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Open Market Purchase Scheme - Programme of Work PO13 (2)

North Lanarkshire Council · 31 August 2022
Back to Housing Committee — 31 August 2022 and its agenda

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North Lanarkshire Council
Report
Housing Committee 
Does this report require to be approved? ☒ Yes   ☐ No
Ref PH/FD Date 31/08/22 
Open Market Purchase Scheme
Programme of Work P013(2) 
From  Pamela Humphries, Head of Planning and Regeneration 
E-mail dicksonf@northlan.gov.uk Telephone
Fiona Dickson,
Development Officer      
07581 034 779 
Executive Summary
The purpose of this report is to provide an update on the progress of the Open Market
Purchase Scheme (OMPS). The OMPS enables acquisition of private sector properties
that are for sale, and predominately are former public sector stock.  The report also seeks
approval for a further extension to the scheme to acquire homes from private landlords in
certain circumstances, to help prevent homelessness and enable private tenants to remain
in their home as a Council tenant.   The acquisition of these properties increases housing
supply to meet housing need, can potentially enable progression of common works in
mixed tenure blocks and in certain cases allow owners to remain in their properties as
tenants.  It also allows long term empty properties that may be causing a blight in the local
community to be brought back into use. 
Recommendations 
It is recommended that the Committee:
1) Note the contents of the report and the current challenges in acquiring properties
on the open market due to current market conditions. 
2) Approve the targeted expansion of the scheme as set out in section 2.6 of the
report to help prevent homelessness and enable private tenants to remain within
their homes as council tenants. 
3) Note that a further update will be provided to committee in 6 months, including
potential options for further expansion of the scheme.  
The Plan for North Lanarkshire
Priority  Improve the health and wellbeing of our communities
Ambition statement (1) Ensure a housing mix that supports social inclusion and
economic growth

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1. Background 
1.1 The purpose of this report is to provide an update on the progress of the Open Market
Purchase Scheme which is an extension of the Empty Homes Purchase Scheme, and
to consider proposals to expand the scheme further.  The Open Market Purchase
Scheme is helping to increase the supply of housing to meet housing need as part of
the council’s new supply programme. 
1.2  In 2013 the Council established a scheme to purchase empty homes which was
particularly targeted at long term empty properties, particularly those that were falling
into disrepair or blighting the local communities. Since inception, the Empty Homes
Purchase Scheme has brought 295 empty properties back into use at an average cost
of £64,750 
1.3 In addition to the Empty Homes Purchase Scheme the Enterprise and Housing
Committee approved the development and implementation of an Open Market
Purchase Scheme on 15th February 2018 and set a target of acquiring 100 properties
per annum.  In 2018/19 this target was exceeded, and 130 homes were purchased in
total. In 2019/20 this number was also exceeded, and 143 properties were purchased
in total, and in 2020/21 106 properties were purchased, despite the challenges posed
by the Covid pandemic. An ambitious target of 130 properties was set for 2021/22
however due to the competitive market the final figure purchased for 2021/22 was 75
properties. This was mainly due to the buoyancy of the current housing market where
homeowners in this sector were able to sell their homes quickly and were being offered
more than the value of the Home Report. 
1.4 In November 2021 the Housing & Regeneration Committee approved the expansion of
the OMPS to allow the council to acquire the last remaining private property in a block
to enable common works to progress by allowing the owner occupier to remain in their
property as a council tenant. 
2. Report 
2.1  The Open Market Purchase Scheme has proved to be very popular with over 2,251
enquiries/ applications.  In addition to enquiries/applications, staff proactively engage
with sellers and their agents within all areas of North Lanarkshire.  This allows targeted
identification of potential properties to acquire where identified demand exists or to
support and enable progression of common works in mixed tenure blocks. Between 1
April 2021 and 31 March 2022, 75 properties were purchased and a further 10
properties have already been purchased in 2022/23 with a further 16 at conveyancing
stage. The locations of the properties purchased are outlined below: 
2021/22   2022/23 
Area Number of
Properties 
Area Number of
Properties 
Airdrie 25  Airdrie 3
Bellshill 2  Bellshill 1
Coatbridge 9  Coatbridge 1
Cumbernauld 6  Cumbernauld 1
Kilsyth 3  Kilsyth 1
Moodiesburn 1  Moodiesburn 1
Motherwell 16  Motherwell 0

