A few years ago I remember writing that you try in vain for years to get government to change policy on empty homes. And then just like waiting for the bus three announcements come along at once. Well it’s happened again. But this is where the bus analogy falls apart. Only one of the three buses are any use to you, but the three announcements made by the government this week are so important because when considered together they add up to something highly significant. So here they are:
Firstly last month in the Comprehensive spending review the government made £100 million available to bring empty homes into use. It will be part of the HCA’s affordability program. So it’s largely capital for renovating and bringing empty homes into affordable housing. Yes, we won’t actually see it until 2012, and yes I know it’s considerably less than the £2.5billion proposed by the Liberal Democrats in their election manifesto. But it’s a great deal more than the £3mllion spent nationally last year on empty homes. From schools to aircraft carriers I can see no other area of public spending which has received such an increase.
Secondly this week the government has proposed rewards (through the New Homes Bonus scheme) for local authorities to get empty homes into use. The mechanisms are still being worked out, and indeed this week’s announcement is a consultation paper. But take note; that the empty homes element is specifically referred to in the ministerial foreword. It even says that this could provide a way to fund the vital work councils do to get empty property into use. But the true significance comes when you see the third proposal.
The government proposed this week that empty homes returned to use should count towards housing supply targets (or aspirations as we should now call them!) in the same way as new homes. The notion might seem blindingly obvious, but previous governments have resisted it. The effect has been that work to bring homes into use has been regarded as of secondary importance to building new homes by many councils.
These proposals would mean that councils would have to consider empty homes and getting new homes built together. A good idea in itself; what’s the point of building new homes if there are already homes lying empty? You might ask. Certainly we’ve been asking that question for years. Now we have an answer. Not everybody will like this, but if councils get this wrong it will hit them in the wallet. For example under this proposal a council that gets a hundred new homes built, but also sees a hundred homes becoming empty will get no New Homes Bonus reward. A council that gets a hundred empty homes into use will earn lots of New Homes Bonus even if no new homes are built. This is a clever idea, it will mean councils will have to look at their existing housing stock instead of just trying to get more homes built. And when they need work out to get more homes they will find that housing associations are funded not just to build new homes, but they have £100million fund to apply to get empty homes into use too.
So this isn't really three seprate announcements, it adds up to something much more a real policy. Now they really don't come around very often.
For every two families that need a home there is one property standing empty. This isn't just inefficient it's unjust
Wednesday, November 24, 2010
Wednesday, November 10, 2010
A question on housing benefit
Having just been asked for the third time this week whether I think changes in housing benefit (HB) will cause a national glut of empty homes, I'm not sure whether this is the most important question to ask, but I feel should tell you what I think. The question is based on an accumulating body of evidence that the planned cap on HB will price people on low incomes who rent their housing from private landlords out of their homes. This graphic from the Chartered Institute of Housing shows that over time they may be pushed out of London, then the South West and in 30 years time whole country will become too expensive for them. This begs a number of questions. But the one I have been asked to answer is: will it cause homes left in the wake to become empty? To which my answer is no…. well, maybe a bit. Here’s why.
The implication to the CIH’s model is that private landlords will turf out tenants on HB rather than drop the rent to a level that they can afford. It also assumes that rents will rise at a uniform 5% a year. The old adage is that all projections are wrong, and I’m quite sure this one will be. My first thought is that the private rental market is just that, a market. Rents are set by what people will pay, sop it’s never going to price itself out of business. In some areas, central London for example, I have little doubt that landlords will be able to find tenants not receiving HB who will pay the same rent. So few will see the need to drop their rents. In other areas landlords will have little choice. I spoke to one landlords from rural Durham recently who told me he could let houses to people on HB at double the rate he could let them on the open market. In neither case do I see much chance of vacancy increasing. In central London tenants will only be forced out if the landlord thinks he can let it somebody for higher rent; so no vacancy. In Durham the landlord is potentially faced with less rent or no rent. Most I would guess would opt for less. So no new vacancy.
