Manchester City Councils Empty Property Works, Options Policies and Procedures 2007 - Overview Presentation by Dave Stott Head of Private Sector ...
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Manchester City Councils
Empty Property Works, Options
Policies and Procedures 2007
Overview Presentation by
Dave Stott Head of Private Sector Operations
Garry Wilson Principal Programme Manager
Housing Services
Manchester City Council
1 ds
Empty Property Works
¾ We have used all the metaphor's from tool kits
and tools to now illnesses and cures. We have
been Bricklayers to Doctors and all for empty
homes. All will become clear I promise. But before
we go into the terminal options a little word or
warning,
¾ There are many good owners of empty homes who
need help and advise, aspirins and TLC for
example.
ds
Empty Property Works
¾ MCC have lots of these types of options
¾ From Landlord Accreditation, Small Incentives,
loans and Equity Share options, Rentwise, Bond
Schemes, Voluntary Acquire Schemes, Assisted
Sales, Partner RSL Management Schemes , to
Facelifts and Streets Scene Grants
gw
Empty Property Works
z Agreement
z Advice and
options
z Always
willing to
work with
willing
Owners
gw
Empty Property Works
¾ But we are not here
today to talk about
those willing owners.
¾ We are here to talk
about how we treat the
‘crazy’ people. Mad as
hatters and jokers wild.
¾ Garry used to go into a
hot flush after that
description but now
only has a twitch when
in 100 mts of a bad one
ds
Empty Property Works
¾ Here we have a prime
example of an owner
with his head buried
in the sand!!
¾ Absolutely crazy
property owners but
perhaps not so funny,
for the residents they
effect
ds
Empty Property Works
¾ Add to these special categories some other
reasons
¾ Funny Money
¾ Die Hard
¾ Non Commercial
¾ Couldn’t Care Less
¾ Dead or and Disputes and just walked away
¾ You all know that work on empty private property
is complex and not easy
¾ We are going to describe the maximum power we
can and do use, i.e. take the properties off these
people
ds
Works In Default ‘
The Basics’
¾ After the service of the Notice, WID is the start of
most of our formal actions and powers
¾ Work in default in MCC is centrally controlled
¾ All expired legal notices are processed through
the wid team
¾ Ensures legal and audit proof system
¾ Is the start of all our enforcement treatments
¾ MCC expend circa 800k
gw per annum
Works in Default
Finance
¾ We Pay For ¾ We Recover
¾ Payments To Contractors
¾ Payments To
¾ Establishment Charges
Contractors ¾ Land Registry Fees
¾ Land Registry Fees ¾ Vat Payments which are
exempted when in
¾ Vat Payments
conjunction with
Statutory Responsibilities
gw
Manchester City Council
2007 Establishment Charges
WORKS IN DEFAULT
ESTABLISHMENT CHARGES BANDING SYSTEM
BAND ACTUAL COST
ESTABLISHMENT CHARGE (£)
LETTER TO CLIENT (£)
AManchester City Council
Doctors Options for Action
¾ WID covers all Tenures Occupied and Empty
¾ For Today just looking at Empty Properties
¾ Robust enforcement policy provides the base
¾ Our focus on the 8 primary empty property
treatments and cures
¾ Never just one treatment or ‘one treatment cures all’
¾ Local solutions for local problems
¾ Treatment may include a number of actions
¾ All the treatments to be described are open to you all
as a power, it is onlydsthe process you requireManchester City Council
Empty Property Diagnosis
¾ MCC’s Empty Property Strategy includes all the
various treatments within this presentation
¾ Flare Property register database recording case
history
¾ Individual top 20 targets for onward referral
¾ Centrally controlled Case Conference on options
and decision of preferred action
dsFirst Treatment
Debt Recovery Standard Procedure
¾ Main Actions Include ¾ Advantages
¾ Recovers costs outlay
¾ Standard debtors
¾ Makes asset become a
letters liability
¾ Land Charged debts ¾ Opens dialogue
¾ Disadvantages
¾ Person Charged debts
¾ Not directly focused
¾ County Court Actions on re-let
