Decision details

Agreement to introduce an Empty Homes Loan scheme.

Matter for Decision

The introduction of an Empty Homes Loan was needed to help combat the on-going problem with Empty Homes in Cambridge City.  The City had in the region of 328 properties that are recorded to have been empty for over 6 Months.  The Empty Homes Officer was currently investigating in the region of 70 of these properties that have been empty for longer than two years.  Empty homes were a wasted resource in terms of housing available for people to live in and they can also have a negative impact on their surrounding communities, as well as being a financial burden for many owners. Cambridge was in an area of high demand for affordable housing.

 

Decision of Executive Councillor for Housing

     i.        Approved the Introduction of an interest free Empty Homes Loan Policy, with loans of up to £25,000 secured against each property, (attached as Appendix A to the Officer’s report).

 

    ii.        Approved conditions being attached to the loan meaning that the property has to be let at an affordable rent level for the minimum of two years.

 

   iii.        Approved for the property to be let through Town Hall Lettings or another not for profit provider.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Empty Homes Officer and the Environmental Health Officer.

 

The Committee made the following comments in response to the report:

     i.        Suggested that whilst this was a good idea, the legal requirements would need careful consideration to avoid future problems such as loss of income capital.

    ii.        Expressed some doubts about the level of take up.

 

The Empty Homes Officer and the Environmental Health Officer said the following in response to Members’ questions:

     i.        Property owners would pay a management fee to Town Hall Lettings.

    ii.        There would be separate legal agreements with the tenant and the property owner.

   iii.        Should a property require more than the maximum loan amount (£25,000), a top up from the applicant was permitted.

  iv.        The budget would be recycled to provide more loans as the first round of loans was repaid.

   v.        It was hoped that owners would retain the management agreement with Town Hall Lettings once the initial two year period had elapsed.

  vi.        A charge would be placed against the property to protect the repayment of the loan.

 

The Committee unanimously resolved to endorse the recommendations.

 

The Executive Councillor approved the recommendation.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

 

No conflicts of interest were declared by the Executive Councillor.