Empty Dwelling Management Orders

Resources

Introduction

Many properties stand empty at times, sometimes for a short period, sometimes for longer. In most cases the intention of the owner is that the property should be occupied, but the property may be empty between tenancies, or be on the market for sale or the owner may be carrying out necessary work to enable it to be rented or sold. Advice and, in certain cases funding, to help the owner achieve one of these options may be available from the local authority.

Many properties stand empty at times, sometimes for a short period, sometimes for longer. In most cases the intention of the owner is that the property should be occupied, but the property may be empty between tenancies, or be on the market for sale or the owner may be carrying out necessary work to enable it to be rented or sold. Advice and, in certain cases funding, to help the owner achieve one of these options may be available from the local authority.

However, there are a small number of properties that, for various reasons, stand empty for years. In many cases these could be brought back into use.

An Empty Dwelling Management Order (EDMO) can be used to allow the Local Authority to take over the management of long-term empty property, in order to bring it back into use.

An Interim EDMO is made first and lasts for up to a year. At the end of that time can be replaced by a Final EDMO. This can last for up to 7 years and can be renewed. An EDMO must be kept under review and revoked if the owner is able to bring the property back into use before the LA does.

EDMO are intended to be used on long-term empty properties when all other options (including negotiation) have failed to encourage an owner to bring it back into use. They are not intended for use on short-term empty properties.

The Local Authority attempts to find tenants and uses the rent to pay for the management of the property. Any excess rent would go to the owner.

More general information on Empty Homes and bringing them back into use, can be found in the useful websites in the Additional Resources section.

Obtaining an Empty Dwelling Management Order

Local authorities have to apply to a residential property tribunal for approval of any Interim EDMO they have drafted. They have to provide specific evidence to support their request.

Local authorities have to apply to a First-tier Tribunal (Property Chamber) for approval of any Interim EDMO they have drafted. They have to provide specific evidence to support their request.

Evidence that the local authority has to present to support their case for an Interim EDMO

  • Evidence that the property has been empty longer than 6 months
  • Evidence that there is no reasonable prospect of it being occupied in the near future unless an EDMO is granted
  • Details of the steps that the local authority has taken to contact the owner to notify them of their intention to seek an Empty Dwelling Management Order
  • Details of the efforts that the local authority has made to find out what the proprietor is doing to bring the property back into use
  • Details of any advice and assistance that the local authority has provided to assist the owner in bringing the property back into use
  • Evidence that the property is not in a category which is exempt from EDMOs
  • Evidence of the property’s classification for council tax purposes

If the proprietor is currently undertaking repair work or has applied for planning permission which is still outstanding the local authority must provide good reasons why a Management Order is necessary to bring the property back into use.

At the time of asking for the order, the local authority may also ask the tribunal to make an order to terminate any existing leases or licences. (This might apply if, for example, a licence had been granted to someone who was not really living at the property so that the owner could claim that it was occupied.)

The Tribunal will decide whether or not to grant an EDMO. In reaching a decision the Tribunal will have to take into account the interests of the community and the effects of the order on the rights of the proprietor or any third party.

The Local Authority does not have to obtain authorisation from an First-tier Tribunal (Property Chamber) to make a Final EDMO. It can be made if an Interim order comes to an end or is otherwise revoked, or it is made immediately following a previous Final order. The Local Authority must consider that making a Final EDMO is the most appropriate course of action, taking into account the interests of the community and the effect the order would have on the owner of the property and any relevant others.

Exemptions from Empty Dwelling Management Orders

Certain properties are exempt from the use of Empty Dwelling Management Orders. Local authorities cannot apply for an EDMO to bring these types of property back into use.

Certain properties are exempt from the use of Empty Dwelling Management Orders. Local authorities cannot apply for an EDMO to bring these types of property back into use.

