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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 ?

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Camelot Seminar Manchester - Darryl Lawrence

  • 1. Empty properties and all that . By Darryl Lawrence Director
  • 2. Overview of presentation  Historical delivery issues  The “ Rochdale “ approach  Issues with lenders  Case study
  • 3. 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
  • 4. 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
  • 6. 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
  • 7. 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)
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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 !! )
  • 13. 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
  • 14. 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
  • 16. The problem  BTL gone bad  Owners no money to repair property  Wanted to enter into a Improve and Lease Scheme  HBOS refused permission
  • 17. 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 !