Empty house grants

Action on Empty Homes group recently reported that there are some 700,000 empty homes just in England alone.

This is at a time when the overall shortage of housing – especially for those looking for affordable housing – is getting worse rather than better.

So, what is being done to bring empty homes back into the use for which they were intended – and help to address the chronic shortage of housing?

The government

At national level, the government body responsible for housing, land, and regeneration – including the regeneration of empty housing – is the Department for Levelling Up, Housing and Communities. Its executive branches are currently Homes England and the Regulator of Social Housing.

From 1^st April 2024, the rules on long term empty properties in England changed. Double council tax on long term empty properties came in to force, supporting local people in areas where high numbers of empty homes are preventing them from finding affordable housing.

The sharpened rules will apply when a property has been empty for 12 months, rather than the current two years. A government press release earlier in 2024 said: “Councils will be given new powers to introduce the tax premium on second homes in their area from next year, bringing in millions more for public services or keeping overall council tax bills down”.

Empty homes grants

Empty homes grants are financial incentives provided by local authorities or housing associations to encourage the renovation and reoccupation of vacant properties. These grants aim to tackle the issue of long-term empty homes, which can contribute to housing shortages and urban blight. By offering these grants, local councils seek to bring these properties back into use, thereby increasing the housing supply and improving neighbourhoods.

Empty homes grants are funds typically allocated to property owners, developers, or housing associations to assist with the cost of renovating and bringing empty properties back into habitable condition. These grants can cover a range of expenses, including structural repairs, interior refurbishments, and other necessary improvements.

Purpose of empty homes grants

• Reduce housing shortages: With increasing demand for housing, these grants help to utilise existing structures rather than building new ones.
• Improve neighbourhoods: Renovating empty homes can enhance the appearance of neighbourhoods, reduce crime rates, and increase property values.
• Support sustainable development: Reusing existing buildings is often more sustainable than constructing new ones, reducing the environmental impact.

How do empty homes grants work?

Local councils or housing associations typically manage these grants. The process usually involves:

1. Application: Property owners or developers apply for the grant through their local council. This application may require detailed renovation plans and cost estimates.
2. Assessment: The council assesses the property and the proposed renovation work to ensure it meets specific criteria.
3. Approval: If approved, the grant is awarded, and the renovation work can commence.
4. Completion: Upon completion, the property must typically be occupied or made available for rent.

Eligibility criteria

Eligibility for empty homes grants can vary by local authority but generally includes:

• The property must have been empty for a minimum period, often six months to two years.
• The applicant must own the property or have legal authority to carry out the renovations.
• The renovation plans must meet specific standards and be approved by the local council.

Examples of empty homes grants

1. Wales: Grants of up to £25,000 are available to renovate empty properties to make them safe to live in and improve their energy efficiency.
2. Barnet City Council: Empty Property Grants of up to £25,500 are currently available to help owners bring long term empty properties back into residential use through either renovation or conversion. A grant is also available to assist with the development of new properties.
3. Leeds City Council: Leeds City Council’s Empty Homes Doctor service includes advice and financial assistance to bring empty homes back into use, including potential grant funding.

These above examples help to illustrate:

• the active steps being taken by various councils around the country to identify the number of empty homes in their area;
• the type of incentives that are available by way of locally funded grants and loans;
• the very local – and sometimes quite small-scale but no less valuable – nature of such schemes; and
• the widespread recognition by local authorities that empty housing represents a wasted resource at a time when practically every part of the country faces a housing shortage.

The upshot is that if you are interested in buying an empty property to refurbish, modernise to live in, let to tenants, or sell on there is likely to be help from a local council nearby. It is important, though, to do your research and establish just where and in which districts any such scheme might apply and to make enquiries about which of your refurbishment and regeneration projects might qualify for a grant or loan.

Disclaimer: The information provided in this blog is correct at the time of writing (pre-budget 3rd July 2024) and is based on our current understanding of the law. Please always seek professional help and advice.