Empty Dwelling Management Order: Housing Act 2004 - Essay Example

INTRODUCTION Without a doubt, the age old saying of an English man's home being his castle is one that embodies the feelings of the majority of us. This proves to be extremely paradoxical in nature in that many owners choose to be negligent in the care of their properties. Currently, there are over half a million empty privately owned dwellings within England. Of those properties, approximately half have been vacant for more than six months. This proves to be extremely problematic in that many of these homes are subject to break-ins and other acts of vandalism. The cost of these empty properties proves to be exorbitant for both the property owners and their neighbors in that it results in degradation of the entire neighborhood and decreased property values. 1 The scope of empty residential dwellings expands beyond the direct costs associated with vandalism and the decreased property values. It is also evident in the increased premiums incurred by homeowners within the neighborhood as well as related expenses. If one were to quantify the complete annual cost of leaving a residential property unoccupied for the period of one year, one can clearly ascertain an approximate cost of 8,000. This coupled with the fact that within England, there is has been a systematic rise in the number of homeless families has effectively prompted governmental involvement. This involvement came in the form of the Empty Dwelling Management Order (EDMO).2 Instituted on July 6, 2006 the EDMO gives the Local Housing Authority (LHA) the right to possession of property that has been unoccupied for more than six months. EDMO embodies the commitment of the English Government with regards to finding a permanent solution to a problem that is dyadic in nature and involves both the presence of empty private dwellings and the rising number of homeless families. This is very proactive in that the supply of houses does exist in the form of houses that are essentially wasted by being unoccupied for a prolonged period of time. These houses prove to be very cost consuming to the Local Housing Authorities (LHAs) as well as the emergency services within England. Historically, there have been many voluntary initiatives undertaken by LHAs to engage in mutually beneficial arrangements with the property owners. These voluntary initiates have proved to be very ineffective thus necessitating compulsory action. It has been argued that these compulsory initiatives often favored the LHAs as the owners are view to be negligent in their responsibilities in maintaining their properties. In fact, many LHAs have been endowed with the right to purchase these properties at ridiculously low rates. Despite this, many LHAs view the procedure of acquiring empty dwellings as one that is cumbersome, time consuming, extremely bureaucratic in nature and complicated especially if their attempts to take over the properties are greeted with hostility.3 EDMOs operate with the intention of establishing a common ground between voluntary and compulsory purchasing ability. Essentially the LHA has the power to decide whether to actively pursue the purchase of an empty dwelling. Endowed with this power, it is the goal of EMDOs to compel the property owner to communicate with the LHA wherein an agreement may be reached with regards to returning the property to a condition whereby it is fit for human habitation. This agreement may entail active compromise between the LHA and the property owner. In principal and fact, it would be mutually beneficial for the LHA and the property owner to reach an agreement as it circumvents a great deal of bureaucratic red tape. This is especially important when one takes into consideration the fact that EMDOs are not intended to be utilized as an enforcement alternative but one that is necessary when the LHA has determined that its ownership of the property proves to be contraindicated. Additionally, EMDOs are not meant to be stand-alone measures. They are intended to work in concert with the existing remedies such as leasing schemes. Essentially, they are meant to be supplementary arrangements when all other alternatives are exhausted based on the lack of action on the part of the property owners. In order to fully understand the scope and ramifications of EMDOs, it is prudent that we examine the background of the legislature with regards to empty privately owned property.4 LEGISLATIVE BACKROUND-EMDO By 2002, it became evident that there was a dire emergency within England whereby the number of empty private dwellings had continually increased to epidemic proportions. This trend became problematic to the extent that legislative intervention was seen as the only viable alternative. Operating in this vein, the Transport, Local Government and Regions Select Committee recommended the introduction of a pilot program whereby the LHA would resort to obligatory leasing schemes for properties which remained vacant for an extended period of time. This recommendation was made in a comprehensive report on the scope and ramifications of the problem of empty dwellings. The most poignant of these recommendations entailed: 1. Very drastic intervention especially within the urban areas most adversely affected by empty dwellings. In those areas, a very aggressive housing market revival would be attempted on a large scale. In so doing, a large monetary as well as manpower investment would be required on the part of the LHA. This initiative would require an investment of several hundreds of millions of pound annually. The return on investment was promised to be significant and the underlying improvement in the quality of life for the property owners within the area would be invaluable. 2. An initiative to restore the confidence of the general public as a means of circumventing further degradation in at risk neighborhood. Essentially, the creation of a comprehensive incentive package to encourage investment in at risk neighborhoods. 