camelot seminar manchester - darryl lawrence

Empty properties and all that .

By Darryl Lawrence

Director

Overview of presentation

Historical delivery issues

The “ Rochdale “ approach

Issues with lenders

Case study

Who are RHI ?

The Boroughs housing partnership Company part funded by RP’s and RMBC

Develop a wide range of projects Employment training schemes

Facilitating new developments

Develop new ways of working

Securing funding

But lately we have been specialising in EP work

National Strategy

To increase the number of empty homes brought back into use

Concentrating on properties that without LA intervention would remain empty

No fixed delivery model Improve and Lease, P & R

Finance available

Historical Issues

Historical issues

Housing Associations

Asked to tackled worst first

But tools not fit for purpose or fitted with market dynamics

Nominations

Lease agreements not FFP

Lack of practical help and sharing of information by LA

Labour intensive compared to new build

Historical issues

Local authority

Use of enforcement tools – rarely used strategically

Recovery of debt ineffective

Mostly reactive

Lack of pro active tools (i.e. offers to owners)

The Rochdale approach

The Hub

Only so many way to bring a property back into use

Development of a hub

All action revolves around it

Co-ordinates all reactive action

Co-ordinates all positive action

What does it do ?

Take the lead on co-ordinating all EP work

Develop partnership working Co-ordinate action between Council sections

Proactive and reactive work

Develop and market test proactive tools

Develop processes for enforcement measures

Guides enforcement through legal

Main point of contact for both residents, officers and owners

The remit

Target all properties

Reinforce owners Responsibility and accountability

Zero tolerance approach

Creative use of existing tools

Fast and swift response

Direct contract with residents

Broker deals with owners

Oven ready referrals to partners

Tools - proactive

Management only offer

Repair and Lease

between 2 – 10 years

Guaranteed rent – level depends on the capital input

Purchase

At market value ( whatever that is !! )

Tools - Enforcement

Maximising the existing legislation

Liberal interpretation of legislation

Pincer movement to solve the problems

Identification and collection of debt

Secure Charging Orders

Enforced Sales or Order of Sale

EDMO’s

Lenders – an emerging issue

Refusing permission to borrowers to enter schemes

Stymieing delivery

Audit showed a min of 30% have mortgages

HBOS possibly the biggest market share

Case Study

The problem

BTL gone bad

Owners no money to repair property

Wanted to enter into a Improve and Lease Scheme

HBOS refused permission

The solution

Empty Dwelling Management Order served with owners consent

Lenders cant stop it

Spliced together with the HCE / DCLG EP funding

Added value No public funding needed

All money recycled

Success !

Any questions ?