Properties which are exempt from Empty Dwelling Management Orders

  • Property which is not wholly unoccupied
  • Property which is owned by a public sector body
  • Property where the proprietor has lived but is temporarily absent
  • Property where the proprietor has lived but is living elsewhere to receive personal healthcare or treatment
  • Property where the proprietor has lived but is living elsewhere to provide personal care for someone else
  • Property where the proprietor has lived but is away in the armed forces
  • Property let as a holiday home or otherwise occupied on interim periods
  • Property genuinely for sale or to let
  • Agricultural holdings or farm tenancies
  • Property usually occupied by an employee of the proprietor in connection with their terms of employment
  • Property used as a residence for a minister of religion
  • Property which is the subject of a criminal investigation or criminal proceedings
  • Property which is subject to a court order freezing assets
  • Property where the mortgage provider has regained possession
  • Property where the proprietor has died and it is less than 6 months since probate was granted

Properties undergoing repairs and renovations or those awaiting planning permission or building control approval are not automatically exempt from an EDMO.

However, the local authority will have to make a convincing case to an RPT why an Order is necessary to bring that property back into use.

If a property is part of a late proprietor’s estate, if it is more than 6 months since probate was granted the local authority can apply for an EDMO.

However, the local authority will have to satisfy an RPT that it has worked with the new proprietor to bring the property back into use so it is likely that an EDMO would only be sought or approved quite some time after probate was granted, if there was still no agreement from the new owner to sell, rent or otherwise use the property.

How long do Empty Dwelling Management Orders last

An Interim EDMO will last for a maximum of 12 months (although it can be made for a shorter period). While the order is in force if the owner brings the empty dwelling back into use then the management order must be revoked.

An Interim EDMO will last for a maximum of 12 months (although it can be made for a shorter period). While the order is in force if the owner brings the empty dwelling back into use then the management order must be revoked.

A Final EDMO will last for a maximum of 7 years although this must be kept under review and if the EDMO is no longer needed to ensure the property is occupied the EDMO must be revoked.

At the end of the period where the EDMO is in force the local authority can either:

a) put in place a further Final EDMO if the dwelling is likely to remain or become unoccupied without an EDMO in force and the authority has taken all appropriate steps to get the dwelling occupied;

or

b) it can allow the EDMO to end if the authority is satisfied that the dwelling has been brought back into use and will remain in use without an EDMO.

Duties of the local authority under Empty Dwelling Management Orders

The effect of an Interim or Final EDMO is to allow the local authority to take over the entire management of the property and take appropriate steps to get it occupied.

The owner of the property remains the owner but the management is taken out of his hands.

The effect of an Interim or Final EDMO is to allow the local authority to take over the entire management of the property and take appropriate steps to get it occupied.

The owner of the property remains the owner but the management is taken out of his hands.

The local authority can create a lease for the property or a licence to occupy all or part of the property. Under an Interim EDMO the owner’s written approval to this has to be given. Under a Final EDMO approval is only necessary if the lease or licence is going to continue beyond the end date of the EDMO or if it will require more than 4 weeks notice to quit.

Under a Final EDMO the local authority can create assured shorthold tenancies without the consent of the owner. Consent will be required if an AST is created within the final 6 months that the EDMO is in force.

The local authority will collect the rent from anyone occupying the property and use this to cover the costs of management. Any sums left over are paid to the owner.

The local authority has to keep records of income and expenditure from the property and allow the owner access to inspect and verify the accounts.

Under a Final EDMO the local authority has to produce a ‘management scheme’ setting out how it will manage the property, any work that they intend to carry out on the property (with estimated costs), the rent level the local authority will aim to set and arrangements for repaying any leftover sums of rent once the management costs have been met.

Rights of the owner under Management Orders

The owner has the right to appeal to the RPT against a local authority’s decision to make an Interim or Final EDMO.

The owner retains the interest in the property and can sell or dispose of it as he wishes. Any mortgage on the property will remain valid under a management order.

The owner has the right to appeal to the First-tier Tribunal (Property Chamber) against a local authority’s decision to make an Interim or Final EDMO.

The owner retains the interest in the property and can sell or dispose of it as he wishes. Any mortgage on the property will remain valid under a management order.

The owner has the right to scrutinise the accounts prepared by the local authority for the property. If a Final EDMO is in place and the local authority is not abiding by the management scheme it has produced for the property the owner can apply to the Tribunal for an order to require the local authority to manage in accordance with the management scheme.

The consent of the owner has to be sought to any leases or licences which the local authority wants to create under an Interim Management Order.

The consent of the owner has to be sought to any leases or licences which will last beyond the end date of the Final Management Order or those which require more than 4 weeks notice to quit.

The consent of the owner has to be sought if the local authority wishes to create an AST within the final 6 months of the Final Management Order.

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