REGENERATION

I have specialised in advising owners in Newcastle and Gateshead throughout the 1990s on schemes in Benwell, Newcastle and King Street, Gateshead and since 2000, where extensive development plans are underway in the West and East Ends of Newcastle.

Gateshead Council has initiated Neighbourhood Action Plans under “Bridging NewcastleGateshead” (www.bridgingng.org.uk), being one of the Government’s Housing Market Renewal Pathfinder schemes.

Both Newcastle and Gateshead Councils have gone through consultation exercises with local residents as to what they think of the proposals.  Obviously a large number of residents are against demolition of properties that are considered far from being uninhabitable. Conversely, in other areas a large number of properties owned by absentee landlords are boarded up (not having been occupied for some time) and as such are a blight on the area.

Where a consultation exercise leads a Council to pursue a programme of planned demolition, residents and landlords are entitled to receive compensation based on the "market value" of their property, together with “Home Loss”, based on 10% of the value, to compensate for an enforced move, as well as “Disturbance”, being the costs of removal and the reinstallation of services and domestic appliances as well as professional costs including reasonable legal and surveyor’s costs on both the sale of the property and the acquisition of a new property.

MARKET VALUE

You are entitled to the market value of your property, taking into account all the improvements you have carried out, which should reflect the price the property could achieve if it was placed on the market through an Estate Agent, having regard to current market conditions.  This should exclude any blight that the Council may have imposed on the area by proposing that houses in that area should be demolished – this should be ignored by the Council in any offer made by them for your property.  However, this is not always the case, and instructing a surveyor to act on your behalf is essential.

Over the last five years I have successfully achieved increases in values of properties owned by residents in both Newcastle (Scotswood and Walker) and Gateshead (Sunderland Road) under regeneration schemes.  I have followed their progress through, from people moving to new homes they may have acquired privately with the aid of grants, to dealing with Homeswap schemes, where residents have moved to like-for-like properties nearby which had been acquired and improved by the Council.

PROFESSIONAL FEES ARE PAID BY THE AUTHORITY AS THEY ARE OBLIGED TO DO SO ON REGENERATION SCHEMES. 

Home Loss Payment

You would receive the greater of £4,800 or 10% of the market value of the property that you occupy.

Disturbance Payments

The reasonable costs incurred by your surveyor and solicitor (including Title, searches, etc.)

The reasonable cost of obtaining a Home Buyer’s Survey.

The reasonable cost of arranging a new mortgage or transferring an existing one.

The reasonable cost of removals.

The reasonable cost towards the cost of alterations to curtains and blinds, and the refitting of your carpets.

The reasonable cost of disconnection and reconnection of some appliances, e.g. washing machine.

The reasonable cost of refitting satellite or cable television.

The reconnection of the telephone (the Council would not cover the cost of keeping the same telephone number

RELOCATION

Councils have a duty to be as helpful as possible in providing alternative accommodation, either to buy or to rent, within their area.  In this respect the following is provided by Newcastle City Council.

  • Relocation / Assistance for Residents affected by Clearance: GATESHEAD
  • Equity Loan:
  • Equity loans for relocation are loans to help meet any gap between the compensation money available for the current dwelling and the purchase price of a replacement home.  The loans are paid back if and when the replacement home is resold.
  • Shared Ownership
  • Shared ownership is a low cost ownership scheme offered by social landlords such as housing associations.  This allows residents to purchase a percentage of a new property, e.g. 50% - 75%.  Rent has to be paid on the percentage not owned by the resident.  Residents can eventually buy properties outright if they can afford to do so.
  • Home Swap (or Deed Swap)
  • Under a Home swap, the Council would arrange for your home to be purchased at an agreed valuation.  They would then try to make sure that you were provided with a replacement home of equivalent or higher value, similar size and within the ‘Pathfinder’ area.  Following agreement with your lender, any money outstanding on your old home would be transferred to your new home as a debt to the Council.  The debt is repayable to the Council in the event of the replacement being sold.
  • Discounted Purchase:
  • An owner-occupier whose property is being acquired by the Council identifies a suitable Council property and buys at the minimum ‘Right to Buy’ discount of 30%, subject to the current maximum discount of £22,000.  The discount is repayable on a sliding scale if the property is sold within five years.
  • Homesteading:
  • This allows long-term vacant properties in the area to be purchased by the Council and then offered for sale to owner-occupiers displaced as a consequence of clearance action.
  • If, following public consultation, clearance is identified as an option, most residents who want to stay living in the same general area should be able to do so.  The intention is to keep the community together.
  • Council tenants will be offered ‘clearance priority status’, which gives them priority re-housing in similar properties unaffected by demolition proposals.  Access will be to either council properties or any properties owned by registered housing associations.
  • Private tenants may wish to discuss rehousing with their landlords.  Alternatively they will also receive ‘clearance priority status’ for access to social housing, as above.
  • Owner-occupiers may want to buy an alternative home, using the compensation they have received and any relocation assistance.  Some owners may also be interested in a shared ownership (part ownership; part rent) home with a housing association.  If they so desire, owners will also receive ‘clearance priority status’ for access to social housing