Empty Property Strategy 2024 - 2029

Definitions

Context

Second homes

Actions we can take

Empty property action plan 2024-29

Definitions

Short Term Empty Property: A property that has been empty for up to six months

Long Term Empty Property: A property that has been empty for over 6 months

Purpose of this strategy

This strategy is primarily concerned with empty residential properties. The strategy aims to identify the key thematic drivers behind residential properties becoming empty in the district, and to explore the reasons behind why they remain empty. The strategy shall also seek to outline a clear action plan detailing how the council will reduce the number of empty homes. The overarching aim of this strategy is to;

• help alleviate the housing need within the district
• to offer a wider choice of housing choice to residents, and
• to reduce the number of empty homes to minimise the blight that can result where properties are left empty and neglected.

Currently there are approximately 3400 people on Wyre Forest District Council’s housing waiting list. The District Council therefore looks at working to ensure empty homes are brought back into use as a matter of priority to help improve housing options within the district. As of August 2024, 213 vacant dwellings in the district have stood empty for more than two years. The Council believes at a time of such housing need this is a wasted resource and therefore it is seen as important to bring empty homes back into use. 

National Context

According to 2021 Census data, there are over 25 million homes in the country. 676,304 were recorded as being empty in October 2022 – a 3.6% increase on the previous year’s total. This represents 2.69% of all homes – more than 1 in every 50. 248,149 homes have been empty for over 6 months. This equates to 36.69% of all empty homes.

Regional Context

Of all the English regions and Wales, the West Midlands had the highest percentage of unoccupied dwellings that were truly empty (95.4%), although this region had the lowest percentage of unoccupied homes overall (4.8% of all homes). Furthermore, three bedrooms was the most common dwelling type for the West Midlands, East Midlands and Wales, unlike London where the modal type was one bedroom properties. For all other English regions, the most common type was two bedroom properties.

Local Context

Wyre Forest District is situated within northwest Worcestershire. The District is made up of three towns, Kidderminster, Bewdley and Stourport-on-Severn, together with a rural hinterland which includes many small villages. According to the 2021 Census, the population of the district is 101,600. According to the latest government data, there are 48,956 dwellings in the district. On the Council’s housing database there are currently approximately 3400 active applications for housing and 900 Gold plus categorised cases. Of these, 124 are in the priority banding (homeless) within Wyre Forest.

As of August 2024, there are 1,298 vacant properties in Wyre Forest District, 405 of which are currently classed as second homes. Although by no means the only solution, bringing these empty properties back into residential usage could contribute to meeting the District’s housing need through easing housing pressures for the district as a whole, for example by reducing the demand for new homes, which may help to reduce the use of the Green Belt that surrounds the district’s major urban areas for delivering housing growth.

The above line graph shows how the total number of vacant properties (including those classed as second homes) in the Wyre Forest District has fallen from over 1500 in the late 2000s to around 1200 in the mid-late 2010s, and has stayed roughly at this level since, with the total number of vacant increasing by 133 in the period 2022 – 2023.

Note1: These are truly long term empty properties that are still liable for council tax and have been empty for more than six months. They are also not subject to Empty Homes Discount Class D, nor are they empty due to specific flooding events.

Note2 This relates to accommodation used for rehousing homeless households on a temporary basis

As shown in the above table, the percentage of the housing stock in the social housing sector is well below the England average. This is balanced out by the proportion of housing in the private sector both being slightly higher than the England average.

The bar chart below demonstrates the number of empty properties in Wyre Forest District broken down by council tax band (A - H). As shown in the graph, the number of empty properties consistently decreases as the council tax band classification rises, with the empty count falling from 316 properties for band A to just 5 properties for band H. The pie chart below demonstrates the same data in pie chart format.

The following table and pie chart display the number of empty properties in the Wyre Forest District, broken down by how long they have been empty for and the associated council tax surcharge the owner must pay on that particular property. The longer a property is empty for, the greater the council tax charge that can be levied upon that particular property.

68 of these properties are currently in receipt of a 50% discount for a maximum of 12 months as they are empty but currently undergoing major/structural repairs.

Worcestershire Comparison

The table below shows the total number of vacant dwellings and the total number of long term vacant dwellings for all six of the Worcestershire districts in the period 2004 – 2022. The table also shows the percentage of vacant dwellings accounted for by long term vacant dwellings for all six districts.

The approximate percentage of properties that are empty and long term empty for each district is as follows:

This line graph depicts the proportion of empty dwellings classed as long term vacant for each of the six Worcestershire districts in the period 2004 - 2022. The graph uses percentages rather than raw numbers as the number of properties and total population of each district varies considerably, therefore percentages is the best way to compare across districts. As shown in the graph, the percentage of vacant properties classed as long term vacant in Wyre Forest district has fallen considerably from over 46.46% in 2009 to 17.94% in 2022 – this is well below the proportions of the other five districts.

Second Homes

Although historically confined to more tourist areas, the issue of second home ownership is a growing one in Wyre Forest district. Please note that the following data on second homes does not include caravans and other forms of mobile home.

