News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 04 issue RPI news archive

Councils to have powers to take over properties - June / July 2004

'Local authorities are the worst offenders for keeping property empty', said RLA director Mark Butterworth, responding to a Government proposal that would allow local councils to take over the running of property that has remained empty for any length of time.

'How do they think it will help by giving them powers over private owners - forcing them to let houses that have probably been left as uneconomic, due to very low rental returns, and possibly affected by crime and vandalism?

'What local authorities can, or should, do is introduce initiatives that allow the market to function properly by improving housing areas and levels of policing that enable property owners to re-let with confidence. Involving overpaid bureaucrats and prosecuting private citizens is pointless and expensive'.

The new powers were among amendments to the Housing Bill, likely to be introduced when it reaches the Lords, indicated by Housing Minister Keith Hill last month.

Interim Empty Homes Management Orders will last for up to 12 months. However, where they end without 'a solution' being found, local authorities will be able to seek a final management order which could last for up to five years.

Introduced into the House of Commons in December 2003, the Housing Bill had its Commons Report stage on 11 May. It was introduced into the House of Lords on 13 May and has its Second Reading in that House on 7 June. The promised amendments will be tabled in the Lords Committee, Report and Third Reading stages.

• In April 2003, local authorities in England reported over 300,000 privately owned homes had been empty for more than six months. However, according to figures provided by the Government in reply to a Parliamentary question from shadow deputy prime minister Caroline Spelman, there were a total of 720,000 empty homes in 2003. This was 47,000 fewer than in 1997. In some areas ­ the north east, Yorkshire and Humberside, and north west ­ the number had risen.

other artilces from the June / July 2004 issue

• One sided justification
• Councils to have powers to take over properties
• Norwich launches empty homes scheme
• Conservatives aim to encourage, not discourage, letting
• Foresight needed to cut flood risks
• Government was 'bamboozled' into deposit legislation
• In brief
• Capital gains tax warning
• Remortgaging likely on back of interest rate hike
• RLA's homes2rent.net