3. A scheme to recycle existing brownfield sites 5 The recommendations of Transport, Local Government and Regions Select Committee were greeted with great promise and they were effective in initiating the draft Housing Bill which was published in late 2002. The aim of this bill was to create a proactive measure for handling the problems caused by the prolonged emptiness of private dwellings. The Housing Bill went through a process of refinement which culminated in the introduction of very specific provisions of EMDOs in the process of being passed through the House of Lords in September of 2004. Its successful passage in the House of Lords Provisions and its receipt of Royal Assent led to its passage under what is now known as the Housing Act 2004.6 Provisions of Housing Act 2004 The Housing Act introduced two very different types of management orders which prove applicable to empty private dwellings-the interim EDMO and the final EDMO. These two orders served very different purposes. The interim EDMO operated with the intent to empower LHAs with the necessary authority to act as the property manager and as such, take the necessary steps to ensure that the dwelling is restored to habitable conditions and is returned to habitation. All of this is done with the consent of the property owner. When the collaborative efforts of the property owner and the LHA proves to be futile a final EDMO can be sought with the aim of ensuring that the property is occupied and remains so. This process can be done without the consent of the property owner. In order for a final EDMO to be issued, there must be a preceding interim EDMO or another final EDMO. 7 Under Section 134 of the Act a Residential Property Tribunal (RPT) may authorize a LHA to make an interim EDMO in cases where a privately owned dwelling has been unoccupied for a period greater than six months if: 1. The LHA is reasonably assured that the dwelling has been totally unoccupied for at least 6 months. 2. There is no expectation that it will become occupied in the near future 3. An interim EDMO will establish a realistic possibility for property occupation in the near future. 4. The LHA has complied with section 133(3) of the Act which maintains that: a. A property owner has to be notified of the fact that the LHA intends to make an interim EDMO. b. To ascertain if any steps were taking or intended to be taken in order to ensure that the dwelling will be occupied. 5. LHA is in compliance with all prescribed recommendations. 6. The property is not exempt for the recommendations.8 Under section 134(5) of the Act the "appropriate national authority" prescribe exceptions on an individual property basis. This can be done by order and may include a longer time frame for vacancy as well as any other exception which deems necessary in order to ensure that the interest of returning the property to occupancy is maintained. The Secretary of State is charged with the responsibility of making such orders. Approved interim EDMO generally last for a maximum period of 12 months and within that time period, the LHA cannot make any occupancy arrangements without prior consent by the owner. In the even consent cannot be obtained, the interim EDMO may be revoked in favor of a final EDMO and no further owner approval is needed. A final EDMO may remain in force for a period no more than seven years.9 Part 4 of Chapter 34 of the Housing Act 2004 relates to EDMOs. This section is very comprehensive in that it delineates each and every aspect of both the interim and final EDMO. It does an excellent job in adding clarity to a potentially confusing subject and includes rules and regulations with regards making EDMOs, special provisions, health and safety conditions, financial arrangements, enforcement and compensation to property owners in the event of the expiration of a final EDMO. This delineation is not only a necessary measure but one that goes above the call in delineating property rights. It attempts to rectify a very troubling problem-homelessness in light of the overabundance of empty property. It has been characterized as a measure which has effectively led to the legalization of theft of property. This assertion continues to be a subject of debate. I feel that only time will solve this point of contention. References Merrick, R. 2005. Region in the Grip of Housing Crisis. [Online] Available from: http://icliverpool.icnetwork.co.uk/0100news/0100regionalnews/tm_objectid=1637176 [cited 18 February 2007]. Community and Local Government. 2004. The Housing Act 2004: Regulatory Impact Assessment (RIA). [Online] Available from: http://www.communities.gov.uk/index.aspid=1150541 [cited 18 February 2007] Lambeth Housing. 2006. Lambeth Private Sector Housing Strategy 2006 [Online] Available from http://www.lambeth.gov.uk/NR/rdonlyres/3FD0D827-B146-45BF-A0D9-0363A24A67C8/0/PSHstragtey2.pdf [cited 18 February 2007] Office of the Deputy Prime Minister. 2006. Empty Dwelling Management Orders: Response to Consultation on Secondary Legislation [Online] Available from http://www.communities.gov.uk/pub/341/EmptyDwellingManagementOrdersResponsetoConsultationonSecondaryLegislationPDF274b_id1163341.pdf [cited 18 February 2007] House of Commons. 2002. Transport,LocalGovernmentandtheRegions- Sixth Report. [Online]. Available from http://www.publications.parliament.uk/pa/cm200102/cmselect/cmtlgr/240/24002.htm [cited 18 February 2007] Housing Act 2004. (c.34), London: HMSO Department for Communities and Local Government. 2006. Empty Dwelling Management Orders: Guidance for residential property owners on new powers available to local councils. [Online] Available from http://www.communities.gov.uk/pub/652/EmptyDwellingManagementOrdersGuidanceforresidentialpropertyownersonnewpowersfors_id1500652.pdf [Accessed 18 February 2007] Read More