1 million empty homes
(350,000 empty long term)
2 million families in need of a home
Own an Empty FAQ
Private owners have 88% of the empty homes and there are dozens of reasons why these homes become empty. Very often the cost of getting the house back into use is prohibitive for the owner. We want to help. Here are the answers to some frequently asked questions that might be useful if you own an empty home and need some help getting it back into circulation.
1. Why should I bring my empty property back into use?
Owning an empty property is an expensive responsibility - you need to maintain payments such as Council Tax and insurance, while also dealing with security, maintenance and repairs. This, combined with loss of rental income, can add up to more than £7,000 a year for the average house - and that's not including any mortgage payments. By bringing empty homes back into use you will not only benefit financially, but are also able to offer a valuable asset to the wider community. Renovating an empty property helps those in need of a decent home, and is a tangible way of solving the current housing crisis.
2. Are there are any other advantages of bringing my empty home into use?
If your property has been empty for two years or more, you will be able to claim a VAT reduction on the cost of refurbishment. VAT will be charged at a rate of 5% instead of 20%, while renovation works to properties that have been empty for over 10 years will be zero rated. However, the government is hoping to introduce new legislation to increase the council tax liability on homes that have been empty for over two years, so this would be yet another real incentive to get your property back into use.
3. How can I get my empty home back into use?
There are a number of options open to you, and these are available regardless of the condition of your property, and whether you intend to sell it or let it out. If your property is in a good condition, you may decide to let it to your local council, to a housing association, through a private letting agency, or direct to tenants with yourself acting as landlord. Letting out an empty property reduces the chances of your property being trespassed upon or vandalised, as well as providing significant financial rewards. Alternatively you may wish to sell your property to a housing association or on the open market. For details of housing associations with purchasing schemes in your area, contact the Empty Homes Officer at your local authority.
4. My empty home is in poor condition - is there any way I can borrow money at low-cost to bring it back into use?
We are campaigning for a low-cost loan fund to help people wanting to bring empty properties back into use. We want two types of cheap money to be made available: firstly, funds that empty home owners can use to bring their properties back into use (and then let them to tenants at a reduced rent in return for the tenant helping to refurbish the property) and, secondly, funds that enable people to do refurbishment work on empty homes in lieu of paying a deposit, and then secure a low-cost mortgage to buy the home they've helped to renovate. We're also asking the government to call on high street banks to improve their products for people who are struggling to get on the housing ladder.
5. Can I be forced to bring my property back into use?
Councils are able to offer information, guidance and support to empty home owners, as well as financial assistance for help bringing that empty back into use. However, when these efforts fail there are a range of powers available that can be used to bring empties back into use:
- Compulsory Purchase Order: As a last resort, your local authority has the power to buy your empty property, with or without your permission.
- Enforced sale: if you have debts to the council secured on your property, the council can require you to pay them back. If you don't, the council are able to force the property's sale in order to get the money.
- Empty Dwelling Management Order (EDMO): introduced in England in 2006, an EDMO allows the council to take over the management of some residential properties. The government is proposing to change the EDMO towards the end of 2011 or early in 2012 so that it can only be used with the most problematic of properties. The EDMO means that you might lose your right to decide how your property is managed, and also to decide who lives in it if it's been empty for more than 2 years and is causing a nuisance to the local community. The only sure way to prevent this happening is to get your property back into use.
6. Is there any way that people can take over empty homes?
At the moment only councils can use the existing law to get their hands on long-term empty properties, particularly by applying for EDMOs. In effect, however these are rarely invoked. We are campaigning for the law to be widened so that it applies to public, as well as privately owned, property and so that ordinary people and community organisations can apply to bring long-term empty homes back into use. The applications would be heard by an independent tribunal. In the case of public housing, the tribunal's ruling would be binding; in the case of privately owned properties, the ruling would be non-binding but it's hoped empty home owners would be incentivised to co-operate on the basis that their property would rise in value once refurbished by someone else.
7. What rights do squatters have?
The perception that 'squatters' rights' exist comes from a law which makes it illegal to threaten or use violence to enter a property where someone is present and opposes the entry. The law was introduced to stop landlords from using violence to evict their tenants, but has also been used by squatters. 'Adverse possession' is the name for the process whereby somebody who is not the legal owner of a property can take ownership of it after living in it for a certain amount of time. It is very rare for squatters to be able to do this because they have to stay in a property without the owner's permission for at least ten years. The government is currently trying to introduce a new law criminalising squatting.
8. What legal powers are available to me if squatters enter my property?
Squatting is when someone occupies an empty or abandoned property which they don't own or rent, and without the owner's permission. Just being on another person's property without their permission is not usually a crime in itself. But if squatters commit other crimes when entering or staying in a property, including using gas or electricity or other services without permission, the police can take action against them. If you currently live in your home and come back to find squatters who won't leave, this would make you a 'displaced residential occupier'. You should call the police to report a crime.
If you have an immediate right to possession of a property which has been taken over by a squatter (for example, if you are a landlord or the occupier of a property), you can apply for an interim possession order (IPO) to get your property back. Once squatters are served with an IPO, they must leave the property within 24 hours. If they don't leave, they are committing a crime and may be arrested. It is also a crime for them to return to the property within 12 months of the date the order is served. To get final possession of the property, you must also make an application for possession when you apply for the IPO. A final order for possession will normally be made soon after the IPO.
9. I own a property in Scotland, Wales or Northern Ireland - do the same laws apply there?
Responsibility for housing is devolved and so some of the laws mentioned above only apply in certain parts of the UK.
For example, the EDMO can be used in both England and Wales but is not law in Scotland or Northern Ireland. Squatting is already a criminal offence in Scotland although it is currently not illegal in England, Wales or Northern Ireland.
In addition to different laws, the governments and councils of Scotland, Wales and Northern Ireland all deal with empty homes in different ways.
In Scotland and Northern Ireland the councils don't have Empty Homes Officers specifically although some councils in Scotland are active with empty homes work. In Wales, however, each council has a named person responsible for Empty Homes.
The Scottish government is currently looking at introducing a number of measures to tackle empty homes including funding of a loan scheme in South Ayrshire, and in October 2011 they announced a proposal that would give councils new rights to tax homes that have been empty for more than six months through a levy on council tax.
In Scotland and Wales the charity Shelter is running projects to encourage councils to do more to bring empty homes back into use.
If you live in Scotland or Wales and have an empty property your best port of call for further advice is your local council.
10. What if I own an empty commercial property (e.g. an office building)?
There are services, like the one featured in 'Phil's Empty Home Giveaway', which match empty commercial properties (e.g. ones awaiting planning permission) to reliable short-term tenants. The property owner gets a better value security solution and the tenant gets an affordable rent so a win-win.
Guardian services like this can save owners up to 80% compared to traditional security guard services and up to 50% compared to boarding up the property, often handing back the building in a better state of repair. The company featured in the show was Live-In Guardians. Similar guardian services are offered by the likes of Global Guardians and Ambika. They secure a broad range of commercial and non-residential properties from offices to care homes, schools to pubs and churches.
