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

going beyond: project management business consulting construction and property services

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 HMO’s, 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 @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

RSL’s

• 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%, >2 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, EDMO’s (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 LA’s)

• Initiative has been extended to all Authorities in Kent


Questions?

[email protected]

Contact No. 07867987550

Documents

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