6. Debate on the Equality, Local Government and Communities Committee Report: Empty Properties

Part of the debate – in the Senedd at 4:03 pm on 4 December 2019.

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Photo of Mark Isherwood Mark Isherwood Conservative 4:03, 4 December 2019

As our report states, around 27,000 private sector homes in Wales have been empty for more than six months. Many owners, we said,

'do not wish to see their properties lying idle and should be supported to bring them back into use. When attempts to tackle the problem informally fail, local authorities have powers to deal with empty properties; but this isn't straightforward.'

The Welsh Government accepts, as we heard, 10 of our lucky 13 recommendations. Having a national action plan in place, adopting genuinely community-based approaches, accountability measures and establishing a source of legal expertise for empty property teams to access will be critical. As we stated, this should include work to understand the impacts that having a specific officer with responsibility for empty properties can make, and training for local authority officers and members on the enforcement options available will be essential, as will the provision of flexible funding solutions that are sensitive to local needs and assist property owners.

As a former housing association voluntary board member, I welcome the Welsh Government’s recognition that housing associations play a key part in bringing empty properties back into use, but we'll need to see evidence that they have been genuinely involved by both Welsh Government and local authorities.

Although the Welsh Government rejects ring-fencing for housing purposes of revenue collected by local authorities through the council tax premium on empty homes, we must see evidence that local authorities have been encouraged to use the funding to address local housing supply needs.

It is deeply regrettable that the Welsh Government have only agreed in principle to our recommendation that they undertake a review with the Welsh Local Government Association of the current statutory enforcement powers available to local authorities to tackle empty properties in order to simplify them and make them more effective.

It's also concerning that they've only agreed in principle to our recommendation that they and the Welsh Local Government Association undertake an exercise to assess whether second home owners are avoiding payment of the council tax premium by falsely registering their property as a self-catering business or claiming that a family member has moved in. Serious allegations about this were made to us and we need the facts, especially where this could involve fraudulent activity.

However, as I stated when we were debating Stage 3 of the Housing (Wales) Act 2014, there is the danger that second home owners who have put their life savings into realising their dreams will be hit hardest by the council tax premium, and therefore rent out their second homes rather than lose them, when the people that can afford it will shrug this off. Responding to me in committee, Gwynedd Council's representative stated:

'this idea that a lot of our empty properties are owned by people from outwith Gwynedd isn't...complete, because many people within Gwynedd own these vacant homes'.

He added that over 1,000 properties had transferred. And as I said here in October:

'working with the valuation office, the Welsh Government must therefore give attention to this perhaps inevitable consequence of its legislation...they must penalise neither the contribution made by...self-catering businesses to our tourism economy, nor...second home owners...forced to generate extra income on affordability grounds...who are playing by the rules.'

We heard from witnesses in committee that, in England, multiple authorities will adopt a regional partnership model, appointing an officer between them to share the cost and resources; that having an empty homes officer is critical and that a corporate strategic approach helps tackle huge delays and barriers; that six community-based projects in England pulled in £3 million for empty homes refurbishment and created 65 homes for local people over three years; that longer term funding is needed if the Houses into Homes scheme is to stack up; that, in England, the new homes bonus was bringing long-term empty homes back into use; that, in Scotland, probate and bereavement are a specific exemption from the council tax premium; that Wales was behind the curve in the context of the simplified fitness housing standard adopted in Scotland; and that effective community-led approaches play a key part because people feel involved and have a real say in how homes are renovated.

As I said here in 2011, quoting Denbighshire's empty homes officer at that time, who was funded by north Wales housing associations, every empty home has a different story, the key is to understand why it is empty and to work closely with the owner to bring it back into use. Diolch yn fawr.