¾ Can not directly bring
¾ Bailiff Actions
homes back
gwFirst Treatment
Debt Recovery Standard Procedure
dsSecond Treatment
Further Enforcement Notices
¾ Proactive inspections
¾ Breach of Statute
¾ PDPA
¾ LGMP
¾ EHA
¾ PHA
¾ BA
¾ HA
¾ T&CPA
dsSecond Treatment
Further Enforcement Notices Focus
¾ Building Act 1984 ¾ Town & Country Planning
Act section 215
section 79
¾ Amenity of the area or land
¾ Blight to the area ¾ Can be served on land and
buildings
¾ Must be a relatively
¾ Caution does not cover all
decent area titles on land charge
¾ Can serve to improve the¾ Can be made to recover and
outside look of the sell property within
charging order remit see
property C/Tax recovery
¾ Solid Statute Law ¾ Solid Statute lawSecond Treatment
Further Enforcement Notices Focus
¾ Advantages
¾ All Statute can be used to target a property
¾ Through WID is the start of extra powers
¾ Can or will provide powers to sell if no
compromise is reached
¾ Is registered as charges and recoverable
¾ Disadvantages
¾ Do not on their own always result in reoccupationSecond Treatment Further Enforcement Notices Focus
Third Treatment
Voluntary Acquisition Process
¾ Advantages
¾ Need to have this
option ¾ Gains control of
property
¾ Use of RSL or
Developer partners ¾ Can either sell on or
retain within stock
¾ Purchase on
agreement Section 22 ¾ Resolves issues
Grant ¾ Disadvantages
¾ Arrange sale through ¾ Hard to let problems
Auction ¾ Caution with EP
¾ Especially useful pre purchase LA’s owning
CPO gw
the worst propertiesThird Treatment Voluntary Acquisition Process
Fourth Treatment
Compulsory Purchase Powers Area
¾ CPO Renewal Area ¾ Advantages
Section 93 HA 85 ¾ Removes heavy blight
¾ CPO unfitness Section ¾ Recovers costs on wid
285 HA 85 ¾ Starts Regeneration
¾ CPO special EP and ¾ Disadvantages
Planning Powers
¾ Open to Public Enquiry
¾ Paving Report,
Neighbourhood ¾ Contentious
Renewal Assessment, ¾ Not deemed user friendly
¾ Secretary Of State ¾ Relocation issues and
approval costly
dsFourth Treatment Compulsory Purchase Powers Area
Fifth Treatment Compulsory
Purchase Powers Single Property
¾ CPO single property ¾ Advantages
Section 17 HA85 ¾ Does resolve single
¾ Use of RSL or properties
Developer partners ¾ On selected properties is a
¾ Property either sold good option
when vested or ¾ Disadvantages
refurbished then sold ¾ Is open to Public Enquiry
¾ Initial costs recovered ¾ Initial outlay of funds
on sale (most cases)
¾ Have to keep funds for ever
¾ Secretary of State or decision on 30years
approval gwFifth Treatment Compulsory Purchase Powers Single Property
Sixth Treatment Empty Dwelling
Management Orders
¾ All Empty Properties ¾ Advantages
Over 6 months empty ¾ Compliments other powers
and not up to let or ¾ Brings property back
sale
¾ MCC use Lead RSLs under
¾ Must be reasonable open procurement and
¾ Must make case to Framework contract
RPT ¾ Disadvantages
¾ Interim and Final ¾ Hard to let areas
¾ Improve property ¾ Open to appeal
¾ Occupy property 7 14,¾ Perhaps not the final option
21, 28 years dsSixth Treatment Empty Dwelling
Management OrdersSeventh Treatment Enforced Sales
Registered and Unregistered
¾ Enforced Sale
procedure
¾ Requires Land Charge
¾ Takes first charge
¾ Covers Unregistered
Titles
¾ Will be detailed later
dsSeventh Treatment Enforced Sales Registered and Unregistered
Eighth Treatment Enforced Sales
Council Tax or Other Debt
¾ Special Enforced Sale ¾ Advantages
¾ Does not need land ¾ Tried and tested
charge ¾ Quite streamlined 6
¾ Does require debt months
¾ Charging order ¾ Brings property back
interim and final ¾ Recovers debt
¾ Judicial order for sale ¾ Disadvantages
¾ Preferred or open ¾ Stops if debts are paid
auction ¾ Does not work in
heavy blighted areas
gwEighth Treatment Enforced Sales Council Tax or Other Debt
Manchester City Council
Empty Property Summary
¾ Can use more than one treatment
¾ Specific treatments based on diagnosis on
property, history and circumstances
¾ Treatments compliment each other EDMO, ESP
