Empty Dwellings Management Orders - Briefing Paper – June 2006
Summary
Over the past three years, the Empty Homes Agency within a broad coalition has been campaigning for a new power of empty dwelling management orders (EDMOs). Where owners have turned down offers of assistance and have no clear reason why the property is empty, we believe that local authorities should have a new power to take over the temporary management of the property and bring it back into use.
This new power in the Housing Act 2004 gained Royal Assent in November 2004 with cross party support, and will become operational in July 2006.
1. The Problem:
1.1 There are currently around 689,000 empty homes in England. The majority of these properties are in areas of housing need. 85% of this property is privately owned and over 300,000 homes have been empty for more than six months.
1.2 Many local authorities talk to owners of empty homes and offer them help such as grants high housing need in return for bringing them back into use. Yet there are still private owners who will not act to bring their property back into use or offer any good reason why the property should not be used and let their property slip into decline. Local authorities do have powers of compulsory purchase; yet this can take many years and the main issue for them is not ownership, but occupation of these empty properties and to realise the potential of this wasted asset. Since 2003 the EHA has worked with MORI on a number of surveys of owners of empty homes (eg: Hammersmith and Fulham, Birmingham, East of England). While many owners will respond to voluntary methods, some owners have no interest in returning their empty home back into use.
1.3 Empty homes are bad news for the local community. Empty homes attract crime and vandalism and they de-value neighbouring properties (eg: in June 2003 ‘Hometrack’ stated that an empty property can de-value neighbouring properties by as much as 18%). A 2005 GLA report showed that the average cost of bringing an empty home back into use in London was only £12,000. Bringing private empty homes back into use help neighbours, who have to contend with the problems of living with such homes. We receive many calls from people who are suffering because they live near to an empty homes. It also gives the owner an additional income stream. It is a win-win solution.
2. What are empty dwelling management orders (EDMO)?
2.1 Where an owner of an empty property has turned down local authority offers of help to bring the property back into use, and has no plans of his own to bring it back into use, and, we argue, the property is in decline, the council should be able to use the home to meet housing need without the owner’s permission for a temporary period. It is important to state that an EDMO would only be considered when other voluntary routes had failed to bring the home back into use.
2.2 There are two types of EDMO. The first; an interim EDMO can be obtained by a local authority by application to an independent tribunal. The tribunal will hear the local authority’s and the owner’s case and make a decision as to whether an EDMO is appropriate. If they grant it, the interim EDMO can last for up to a year. During this time the local authority cannot put tenants in the property unless the owner agrees. If at any time the owner agrees to sell, let or in any other way cause the property to be reoccupied the order should be revoked.
2.3 Only if the owner still wants the property to remain empty will the local authority consider serving the final EDMO. This lasts up to seven years and gives the local authority management control over the property. The owner is entitled to appeal to the tribunal at any point if they feel the property is not being looked after properly, inefficiently or indeed if they consider they are being treated unfairly.
2.4 The new power relates only to empty property, where the local authority can prove that there is no attempt being made to bring the empty home back into use. It will not apply where there is a plan and progress being made to sell, rent or renovate the property.
2.5 There has been a lot of discussion in the press about these powers being used where home have become empty because the occupants have recently died. For a local authority to take statutory action in cases like this would be highly inappropriate, and the Act makes special provision to make sure that it will not happen. Empty homes are exempt from EDMOs whilst the ownership is resolved through probate. They are also exempt for a further 6 months after probate has been completed.
2.6 Anecdotal evidence from calls to the Agency’s London Empty Property Hotline and from local authorities across the country is that the prospect of these new powers is encouraging many owners to explore how they might bring their homes back into use and what help is available to them.
2.7 Ultimately these new powers, only used when voluntary methods have failed, should be judged by a reduction in the number of long-term empty properties and not the number of management orders granted.
2.8 This new power related only to private properties. There is an existing power for members of the public to place a Public Request Ordering Disposal (PROD) on empty public property. This power has been available since 1980. Just recently a community group in Liverpool issued a PROD against a number of empty homes, and this request was approved by the Secretary of State.
3. The History of Empty Dwelling Management Orders:
3.1 This idea was initially promoted by the London Borough of Hammersmith and Fulham (LBHF) as ‘compulsory leasing’. This London Borough estimated that there are approximately 1,000 empty properties for which compulsory leasing may be the only viable option. In addition to long-term empty homes, there is also a particular issue of empty flats above shops with the owners having no reason to bring these flats into residential use.
3.2 This idea is also supported by the Local Government Association, which appeared with the LBHF to give evidence to the Select Committee on empty homes in 2001.
3.3 The Empty Homes Agency raised the issue of compulsory leasing with Lord Falconer, the Housing Minister, at their meeting in March 2002 and with Lord Rooker at a meeting in September 2002 and Keith Hill in December 2003.
3.4 The DTLR Select Committee report into empty homes (20th March 2002) recommended that compulsory leasing should be undertaken on a pilot basis.
3.5 in its response to the Select Committee report (May 2002), the Government admitted that it “is attracted by the Committee’s recommendation for a compulsory leasing scheme for long term empty properties where the owner has refused all approaches by the local authority to bring the property back into occupation voluntarily.”
3.6 The Government then expressed interest in using new control orders to allow for the appointment of alternative management arrangements for such empty homes. It also recognised that primary legislation would be required to introduce such orders.
3.8 Empty Homes Dwelling Orders are also supported by the British Property Federation, Crisis, Homeless Link, Housing Justice, RICS, and Shelter.
3.9 In the Government’s Sustainable Communities Plan issued in February 2003, it was stated that “we plan to do more to make better use of long-term empty properties in high demand areas. We will consult during the Spring on giving local authorities powers to lease long-term empty properties to improve them and bring them back into use.”
3.9 In the summer of 2003 the ODPM launched a consultation paper at the EHA’s joint conference with the Social Market Foundation.
3.10 In the debate on the current Housing Bill both main opposition parties have tabled amendments in support of including empty homes management orders.
3.11 On 19th May 2004 the Housing minister, Keith Hill MP, announced that the Government wanted to introduce their own amendment to the current Housing Bill to include empty dwelling management orders. It became law in November 2004 with cross party support.
4. The Empty Homes Agency:
4.1 The Empty Homes Agency, an independent housing charity, seeks to raise awareness of the waste of empty property in England and works with others to promote sustainable solutions to bring empty homes back into use to meet housing need.
4.2 For more information on empty dwelling management orders, please contact the Agency on 020 7828 6288 or info@emptyhomes.com
June 2006