The UK is experiencing high levels of homelessness. Prior to the COVID-19 pandemic, local authorities saw over 280,000 people without a home, but with more 648,000 empty homes in existence.
The impact of empty properties can have a negative impact on communities - denying vulnerable families of a home; and if left vacant, can fall into a state of disrepair, attracting vandalism and damage to adjacent properties. However, local authorities have a range of powers to bring these homes back into use including Empty Dwelling Management Orders, Enforced Sales and Compulsory Purchase Orders.
The Enforced Sales route can be extremely beneficial for both the council and its community. The benefits include:
- Social Impact – it enables a property to become brought back into use for occupation, aiding regeneration of an area and removing the social impacts and empty property and create in an area.
- Council Tax – once the vacant property is sold, a local authority may be able to recover unpaid council tax arrears and will be able to generate council tax income going forwards from the new owner/occupier.
- Recovery of Costs – a council can recover all of its costs from the sales proceeds, including the costs of maintaining the property and costs of sale.
- New Homes Bonus – local authorities may be able to claim grants from central government where a long term empty property is brought back into use.
- Speed – the enforced sales process can often provide faster results than embarking on a Compulsory Purchase of a property.
Working in partnership with local authority officers, our experienced legal team can assist in the sale process providing the necessary legal and contractual documentation to expedite the sale.
Hinckley & Bosworth enforces sales of dilapidated empty homes
During 2018-2019, there were 225,785 long term empty homes. As with many local authorities throughout the UK, Hinckley & Bosworth Borough Council have identified a number of unoccupied private residential properties which have fallen into disrepair.
Under the Public Health Act 1936, the council contacted a private property owner whose empty property had become unsafe, instructing them to undertake specified remedial works. When this did not take place, the council undertook the building works and incurred the associated costs.
Local authorities have powers to recover debts owed, in the same way as a mortgagee in possession would do. In the event the incurred costs are not paid, the council may charge the property with a local land charge and subsequently register a legal charge on the property. This provides an opportunity to exercise a power of sale and dispose of a property. As such, Hinckley & Bosworth Borough Council served the property owner with the relevant notices under the Public Health Act 1936 and Law of Property Act 1925 - advising of the debt, and requested the costs were repaid in full. When costs were not forthcoming, we worked in partnership with the council to enforce the sale of the property. Using our specialist knowledge of enforced sales, we guided Hinckley & Bosworth Borough Council through the sale process, the preparation of the legal pack and contractual documentation, ensuring the property sale and recovery of monies owed.
Image courtesy of Hinckley & Bosworth Borough Council