Second homes are not subject to council tax increases, providing they are classed as “substantially furnished”. Whilst there is no hard and fast rule with regards to what qualifies as substantially furnished, it is often calculated in terms of what proportion of the house is furnished or filled with furniture, as opposed to the raw number of furnishings or appliances within a property. One rule of thumb is if all the property’s furniture fits into one of its rooms, then the property could be considered unfurnished.

In total, there are 361 people living around the world who own at least one second home in Wyre Forest district. The reason this figure is lower than the total number of second homes in the district (405) is because some of these people own two (and in some cases three) second homes in the district. There are 16 second homeowners whose primary residence is not in England. There is a significant minority of homeowners located in the USA.

There are 70 properties that are listed as second homes that are still in the names of the executors of a deceased’s estate.  Wyre Forest District Council is currently processing these with a view to clarifying who should be liable for the council tax.

As shown in the above bar chart, the vast majority of properties classed as second homes within Wyre Forest District are situated within council tax bands A to D, with band A representing the modal council tax band in this instance. Please note that the bars add up to 375 total second homes as the data breaking down the most recent total of second homes by council tax band is not yet available.

Wyre Forest District Council does not currently have any plans to increase the council tax levied upon second homes although the Levelling Up and Regeneration Act has given Councils the ability to increase this.

The council will investigate and consider actions on second homes that are the subject of complaints from local residents, are clearly abandoned or are not being used as second homes.

The table below shows the number of second homes in Wyre Forest district. The latest figure (as of 2023) is 375.

How this compares to the other Worcestershire districts

According to data from the Office for National Statistics and as shown in the table below, Wyre Forest had the third highest number of second homes of all the Worcestershire districts in 2023, behind Malvern Hills and Wychavon.

Actions we can take

The council will work in partnership with property owners to bring properties voluntarily back to use. We do this through a variety of methods. When resources allow, we write out to selected owners of empty homes with a questionnaire to find out the reasons why the property is empty and whether the owner is actively working to bring it back into use. We include advice and information and will follow up over time to see if progress has been made. Work on Empty Homes is a discretionary service using powers the council has rather than any legal duty and does depend on the resources available within the team to pursue empty homeowners. Complaints by tenants in poor standards of housing or other cases where there is direct health or environment impact occurring will always take priority. f negotiations fail and the property owner is not willing to respond and take action to bring a property into use, there are several different enforcement options at the council’s disposal. Please note that the government legislation has been ordered chronologically, in order of when it passed into law. Enforcement powers below are covered by the council’s Private Sector Housing Enforcement Policy.

Prevention of Damage by Pests Act 1949

This act gives the council the power to require a property owner to keep their empty property free from rats and/or mice. This can be used to require a property owner to clear accumulations of rubbish from gardens and in the property itself.

Local Government (Miscellaneous Provisions) Act 1982, Section 29

If a property is empty (or the owner is absent) and unsecured, or presents a danger to the public, the council can require an owner, or in default, conduct necessary measures to secure the property (e.g. by boarding it up) so as to prevent public access in the interests of public safety. Attempts to contact the owner must be made and normally 48 hrs notice is given.

Building Act 1984, Section 79

If it appears to the council that a building or structure is by reason of its ruinous or dilapidated condition seriously detrimental to the amenities of the neighbourhood, the council may by notice require the owner thereof—

1. to execute such works of repair or restoration, or
2. to take such steps for demolishing the building or structure, or any part thereof, and removing any rubbish or other material resulting from or exposed by the demolition, as may be necessary in the interests of amenity.

Furthermore, if it appears to a local authority that—

1. rubbish or other material resulting from, or exposed by, the demolition or collapse of a building or structure is lying on the site or on any adjoining land, and
2. by reason thereof the site or land is in such a condition as to be seriously detrimental to the amenities of the neighbourhood, the local authority may by notice require the owner of the site or land to take such steps for removing the rubbish or material as may be necessary in the interests of amenity.

This legislation is very limited in practical terms.

Housing Act 1985, Section 17

This Act gives the council power to take over land, houses, or other properties to increase the number of houses available or improve the quality of the housing stock. The main uses of this power are to obtain land for housing. This includes bringing empty properties back into use as homes and improving substandard ones. Where the council obtains control of a property via this power, the council will usually sell it to one of:

• a private-sector developer
• an owner-occupier or
• a registered social landlord

This power requires the authorisation of the Secretary of State. There would have to be good reason presented and the council would bear the costs of that purchase.

Town and Country Planning Act 1990, Section 215

If it appears to the council that the amenity of a part of their area, or of an adjoining area, is adversely affected by the condition of land in their area, the council may serve the owner and occupier of the land a notice under this section. The notice shall require such steps for remedying the condition of the land as may be specified in the notice. This remedying must be conducted within a period of at least 28 days following the service of the notice.

This power can typically be used when the property is affecting the visual amenity of the public space significantly.

