Empty Homes Strategy and empty property loans

We have recently developed an Empty Homes Strategy to deal with the problem of empty properties. We also provide loans to bring empty properties back into occupational use, particularly in town-centre locations, including flats over shops.

Empty Homes Strategy

The Empty Homes Strategy (4 pages) has recently been developed in partnership with Mendip District Council to help deal with the problem of empty properties.

Empty property loans

A Loan is financial assistance we can offer you to help bring homes back into use. Loans are low-interest (4%) and can be for a figure of up to £15,000.

These loans are administered by the Wessex Reinvestment Trust

As a condition of the loan, the applicant must agree to accept a council-nominated tenant for a period after the work is complete. In addition, the "new" accommodation has to be let for a period at an agreed rent that would be equivalent to the housing benefit payable on the property.

What is the purpose of the loan ?

Empty property loans are designed to assist in creating more rented accommodation in areas of housing need.

The property must have been empty for at least twelve months before assistance can be considered. Financial aid can be paid for providing flats above shops, converting large properties into flats as well as converting non-residential properties into living accommodation for letting.

Loans are only given in areas where housing need can be demonstrated. In town centre locations such as Chard or Yeovil this should not be a problem, but assistance may be less appropriate in some more rural areas.

Are there conditions attached to the loan?

Yes. The landlord will have to sign an agreement that the property will be let for a period after the completion of the works. If the property is sold or no longer let within this period we would require repayment of the full sum.

The landlord must agree to take tenants nominated by the council. Normally we will offer a choice of six suitable tenants for consideration. The property must be let at an agreed rent. The rent will usually be equivalent to the housing benefit rate and can be increased annually in line with inflation.

How much loan is available?

The maximum loan is £15,000.

How do I apply ?

Initially you should contact the Housing Standards Team to discuss the availability of financial aid and the potential of your scheme. If your scheme appears feasible, then a site meeting will be arranged to take the matter further.