However, I did say there might be a bit of extra vacancy. Here’s why: with lots of landlords forced to make decisions and lots of people having to move, there will be plenty of opportunity for cock-ups. Landlords are just people and on the whole people who have lots going on in their lives other than letting houses. An uncomfortable truth about much of the private rented housing let to people on HB is it’s rubbish. HB doesn’t take account of property condition, and so the incentive for a landlord to maintain it is less than if the tenant isn’t on HB. A landlord who moves out HB tenants to let on the open market may find that they are faced with a big refurbishment bill to get it up to scratch. The property is then empty and if the landlord can’t get it sorted out, it stays empty. In an ideal world a landlord foreseeing this problem may drop the rent and keep the HB tenant. But the world of cock-ups doesn’t include many landlords with foresight. In Durham a more serious problem may emerge. If HB is so much higher the market it suggests there isn’t much market. When this happens it isn’t impossible for landlords just to give up. It hasn’t happened for years. Perhaps because HB has artificially propped the market up, but there’s no reason why it could happen again in some areas.
Of course all of this avoids the really big problem here. HB changes will inevitably cause people on low incomes to move because they can no longer afford to pay their rent. The market will adjust to this, there won’t be swaths of vacant properties, but for some people here will be personal tragedies and hardship. Is this a price worth paying? Now there's a real question.
The implication to the CIH’s model is that private landlords will turf out tenants on HB rather than drop the rent to a level that they can afford. It also assumes that rents will rise at a uniform 5% a year. The old adage is that all projections are wrong, and I’m quite sure this one will be. My first thought is that the private rental market is just that, a market. Rents are set by what people will pay, sop it’s never going to price itself out of business. In some areas, central London for example, I have little doubt that landlords will be able to find tenants not receiving HB who will pay the same rent. So few will see the need to drop their rents. In other areas landlords will have little choice. I spoke to one landlords from rural Durham recently who told me he could let houses to people on HB at double the rate he could let them on the open market. In neither case do I see much chance of vacancy increasing. In central London tenants will only be forced out if the landlord thinks he can let it somebody for higher rent; so no vacancy. In Durham the landlord is potentially faced with less rent or no rent. Most I would guess would opt for less. So no new vacancy.
However, I did say there might be a bit of extra vacancy. Here’s why: with lots of landlords forced to make decisions and lots of people having to move, there will be plenty of opportunity for cock-ups. Landlords are just people and on the whole people who have lots going on in their lives other than letting houses. An uncomfortable truth about much of the private rented housing let to people on HB is it’s rubbish. HB doesn’t take account of property condition, and so the incentive for a landlord to maintain it is less than if the tenant isn’t on HB. A landlord who moves out HB tenants to let on the open market may find that they are faced with a big refurbishment bill to get it up to scratch. The property is then empty and if the landlord can’t get it sorted out, it stays empty. In an ideal world a landlord foreseeing this problem may drop the rent and keep the HB tenant. But the world of cock-ups doesn’t include many landlords with foresight. In Durham a more serious problem may emerge. If HB is so much higher the market it suggests there isn’t much market. When this happens it isn’t impossible for landlords just to give up. It hasn’t happened for years. Perhaps because HB has artificially propped the market up, but there’s no reason why it could happen again in some areas.
Of course all of this avoids the really big problem here. HB changes will inevitably cause people on low incomes to move because they can no longer afford to pay their rent. The market will adjust to this, there won’t be swaths of vacant properties, but for some people here will be personal tragedies and hardship. Is this a price worth paying? Now there's a real question.
Tuesday, October 05, 2010
Squatting - you may be surpised what you think
The Netherlands used to look a picture of harmony and tolerance but its liberal outlook is wearing a bit thin. The new coalition government is banning the Burqa, one of it’s party leaders is in court for promoting religious hatred. Even the tree in Amsterdam that sheltered Anne Frank has gone rotten and fallen over. But perhaps most significantly of all the government has outlawed squatting.
Nothing wrong with that you might think. Surely it should be illegal to squat other people’s houses anyway. Well perhaps, but it is legal in England and Wales and Dutch tolerance of squatting has actually been a very successful policy. The Netherlands has Europe’s lowest level of vacancy (0.3% compared to 3.5% in UK).
The simple idea in the Netherlands was that if an owner left a building empty for more than a year he lost the right to evict squatters. If the owner was intending to redevelop a building, demolish it, or sell it the last thing he needed was to have it full of squatters who had rights to stay. The effect was of course property owners did whatever they could to stop their property becoming empty, and if that failed, they did whatever they could to get their property back into use within a year.