Housing Act 2004 Improvement Notices

If it is felt that reasonable progress to bring the property up to habitable standards is not being made, the council can issue a Housing Act 2004

Improvement Notice. This stipulates that a property owner must bring their property up to a habitable standard within an allotted period of time. This cedes a number of powers of enforcement to the council. These powers are as follows:

• Powers of entry – This allows the council to enter a property to inspect it if the owner refuses grant the council access to the property. The council must give at least 24 hours’ notice for this. If the council is still prevented from gaining entry after this, then the council may obtain a warrant to enter the property from the courts. This will allow the council legal access into the property.
• Power to require information – the council can serve notices asking for certain information. An example of this would be information about who owns a property. This allows the council to act to improve the property using the other powers described in this section.
• Powers to enter a property and carry out work. If the property owner does not carry out work to the standard specified and the timescale set by a notice, the council has the option of doing the work and charging the owner for it.
• Power to take over managing properties – there are a number of reasons why the council may choose to do this, including not being able to issue a licence or if a property has been empty for a long time.
• Power to issue a fine to a property owner who fails to comply with an improvement notice, i.e. does not undertake the specified works in the timescale set.

Building Act 1984 - sections 77 and 78 - Dangerous or dilapidated Buildings or structures

Under these powers the council can order an owner to make a property safe or allow the council to take emergency action to do so.

Compulsory Purchase Order (CPOs)

CPOs are designed to prompt property owners to enter into constructive dialogue with the council, with the CPO itself representing a last resort, something which will only be pursued where there appears to be no other chance of a suitable property being used as a home. Before a CPO is confirmed, the council will have to show that we have taken steps to encourage the owner to bring the property into acceptable use. The council will also need to show that our reasons for making a CPO are justified and this includes having a realistic end user or use in mind. It also requires the council to demonstrate the need to use the power for the benefit of the community.

It is important to bear in mind that the CPO process takes a long time and requires significant input form the council’s legal team throughout the process, along with the appointment of CPOI experts and a Barrister if the CPO is contested. This can have serious financial implications for the Council and would require a Cabinet decision to pursue this approach.

Empty Dwelling Management Order (EDMO)

EDMOs were introduced in July 2006 under the provisions of the Housing Act 2004. This allows the council to make EDMOs on properties that have been empty for at least six months and to ensure that the empty property is used for housing purposes. There are two types of EDMO – interim and final. An interim EDMO lasts 12 months but a final EDMO can last up to seven years. The intention of an EDMO is to bridge the gap between voluntary measures and existing enforcement procedures. EDMOs provide a back up to such arrangements where owners have turn down offers of assistance and do not have plans of their own to bring the property back into use. The threat of an EDMO is intended to put pressure on the owner to enter into constructive dialogue with the council with the object of agreeing the best course of action to secure occupation, thereby avoiding the need for an order to actually be made.

An EDMO allows the council to:

• ‘step into the shoes’ of the owner that owns an unoccupied building and
• make sure that the empty properties are occupied and managed properly.

The council will bring the property back into use but it will still be owned by the owner. The Council can take any costs incurred to improve the property from the rents the council receives when the property is let. In practical terms an EDMO does give the council responsibility and liability for the property and works to make it habitable. It would also not necessarily provide any income above the costs and require management. The council is not a stock holding authority that could rent the property out directly. Use of this power would require significant capital input and revenue staffing costs to manage. Longer term empty properties are usually in a very poor condition and require tens of thousands of pounds to bring them up to a habitable standard. It may therefore be more appropriate to focus this policy approach only on properties in good condition. Further input would be required by the Council’s legal team with regards to the type of tenancy or license that would be applicable to this type of accommodation.

Enforced Sales Procedure (ESP)

This power falls under the Law of Property Act 1925, Section 103. The power gives the council an option to recoup debts above £1,000 and could have a secondary effect to bring empty properties back into use through forcing a change in ownership. This is less complicated than Compulsory Purchase Orders and can be used in conjunction with resolving outstanding debt associated with the property, for example from council tax debts or where the council has undertaken Works in Default of the owner and not been paid for those costs. A charge is placed against the property for the outstanding debt.  The Council then forces the sale of the property to recover the outstanding debt for the works unless the property owner has already paid that debt.

This approach requires some court costs of application and legal support time as well as the officer time to put any case together for the court.

Whilst it may be the intention to force the property back into use, it is possible the property owner will pay the outstanding money owed. In that case alternative options such as CPO will need to be considered.

Typical Scenarios

For short term empty properties presenting issues that appear transient, it is most likely the council will pursue only the issues arising such as rubbish needing clearing or the property needing securing.

For long term empties, in particular those resulting in community impacts, as well as using appropriate powers to tackle the presenting issues, the council will seek action by the owner to bring it back into use. If that is not happening then the council will use Housing Act 2004 to ensure the property is brought up to a habitable standard. If this or other action results in charges against the property, then the enforced sale route may be considered if applicable.

Action will be taken on a priority basis based upon factors including the length of time empty, local housing need and community impacts. A typical flowchart of actions is set out below. It is important to note that this schematic is by no means prescriptive of the council’s actions as these are fundamentally limited by the resources and staffing available to the council at the particular period in time.