Empty homes rules could conflict with Renters’ Rights Act

An industry body has warned that new powers allowing councils to take over the management of empty homes could create complications with the Renters’ Rights Act.

From 5 November, councils will be able to apply for empty dwelling management orders (EDMOs) for properties left empty for six months.

Propertymark warns that landlords could face a potential conflict between the new rules and the Act’s 12-month ban on re-letting after regaining possession under Ground 1 or Ground 1A.

Councils lack funding

Councils have been able to seek EDMOs since 2006, when the threshold was six months. This was extended to two years in 2012, but has now been reduced back to six months.

Under the new rules, councils will also no longer need to provide evidence of anti-social behaviour or community support when applying for an order through the Residential Property Tribunal.

According to Propertymark, more than 359,000 residential properties have been empty for over six months.

However, the industry body says many councils lack the funding and resources needed to tackle the issue.

Propertymark says on its website: “While a range of tools, including EDMOs, are available, their application is inconsistent and often limited by resource constraints, with many local authorities lacking dedicated strategies, officers, or funding.

“Fewer than half of local authorities have an empty homes strategy in place, and only a quarter have a dedicated budget for this work.”

Potential overlap between EDMOs and Renters’ Rights Act

Propertymark has also pointed out a potential overlap between EDMOs and the Renters’ Rights Act.

Under the Renters’ Rights Act, landlords who regain possession under Ground 1, to move into a property, or Ground 1A, to sell it, face a 12-month restriction on re-letting.

Propertymark warns that a property could become eligible for an EDMO during this period. It states on its website: “A home genuinely marketed for sale may fall within an existing exception, but the circumstances must be considered individually. The tribunal must also assess whether there is a reasonable prospect of occupation if an order is made.

“Owners seeking possession from tenants at the end of an EDMO will need to use an applicable Section 8 ground.”

Propertymark also points out that exemptions apply to certain employment-related homes, properties affected by criminal proceedings and other specified circumstances.

Where an owner has died, the property remains exempt until six months after the grant of representation, such as probate. This applies even if the property had already been empty for more than six months before the grant was issued.

Propertymark advises letting agents handling inherited properties to keep clear records of when the home became vacant and when probate was granted.