Purpose

Reason for the Decision

 

To
enable the Property to be renovated and improved and
brought back into beneficial use which will remedy its adverse environmental,
economic, and social impact on the surrounding area.

 

Alternative Options considered and rejected

 

Alternative
option 1:

 

Commence
the process to make an Empty Dwelling Management Order (EDMO) under the Housing
Act 2004.

 

Option
rejected.

 

An
EDMO empowers the Council to take over the management and letting (not
ownership) of a property for a maximum period of 7 years. This option has been
discounted as it will require the Council to pay for the complete renovation
and improvement of the property to current lettable standards and then arrange
for its ongoing management over this 7-year period. The property then has to be handed back to the freehold owner. The rent
received over this 7-year period is unlikely to cover the cost of repairing the
Property to a lettable standard.

 

Alternative
option 2:

 

Take
no formal action and continue to try and persuade the owner to bring the
Property (“the Owner”) back into use by informal means.

 

Option
rejected.

 

The
Property has been empty for at least 10 years and is
having a deleterious effect on the amenity of the area and generating
complaints from residents and local Councillors. During this time the owner has
not engaged with any approach or offer of assistance made by the Council to
bring the Property back into use or carried out any actions to manage or
maintain it.

 

When
weighing up the powers available to the Council, the rights of the local
community and the rights of the owner, then it is no longer appropriate to
continue pursuing informal action in this case.

 

Consultees

 

Corporate
Director for Housing and Community Safety

Legal
Business Partner – Regulatory

Development
Management and Enforcement Team

nplaw – external legal
advisor who specialise in CPO.

 

Budget Implications

 

Estimated
cost of a Compulsory Purchase Order:

 

Legal
costs - The fixed fee charged by NPLaw (acting for
the Council) is £3,500 plus disbursements (If contested or if there are complications;
legal work will be charged at the hourly rate of £145 plus disbursements and it
could prove necessary to instruct Counsel)

District
Valuation costs £2750

Land
Registry Search & other costs £200

Newspaper
Adverts £2000

Likely
Emergency repair costs upon taking possession £2000

Possession
costs (locksmith etc.) £150

Stamp
Duty Land Tax (dependant on land value at vesting)

 

Land
acquisition/market value: £200,000 September 2022

Disturbance:
£2,000

Basic
Loss Payment:  £15,000

Surveyor’s
fees: £5,000

Total
Compensation £222,000

 

Compulsory
purchase compensation includes the market value of the property together with
other potential heads of claim.  The
current value of the Property is £200,000 as per an assessment from a local
estate agent.

 

However,
the valuation date for the purposes of compensation will be a future date in
the process and so the valuation will be dependent on property and market
conditions at that time. The total estimated compensation is £222,000 as per
the assessment from the location estate agent taking land value together with
other potential heads of claim (disturbance, basic loss payment and fees)

 

There
can be no guarantee that the value will be in the region of £200,000.00 or that
the total amount of compensation will be £222,000.00.

 

Legal Implications

 

The
Council has the power to make a Compulsory Purchase Order (CPO) under section
226(1)(a) of the Town and Country Planning Act 1990 and the Acquisition of Land
Act 1981 to facilitate an improvement which will contribute to the promotion
and improvement of the economic, social, and environmental wellbeing of the
area and to submit the CPO to the Secretary of State for confirmation.

 

In
submitting a CPO to the Secretary of State for confirmation, parties with a
legal interest have the right to object. If objections are received and not
withdrawn or disregarded, the confirming minister will either arrange for a
public local inquiry to be held or, where all the remaining objectors and the
acquiring authority agree to it – arrange for the objections to be considered
through a written representation’s procedure. It may also be possible to agree
an undertaking with the objector securing a confirmed CPO on the basis that the
Council grants a final opportunity for the Property to be renovated
voluntarily.

 

 

Any Conflict of Interest?

 

None

 

Reference Documents

Housing Standards
Enforcement Policy and Statement of Principles for determining Financial
Penalties 2020-2025 3 November 2020

Guidance on Compulsory purchase process and The Crichel Down Rules (2019)

Dorset Council Plan 2020 to 2024

 

Content

That the Portfolio
Holder for People – Adult Social Care, Housing and Health resolves to make,
seek confirmation of and implement a compulsory purchase order (CPO) pursuant
to s226(1)(a) of the Town and Country Planning Act 1990 and the Acquisition of
Land Act 1981 and all other enabling powers in relation to 12 Princess Road,
Bridport, Dorset DT6 5AY which is shown edged red on the plan attached at
Appendix 1, for the purposes of improvement of the land.

 

That the Portfolio
Holder for People – Adult Social Care, Housing and Health resolves that the
Council seeks to acquire the land whether by compulsorily using the statutory
powers or by voluntary agreement.

 

That the Portfolio
Holder for People – Adult Social Care, Housing and Health delegates authority
to the Corporate Director for Housing and Community Safety to take all of the action necessary to make, confirm and implement
the CPO:

 

1.  
To take all necessary steps to secure the
preparation, making, and submission to the Secretary of State for confirmation
and implementation of the CPO including (but not limited to) the publication
and service of all statutory  notices;
the investigation of and response to objections (including the negotiation and
completion of any necessary agreement and undertaking in order to secure the
removal of objections to the CPO); and the presentation of the Council's case
at any public inquiry or via written representations and all other associated
procedural steps.

 

2.  
To
acquire the Property whether by voluntary agreement or compulsorily using the
statutory powers section 226(1)(a) Town and Country Planning Act 1990 and Acquisition of
Land Act 1981.

 

3.  
To determine the form and contents of the CPO and
the statement of reasons accompanying the CPO and to finalise the same. 

 

4.  
Take all appropriate actions for making amendments,
modifications and deletions to the CPO and plan, including updates and
corrections to the draft as necessary to finalise and secure confirmation of
the CPO.

 

5.  
Issue and serve any warrants to obtain possession
of the Property once acquired following execution of a General Vesting
Declaration or service of a Notice of Entry if it is necessary to obtain vacant
possession.

 

6.  
Suspend or abandon the CPO proceedings or withdraw
the CPO in relation to all or part of the Property.

 

7.  
Take necessary action to deal with all matters
relating to the payment of statutory compensation including, where required,
instituting, or defending proceedings.

 

8.  
Take all other necessary action to give effect to
these recommendations.