LGA pushes for streamlined CPO powers

In a timely press release, the LGA has called on the government to improve the powers available to local authorities to tackle long-term empty homes, identifying Compulsory Purchase as the key tool that needs streamlining. The press release was issued on Friday, just before the media storm about "Billionaires Row" blew up (see our story here). Cllr Mike Jones (Chair of the LGA's Environmental and Housing Board) is reported as saying: "Empty homes could be brought back into use if the Government overhauled the antiquated and utterly inefficient compulsory purchase system. During one of the worst housing crises this country has faced, with demand at sky-high levels, councils are being hamstrung. It is high time they were given proper compulsory purchase powers, enabling them to ‘revive' properties that are simply gathering dust... "The CPO process was not designed with empty homes in mind and can be both difficult, time consuming and expensive to use. Reducing financial costs and risks for local authorities would support increased use..." The LGA proposals are not new - they were contained in LGA guidance for councils issued back in August 2013 - but they have not to date received much publicity. Whilst even CPOs might not be the appropriate route (taking into account the attendant risks) to tackle empties worth tens of millions of pounds such as those identified in the furore around "Billionaires Row" there is no doubt that a streamlined CPO process would be exactly the right approach for a very large number of the more intractable longer term empties that practitioners have to deal with day in, day out. The LGA is to be applauded for identifying that this is perhaps the critical tool missing in the empty homes tool-box and the Empty Homes Network will want to play its part in refining the criteria and procedurs that would undoubtedly be needed to produce an effective but equitable approach. Network members did of course feed into the process that led to the production of the LGA Guidance and we are cited as a source of useful information. Currently the key proposals being put forward by the LGA in regard to CPOs are

• to remove the 7.5% Basic Loss Payment where a property is long-term empty
• to allow sharing of costs and liabilities with third parties
• to remove the need for Secretary of State approval where the property is empty long-term

Compulsory leasing? Alongside the proposed new CPO powers is a further proposal to to allow councils "an extension of the powers to allow forthe leasing of long-term empty homes". More specifically the Guidance proposes that "Councils should be enabled to acquire a time limited leasehold, enabling it to undertake refurbishment work to the property and bring it back into a habitable state. The authority would then recoup its investment through rental income over the set time period. The authority might also acquire nomination rights over the property for this period." It is not entirely clear where this proposal sits. It clearly fits somewhere between CPOs and the Empty Dwelling Management Order route (which was, when first raised by David Ireland and others, referred to as "compulsory leasing"). It does not reflect any particular proposals put forwaqrd by Empty Homes Network and seems to require, as a minimum, some further work. For example if the council held a lease on a proeprty then there would seem to be no need for it to have "nomination rights",whcih are normally applicable to properties held by others. Moreover, the EDMO regime allows councils to grant Assured Shorthold Tenancies which increases the flexibilty atttached to the use of the properties whereas if the Council held a lease it would seem to fall into the category of homes where secure tenancies would be applicable (though of course there could be attendant changes to thousing law to address this). Potentially, compulsory leasing might avoid some of the constraints of the EDMO legislation such as the time limit of 7 years, the exclusion of publicly owned homes - but this might also be achived by changes to the EDMO legislation. In summary, Compulsory Leasing might function as an alternative to EDMOs - EDMOs mark 2 - but the rationale beind such a step needs further clarificationl, particularly if we assume that the deficiencies in EDMOs and CPOs had been addressed. But well done to the LGA for seeking to move the agenda forwards by exploring the possibilities and promoting the need for change. That is what is needed.