Last month Westminster City Council caused controversy for their proposals regarding vacant homes. We want to have a closer look at them here and the response from some quarters. Then, if you want help with investment properties in the City of Westminster, you can rely on us.
Bringing homes back to use
Westminster is one of London’s prime markets, home to a number of lucrative areas and popular amenities. However, the council said there is a real issue with providing housing in the area. In fact, it cost them over £140m in just two years to provide temporary accommodation for locals unable to find a home. This puts a huge amount of strain on their budget and limits what they can do.
What Westminster City Council is proposing is for the Government to change the rules on issuing Empty Management Dwelling Orders. They are an interesting power that councils have. Basically, they give them the ability to take control of any empty private sector homes. They can then take steps to house people in them.
One reason the council is calling for the change is there are said to be over 11,000 vacant properties in the borough. This includes some that have not been occupied for a long time. It is a very popular spot, with many people around the world opting for investment properties in the City of Westminster. However, a lot of them never plan to live in the homes.
While the Empty Management Dwelling Orders are a good power, councils rarely use them. There can be a number of issues, including properties having to be empty for a long enough period. However, Westminster is proposing to change the rules so councils can apply for an order when a home is empty for six months.
Backlash
There have been some stinging criticisms of Council’s proposals. Some have concerns about whether it would even be possible to enforce the rules if there was a change to the dwelling orders. For example, local authorities would still have the same potential barriers with contacting and engaging with property owners.
Critics also believe it could potentially have a really negative impact on foreign investors. That could certainly be the case here because so many people want investment properties in the City of Westminster.
Perhaps most damning was the response from Dr Kristian Niemietz from the Institute of Economic Affairs (IEA). He said the real problem with the housing crisis is supply has been poor for over four decades. He believes proposals like these are just councils “trying to distract from that”.
What next?
It will be interesting to see what happens now. Westminster City Council believes in their proposals, with leader Adam Hug calling for the reforms to bring properties into use. The Council’s Empty Property Enforcement Officer, Jacqueline Connerky, also wants them to have more power to engage property owners.
The early signs are positive for local councils. The Ministry of Housing, Communities, and Local Government wants to give them more power to manage empty homes in their jurisdictions. However, we’ll have to wait to see if there are actual changes to the rules. If so, investors will need to think carefully about their assets.
Get expert help with investment properties in the City of Westminster
Finefair Ltd aims to give investors the most exceptional range of services for their portfolios. We are confident we can arrange solutions for all kinds of residential properties in various parts of London. Most notably, we excel at guaranteed rent schemes. They are a great way to protect your income and ensure homes won’t be vacant for long periods.
So, if you’d like to see what we can do for investment properties in the City of Westminster or other locations, talk to us. We offer fantastic flexibility and adapt to any strategy, long and short term.
