Empty Homes Strategy - bringing unoccupied homes back into use

1.0 Introduction

Long term empty properties are a wasted housing resource.

Empty properties can make an area feel run down and undermine community spirit. They can also become the focus for anti-social behaviour (ASB), fly tipping, vermin, and other criminal behaviour.

National and local housing shortages have created challenges for our residents. As house prices rise, some of our working-age residents are struggling to afford to live here. Our most vulnerable residents also find it difficult to find suitable homes.

Bringing an empty property back into beneficial use can not only resolve these environmental and social problems but also provides a new home. ‘Bit by bit’, this helps meet our high demand for housing, reduces pressure on new build development and provides a future income and asset for the owner.

Reducing the number of empty homes just makes sense.

It is a strategic priority of the Dorset Council Plan 2024 to 2029 to provide affordable and high-quality housing. We recognise the importance of increasing the availability of affordable homes to meet the needs of local people, improving the existing housing stock, and ensuring sustainable development. It improves residents’ health, the economy and our local environment.

The vision of the Housing Strategy January 2024 to January 2029 is to ensure our residents have access to affordable, suitable, secure homes where they can live well as part of sustainable and thriving communities.

Action on empty homes forms a key theme of that strategy and our housing delivery plan.

We already have a good track record. Since 2019 we have

  • responded to 836 requests to deal with long term empty homes
  • developed a wide range of assistance to help owners get their empty homes back into use
  • brought 52 long term empty homes back into use because of our direct action
  • we have developed the processes to purchase long term empty homes, both voluntarily and by Compulsory Purchase Order (CPO)
  • we have voluntarily purchased 3 long term empty homes, bringing them back into use for temporary accommodation, supported housing or for immediate sale back onto the open market
  • we have completed our first CPO
  • our service is already recognised nationally as delivering ‘best practice’ 

The council will use its influence and where appropriate legal powers to continue to encourage the owners of empty, unoccupied properties to bring them back into beneficial use.

Homes become empty for many reasons. We have an important role to influence and provide solutions, tailored to the individual circumstances of each case. We will do this by continuing to provide a range of advice, incentives and signposting to other services. In appropriate circumstances, we will also use the full range of enforcement powers available to us.

We have already achieved a lot, we think we can do more. The strategy will outline our ambitions to

  • better understand our empty home challenge, so that we can more effectively target our resources
  • develop a more proactive service, which will identify and tackle the ‘hidden’ long term empty homes
  • further develop our suite of enforcement sanctions to include Empty Dwelling Management Orders (EDMO) and Enforced Sales
  • work with all stakeholders, so that they share our ambition, especially when dealing with the most challenging cases
  • identify where specific empty homes can directly contribute to meeting our affordable housing need through assisting property owners directly into schemes such as Key4Me and property leasing

2.0 Strategic aims

The council will:

  • work to incentivise and promote empty properties being brought back into use to help meet housing demand and grow our communities
  • use all available options to bring long term empty homes back into use including advice, assistance, support and where appropriate, proportionate enforcement action
  • develop a more proactive service, which will identify and tackle the ‘hidden’ long term empty homes
  • improve our outcomes bringing more long-term empty homes back into beneficial use

2.1    Data and insight

The council will: 

  • maintain a detailed database to monitor and target empty properties for action. This will include data provided by the public, other agencies including our town and parish councils and internal stakeholders including Revenues and Benefits
  • ensure our information is regularly updated with the status of each property, enabling timely updates on progress, outcomes and trends

2.2    Engagement, support and enforcement

The council will:

  • contact property owners to understand why homes are empty and offer support to bring them back into beneficial use
  • develop projects to create a more proactive service, which will identify and tackle more ‘hidden’ long term empty homes
  • provide financial incentives to enable properties to be improved, renovated and ready for occupation
  • provide professional, independent and unbiased advice on potential routes to bring properties back into beneficial use
  • continue to work in partnership with other housing services, providers and partners to explore how we may contribute to a wide range of housing and other council corporate priorities. For example, using empty homes to provide temporary accommodation, homes for care leavers, providing a home for those with a disability or accommodating people on the Council’s housing register
  • where appropriate, we will use a range of proportionate enforcement powers to reduce the short-term impact of abandoned homes and work towards bringing those houses back into beneficial use (See Appendix 3)
  • work in an intelligence led way, acting on reports, referrals and requests from all stakeholders. Case investigation, progression including regulatory action will be based on a range of priority criteria. For example, the effect that the property has on the local community, its location, type and size, condition, repair costs, demand for housing in that area, relevant human rights issues and equality considerations

2.3    Public awareness

The council will:

  • work to raise public awareness (such as the National Empty Homes Week and other initiatives) to highlight the issue of empty homes, encourage reporting and the benefits of bringing empty homes back into use
  • encourage the public to report empty homes by providing a range of simple reporting mechanisms Information for those affected by empty homes
  • work in partnership with a range of local stakeholders to promote reporting of empty homes, bringing houses back into use and reducing their impact on communities including working closely with our town and parish councils

