Agenda item

Consider report by Director – Infrastructure and Environment.  (Copy attached.)

2.1       With reference to paragraph 4 of the Minute of the meeting held on 7 December 2021, there had been circulated copies of a report by the Director, Infrastructure and Environment which provided an update on the delivery of the Empty Homes Grant Scheme since its implementation in December 2021.  The Housing (Scotland) Act 2001 placed a statutory requirement on Local Authorities to develop a Local Housing Strategy (LHS).  That strategy set out the strategic direction for housing investment and service delivery, and identified the need to bring empty properties back into effective use.  The report explained that the most common hurdle for empty home owners was the financial cost associated with bringing a property back into use.  The Committee approved the creation of a specific fund to assist owners to bring homes back in to use either for occupation or let out as affordable homes in December 2021.  The introduction of the Empty Homes Grant contributed to the strategic objectives highlighted in the LHS, the Strategic Housing Investment Plan and the Rapid Re-housing Transition Plan.  Additionally, tackling empty properties supported the approach to town centre and place based regeneration.  The report provided an update on progress made and information on applications for financial support made by empty home owners. 

2.2       The Lead Officer, Housing Strategy and Development, Ms Donna Bogdanovic, presented the report, and highlighted that considerable work had taken place to develop and establish the appropriate legal, financial, and monitoring processes to allow the scheme to operate.  The report provided an overview of the applications which had been received, and their current status.  Since the report had been published a further application had been received, and 2 of the applications listed as not yet approved had been approved.  Ms Bogdanovic expected that all of the applications identified on the list would be approved following the provision of more detail, acquisition of building warrants or approval of planning permission.  12 out of the 16 applications would result in a home available to rent at local housing rates, the remaining 4 would be used by an owner occupier.  Over half of the applications related to properties which had been vacant for 15 years or more.  Of the resources set aside for the Scheme, over 80% had been earmarked.  Members highlighted that bringing empty homes back into use represented a significant positive benefit for the region.  In response to a question regarding the number of applications received, Ms Bogdanovic expressed satisfaction at the volume of applications, and expressed her thanks to Scottish Borders Council’s finance and legal departments for their assistance.  Regarding the challenges facing the scheme, the Empty Homes Officer outlined that each project presented its own unique challenges, as some elements of projects would not be eligible for funding, whilst others could.  In response to a question regarding the use of the premium rate of council tax, the Empty Homes Officer confirmed that all of the empty homes which were on the valuation roll would have been subject to the premium rate.  The Empty Homes Officer undertook to discuss with Members how they could check whether a home was on the valuation roll for council tax purposes.   It was confirmed that the scheme could be used in instances where a change of use was proposed, however the necessary planning permissions were required, and other qualifying conditions needed to be satisfied.    In response to a question regarding the timescales involved, particularly with reference to the recommendations included in the report, Ms Bogdanovic confirmed that the original intention of the scheme had been to work through a full cycle to March 2024.  However, given the speed of progress, and resource allocation, since the Scheme was approved, it was expected that an evaluation would be undertaken and a report prepared for December 2023.  Regarding the possibility that owners of homes whom were in receipt of a grant from the scheme could seek to rent out their properties at a higher rate following the expiration of the 5 year restrictive period, Ms Bogdanovic confirmed that there were no grounds on which that could be stopped, however policy discussions were ongoing at a national level regarding rent caps, and other protections existed which limited the amount by which rent could be increased.  Ms Bogdanovic confirmed that discussions had taken place regarding the appropriateness of providing financial support to owner occupiers, and explained that in such instances a grant could only cover up to 50% of the total cost of works, compared to 75% where a property would be let out.  In response to a question regarding how many individual applicants were involved in the scheme, the Empty Homes Officer confirmed that the 5 applications in Galashiels were from the same individual, and 3 applications in Eyemouth related to one individual property owner.  Ms Bogdanovic explained that each property had been treated as an individual application, and that the presentation of that would be examined for future reporting purposes. 

            DECISION

            AGREED to:-

(a)        note the progress made in the delivery of the Empty Homes Grant Scheme; and

(b)       note that should the grant assistance prove successful, Officers would bring back proposals recommending an ongoing financial annual allocation from the revenues raised from the second homes council tax to continue to support the initiative.