Agenda item

Report of the Director of Environment and Neighbourhoods. To be introduced by the Cabinet Member for Housing Services, Private Renters, and Planning.

The report will recommend the use of Compulsory Purchase Orders to purchase four privately owned empty homes in the Borough, in line with the Council's revised Empty Homes Policy.

The Cabinet Member for Communities and Civic Life introduced the report which was seeking authority to use enforcement powers through the use of Compulsory Purchase Orders to acquire four empty homes set out in the report.

The Cabinet Member described the critical shortage of homes in the borough and how these privately owned homes have been deemed as long term empty and were subject to complaints by neighbours and the local community and had been targeted in accordance with the Council’s Empty Homes Policy 2020.

In response to a question from Cllr Connor , the sale proceeds of the CPO concerning the First Floor Flat 33 Priory Road N8 would be paid to the court. The owner would be able to access the funds from the court.

Following consideration of the exempt information, it was

RESOLVED

1.    To consider each of the four empty properties set out in paragraph [1.1] of this report on a case-by-case basis for an individual decision for the use of compulsory purchase powers under section 17 of the Housing Act 1985 to acquire each of the properties and agree to the making of a compulsory purchase order (CPO) for each of the properties.

2.    To authorise the submission of each those orders to the Secretary State for the Department for Levelling Up, Housing and Communities for each of the orders to be confirmed, under Compulsory Purchase powers.

3.    To authorise the Head of Legal and Governance to:

(a)  Agree the statements of reasons and make and seal each of the Orders for submission to the Secretary of State for consideration and approval (including the service of any requisition notices necessary to establish interests in the property) and to carry out the statutory notification required.

(b)  Confirm each of the Compulsory Purchase Order in the event of the Secretary of State returning the Order authorising the Council to do so.

(c)  Prepare for, and represent the Council at, any public inquiry held following submission of the Order to the Secretary of State.

(d)  Upon confirmation of each of the Compulsory Purchase Orders proceed with acquisition of the relevant property.

(e)  In the event that any of the owner(s) undertakes in the form of a legally enforceable cross undertaking to bring the relevant property back into residential occupation and use within a reasonable timescale, to authorise the Head of Legal Services in consultation with the Director of Adult and Housing Services to enter in to and enforce such an undertaking at any time during the CPO process for the property in question; and

(f)   Act in relation to any other procedural matters that may arise in the normal course of the CPO process.

4.    To approve (following vesting of any of the properties) the disposal of such property to a Registered Provider where possible, or to an individual or private developer for a sum equivalent to the open market value of the property, with covenants to bring the property back into use as soon as practicable; and to give delegated authority to the Director of Environment and Resident Experience to agree the final terms and conditions. All sale fees incurred by the Council are paid by the purchaser. Stamp Duty is not payable by the Council as CPOs are given Stamp Duty Land Tax relief so the Council is not penalised by using this enforcement tool. Properties are sold on in the same condition as the day of possession and the Council carries out no works prior to sale.

5.    To authorise the costs of each of the CPO to be met from the allocated capital programme; and

6.    To approve the recycling of the receipt from each of the disposal back to the capital programme budget for the continued private sector housing CPO programme; and

7.    To gives delegated authority to the Director of Environment and Resident Experience to agree any compensation to be paid (in accordance with the CPO Compensation Code) to each of the owners of and anyone with a legal interest (and entitled to compensation) in each of the properties as result of the CPO.

Reasons for decision

In accordance with guidelines all owners have received a series of five letters which advises of the Councils empty homes policy and the need for them to take steps to bring their property back into use. The letters follow a robust warning procedure and enforce the Council’s ability to use Compulsory Purchase Orders on their property should they not act themselves to return the property back into use.

Due to the lack of action and or co-operation following these warning letters from property owners, there is little confidence that these owners will ever take action to bring the properties back into use themselves. Following the use and consideration of alternative options, the use of CPO is being sought as a last resort.

The reason for these for properties being targeted and to aid in the decision making a brief outline on why each property should be considered for the use of CPO powers is outlined below. Full details can be found in appendix 1. All four properties have been through the council’s empty homes enforcement procedures and alternative options considered. Please see paragraph 6.5 which outlines enforcement process in summary for full details please see appendix.