A whole industry grew up to help. It provided a “guardian” service finding people who would live in empty properties to prevent them becoming squatted. Not only did the law minimise the number of empty properties, a by-product was to create a new sector of housing that was cheap and accessible. Figures suggest that nearly 1% of the Dutch population are now property guardians. The industry has spread beyond the Dutch borders and property guardian companies like Camelot and Ad-Hoc successfully operate in Belgium, Germany, France and the UK.
Sunday, September 19, 2010
For Art's Sake
I’d have loved it if Banksy were making a point about the immorality of leaving homes empty. I don’t think it’s him. But somebody is. Whoever they are they have turned an empty house into an artwork contrasting the number of empty homes in the area to the number of homeless. Pots of imitation flowers now adorn the house, and in the front garden a cut out couple appear to be enjoying an alfresco meal. A notice board on the garden fence simply says Homeless 9,500 Empty Homes 7,600.
The house is one of several on Burntwood lane in Wandsworth belonging to the local health authority. All have sat empty for as long as I can remember. I lived near them fifteen years ago and they were empty then. Nothing has changed.
Over the years I have written to the health authority, to the council, and to the MP asking why these houses could not be used. Only the council bothered to reply and their answer was so wet they might as well have not troubled themselves. They said they didn’t want to put undue pressure on the health authority because they were considering closing the local hospital.
Wandsworth is an area with acute housing need, one of the highest affordability problems in the country and yes over 9,000 households on the council waiting list.
One might hope that this artwork might at least pull at some heartstrings in the health authority or the council. But apparently not, a rather sour faced council response said:
"We work closely with the police to combat graffiti and other forms of vandalism affecting our communities. The cost of cleaning up the damage caused is an enormous burden on local taxpayers. We aim to remove racist or obscene graffiti within 24 hours and other forms within three working days.” A great shame they're not so responsive about creating homes for those in need.
Labels:
councils,
empty homes,
NHS,
publicly owned housing,
Wandsworth
Monday, September 13, 2010
Say it With Flowers
There are places in Liverpool that make your heart leap and others that make you want to weep. These two adjacent roads in Granby manage to do both at the same time. Granby is the very essence of a deprived community, on almost any indicator of poverty it does almost unbelievably badly. 94% of children living in poverty 70% of the resident Somali population are unemployed, cancer and heart disease rates are 250% of the national average. Why you might think would anybody want to live here? With over 11% of the houses long term empty, it might appear that they don’t. But nothing in Liverpool is ever simple. Problems have been simmering here for many years. 25 years ago they blew up. This is where the Toxteth riots took place. Last week, walking along these streets I was stopped by a life long resident. “This is their punishment for the riots” she said commenting on the row of bricked up vacant houses on her street “For daring to protest they’ve decided to grind the life out of this area.” She claimed that a deal between council and housing association meant that every house that becomes empty is bricked up rather than re-let. “We’re all getting old here” she said “in a few years we’ll all be gone, then they’ll come in and flatten all the houses.” It was enough to make grown man want to weep. But the resident’s response to the perceived war being waged against them was unexpected and extraordinary. Residents had painted the brieze blocks that replaced the windows on empty homes in Cairns Street and Beaconsfield Street. There were brightly painted curtains where windows had once been, a painted cat peeping out onto the road, butterflies, even a Tuscan castle. The front gardens of abandoned houses were neatly tended, along the length of the street every conceivable receptacle had been used as plant pots; car tyres, a water tank, a couple of old trailers, even a small chest of drawers overflowing with flowers. Most of the houses in these roads were empty, but none were unloved. In the circumstances where most communities would have given up, this one was showing a strength that truly made the heart leap.
Wednesday, September 08, 2010
Last Days of the Welsh Streets
These are the last days of the Welsh Streets in Liverpool. The area was built in the 1880s by and for Welsh construction workers, with streets named after towns and villages in Wales they came from. Wynnstay, Voelas, Rhiwlas, Powis, Madryn, and Kinmel. In 2005 a decision was made by the council to demolish an area of 300 houses encompassing most of the Welsh Streets. In the last five years the houses have been systematically emptied out and acquired by Liverpool City Council; leaving what must be the largest area of empty houses in the country. Baring a last minute reprieve, the bulldozers are set to roll on October 14th. Yesterday, a warm late summers day I took what might be a last look.