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Shotts 3  Shotts 0
Viewpark 4  Viewpark 0
Wishaw 6  Wishaw 2
Total 75  Total 10 
2.2  Apartment size by areas - 
2 Apartment
- 1 bedroom
3 Apartment
- 2 bedroom
4 Apartment
- 3 bedroom
5 Apartment
- 4 bedroom
Airdrie
2021/22 2 14 8 1
2022/23 2 1 0 0
Bellshill
2021/22 0 0 2 0
2022/23 0 1 0 0
Coatbridge
2021/22 1 6 2 0
2022/23 1 0 0 0
Cumbernauld
2021/22 0 2 3 1
2022/23 1 0 0 0
Kilsyth
2021/22 0 0 1 2
2022/23 0 0 1 0
Moodiesburn
2021/22 0 1 0 0
2022/23 0 1 0 0
Motherwell
2021/22 4 7 5 0
2022/23    
Shotts
2021/22 0 0 0 0
2022/23 0 0 0 0
Viewpark
2021/22 1 1 2 0
2022/23 0 0 0 0
Wishaw
2021/22 0 4 2 0
2022/23 0 2 0 0 
2.3 Of the properties purchased in 2021/22, 41 were categorised as having been long term
empty properties, and 34 were purchased through the Open Market Purchase Scheme.
In 2022/23 the 10 properties purchased to date are all categorised as being long term
empty properties although in effect the two schemes have now been merged into one. 
All of the properties purchased were former council or Development Corporation
properties.

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2.4 The number of applications for the programme have been lower so far this year
compared to other years and more in line with 2021/22.   In Quarter 1 of this year there
had been 8 homes purchased with a further 12 at conveyancing stage which compares
to 6 homes purchased and 21 at conveyancing stage at the end of Quarter 1 in
2021/22.  Extrapolating the figure to the end of the year it would seem likely that this year
approximately 75 homes will be purchased.  This is directly linked to the heated housing
market at present where homeowners in this sector of the market are able to sell their
homes quickly in the open market.
2.5 In terms of the expansion of the scheme approved at Committee in November 2021, so
far there is one owner who has taken up this offer and a number of other blocks have
been identified where there is one remaining owner who will be approached to make
them aware of the opportunity.   
2.6 There is anecdotal evidence that recent legislation changes such as the lifting of the
evictions ban post Covid and current market conditions have resulted in a reduction in
available properties for rent in Scotland as landlords decide to sell their properties with
vacant possession, putting their tenants at risk of homelessness.  It is proposed to
explore the potential purchase of properties from private landlords where this would help
prevent homelessness.  This would be on the understanding that the existing tenants
would remain in the property and would become a Council tenant.  Suitable criteria would
be developed in line with current procedures.     
2.7 It is proposed to explore options to further expand the Buy Back scheme which could
allow other properties to be acquired and brought back into council ownership while
allowing owners to remain in their home as tenants.  An update on any proposed further
expansion of the scheme will be brought back to a future committee for approval. 
2.8 As previously reported to committee, there were six owners within the first phase of the
re-provisioning programme who required to be bought out, and engagement with these
owners has been progressing.  Five owners have now sold their properties to the council,
and discussions are on-going with the remaining owner while a Compulsory Purchase
order is being progressed.  In addition, there are five owners in the remaining multi storey
flats, all in Motherwell.  The Committee previously agreed that the council should seek
to purchase these flats and allow owner occupiers to remain as council tenants, should
they wish.  To date three flats have been purchased and discussions are progressing
with the other owners regarding the potential for the council to buy back their flats as
soon as possible.   
3. Measures of success 
3.1  The acquisition of these properties helps the Council meet its Local Housing Strategy
objectives to increase housing supply to meet identified need; help bring empty
properties back into use, and help improve housing conditions, including energy
efficiency. 
4. Supporting documentation 
No appendices

