The Innovation Award is the brainchild of
Carson Millican (pictured right), trading as Empty Property Solutions Ltd. Now based in Northern Ireland, Carson gained many years’ experience of empty homes work at different London Boroughs and with the East London Regeneration Partnership and has been a stalwart member of the Empty Homes Network for many years, serving on its Executive.
In sponsoring the award, Carson explained as follows:
Empty property practitioners excel at providing a range of solutions to the problem of wasted homes. I hope this award will highlight the innovative thinking required to deal with the difficult long term empties in a way that provides new solutions to old problems.
This award can cover individual interventions or entire schemes. We're looking for
creative and
original approaches,
systems,
interventions (or whatever) that have demonstrated their value in helping bring empty homes back into use.
There was stiff competition for this award. In one case the scheme design was considered highly innovative but needing to provide more evidence of delivery – something for contenders to bear in mind in future years. In the end, two submissions stood out, one of which was recognised as outright Winner, whilst the other was Highly Commended.
Winner - Shepway District Council, No Use Empty Plus
It may seem that loan schemes are old hat. But some work and some don’t and the reality is that getting them to work is not straightforward. Innovation in this case was the 'No Use Empty Plus' model, where the product is strongly attuned to the actual needs of the scheme developers rather than the bureaucratic limits often imposed by councils.
The Award was presented by Nick Pritchard-Gordon, Chair of the Empty Homes Network, (right of the photo) to
Iain Cobby, Empty Homes Officer for Shepway District Council (standing left) and
Steve Grimshaw of Kent County Council, Programme Manager for the Kent No Use Empty initiative (centre).
Overview
Shepway District Council (SDC) funds loans to developers to bridge the gap between the value of long-term empty properties before and after renovations – unlocking their potential value.
Background
Since 2005, SDC has been a founding partner of the No Use Empty scheme, funded by Kent County Council (KCC) which offers developers an interest free loan of up to £25,000 per empty property, to support refurbishment costs.
In 2015 SDC reviewed its most problematic long-term empty homes and concluded that in many cases, a loan of £25,000 would be insufficient to fund the work required to bring them back into use. SDC introduced No Use Empty Plus for the financial year 2015/16, making an additional £15,000 available to increase the maximum loan available to £40,000 per unit brought back into use.
The loans are repayable after 3 years so the money can be recycled back into the scheme
SDC allocated £675,000 for No Use Empty Plus to 2016/17 and a further £391,000 for 2017/18.
Shepway’s problem empty homes
Economic decline, recession and some of the lowest property values in the south east have led to a historical lack of investment in some areas of Shepway, exacerbating the cycle of decline that blights empty homes.
Over the last decade, the area’s ongoing cultural regeneration and ability to attract high profile investors and funding, has led to increased interest from small and medium sized property developers wanting to refurbish empty buildings and turn them into homes.
However, in many cases, the severe dilapidation of the property and an inability to access funding on the open market for renovation costs, has left buildings empty. No Use Empty and No Use Empty Plus are designed to help developers to bridge the gap between pre and post refurbishment values by providing a loan which takes account of works costs, which banks and other lenders will not do. Without our joined approach these properties would have remained empty.
Success
More homes:
45 homes have been funded under No Use Empty Plus to date of which 20 are completed and are in use, including 11 affordable rented homes.
More funding:
In addition to the funds provided by SDC, KCC have provided £1.2M from the No Use Empty scheme and a further £520k leveraged from the private sector.
New Homes Bonus:
SDC has been awarded a £365,508 New Homes Bonus for 2017/18, including £140,000 for 94 empty homes brought back into use from October 2015 to October 2016.
Case Study – 1 Dover Road, Folkestone
Previously used as an undertakers, 1 Dover Road occupies a prominent corner plot at the edge of Folkestone’s Creative Quarter. The Creative Quarter is a key regeneration project for Folkestone including retail, office and living space to support creative industries.
It is a testament to the success of the Creative Quarter that a local property developer saw an opportunity and had the vision to convert this large town centre building to provide 11 new homes. Unfortunately the bank didn’t see it like that and was only prepared to lend on the value of the land not the building itself, let alone the cost of the work or the potential post-work value.
This is where the No Use Empty Team stepped in. After a full financial appraisal it became clear that the project would only be possible through No Use Empty Plus. The loan was awarded in February 2016 and in November 2016 tenants began moving into their new homes, which are let as affordable rented homes via local housing association Amicus Horizon.
The refurbished building makes a handsome addition to Folkestone’s streetscape and is likely to encourage further future investment in the area.
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Highly Commended - Argyll and Bute Council’s 50-52 Main Street, Campeltown project
This demanding project came a close second, and was Highly Commended. Primarily it was a strong project, and won the ‘Best Project’ at the Scottish Empty Homes Awards last autumn. But there was sufficient innovation in the funding and legal arrangements to warrant inclusion in this category, and it was a successful solution to some outstanding challenges.
Unfortunately, nobody from Argyll and Bute Council could make the event, so the award was instead presented by Nick Pritchard-Gordon to
Shaheena Din, Shelter National Project Manager for the Scottish Empty Homes Partnership.
Project description
This semi-derelict 18thC tenement building was saved from demolition and brought back into use in 2016 following a six-year campaign by Campbeltown Townscape Heritage Initiative (THI). A number of complex issues had to be resolved including; delaying the demolition, obtaining approval from the No. 5 private owners to relinquish their titles for a nominal sum, procuring a developer, securing a substantial funding package, obtaining Council approval for the back-to-back legal agreement, agreeing a scope of works that met with conservation standards whilst liaising with town centre users including neighbouring residents and businesses.
The Category B listed building occupies a key position on the Main Street sitting adjacent to the recently refurbished Town Hall. With a Dangerous Building Notice in force, it was threatened with demolition that would have left a gap site, undermining the ten-year heritage led regeneration programme that has restored Campbeltown’s historic town centre to its former glory. Key partners in the regeneration initiative include; Argyll and Bute Council, Historic Environment Scotland and the Heritage Lottery Fund.
The upper floors had lain vacant for over 20 years and became infested with over 11 tonnes of pigeon guano. Three ground floor businesses were forced to close in the interests of public safety.
The ground floor at 2 Cross Street is the store and cellar for a neighbouring bar that was also forced to close. This unit has been fully reinstated leading to a local developer acquiring the pub with the intention of re-opening the bar and creating a number of jobs.
Some of the outcomes of the project:
- Three empty homes converted and brought back into use as 4 high quality one bedroom flats, all privately let. Proving that there is a demand for good quality flats in the town centre.
- Three commercial units brought back into use with 2 new businesses opening.
- Re-opening of Cross Street to vehicular traffic providing a boost for neighbouring businesses.
- Boost to the local economy.
- Partnership working within Council departments including Empty Homes Officer leading to creation of internal officer working groups to deal with problem buildings.