Empty properties FAQs

What is the problem with empty properties?

Across England there are over 650,000 empty properties and around 86% of these are privately owned (2005 figures). In Newham there are approximately 5,000 empty buildings or vacant plots which could provide suitable homes. At a time when there is a high demand for housing, empty properties are a wasted resource. Bringing them back into occupation will help in reducing the demand for high density new build and building on green space. Empty buildings can become a target for vandals and squatters; they attract rubbish dumping, anti-social behaviour and crime and they become eyesores which bring down the value of neighbouring properties. There will always be a number of properties empty due to people moving around the property market or where properties are undergoing refurbishment, but the properties that cause most problems are the ones that are vacant for longer than 6 months.

What is the cost of leaving property empty?

An empty property is an asset at risk. Owners of empty property are losing money on an asset, which should be making money. The cost of a vacant home to the owner and the local authority is around £5,000 per year. The added value of an occupied home to the local neighbourhood economy is around £10,000 per dwelling per year. The value of empty properties depreciates rapidly, and there is a huge demand for housing. Letting out a flat or house can provide a significant income stream.

What do we do about empty properties?

We have a wide range of powers to deal with empty properties and the problems they cause. This could range from making sure that an empty house, which has been broken in to, is made secure to removing fly-tipped rubbish from a site. It could mean making a dangerous empty building safe using emergency powers or it could mean taking over the management of an empty dwelling on a temporary basis. We also have powers of compulsory purchase and this is the primary enforcement tool we use.

Where do we do it?

The main focus of our proactive work is creating new homes from empties in urban centres dealing with flats above shops or redundant commercial space. This has a positive impact on the regeneration of areas. We also deal with long-term empties wherever they are having a negative effect on neighbours.

What is a compulsory purchase order (CPO)?

This is where the Council takes legal action, which ultimately results in taking over ownership of a property. The Council has to give the owner best market price in compensation and we then seek to make sure the property is improved to a high standard and re-occupied by selling it on to a Registered Social Landlord (RSL). CPOs are not a simple or quick fix. The whole process can take between 2 and 5 years. We have to show that we have tried every other option to get the property back into use, but that those actions have not been successful. We have a national reputation for our CPO enforcement programme and are the lead authority in the East London sub-region on empty property work. Over 300 CPOs have been agreed by Members in the last 10 years and the overall empty "property" programme is currently numbering some 800-900 cases. Many properties have been brought back into use by owners themselves as we explain options to them. Around 90% of cases do not need us to take final ownership and control of the property.

Do you just deal with empty houses?

Unlike most other authorities Newham also targets vacant land and non-residential buildings for CPO activity, for example a derelict corner shop, a disused pub or an empty plot of land at a street corner. We want to reduce neighbourhood blight and nuisance issues, which often arise from such cases.

Does the council redevelop houses after CPO?

CPO properties are not redeveloped by the Council, but are disposed of to "preferred partner" RSLs where there is certainty that they will be renovated to a high standard and brought back into use within a reasonable time scale as social rented or keyworker housing.

Who pays for this?

We are part of the East London Renewal Programme working in partnership with other East London councils, the Greater London Authority, Empty Homes Agency, The Housing Corporation and Dominion Housing Group. This partnership receives money from government, which funds our CPO work. The money we receive from selling on CPO properties also contributes. The average CPO costs £225,000 at current 2007 prices unimproved.

What is an empty dwelling management order (EDMO)?

This is where we can take over the management of an empty property on a temporary basis because an owner is unwilling or unable themselves. We arrange for repairs to the property and then find a tenant. We act as manager, take all our costs from the rent and any remaining money is passed on to the owner. It is different from CPO because with an EDMO the Council never actually owns the property.

What is an enforced sale?

If the owner of a property owes the Council money - maybe from Council Tax or from a statutory notice we have issued - this can be registered as a charge against the property. If we enforce that charge we have all the legal rights of a mortgage lender under the Law & Property Act 1925 and we may force the sale of the property.

I own a property - What help can you give me?

There are several ways in which we can help, depending on the condition of your property and what you want to do. We can: 1.Direct you to the right people to speak to about planning and building regulation consents and advice you on how to select a builder. 2. Put you in touch with someone who could take a long lease on your property and then let it, making sure that you receive part of the rent. 3.Explain how you could sell the property and put you in touch with potential buyers (Local Space needs some comment here). 4.Give you advice on letting the property, what standards you would need to maintain in the property and how you should manage it; 5. Give you details of our landlord forum where you can share experiences and learn from other landlords. 6. Explain our accredited landlords scheme to ensure that you meet all the necessary legal standards if you decide to let the property. 7. Put you in touch with the housing benefit team to explain what role they have with some tenants and how you can be assured of rental income.

I've seen an empty house that I would like to buy - How can I trace the owner?

There are several things you could try: 1. Talk to neighbours or the local post office and shopkeepers to see if they have information. 2. Check to see if there has been a recent planning or building regulation application - the information given on that may include ownership details. 3.Contact the District Land Registry - you will need to pay a fee, but that would show leaseholder or freeholder details if the property is registered.

I know of an empty property that is causing me problems - What can I do?

Tell us about it and we will investigate the problems. It may be that we already know the owner or we can trace them and make them do works to improve the situation. Even if we cannot trace the owner there may still be things that we can do like getting repairs or improvements done ourselves and then placing a charge on the property.