The Empty Homes Investment Scheme is a new pilot initiative being delivered by the Council, designed to bring long-term empty homes back into use as affordable housing.
Through the scheme the Council will look to bring at least ten empty homes back into use, providing up-front financial assistance to cover the cost of necessary renovation works. Once works are complete and the property is brought up to a good lettable standard, it will be taken onto a minimum 5-year lease with the Council (and subsequently relet), with the tenancy rental income used to repay the up-front assistance.
Further information in relation to how the scheme works, and which properties may be eligible, is set out below.
How much financial assistance is available?
Up to £25,000 (excluding VAT) will be available per property to meet the cost of renovation works.
In instances where the scope of works exceeds the value of £25,000, the owner will generally be expected to cover the remaining costs, and where this is not possible the offer of assistance will not proceed.
How is it paid back?
The financial assistance will be paid back through the lease rent, and specifically by way of a rent-free period under the terms of the lease with the Council. This means that for a period of the lease – until the cost of the financial assistance has been fully met - the owner will not receive any rental income.
If the balance is met prior to the end of the lease, the lease rent will be paid directly to the owner for the remainder of the lease term. The repayment amounts (lease rent) are based on the rent charged to the Council’s tenant, minus our standard management and maintenance costs.
How are the renovation works arranged?
A scope of works will be agreed by the Council’s Technical Officer (following an inspection of the property), and a minimum of three quotes obtained from local contractors who are registered with the Council’s Good Trader Scheme.
A contractor will be selected on the basis of best value, projected timescales, quality assurance and community wealth building (including buying and employing locally).
Once works have commenced, the Council will regularly attend site to check on progress, with a final post-inspection (once all works are notified as complete) to ensure that everything has been carried out satisfactorily.
Although the scope of works and full and final costs will be shared with the owner, the Council will pay the contractor directly.
How does the leasing model work?
The property will be taken onto a lease and managed by the Council’s in-house Ethical Lettings Agency (ELA). The ELA have been leasing properties since 2020, and provide a full management service. This includes tenancy allocation and management, and co-ordinating responsive repairs, safety checks, and relet works (should there be any tenancy turnover). For further information on our lease management service, please visit our lease your property to the council webpage.
In leasing your property to the Council, you will be entering into binding legal agreements. An Agreement for Lease will be first entered, placing a requirement on the owner to enter into a lease once the property has been brought up to a lettable standard. This will then be followed by the Lease, to be entered once the Council are satisfied that works are completed and all necessary checks have been met.
What is the eligibility criteria?
To be eligible, the property:
- Has been vacant for a long period (priority will be given to homes vacant for 2 years or longer)
- Is in a significant level of disrepair, and cannot be occupied in its current condition
- Is having an evident negative impact on the surrounding community
- Is owned outright by the registered owner, with no charges registered against the property (by a mortgage lender or other interested parties), or restrictions placed on the Title, unless the mortgage lender is able to provide clear written consent to the terms of the Lease with the Council.
The owner:
- Is looking to let out the property, but is unable to finance the necessary works to bring it up to a good lettable standard
- Has no outstanding debts with the Council – to include Council Tax arrears in respect of the empty property – unless there is an agreed payment arrangement in place that is being successfully maintained
- Has never been subject to any formal sanctions by the Council’s Housing Standards Team, such as financial civil penalties and prosecution action, due to breaches of housing regulations.
How can I be considered for the scheme?
If you think your property would be eligible for the scheme, please complete our Empty Homes Investment Scheme enquiry form.