Thursday, September 02, 2010
Sows ears and silk purses
It’s hard to believe it now, but in the 1970s when I grew up the glamour football team to support was Ipswich town. It happened to be my hometown club, but their support spread far and wide. The team was filled with well-mannered, clean-cut role-models like Paul Mariner, George Burley and Mick Mills. But if you were a bit rebellious and liked your footballers cut a bit rough, there was nobody better than Eric Lazenby Gates; a grizzled and aggressive forward who always managed to look a mess but play with astonishing skill. He was the type of man who even if you dressed him in a Saville Row dinner suit would somehow still look like a tramp.
When I was ten my parents paid for me to go on a summer football course, coached by Ipswich Town players. I found myself in a group coached by Gates. His thick Northeast accent proved too impenetrable for most of the boys, but with Geordies in the family I understood it perfectly. So did my parents who asked me to be moved into another group to get away from the torrent of smutty jokes and filthy language that were part of his coaching style.
Eric Gates disappeared back to the North East with a transfer to Sunderland a few years later and for many years I thought nothing more of him. That was until earlier this week when I found myself outside the house he was brought up in, in the ex colliery town of Ferryhill in county Durham.
Ferryhill has the curse that has befallen many so-called regeneration hot spots. Its renaissance has been put-off or petered-out. The plans were ambitious. In 2006 a ten year plan was announced by the council that would have seen 400 hundred ex miners cottages demolished and hundreds of new homes built in their place. The works started with the flattening of a chunk of houses in streets named after the great industrial men of their day Stephenson, Watt and Faraday. But then nothing, the money ran out and with the 2008 market crash, investment slipped away. Far from regenerating the area, the talk of demolition caused, those that could, to move away. Today Gates’ house stands among many others empty and forlorn overlooking a few acres of wasteland. There is no plan B for Ferryhill, or indeed the many other similar areas where ambitious renewal plans have stalled or been shelved half way through. As we await the Comprehensive Spending Review, there seems little prospect that help will come from elsewhere, or that budgets will be replenished to enable stalled regeneration plans to start up again. The age of demolition and rebuild is, for now at least, over.
Monday, August 23, 2010
Last Chance to Save the Welsh Streets
I'm posting this message on behalf of the Welsh Streets Home Group. They are challenging the imminent demolition of the the area of Victorian terraces, the former home of Ringo Star, known as theWelsh Streets in Liverpool. If you want to see these houses saved, this may be your last chance please write to the council by Wednesday. See instructions below:
You may be aware that Liverpool City Council have issued Liverpool residents Prior Notice that they plan to demolish 400 houses in the Welsh Streets. It featured in the media last week as Ringo Stars birthplace is involved. We want to let you know that the Council have invited responses to the Prior Notice of Demolition . If the council receive enough responses the proposal will be referred to a full planning committee and not decided by an individual officer. Your efforts could make a difference - for residents in Kelvin Grove who are not yet being bulldozed and to others living next to the demolition of a huge site.
Bulldozing is due to start on 13th September in three weeks time. Currently, the council proposal for how the houses will be demolished is vague. It could damage the health and security of residents surrounding the area. Responses to the Councils Proposal have to be received by the Council by 5 pm on Wednesday 25th August. Next week.
Planning law states that where a Prior Notice has been issued for consultation, only two issues will be considered. These are:
1) the proposed method of demolition and
2)details of the proposed restoration of the site.
You can read it yourself at Millennium House or look at the Planning on the council web-site and put ref. number 10pm/1551 into the navigator. We have a copy you can see at no.30 Kelvin Grove where there will be an open letter writing session this Sunday evening at 6pm. Letters will also be written between 3 and 5 at the Nerve Show in old Rapid Paint shop on Leece St if you want to come along and do a letter or help others do one.
Having looked at the proposal at the Planning Office and with a volunteer from Planning Aid, some serious problems have been noticed. These are:
The proposed method of demolition is given as hand/machine. This lacks the detail normally expected, which would state which machines would be used for which tasks, e.g. ball and chain, or a more careful and considered approach.
A method statement covering the health and safety of the workers and the public would also be included in the application and currently there is none.