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Pamela Humphries
Head of Planning and Regeneration 
5. Impacts 
5.1 Public Sector Equality Duty and Fairer Scotland Duty
Does the report contain information that has an impact as a result of the Public
Sector Equality Duty and/or Fairer Scotland Duty?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
If Yes, has an assessment been carried out and published on the council’s website?
https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-
scotland-duty-impact-assessments
Yes ☐ No ☐
5.2 Financial impact
Does the report contain any financial impacts?
Yes ☒ No ☐
If Yes, have all relevant financial impacts have been discussed and agreed with
Financial Solutions?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact? 
A budget of £10.550m has been allocated in 2022/23 to fund the purchase and
repair of properties through the Empty Homes Purchase Scheme and the Open
Market Purchase Scheme which includes an estimated contribution of £1.5m from
the Scottish Government. 
As at 13th July  £335,491 has been spent on acquisition and repair, and £1.5m has
been committed.  The average purchase price of the properties acquired in 2022/23
is £70,083 and average repairs cost is £8,684. 
The Open Market Purchase Scheme is supported by the Scottish Government and
in 2021/22 £2.25m of grant funding was received. However confirmation is still
awaited from the Scottish Government regarding potential grant funding for
properties purchased where owners/ private tenants remain in situ. 
Funding to acquire properties from owners in the towers/ Phase 1 re-provisioning will
be contained within the overall OMPS budget. 
Funding for the proposed extension of the Open Market Purchase Scheme will be met
from the HRA as part of the budget provision for the New Supply Programme. 
5.3 HR policy impact 
Does the report contain any HR policy or procedure impacts?
Yes ☐ No ☒

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If Yes, have all relevant HR impacts have been discussed and agreed with People
and Organisational Development?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.4 Legal impact
Does the report contain any legal impacts (such as general legal matters, statutory
considerations (including employment law considerations), or new legislation)?
Yes ☐ No ☒
If Yes, have all relevant legal impacts have been discussed and agreed with Legal
and Democratic Solutions?
Yes ☐ No ☐
If Yes, please provide a brief summary of the impact? 
5.5 Data protection impact 
Does the report / project / practice contain or involve the processing of personal
data?  
Yes ☒ No ☐
If Yes, is the processing of this personal data likely to result in a high risk to the data
subject?
Yes ☐ No ☒
If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-
mailed to dataprotection@northlan.gov.uk 
Yes ☐ No ☐
5.6 Technology / Digital impact
Does the report contain information that has an impact on either technology, digital
transformation, service redesign / business change processes, data management, or
connectivity / broadband / Wi-Fi?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
Where the impact identifies a requirement for technology, has an assessment been
carried out (or scheduled) by the Enterprise Architecture Governance Group
(EAGG)? 
Yes ☐ No ☐
5.7 Environmental / Carbon impact
Does the report / project / practice contain information that has an impact on any
environmental or carbon matters?
Yes ☒ No ☐
If Yes, please provide a brief summary of the impact? 
The properties purchased will be brought up to the Scottish Housing Quality
Standard, which may improve their thermal efficiency and help reduce carbon
emissions
5.8 Communications impact
Does the report contain any information that has an impact on the council’s
communications activities?
Yes ☐ No ☒
If Yes, please provide a brief summary of the impact? 
5.9 Risk impact
Is there a risk impact?

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Yes ☒ No ☐
If Yes, please provide a brief summary of the key risks and potential impacts,
highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service
or Project Risk Registers), and how they are managed? 
The expansion of the OMPS to enable certain tenants of private landlords to become 
North Lanarkshire Council tenants following the purchase of their home may result in
increased demand from other landlords/owners who want to be provided with this
option.  There will therefore be clear criteria set out regarding the eligibility criteria.