Brief description and reasons for recommendation to CPO.

Ø27 Elsden Road N17

This property first came to attention of the Council in May 2018 when neighbours complained about the house being empty and in a very poor state of repair. Investigations identified that the original tenant of the property had been a hoarder and was moved into social care leaving the property empty. The house is owned by a company called Phillips (Family Properties) Ltd who had assured the Council that they would renovate it with a view to re-letting without delay. In spite of intervention by the Council and taking account of the impact of Covid 19 restrictions the house remains empty. The Company who owns the property have been forced to undertake work to mitigate further damage caused by squatters and anti-social behaviour. Despite the house now being clear of hoarded items the property remains in severe disrepair and is being allowed to continue to deteriorate which is now affecting the neighbouring property. Full Details are available in Appendix 1.

ØFirst Floor Flat 33 Priory Road N8:

This upstairs flat has been empty since the beginning of 2020 when the registered owner went to live with her mother in Coventry. She has not returned since and has not responded to any letters or emails that have been sent to her. The flat is in a poor state of repair and is affecting the ground floor flat as well as neighbouring property who have complained repeatedly to the council. Until recently there was no access to the flat as the side entrance (leading to an external staircase) was completely covered in overgrown ivy. This was cut back by the Council as it was also blocking the pavement. Full Details are available in Appendix 1

Ø118 Stapleton Hall Road N4:

This house was severely damaged by a fire in 2015 in which the previous owner sadly died. The house was so damaged that it was subject to a dangerous structure notice from Building Control which was complied with eventually by the nephew of the owner who is the beneficiary. The house is an eyesore in the road and is complained about regularly by neighbours.

There is now a new registered owner for the property who has stated that he wants to convert the house into four flats (there is planning precedent for this as next door is also converted into four flats) and has an investor on board. However there has been no activity at the site and due to the sheer dilapidation of the property the level of money needed to rebuild this house is likely to be vast. There is no evidence to suggest that the owner is in a financial position to do the renovation works required at this property in either a timely manner or at all. During which time the site continues to blight the local environment and cause issues for neighbours. This property has been taken out of Council Tax ratings, so no debt is owed. Full Details are available in Appendix 1

Ø2 Woodberry Crescent N10:

This large end of terrace property was purchased 6 years ago by a developer who has taken down the garages and gutted the property but then stopped work. There has been no communication with the Council, The house has hoarding around it which came down at the start of 2022 in high winds revealing that the house no longer has a front door which allowed anyone who wanted to gain access. This was reinstated but no work has started and there is no commitment as to when works will commence. This has been taken out of Council Tax ratings, so no debt is owed. Full Details are available in Appendix 1

Alternative options considered

Advice and Support - Advice and guidance is the first stage and an important part of the process and takes place at the start of any empty home engagement. Very few property owners require the incentive of public enforcement to seek a productive use of their asset. While some owners do leave their homes empty through deliberate choice many owners due to financial constraints necessary skills or having other concerns which make dealing with the property difficult and or too complex. Council Officers have therefore played a vital role at the start of initial engagement with all of these property owners offering advice, guidance and or support where possible. We have sought to advice and support in all the properties outlined but no action has been taken.

Enforced Sale – The Council has considered enforced sale for each of the properties. The reasons and route for using enforced sale are often complex, but broadly it can be used if the property has any of the following:

·Council tax debt.

Owners who have failed to pay their Council tax or Council tax premiums creating a debt to the Council.

·Land charge debt.

If the Council has undertaken works in default of an owner a charge is put on the property in order to recover the monies spent including an enforcement of that charge.

·The property represents a substantial public nuisance.

The property is affecting neighbouring property with regards to pest, ASB and or crime.

Enforced Sale was not considered an appropriate route for these particular properties as there is no debt owed on any which is a pre-requisite for the enforced sale procedure.

All four properties have been discussed at an empty property panel meeting which includes representatives from the following services: Legal, Council Tax, Planning Enforcement, ASB and any other service area that may have been involved with the property. The purpose of this panel is to look at all options and to agree and help inform decision making in terms of best and most appropriate courses of action for empty homes requiring enforcement and or possession.