2.4    Monitoring and review

The council will:

  • annually review this strategy, and identify new opportunities, amending the strategy as needed
  • set clear performance indicators to measure success, identify risks and monitor our activity (see Appendix 1)
  • annually review an action plan for our future work, ensuring that we continue to maximise the resources at our disposal, exploit all the opportunities available to us and drive outcome and success in our work (see Appendix 3)

2.5    Sustainable solutions

The council will:

  • aim to achieve a high level of energy efficiency and climate resilience for homes we bring back into use, recognising that net zero will not always be possible in every case
  • integrate this strategy with the broader Housing Strategy 2024 to 2030 to ensure long-term sustainability and alignment to wider Council priorities


 

3. Strategy scope

3.1    What is a long-term empty property?

In explaining and shaping the work of this strategy, it is useful to understand what a long-term empty home is. Conversely it is useful to understand what buildings will normally fall outside of this strategy.

Different statutory provisions use different criteria for what constitutes a long-term empty home. This can range from 6 months to 2 years empty.

It is our experience that those properties which have been unoccupied for shorter periods of time, for example up to 2 years empty, are more likely to be subject to a variety of ‘churn’ and ongoing or delayed efforts to bring them back into beneficial use. Also, they are less likely to have deteriorated and be causing significant distress or nuisance to communities.

Properties which have been empty and unoccupied for 2 years or more are at risk of remaining empty for long periods of time. This increases the likelihood they will impact our communities with disrepair, overgrown gardens, rubbish, vermin and ASB.

Therefore, while the council has the power to deal with some empty homes from 6 months empty, to prioritise work under this strategy and to enable accurate and meaningful reporting, properties which have been empty for 2 years or more will be considered long term empty under this strategy.

Definition: for the proposes of this strategy, a long-term empty home is a residential premises which has not been occupied for 2 years or more.

A ‘residential premises’ is any dwelling, house or flat which is rated for Council Tax purposes. The residential element of mixed-use buildings are within the scope of this strategy i.e. a long-term empty flat over a shop.

This definition focuses on the use and occupation of the building. It is applied irrespective of the property’s current Council Tax status or other factors including whether the property is furnished.

Therefore, this definition incorporates a wide range of unoccupied residential premises which includes what might be termed ‘hidden’ empty homes, such as

  • unoccupied buildings categorised as second homes for Council Tax purposes
  • ‘sham’ second homes
  • residential premises delisted from the Council Tax register
  • homes where the former occupant has died, and
  • houses empty as the occupant has moved into long term care

Definition: for the proposes of this strategy, a long-term empty home can include a ‘sham’ second home. This is a residential premises which the owner states is a second home for council tax purposes, but it is not occupied for any period. 

3.2    What isn’t a long-term empty home?

The following is a list of residential and other buildings which will normally fall outside of the scope of this strategy:

Properties used and occupied for short periods as commercial holiday lets including Airbnb.

Definition: for the purposes of this strategy, a holiday let is any dwelling normally occupied for short periods of time on a commercial basis.

For the purposes of Council Tax, a holiday let is valued for Business Rates if:

  • in the last 12 months the property has been available to let commercially for short periods of at least 140 nights; and
  • the property will be available to let commercially for short periods of at least 140 nights in the next 12 months; and
  • in the last 12 months the property has actually been let commercially as self-catering accommodation for short periods of 70 nights or more

Genuine second homes, used by their owners and others from time to time.

Definition: for the purposes of this strategy, a second home is any furnished dwelling which is not a person’s main residence but is occupied from ‘time to time’. There is no minimum period that a second home must be occupied. However, under the terms of this strategy, to be a genuine second home, it must be occupied for at least some periods of time.

For Council Tax purposes, a property is a second home when it is substantially furnished, and nobody uses it as their only or main home. The Council Tax definition focusses on the furnishing of the property, not its use or occupation. Under the Council Tax provisions, there is no minimum period that a second home must be occupied.

Note: There is a distinction to be made between what could be termed a genuine second home, used periodically by its owners, which falls outside of this strategy and an empty, unused ‘second home’, which is never occupied and is ‘in scope’ for the purposes of this strategy.

Empty buildings used for non-domestic purposes, in other words commercial property such as long-term empty offices and shops.

Homes which have been unoccupied for less than 2 years. In some circumstances the Council has the legal power to deal with properties which have been empty and unoccupied for at least 6 months. While the Council may want to use its discretion to act upon empty homes which have been unoccupied for between 6 months and 2 years, this strategy will focus action and reporting on homes which have been empty and unoccupied for at least 2 years.

Homes unoccupied following the death of the occupant and a clear and active plan to obtain probate or letters of administration are in place.

Homes unoccupied due to the occupant receiving or providing care elsewhere and the occupant is likely to return to live at the property in the near future.

