Page 46 - 2018 Kent Property Marke Report

KENT COUNTY COUNCIL, MEDWAY COUNCIL & KENT’S DISTRICT COUNCIL COMMENTARY
Economic Development
Continued
to refurbish empty building and turn them into homes. However, in many cases, severe dilapidation and an inability to access funding on the open market for renovation costs, left buildings empty.
The number of long-term vacant dwellings in Kent has fallen by 4.4% over the last year (221 fewer) – the highest performance of any county or shire council. Nationally they have increased by 2.6%. Long-term means those dwellings that have been unoccupied and substantially unfurnished for over six months.
Latest Council Tax records show there are a total of 16,053 vacant dwellings in Kent (KCC area) and a further 3,161 vacant dwellings in the Medway Unitary area. Within this total were 5,764 long term vacant dwellings in Kent and Medway (4,778 in Kent and 986 in the Medway Council area). Long term vacant properties represent 0.7% of the Kent housing stock which is below the national average of 0.9%.
NUE has awarded £23.7m in loans and levered in £27.6m from the public/private sectors, supporting 920 units across Kent. Average renovation cost to return a unit to occupation is £48,500 with the average County Council investment being £23,000. Over £12.7m (61%) of funding advanced has already been repaid and recycled.
Following the continued success of the ‘top-up’ loans administered by NUE on behalf of Folkestone & Hythe District Council which now exceeds £1m, Dover District Council have re-affirmed their commitment by increasing the funding available for top-up loans to £400,000. Tunbridge Wells Borough Council have also allocated £100,000 for these loans.
Economic decline, recession and some of the lowest property values in the south east have led to an historical lack of investment in pockets of our coastal areas, notably, Dover, Folkestone and Thanet. Bringing long-term empty homes back into use is a key method of driving regeneration, providing new homes, new sources of employment and a sense of community. To date, the cumulative total number of homes brought back into use is 5,583 through a range of interventions.
The combination of NUE loans and top-ups are designed
to help developers to bridge the gap between pre/post refurbishment values by providing a loan which takes account of cost of works and which banks and other lenders will not do. Without this joined-up approach these properties would have remained empty.
Going forward NUE continues to seek new funding opportunities, being successful in securing £1m from
the Growing Places Fund in 2018 to specifically focus on bringing empty commercial properties (empty shops or small redundant workspaces) back into use in our coastal towns. Under the NUE Commercial banner we have made
a commitment to return a minimum of 8 commercial units and provide a minimum of 28 residential units by March 2022 with short term secured loan support. Four projects have been identified which, on completion, will contribute 60% of these targets.
In addition to this, £2m of funding was allocated with a specific focus on Margate to help meet the increased demand to tackle some of the larger buildings in the town which can be converted to provide much needed family homes.
A loan of £533,000 (including £165,000 from Folkestone & Hythe District Council) financed the transformation of the former Westbrook Preparatory School, Shorncliffe Road. Originally part of Dover College and empty for 5 years, it was a magnet for anti-social behaviour and was open to the elements. Following a sympathetic refurbishment by William Brown of Browns Realty Limited it now provides 11 new homes which have been made available for rent.
NUE continues to increase Council Tax receipts for local authorities throughout Kent, has attracted New Homes Bonus (NHB) and is helping to generate new Business Rates through the NUE Commercial project. The initiative has also created or safeguarded over 900 jobs, and provided homes to more than 2,000 local people.
Kent’s approach to tackling empty properties has been widely praised winning three national awards for Regeneration
and Partnership Working over recent years. The Welsh Government has also based their scheme on the Kent initiative.
For further information:
www.nue.org.uk
44 Kent Property Market Report 2018
Before and after images of Shorncliffe Road, Folkestone.
NUE / BROWNS REALTY LIMITED
NUE / BROWNS REALTY LIMITED