My Lords, I declare an interest as deputy chair of the National Heritage Lottery Fund and chair of the Heritage Lottery Committee for Wales. We live in a time when every national and local asset needs to work for its living. Across the United Kingdom there are abandoned, and often derelict, properties, many of high heritage value and well loved by the community, that could be providing much-needed homes and spaces for businesses and enterprise and injecting new economic activity into communities. In other words, the amendment is a step towards enhancing the means by which these liabilities can be turned into assets. I am grateful for the help I have received from the Heritage of London Trust Operations, Diana Beattie and Colin John, and Ian Morrison of the Architectural Heritage Fund. They have much fine work to their credit.
What opportunity is this amendment seeking to create? Many of the buildings I am talking about are already on the Historic England buildings “at risk” register. They range from rare surviving industrial buildings such as mills or colliery buildings to historic theatres, cinemas, schools, piers, magnificent town halls, hospitals and domestic buildings such as a concrete house in Lordship Lane. Buildings such as these have been at the heart of communities. They occupy a very important, familiar and well-loved place. When they are abandoned, the cost of saving them and putting them to use rises exponentially and they deteriorate fast. Owners cannot be traced and local authorities find it impossible to acquire them. Year after year they look worse and become more dangerous, and the community feels their loss even more acutely.
This problem has been in the “too difficult” box for too long. It is no exaggeration to say that when these buildings come back into life, they galvanise the entire area: they can act as a catalyst and a confidence builder. I think particularly of Middleport Pottery in Stoke, the last surviving example of a pottery using the transfer method. After a long struggle by the Prince’s Regeneration Trust and English Heritage to keep it alive, it is now bringing in apprentices and its order books are full.
The amendment, which to my knowledge is the first of its kind to be proposed in primary legislation, is designed to tackle this problem. It confronts the fact that both the country’s heritage and its economic performance are, as the Architectural Heritage Fund puts it,
“suffering from an embedded culture of impunity for private property owners who are not upholding their responsibilities”.
At the moment, the system colludes with both negligent property owners and risk-averse local authorities. Owners are sitting on their property waiting for land values to increase and for the degree of deterioration which, in many cases, justifies demolition. Some of these owners cannot afford to put the building right; some refuse to do anything and they disappear. There are many ways
in which a recalcitrant owner can resist a CPO. Some owners fail to respond and disappear. They are particularly threatened by any attempt by a community organisation to engage with them. That is frustrating, since to win a CPO case the public body has to be able to show that it has tried and failed to resolve the future of the property by negotiation with the owner. But the owner may be in a tax haven overseas and the property in the hands of a nominee. Alternatively, the owner may launch a series of frivolous appeals or put forward new and ludicrous planning proposals. He can try to block a CPO by claiming that he is about to start work—but the work is never begun, or sometimes it is started and then the owner just walks away.
The 2015 locality investigations under the Community Assets in Difficult Ownership project illustrate how easy it is for ownership to become a block on action. Local authorities have powers to act, of course, including compulsory purchase powers, but many feel that the process is simply too complex, too expensive and too slow. The costs are high because in addition to the compensation to be paid, the CPO may also have to be fought through the courts or at a lengthy public inquiry. There is every incentive for the owner to prolong the case. The risks arise from the possibility of the case being lost, the delays and the unpredictable costs; and sometimes by the time the CPO is confirmed, the other policy objectives which drove the process may have changed.
Another issue is that community organisations lack specialist knowledge and advice, which is a particular problem when what is needed is investment to establish the viability of a project in the first place, so it is all the more to the credit of organisations like the Heritage of London Trust, because when such bodies undertake a project like saving St. George’s Garrison Church, it is very hard work and a triumph when it is achieved. We have other outstanding local authorities like Great Yarmouth, which has made tremendous progress in bringing its buildings back to life.
The new clause is very simple and I commend it to the Minister. In effect, it means that where a charitable body that could be a buildings preservation trust or any form of charitable body, such as a community interest trust with conservation objectives, has given a deed of obligation to the local planning authority to pay the costs of acquisition, which are set by the district valuer, the local authority must exercise a CPO. The deed would be in effect a form of contract, even though I understand that it can be a unilateral undertaking such as those attached to planning applications. The costs of acquisition will involve all the transaction costs, thus removing any risks associated with taking over the building itself. In some cases of extreme negligence, the costs have been assessed as nil. Clearly, no sensible charity would enter into such an obligation without having the capacity to cover the costs, and a local authority will do its due diligence as well. Once the deed of obligation is in place, the local authority is then required to exercise the compulsory purchase order that will enable the conservation charity to acquire the building, which will then be restored and brought to life. Ultimately, the decision will rest with the Secretary of State, who will decide on the basis of the risks removed and the possibilities raised.
The amendment would achieve two things. It would first break the logjam of no one wanting to undertake any initiative because of the costs of acquisition. Secondly, it would provide a greater degree of certainty for community groups to enable them to undertake creative projects for the benefit of all. The amendment is carefully crafted and has been the subject of a great deal of legal advice and consultation with conservation and heritage bodies. It is also central to the principles of this Bill, and to localism as a political construct. It would free up resources for housing and enterprise and for vital community development at the heart of communities. It would serve our heritage in the best possible way by making it part of the future, and it comes with the moral backing of all the national heritage bodies.
The housing White Paper is imminent, and I will be amazed if there is no reference in it to this issue. We know the scale of the challenges facing the country, including those of Brexit, so this is a very timely and plausible proposition. I very much hope that the Minister agrees with me, and I beg to move.
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