It is stated that rubble will be dumped on a licensed tip when the authorities said previously it would be recycled for road-building.
There is no information about how gable ends of two blocks of houses left standing will be finished to keep them safe for occupants and the public and attractive for the community.
Demolition would leave a large empty patch of land ( from Kinmel Street to Kelvin Grove) to be covered with soil, fertiliser and grass-seed. No information is given in the proposal regarding the capping of sewers to reduce problems with rats, or other pests.
It appears from details given in the drawings that low metal hoop barriers will enclose each block of ex-houses. These barriers lack the strength to withstand being pushed over by vehicles so fly-tipping in these areas may be a risk.
The application shows palisade fencing will surround the site but no drawings of the fencing are supplied.
Despite the palisade fencing back gardens, sewers and drains of Kelvin Grove will be inadequately protected, creating a public health hazard & security issues for residents remaining in the even numbered side of the street.
Practicalities of living in or near a demolition zone such as dust suppression measures, working hours of heavy machines and noise pollution are not addressed.
We have also been advised that objections to this proposal would influence decisions regarding the future of Kelvin Grove which remains under threat of CPO and demolition.
If you want to help, please put your own version of these comments into a letter.
YOU MUST PLEASE Quote the Planning Application Reference 10PM/1551
Include a request to have the matter decided by full planning committee.
Ask for a receipt or acknowledgement of your letter.
ALL LETTERS SHOULD ARRIVE BY 5PM ON WEDNESDAY 25TH AUGUST
It does not have to be a long letter or include all of these points .
You do not have to live in the area to be concerned about it.
If you miss the deadline send a letter anyway it all adds up.
PLEASE SEND A COPY of YOUR LETTER TO : Nina Jones, Chair Welsh Streets Home Group, 39 Kelvin Grove, L8
or by email welshstreetshomegroup@googlemail.com
Please note that duplicate letters, letters with multiple signatures or petitions will be ignored by the Council. If you just copy and paste things you have read here, the letter wont count. Try to find a way of writing your letter that makes it different.
if its too late to post deliver by hand to Sherridan Scott, Development Control Division, Millennium House, 60 Victoria Street, Liverpool,L1 6JF.
ask for a dated receipt when you hand it in
by post to Liverpool City Council, Regeneration, Planning Department, Municipal Buildings, Dale Street, Liverpool, L2 2DH, to Liverpool City Councils planning department.
via email to planningandbuildingcontrol@liverpool.gov.uk or Sheridan.Scott@liverpool.gov.uk
please include your postal address on an e-mail letter.
Thank Your for you support now and in the past. We are deeply disappointed Liverpool City Council have failed to consider alternatives to demolition. They seem to be rushing into an irreversible action which pre-empts CPO and redevelopment decisions in a wider area. It is further seen as premature in advance of any redevelopment proposals being brought forward.
P.S. There are currently 13,500 tined up houses in the city all emptied at public expense. Meanwhile 23k people are awaiting homes. If you feel the cheapest, fastest and most eco friendly way of alleviating the housing crisis is to renovate not demolish you might like to add a note to this effect in your letter.
Writing a letter could have a material benefit for streets like Kelvin Grove which remains under threat but are not involved in next months bulldozing because the residents have refused to leave . The Welsh Streets Home Group will continue to campaign for Kelvin Grove and hope for your ongoing support. Sorry for the tight timescale we were on holiday when the council sent their Prior Notice out.
For help writing your letter , to volunteer or donate to the campaign please e-mail us welshstreetshomegroup@googlemail.com
kind regards
The Welsh Streets Home Group Committee and Supporters
Thursday, August 12, 2010
Sir Bob Kerslake Interview on Empty Homes
If you don't work in the housing or regeneration fields I quite expect this won't get your pulse racing. But for those of us who do, having Sir Bob Kerslake the Chief Executive of the Homes and Communities Agency speaking exclusively on why he thinks getting empty homes into use is quite a coup. Great that he's engaged, but frustrating he couldn't see the answer to his last question should have been that empty homes provide homes at lower cost. This interview was carried out by GovToday Editor, Scott Buckler earier this month. Could you tell me how the HCA are working to maximise the use of empty homes?
