Property
The number of non-residents owners and private landlords owning property in the Clune Park area has increased considerably in the last 20 years to the current point where there are no resident owners within the estate. During this time investment and property maintenance has been minimal. Direct engagement with property owners, who claimed to have a collective majority ownership, has resulted in repeated promises of large-scale investment, however no firm plans have ever been submitted to Inverclyde Council.
The approved Regeneration Plan for the Clune Park area aims to ensure that the buildings which cannot be brought up to the tolerable standard, and which cannot be improved at an economic cost, are closed and demolished.
The Clune Park area represents the highest neighbourhood level of below tolerable standard (BTS) housing in Inverclyde. The tolerable standard sets out the basic standards required for a house to be habitable and housing which does not meet this very basic standard is considered to be BTS and is not fit for habitation. Inverclyde Council have a statutory responsibility to deal with BTS housing in Inverclyde by ensuring that it is either brought up to the basic standard or demolished. To allow us to meet our legislative obligations we are undertaking a series of surveys at each and every flat and building within the Clune Park area to definitively catalogue the degree of failures in BTS housing. The outcome of those surveys will determine the approach to be taken at individual buildings in respect of progressing the area wide regeneration plan.
Should an Order or Notice be served on a property, this would have the effect of restricting habitation of the property until the property is brought up to the Tolerable Standard or demolished. Should a Demolition Order be served and become active then there will be an obligation on the owner(s) to progress and fund demolition. There is no obligation on the local authority to acquire property prior to demolition and the owner(s) will retain ownership of the relevant share of the cleared site. Closing and Demolition Orders are subject to an appeal process and details of the appeals process are set out in legislation and will be provided with any Order or Notice served. There is currently no Compulsory Purchase Order in place or being applied for.
With regards to investment in Clune Park, it is recommended that any purchaser or owner carries out due diligence, including but not limited to carrying out appropriate legal checks and surveys of the property, to ensure that any property they may be considering purchasing or refurbishing meets their investment needs and to ensure that they can make an informed decision on whether or not to invest in property within the area. We also recommend that potential investors visit any property they are considering purchasing. For clarity, Inverclyde Council will not make any positive or negative recommendations with regards to property investment.
Structural Surveys & Demolition Orders
In 2013 structural surveys were undertaken at all buildings in the Clune Park area to inform our opinion of serious disrepair and tolerable standard failures. The survey report highlighted a common principle defect of corrosion swelling of the reinforced concrete slabs forming the roof deck which affects the structural stability of the individual tenemental properties. Owners were advised of the findings of the structural survey and were reminded of their responsibilities as owners of property.
In 2014 Inverclyde Council served Demolition Orders on all 45 tenemental buildings within the estate on the basis of structural instability. A number of landlords and non-resident owners subsequently raised action against the Council, at Greenock Sheriff Court, in respect of appeals against those Demolition Orders.
The appeals were heard by Sheriff Hamilton, who has subsequently published judgement in respect of a number of initial hearings, and has upheld those appeals. It is of note, that the Sheriff has clearly stated that his judgement does not confirm that the buildings are structurally stable.
Further comment from the Sheriff gives a clear indication that Inverclyde Council remain obliged to address the housing conditions within the estate:
"I must emphasise that this decision should not be taken as a declaration of structural stability for any of the appeal properties. I wish to make it clear once again, that this decision is not a certificate of safety or of structural stability"
Inverclyde Council has
"statutory powers to take steps to thoroughly inspect properties where there is a concern regarding their safety and/or structural stability. It would be hoped that whatever authority the Defender has, that it uses that authority to ensure that the sort of potential tragedy as set out in the report does not occur."
The Sheriffs decision on the appeals is not the conclusion of the council's commitment to resolving the appalling housing conditions which exist within the Clune Park area. Clune Park has not become a better place to live since the appeal hearings and there continues to be a lack of dedicated building improvement plans or works to the buildings by the owners to address the tolerable standard failings or the serious disrepair which is evident at the buildings.
Inverclyde Council has a statutory duty to ensure that all sub-standard housing in Inverclyde is either improved to an acceptable standard or demolished. The council is also required to carry out regular surveys to ascertain the current standard of houses in the private sector in Inverclyde. All of the information available to the Council, including further surveys of the Clune Park area since this case was heard, supports the Council's positions that these properties suffer from major structural defects, are in significant disrepair, lack basic amenities, are sub-standard and ought to be demolished.
Acquisitions
At its meeting of 25th October 2018 the Environment & Regeneration Committee of Inverclyde Council agreed to progress the acquisition of property within the Regeneration Area with the following conditions;
- A purchase price of not more than £3,500 for any property not subject to a Closing Order, a Demolition Order or any Order or Notice served under the Buildings (Scotland) Act 2003. Each party will be liable for their own legal costs associated with the conveyancing process;
- A purchase price of nil for any property subject to a Closing Order, Demolition Order or any Order or Notice served under the Buildings (Scotland) Act 2003. A sum of £350 per property will be provided towards the sellers legal fees for the conveyancing of such nil value properties;
- That any purchase is entirely dependent on the proprietor transferring their entire property portfolio within the Clune Park Regeneration Area to Inverclyde Council; and
- That any purchase price will have any Council Tax due to Inverclyde Council deducted prior to settlement.
Having been set by Committee, these conditions are non-negotiable. Any owner wishing to progress the transfer of ownership of their property to Inverclyde Council should confirm their position to the Council in writing, including the details of the solicitor who will act for them. Inverclyde Council will then issue a formal offer to that solicitor for the consideration of the owner.
Compulsory Purchase Orders (CPO)
If it is not possible to reach a mutually acceptable agreement with owners for acquisition of the individual plots of land after demolition of the entire site, Inverclyde Council may use compulsory purchase powers to acquire the individual plots of land. It should be noted that there is no guarantee that the individual plots will be of a value which would meet the cost of demolition and therefore, there may continue to be a debt owed to the Council upon completion of all transfers of ownership.