Useful tip for owners of unoccupied buildings
June 14 2021The lack of available housing and the need to build more houses has been highlighted throughout recent years, significantly increasing pressure on local councils to find new homes and be more creative in accommodating residents at affordable levels.
One area of focus for councils is to speak to property owners who keep unoccupied buildings to ensure that they are re-occupied.
One step which councils can take is to communicate intent to apply to the First-Tier Property Tribunal for an interim "Empty Dwelling Management Order" (EDMO), which can be made if a property has been empty for at least six months. This can be an expensive process, and a council would usually wait longer than six months and try to persuade the owner to take action without issuing proceedings. If this is granted, a council becomes the manager of the property and would have up to 12 months to take steps to make sure that the property is re-occupied. This significantly reduces the rights of the property owner.
An EDMO grants the council powers to include a right to do works to the property and grant a licence to occupy. Unless a property owner authorises it, the council could not sell or let the property.
There are some grounds of exemption from an EDMO which include if they are genuinely trying to sell or let the property or they are in care but this represents a risk to property owners.
Secondly, a council may deal with empty properties by raising the council tax. In some circumstances, a council can increase council tax payable by 100% or more of the existing premium when a home has been empty for more than two years. Similarly, there are exemptions from this, including if the owner is receiving personal care or if the property is already exempt from council tax. This will vary between different councils, reiterating the need for proactive management of buildings.
The other option open to a council is to use compulsory purchase powers to allow the council to forcibly purchase the property, paying the owner compensation, thus taking away the owner's control.
Together with a greater emphasis on council spending and reduced housing supply, this is a genuine issue that property owners need to be mindful of.
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