Could the state actually seize your property? As Labour introduce new guidelines, learn our definitive information of the whole lot you’ll want to know, from the properties in danger to exemptions

An Englishman’s home is his castle – except if it has been left empty, it seems.

Housing secretary Angela Rayner has given councils the power to seize properties from their owners if they’ve been empty for just six months.

It marks the latest twist in Labour’s crackdown on landlords and second home owners.

Speaking at the Labour Party conference last week, Rayner struck fear into property owners up and down the country, as she shrank the minimum amount of time councils must wait before they can take control of an unoccupied home and let it out.

It means homes are at risk of being snatched after just six months of being vacant, instead of two years.

Estate agent and Conservative councillor Nicholas Austin, of RiverHomes, brands the move ‘nothing short of state-sanctioned theft’. He says: ‘This policy applies to buy-to-let properties, but landlords are already reluctant to let their properties after the introduction of the Renters’ Rights Act.’

In May, Labour introduced reforms that shifted the balance of power from landlords towards renters and made it harder for owners to remove problem tenants.

Austin adds: ‘Many have their properties up for sale as a result [of the Act], but the leasehold market is on its knees. What this government is proposing is like pouring salt into an open wound.

‘The idea that the Government can empower councils to seize control of privately owned homes simply because they are empty is utterly outrageous.

‘It’s not the role of the state to dictate how people use their own assets, provided they are acting lawfully.’

The intention is to help alleviate the housing shortage by bringing empty properties into use and stopping them falling into disrepair.

But the announcement has alarmed landlords, anyone inheriting a property, and second home or holiday let owners alike. So how could you be affected, how would it work in practice and can you fight back? Here, we ask experts the important questions.

What powers do councils have?

If a property has been empty for at least six months, councils have certain powers to seize control over them.

After this time, homes can be eligible for an Empty Dwelling Management Order (EDMO) – the mechanism that allows councils to take properties over.

This order gives a council the right to take possession of a property without affecting the long-term rights of ownership.

The council would have the right to manage the property for up to seven years and could prevent an owner from gaining access to it while the order is in force.

A council can carry out repair and maintenance works. It can then let the property to a tenant, collect the rent and also recover any costs in paying a housing association or letting agents.

How do they know my home is empty?

Councils can establish that a property is empty using a range of evidence, including through council tax records, the electoral register, utility information and dedicated ‘empty homes officers’.

These are council employees who locate properties that appear to have been left empty. They’ll check records, contact owners and even make site visits on occasions.

Property owners with empty homes must already pay a premium on their council tax. In England, councils will typically double the council tax on empty homes and then triple it for those that are vacant for more than five years. After ten years, owners can pay up to four times more council tax.

If someone fails to inform the council the property is empty and they later establish that it is, the council could backdate the empty home premium. Someone who tries to mislead the council could be convicted of council tax fraud and face fines and prosecution.

A property has to be deemed ‘wholly unoccupied’ for the council to take control. This means squatters, lodgers or anyone in the property will prevent the council from being able to claim it.

So what is changing in the new system?

Under the new rules, councils can apply for this order if your house has been empty for six months. Wales already uses this threshold but there is no equivalent EDMO scheme in Scotland. A date has yet to be confirmed for the new rules to come into force.

What if you moved away for work?

There are exemptions in place to stop councils from just seizing any empty home. They cannot seize a property where it is a person’s only or main home and they have moved elsewhere temporarily.

This could include someone who has moved away for work, to go into care or care for someone else.

There are no limits on how long you can go away. You just need to be able to show a genuine and realistic intention of returning within a ‘reasonable’ time period.

Nor do you need to be on the electoral roll. That said, being registered may help to prove you have not permanently moved.

Could landlords have properties seized?

Landlords are likely to be the most concerned because they are most at risk of involuntarily having an empty property.

The new Renters’ Rights Act has banned landlords from re-letting properties for 12 months if they evict a tenant to sell the home.

However, this means that if a landlord decides not to sell and to continue letting their property out instead, they could be forced to leave it empty for up to a year.

There will also be landlords left with a dilapidated property – perhaps after a long-term tenant leaves – that may prove difficult to re-let or sell. They also may lack the funds to bring the property up to scratch and so have an extended period where it is empty.

However, there is one protection in place that landlords can take solace in: these orders can’t be used on properties that are in the process of being sold or let.

So long as you can prove an intention to do either of these, your home is safe.

For example, an owner could show they have invoices from a builder for planned renovations.

You may need to provide evidence as councils can investigate further if they believe a home isn’t genuinely up for sale.

What if you’re selling a loved one’s home?

There will be many people going through the process of probate after a death in the family who might be worried their loved one’s property could be seized before they can put it on the market.