The first thing to say is that the empty homes scheme is a crucial part of our housing and regeneration strategy. The HCA have put a significant amount of funding into empty homes, in the region of 19 million pounds to refurbish over 550 empty homes.
We have also funded major estate transformations which allows us to tackle empty council houses on a much bigger scale.
Other examples of where our investment is used proactively in dealing with empty homes can be found in our investment provided for HMR Pathfinders that focuses on dealing with low demand and abandoned stock while Decent Homes funding helps to keep local authority stock well maintained and combats the stock becoming difficult to let.
Alongside the funding we give a lot of support to local authorities to become effective in tackling the issue of empty homes.
We are, through our skills and knowledge team, supporting programmes that share expertise with local authorities across the country.
In summary, tackling the problem of empty homes can be achieved by a combination of investment through our big programmes and sharing best practice and knowledge from local authorities who have managed to tackle the problem head on with success.
Do you believe there is a private/public partnership model which could be used to reinvigorate the market for empty homes?
I think there is potential to work with the private sector, but when you look at the problem with empty homes there are two key areas, one being the local authority side, which I must say has brought down the number of empty homes in recent years and the private rented sector.
The major problem here seems to be the owners who currently may own a small number of properties. The task is how you can work with the private owners more efficiently; this may mean selling of the houses to local authorities.
What challenges are Local Authorities facing when trying to tackle issues on empty homes?
Local Authorities are facing some tough challenges when it comes to dealing with empty homes. What you tend to find is that once the houses become empty they stay empty for some time, the challenge Authorities have is dealing with landlords who may not have the skills or financial capability of bringing the houses up to the standard they require.
We’re seeing a high concentration in the North West of empty homes, where supply outweighs demand. It can be labour intensive for authorities to get empty homes back into use, so we tend to target our funding into areas across the UK where we can see best value for investment at a quicker rate of supply.
What role does empty homes play in the HCA’s approach to housing and regeneration?
The role empty homes plays in the Homes and Communities Agency housing and regeneration plans is about supply. It is about making more houses available, though it is also about estate renewal and market renewal whilst tackling low demand or low stock. So we are bringing empty houses into stock, but also regenerating communities by removing abandoned and run down housing.
As part of the local investment planning process, we are working with local authorities and partners to support the development and implementation of comprehensive strategies to maximise the use of empty homes.
What progress is being made on Kickstart and how is the HCA dealing with less funding to support housing, especially affordable housing?
I have to say Kickstart has been positively received; with the first schemes now coming to completion. We have a few remaining schemes left to fund, however the biggest task is to see through the delivery of these schemes, but I am in no doubt Kickstart has stimulated the housing market across the UK.
How do you respond to the recent announcement by the NHF who say that up to 500,000 people will be added to the social housing waiting list if the government go ahead with their 40 per cent cuts into housing?
There is no question about the high level of demand for Housing, especially social housing. The challenge we now face at the HCA following our reduced funding is delivering the maximum amount of housing with a lot less funding. The only way this can be achieved is to find alternative and less costly ways of delivering affordable housing, we need to engage with housing associations, contractors and authorities more to ensure we deliver value for money for both the buyer and the delivery authority.
Thursday, August 05, 2010
BPF on empty homes and the end of tenancies for life
Thank you to British Property Federation's Chief Executive, Liz Peace. Who intervened on the story in the Independent and others about the end of council tenancies for life. She made the excelent point that the underlying problem was not enough housing and said:
"Renovating empty homes is an opportunity for the government to get people of housing waiting lists and into good as new homes.Awarding renovation grants will remove eyesores from the local community and rectify lost incomes for the owner and surrounding landlords. It is a win-win situation for the owner of empty properties and the campaign to recycle existing housing stock."With the upcoming comprehensive spending review we can expect local authority funding to be cut however the need to supply new homes doesn't go away, renovating empty homes is a certain way of providing homes."
"Renovating empty homes is an opportunity for the government to get people of housing waiting lists and into good as new homes.Awarding renovation grants will remove eyesores from the local community and rectify lost incomes for the owner and surrounding landlords. It is a win-win situation for the owner of empty properties and the campaign to recycle existing housing stock."With the upcoming comprehensive spending review we can expect local authority funding to be cut however the need to supply new homes doesn't go away, renovating empty homes is a certain way of providing homes."
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