3.3     Why are homes left long-term empty?

Homes are left long-term empty for wide variety of reasons. Understanding the background for a dwellings lack of use, enables officers to better target their response. However, in a significant minority of cases, despite reasonable investigation, the full reasons for a properties empty status can still be unclear or difficult to understand. In some cases, it may include one or several of the below factors.

  • financial - many homes are left vacant due to financial constraints, whether it's a lack of funds for repairs or renovations, or owners choosing to leave properties empty as part of an investment strategy (e.g., "buy-to-leave"). Listed Buildings are at high risk of abandonment, due to the high repair costs and perceived planning constraints
  • inheritance and probate- the death of a property owner can lead to delays in transferring ownership due to probate processes and the need to determine beneficiaries. Sometimes next of kin are not clearly identifiable. We also recognise that some beneficiaries find it very difficult to progress with the estate of the deceased. This can be due to family disagreements and emotional connections to the property and its possessions
  • care - properties can become empty when owners move into hospital, nursing homes, or other care facilities. Some owners lack the capacity to make decisions about how their home and other assets are dealt with
  • abandoned second homes and sham second homes- second homes, particularly in some of our areas with high tourist demand, can become abandoned by the owner. This can happen as owners needs change. These second homes are never used and there is no intention to do so. Sham second homes are sometimes created by owners to circumvent the Council Tax premiums
  • investment strategies - some individuals may purchase properties with no intention of living in them or renting them, but instead, hold them for future sale with the hope of profit
  • delays in planning and development - renovation projects, property conversions and even new-build homes can be left empty for various reasons, including delays due to planning permissions, construction issues and/or finances
  • lack of urgency or knowledge - some owners may procrastinate on renovating or upgrading a property, while others may lack the knowledge or expertise to effectively manage the process
  • lack of vision - owners might not fully recognise the potential of their property, whether it's to provide housing or generate capital or a regular income

3.4    Counting long term empty homes

Accurately counting the number of long-term empty homes, both nationally and locally is complex. Council Tax data of long-term empty homes is only one source of information. As empty and unoccupied homes can extend across more than one Council Tax category, the true number of long-term empty homes is the sum of a combination of several different data sources.

4. The national context

4.1    Background

The national Council Taxbase reports annually on empty and unoccupied homes. In 2024 it identified just over 502,000 properties reported as empty. This constitutes a year-on-year increase from 479,000 in 2020.

In 2024, of those empty properties, 119,606 were being charged a Council Tax Premium indicating that they have been long term empty for at least 12 months. This figure has been rising consistently across the country since 2020, indicating that empty homes is a growing national issue.

4.2    Guidance and good practice

There is currently no national strategy to tackle the issue of long-term empty homes.

The Local Government Association (LGA) recognised in recent guidance ‘A practical approach for councils on dealing with empty homes’ that “Against a backdrop of significant pressure to meet increasing housing demand, councils are increasingly exploring other opportunities to meet shortfalls in supply.” They also report that with resources being tight, many Councils have historically only chosen to act on long term empty homes in a reactive way. In publishing this guidance, the LGA sought to change this stance to encourage more proactive empty homes work and the use of a wider range of options available to Council’s, both in terms of assistance, advice and enforcement powers. 

“Councils across England are deemed to be best placed to tackle the issue of empty homes through encouraging and supporting their owners to bring them back into use, and to enforce against owner and property where their condition or effect is to the detriment of a neighbour or community. However, dealing with an empty home is not a statutory function that councils are duty bound to provide. 

In 2023 Crisis, the national charity for people experiencing homelessness, called for a concerted effort to repurpose long-term empty properties through a number of measures, including a partnership approach to developing a National Empty Homes Initiative.

4.3    Long term empty homes and Council Tax premium

The Council Tax system in England allows councils to charge higher rates for properties that have been empty for certain periods of time. This is often referred to as the Empty Home Premium. The aim of this premium charge is to encourage owners to bring their empty properties back into use.

Over recent years the ability of councils to charge this premium has been enhanced and is based on the period the property has been unoccupied. Currently in Dorset the 100% premium charge (or double Council Tax) is payable from one year empty and unoccupied. Properties empty and unoccupied for 5 or more years are liable for a 200% premium charge (or triple Council Tax). Properties empty and unoccupied for 10 years or more are liable to a 300% premium charge (or quadruple Council Tax).

4.4    New Homes Bonus

The New Homes Bonus (NHB) was introduced by Government in 2011, with the aim of encouraging local authorities to grant planning permissions for the building of new houses in return for additional revenue.

The New Homes Bonus is a grant paid by central government to local councils to reflect and incentivise housing growth in their areas. It is based on the amount of extra Council Tax revenue raised for new-build homes, conversions and long-term empty homes brought back into use. There is also an extra payment for providing affordable homes.

2025/26 could be the last year of New Homes Bonus, however a final decision on this is yet to be announced by government.