesis - a PR media relations
  company to raise and promote the profile of the
  initiative
• Appointed Capital Project Consultancy Ltd (CPC)
  to provide professional and technical expertise
• Provide financial non financial support to the
  Districts

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CPC Role (Providing Guidance Technical Support )

• Provide professional and technical expertise,
  particularly in relation to enforcement action
  and training
• A floating resource to the district councils
  (virtual team)
• Hands on approach to deal with the most difficult
  properties
• Initiative three strands 5 millon capital fund
  to support (Revolving Fund)
• Loan Scheme
• Partnership Fund
• KCC Direct Purchase

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Loan Scheme

• Kent County Council not a Housing Authority
• Loans - 25,000 per unit, maximum of 175,000 per
  applicant.
• Properties must be sold or let on completion
  (decent homes standard)
• 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
• Must comply with money laundering regulations

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Loan Scheme - Outcomes

• Loans Approved to date 1.6 million 400k
  (Sell)
• 1.2 million (Let)
• Private Sector Leverage 3.4 million
• Number of units produced 99
• KCC average investment per unit 16,500
• Actual cost to KCC (interest only _at_5) 2,569 per
  unit
• Loans paid back to date 400K
• Viable applications in system 1.8 million

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Partnership Scheme

• Provide funding to facilitate
• 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
• Identifying the most appropriate course of action
  for individual properties
• Providing technical guidance on implementing
  their chosen course of action
• Working with EPO to encourage other departments
  to become more actively involved

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Direct Purchase

• Looking to acquire key properties to demonstrate
  benefits of returning empty properties back into
  use
• Link with the wider regeneration activities
• Look for opportunities to link with RSLs
• Link with construction training initiatives.

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Informal Advice Website www.no-use-empty.org

• Awareness
• Quarterly newsletters, leaflets, mail outs
• Developed databases for the authority
• Estate agents / management agents, builders
  developers
• Advice guidance always first course of action
• Open day empty property owners, each area
• Vat implications empty 10 years 0, gt2 years 5
• Capital Allowance Scheme (flats above shops etc)
• Home improvement agency, list of builders etc
• Advertise their property for sale for free
• 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.
• Website
• One stop resource for empty property owners and
  practitioners
• Hotline and web reporting of empties

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Training / Mentoring

• Empty property officers are from a wide range of
  backgrounds and the level of knowledge and
  experience varies considerably
• Training courses (CPC others) Low Cost
• When negotiations fail (EHA, ODPM, Manchester,
  Newham)
• 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
• Individual LA Training (in house)
• In total, over 560 Officers have attended the
  courses
• On the job training as cases progress

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When Negotiations Fail Enforcement Options

• Councils have a range of powers at their disposal
  to secure the improvement of properties
• To deal effectively with the problem takes a
  corporate approach and using the most appropriate
  legislation to deal with the problem
• Cannot secure the occupation of the property, but
  can make the owner take responsibility for their
  property
• Town Country Planning Act 1990 (Section 215
  adverse affecting amenity)
• Building Act 1984 (Section 77-79, dangerous
  structures ruinous and dilapidated)
• Housing Act 1985 2004 (improvement notices,
  EDMOs (24), demolition, CPO)
• Environmental Protection Act 1990 (Section 79/80
  statutory nuisance)
• Prevention of Damage by Pests Act 1949 (Section 4
  harbourage treatment of pests)
• Local Government (Miscellaneous Provisions) Act
  1982 (section 29 boarding up)
• Enforced sales procedure compulsory purchase
  orders
• Recovered 148,000 Works in Default 37,000
  Council Tax Debt
• 24 EDMOs Case (65,000 Council Tax 42,000
  Section 106 Agreement Monies)

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Section 215 Town Country Planning Act 1990
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Section 215 Town Country Planning Act 1990
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77 Eastern Esplanade, Margate Case Study
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77 Eastern Esplanade, Margate Case Study
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Achievements to date

• Strong partnership arrangements between KCC and
  the District Councils
• Increased output, knowledge, expertise of
  professional staff and development and sharing of
  good practice.
• 487 Properties brought back into use during
  scheme, target 372.
• 2010 target 650/850 achieved 803 to April 2009
  (All Kent LAs)
• Initiative has been extended to all Authorities
  in Kent

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Questions? Andrew.Lavender_at_kent.gov.uk
Contact No. 07867987550