However, special rules apply where a property is unoccupied following the death of the owner.

Where property is part of the person’s estate, somebody must apply for what is known as a ‘grant of representation’ from the Probate Registry before the property can be sold. This can typically take up to eight weeks for an online application or up to 16 weeks for a postal application.

An EDMO cannot be made for at least six months after a grant of representation has been obtained.

In most cases the property would continue to be exempt after the six months is up. For example, if the new owner has plans to sell or let the property or to bring it back into occupation either as a main residence or a second home. In this case, the rules above apply.

If you can show you are preparing the house for sale or at least contacting estate agents, the council is likely to back off.

Government guidance states that if someone has suffered a bereavement and is not sure what to do with a property that has been left to them, it is highly unlikely that the council would consider using any enforcement powers.

What about second home owners?

The announcement has alarmed some second home owners, who will be worried about a home they only use on rare occasions. But under current rules, the council can’t seize second homes or holiday homes, even if the property is only occupied occasionally.

In reality, it will be very hard for councils to prove if a home is occasionally used or not.

Nicholas Austin said: ‘Who is going to identify these empty homes and how are they going to prove they’ve been empty for more than six months?

‘How do they prove the property is an entirely empty and inhabited property in the first place?’

Can the council just seize your property?

No. Councils must jump through certain hoops before they can take control of a property.

Once it has identified an eligible empty home it must make a reasonable effort to contact the owner. This would usually include at least three months’ written notice before the council can begin the EDMO process.

The council should also attempt to persuade the owner to bring the property back into use first.

EDMOs also introduce a number of important protections for property owners. In every case, the council must get approval from an independent Residential Property Tribunal.

The Tribunal will only give its approval if it is satisfied the property has been unoccupied for at least six months and there is no reasonable likelihood of it becoming occupied in the near future.

The council must also have a reasonable prospect of being able to let the property out, so its condition will also likely be considered.

The Tribunal must also consider how making the order would affect the property rights of the owner and is not obliged to grant authorisation if it considers there are good reasons not to do so.

Owners have the right to appeal against decisions made by councils and can end an order at any point to sell their property – even if it is already in force.

What happens if your property is seized?

The council’s order can be ended early if the owner decides they want to live in or sell the property.

Owners can also appeal to the tribunal on a range of matters concerning the actions taken by a council. For example, someone who has been temporarily living elsewhere and now wants to move back into their property could appeal to the tribunal if the council refuses to end the EDMO.

An owner could also appeal if the council spends money on the property it was not authorised to do.

Could the council do up my property?

There is a potential silver lining if the council does take control of your property.

At present most empty home owners have to pay double council tax. But owners of properties that are seized do not have to pay additional costs. This could save an owner from having to pay double, triple or even quadruple council tax costs on the property.

It could also improve someone’s property without them having to invest any money themselves.

If a property is unoccupied because it’s in a poor state, the council could take control of it, make improvements and then hand it back to the owner after seven years or even sooner if the owner plans to sell or live in it. Councils must fund any works needed to make a property habitable and will then recoup their costs from rental income.

The owner would not have to pay any money towards the council’s costs and the council must pay any money that is left over after it has deducted its expenditure and may even pay interest on this money.

If the council cannot make enough from rent to cover its costs it cannot ask the owner to pay the shortfall unless they agree.

It is for this reason that councils may be reluctant to make use of EDMOs. The cost of bringing a property back into a fit state to be let can be costly and they may prefer to just keep the extra council tax they can charge on an empty property instead.

How many people could be affected?

The Government estimates there are nearly 600,000 privately owned properties in England that are empty, and half have been out of use for longer than six months.

It does not publicly release figures about the number of properties that have been seized under EDMO rules, but a source suggests the number has historically been low – perhaps less than 100.

If the time frame was lowered to six months, councils could act sooner and the number of properties affected should rise.

Will the owner remain liable for taxes?

Anyone who occupies the property will be responsible for paying their own utility bills. So a tenant would take this on, not the owner.

While the council must insure the property, the owner will remain ultimately liable to pay council tax while the property is empty. However, that liability will usually transfer to anyone who rents the home.

What will it mean for mortgage holders?

Mortgaged properties can potentially be subject to an EDMO. Ownership does not transfer to the council, so the mortgage remains entirely the borrower’s responsibility throughout, according to mortgage broker John Charcol.

Nicholas Mendes, mortgage technical manager at John Charcol, says: ‘For borrowers, the important point is not to wait until a property has been empty for six months before acting.

‘Anyone expecting a mortgaged home to remain vacant for an extended period should check their mortgage conditions and buildings insurance requirements early, keep their lender and insurer informed where required, and make sure unoccupied-property cover is in place.

Are you worried your property could be at risk? Email [email protected]