and Enforcement Notices being an example
¾ Final part of this presentation will focus
specifically on MCC’s Enforced Sale Procedure
dsEnforced Sale
The Basics
¾ 1925 Law of Property Act
¾ Restrictions to use
¾ Types of titles Registered or Unregistered
¾ Types of process ESP standard and Charging
order for C/Tax. For today only the standard
¾ Types of sale open and preferred
¾ Does it Work
dsEnforced Sale
How it Works
¾ Empty Property
¾ Notices not Complied With
¾ Land Charges Registered
¾ Who Can Nominate Properties
¾ Property Inspected by Enf/S Team
¾ Property Accepted by Enf/S Team
gwEnforced Sale
The Process
¾ Property File Prepared
¾ All Original Notices Reserved
¾ L of P sect 103 served
¾ 3 Month Time Limit
¾ File Authorised by Director
¾ Completed File Formally Issued to the Property
Section Lawyers City Solicitors to proceed with
standard procedure
gwEnforced Sale
The Registration
¾ Check All Is Satisfactory
¾ Check The Title And Write To All Interested
Parties
¾ Complete Resolution And Apply To Register
Charge
¾ The Charge Is Registered
¾ The Charge is Deemed as 1st charge
dsEnforced Sale
Registration To Sale
¾ Monthly Meetings
¾ Auction or Preferred Owner Route
¾ Repayment Prior To Sale
¾ Why No Covenants as to Repair
gwEnforced Sale
Human Rights Implications
¾ Human Rights Act 1998
¾ 3 Types of Right: Absolute,Qualified, Limited
¾ Part 1 First Protocol
¾ Article 8 ‘Right to a Private Life’ Qualified Right
¾ Severely reduced to qualify by breach of statute
law
¾ Part 11 First Protocol
¾ Article 1 ‘Protection of Property’ Limited Right
¾ Severely reduced to limited right by breach of
statute law
dsEnforced Sale
The Preferred Sale
¾ The Property Is Sold
¾ Proceeds Left After The Discharge Of The
Charges.
¾ Remaining Proceeds to other Mortgagors or
Chargees if any
¾ Sirref and Holding Bank Account
¾ Proceeds` remaining kept for 12 years
¾ Section 29 LGMP in LPSA2 F&F
gwEnforced Sale
The Proceeds
¾ These Figures are only on properties actually sold
¾ Ratio through to auction is around 12 to 1 in
Manchester
¾ Land Charges £527,599.52
¾ Housing Costs £64,400.00
¾ Solicitors Costs £37,791.00
¾ Valuer’s Cost £68,603.00
¾Total £698,393.52
gwEnforced Sale
Case File prior
¾ 255 St Mary’s Road,
New Moston
¾ Empty for 11 years
¾ Blighting the Area
¾ Only Empty on the
Row
¾ Water ingress to
properties
¾ WID carried out in 94
gwEnforced Sale
Case File after
¾ Case opened 1999
¾ Property sold Dec
2000
¾ Proceeds £19,500
¾ Debts £2,623.56
¾ Costs of action
£1655.38
¾ £15,221.00 left to
claim
¾ Sold to Owner
Occupier
gw ¾ Property nicest in RowEnforced Sale
The Old ‘Before and After’ Shot
dsEnforced Sale
Achieved to Date
¾ 86 Properties Sold
¾ £911,385.53 in ESP Sirref
¾ 633 Property Land Charge Debts Repaid
¾ £1517,000.00 Land Charge Debts Paid
¾ ESP Guide sold to over 100 Councils
¾ 2 National Awards Won
¾ Included in ODPM policy on Empty Homes Guidance.
Good Practice example in the Empty Homes Agency
tackling blight. Good Practice example in the CIH
guidance on empty home actions
dsEnforced Sale
Disadvantages
¾ Does not work in
Heavy Market Decline
Areas
¾ Can be stopped if
debts are paid
gwEnforced Sale
Advantages
¾ Quicker than CPO
¾ Never own the
property
¾ Twin Aims
¾ a) bring property
back into use
¾ b) recover debts
¾ Appeals to High Court
gwEnforced Sale
Final Comment
¾ With the advent of the EDMO within the Housing Act
2004 together with the ESP they have expanded the
situations when used together they are the most
viable and expedient way to resolve problematic
properties.
¾ Main point again is that there is not a one treatment
cures all illness, it depends on the diagnosis
gwEnforced Sale Information
¾ There is a guide that you can obtain for a small
fee
¾ You are more than welcome to visit MCC and see
our systems. Perhaps not all at once
¾ Please ask any questions you may have.
dsThank You Any Questions
Manchester City
Council
Housing Services
2007
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