Police close empty homes scheme probe

... as the council bill for fiasco hits almost £7m

POLICE have closed their investigation into Rossendale’s Empty Homes Scheme – as the council bill for the fiasco nears £7m.

The Lancashire Constabulary had been called in to investigate in

October 2015 after the scheme collapsed.

But in a statement they said: “Following a complex, lengthy and thorough investigation, we have concluded that there was no criminality and from a police perspective the matter is now closed.”

At the latest meeting of Rossendale Council’s audit & accounts committee the total net cost of the project to the end of 2020/21 was revealed to be £6.995 million.

THE cost of the Valley’s Empty Homes Scheme debacle is on the brink of £7m.

At the latest meeting of Rossendale council’s audit & accounts committee the total net cost of the failed project to the end of 2020/21 was revealed to be £6.995m.

It was also revealed that Lancashire Police have closed their investigation into the matter, after finding insufficient evidence to pursue a prosecution - after more than five years.

The council has picked up the tab after AAAW Ltd, a company the council brought in to manage the refurbishment of hundreds of homes across East Lancashire, went into liquidation in 2015.

The total bill includes £1.02m of owner loans provided for as doubtful debts for accounting purposes. While the council has provided for the owner loans there are land charges on the properties - therefore the council say they will ultimately seek to recover the £1.02m.

Since the start of the project the number of properties in the scheme has reduced from 357 to 113, and 83 per cent of them are tenanted. For 2021/22 the council has included a revenue budget of £300,000 and a capital budget of £600,000 in its Medium Term Financial Strategy (MTFS) for the project.

Rossendale council said they continue to seek ways “to mitigate the cost”.

These include actively pursuing rent arrears, removing properties at the earliest opportunity, ensuring leases are terminated at end date and properties returned to owners promptly, legal claims are actively managed and challenged, repair costs are value for money and owner loans are repaid.

In a statement a council spokesperson said: “The council is making financial provision in its budget for the remaining three and a half years of the project, although this is difficult to calculate given the restrictive nature of the leases, the condition of some of the properties and how many of them will be let during the remainder of the scheme.

“Controlling the overall cost of the project therefore is challenging.

“Following a long and complex investigation into the collapse of AAAW Ltd, Lancashire Police have decided there is insufficient evidence to pursue criminal prosecution. The collapse of AAAW Ltd in 2015, who were commissioned to act as the managing agent for 357 empty properties on behalf of five East Lancashire local authorities, triggered an investigation.

“The collapse of AAAW left an extremely complex trail of evidence and the investigation covered a substantial number of suspects.

“Significant evidence has been gathered during the thorough police investigation. No proof of criminality has been identified during the investigation and the police have now closed their investigation.

“The council supported the need for transparency into the collapse of AAAW.

“Whilst we are disappointed that the investigation has not led to anyone connected to AAAW being held to account we recognise the substantial amount of time the police have spent investigating this highly complex matter.”

In a statement, Lancashire Police said: “In October 2015 Lancashire Constabulary were asked by Rossendale Borough Council to investigate whether any criminal offences had been committed following the collapse of an empty housing scheme.

“This followed an internal audit report carried out by Lancashire County Council. Following a complex, lengthy and thorough investigation, we have concluded that there was no criminality, and from a police perspective the matter is now closed.

“We would like to thank all involved for their cooperation, support and patience during what was a complex and lengthy enquiry.”