Written evidence submitted by the Empty Homes Network (PRO0096)

To what extent is probate a problem for councils?

From a local authority’s point of view, the process of probate creates a level of uncertainty when considering a number of factors for why the local authority may be involved. In addition, to this uncertainty, the probate process relies heavily on the active progress by third parties, legal entities or judicial process, therefore removing the ability of a willing and supportive executor or beneficiary, and with the local authority in a position to be able to provide little or no support.

In terms of direct issues for Councils, these can be categorised into three main areas:

Indefinite loss of council tax revenue

The lack of requirement to progress probate within a certain timeframe, means that councils are unable to plan financially for when a property is likely to return to being a chargeable dwelling. Whilst it would be assumed that local authorities work on an estimated percentage level of properties falling into an Exempt F category on an annual basis to enable them to plan and budget, it is assumed that the delays in probate have seen such percentage levels stretched to their limits, if not surpassed due to the number of cases within the exempt f criteria rising.

Unoccupied homes

An Exempt F property is an unoccupied home, but very rarely one councils will look to deal with through their empty homes work or strategies. Whilst councils may have active empty homes programmes, loan schemes or grants available for owners of empty homes, such schemes would require any form of probate process to have been completed prior to becoming eligible. More generally speaking, an unoccupied home currently qualifying for an F Exemption, cannot house local people, would rarely be placed on the market prior to probate completion, and doesn’t generate a council tax income, and therefore is zero benefit to a local authority whilst in this stage on limbo.

Source of complaints about concern for safety, ASB, vermin or fear of crime

Thirdly, such properties can become an increasing concern for local residents, even where they are aware of the reasons why the property has become and remained empty. Often more so, in order not to upset known family members, concerned neighbours would contact the council to report incidents such as vermin, fly-tipping, safety or access concerns or report the fear of crime, all with the hope that the local authority will be able to inform the executors, or track their complaint through to a conclusion.

Are you able to quantify the impact of the rise in class f properties, even if only the loss in council tax revenue for a single council like Rushcliffe? 

Whilst the overall number of Exempt F properties may be relatively small in comparison to a local authority’s overall housing stock, the indefinite loss of potential income generation, through unexpected and unplanned reclassification of properties to an exemption F, can result in significant fiscal uncertainty.

In terms of the numbers, real-life data shows that Rushcliffe Borough Council on the 31st December 2023, had 336 Class F Exempt properties. Of those, 217 had been Exempt F  for 12 months, a further 91 had been exempt F for 24 months, 12 for 36 months, and the remaining 16 for longer than 36 months. Rushcliffe currently has 1 property classed as an Exempt F, which has been so since 6th July 1999. Based today’s Council Tax rate for this property, this equates to a loss of income of just under £38,000 for a single property over the length of that exemption, so far.

Of the 336 currently qualifying for an Exempt F mentioned above, 32 fall into a Band A council tax group, 69 into a Band B group, 71 into a Band C Group, 89 into a Band D, 36 into E, 28 into a Band F, and 10 into a G, with 1 into a H Band.

To what extent do you believe that (a) delays at the Probate Registry and (b) rules that allow beneficiaries/executors to indefinitely delay probate are responsible for the rise in class f exempt properties. 

It is very difficult to quantify with statistics due to the way that council tax data is gathered and reported using the annual council taxbase form, but through experience and discussions with empty homes officers, the consensus is clear that the delays and backlog of probate cases in undoubtedly a key factor in the rise of probate cases, and quite probable that those already in the process have taken longer to be brought to a conclusion.

In terms of empty homes, and the refusal to pursue probate in a certain circumstance by beneficiaries and executors, this certainly has an effect on the councils ability to actively work with those in such circumstance, but also are the properties more likely to fit into the stereotype of being overgrown, and in serious or irreparable disrepair.

What is the impact of there being no legal requirement to apply for probate?

With no legal requirement to process probate, there is no incentive for an executor or beneficiary to act until they are ready, willing or able to process an application. This can lead to significant periods of uncertainly for the local authority as described above, but also for the neighbours and wider communities within which the property sits within. Whilst councils are more than empathetic to the reasons why a property in an exempt F class has become empty, and therefore often allow further periods of time prior to offering such beneficiaries support, they find themselves in the difficult position of wanting to take action against such properties like that above (of 25 years in Rushcliffe), but having their hands tied with options limited.

With the caveat that the scope of the Committee inquiry is limited to probate, what would improve the situation?

Provide an incentive for probate applications to be started as soon as possible

Remove, or limit the incentive that a class F currently, and indefinitely supplies

Allow local authorities the ability to act on behalf of, or in conjunction with people who find it a daunting or challenging task

Where probate is not started within a certain timeframe, allow local authorities the opportunity to propose an EDMO type application, allowing them to take iver the management of a property for a certain period of time

May 2024