Issue details

Reason for the Decision

 

To enable the Property to be renovated and improved and brought back into beneficial use which will remedy its adverse environmental, economic, and social impact on the surrounding area.

 

Alternative Options considered and rejected

 

Alternative option 1:

 

Commence the process to make an Empty Dwelling Management Order (EDMO) under the Housing Act 2004.

 

Option rejected.

 

An EDMO empowers the Council to take over the management and letting (not ownership) of a property for a maximum period of 7 years. This option has been discounted as it will require the Council to pay for the complete renovation and improvement of the property to current lettable standards and then arrange for its ongoing management over this 7-year period. The property then has to be handed back to the freehold owner. The rent received over this 7-year period is unlikely to cover the cost of repairing the Property to a lettable standard.

 

Alternative option 2:

 

Take no formal action and continue to try and persuade the owner to bring the Property (“the Owner”) back into use by informal means.

 

Option rejected.

 

The Property has been empty for at least 10 years and is having a deleterious effect on the amenity of the area and generating complaints from residents and local Councillors. During this time the owner has not engaged with any approach or offer of assistance made by the Council to bring the Property back into use or carried out any actions to manage or maintain it.

 

When weighing up the powers available to the Council, the rights of the local community and the rights of the owner, then it is no longer appropriate to continue pursuing informal action in this case.

 

Consultees

 

Corporate Director for Housing and Community Safety

Legal Business Partner – Regulatory

Development Management and Enforcement Team

nplaw – external legal advisor who specialise in CPO.

 

Budget Implications

 

Estimated cost of a Compulsory Purchase Order:

 

Legal costs - The fixed fee charged by NPLaw (acting for the Council) is £3,500 plus disbursements (If contested or if there are complications; legal work will be charged at the hourly rate of £145 plus disbursements and it could prove necessary to instruct Counsel)

District Valuation costs £2750

Land Registry Search & other costs £200

Newspaper Adverts £2000

Likely Emergency repair costs upon taking possession £2000

Possession costs (locksmith etc.) £150

Stamp Duty Land Tax (dependant on land value at vesting)

 

Land acquisition/market value: £200,000 September 2022

Disturbance: £2,000

Basic Loss Payment:  £15,000

Surveyor’s fees: £5,000

Total Compensation £222,000

 

Compulsory purchase compensation includes the market value of the property together with other potential heads of claim.  The current value of the Property is £200,000 as per an assessment from a local estate agent.

 

However, the valuation date for the purposes of compensation will be a future date in the process and so the valuation will be dependent on property and market conditions at that time. The total estimated compensation is £222,000 as per the assessment from the location estate agent taking land value together with other potential heads of claim (disturbance, basic loss payment and fees)

 

There can be no guarantee that the value will be in the region of £200,000.00 or that the total amount of compensation will be £222,000.00.

 

Legal Implications

 

The Council has the power to make a Compulsory Purchase Order (CPO) under section 226(1)(a) of the Town and Country Planning Act 1990 and the Acquisition of Land Act 1981 to facilitate an improvement which will contribute to the promotion and improvement of the economic, social, and environmental wellbeing of the area and to submit the CPO to the Secretary of State for confirmation.

 

In submitting a CPO to the Secretary of State for confirmation, parties with a legal interest have the right to object. If objections are received and not withdrawn or disregarded, the confirming minister will either arrange for a public local inquiry to be held or, where all the remaining objectors and the acquiring authority agree to it – arrange for the objections to be considered through a written representation’s procedure. It may also be possible to agree an undertaking with the objector securing a confirmed CPO on the basis that the Council grants a final opportunity for the Property to be renovated voluntarily.

 

 

Any Conflict of Interest?

 

None

 

Reference Documents

Housing Standards Enforcement Policy and Statement of Principles for determining Financial Penalties 2020-2025 3 November 2020

Guidance on Compulsory purchase process and The Crichel Down Rules (2019)

Dorset Council Plan 2020 to 2024