Empty Homes Are On The Rise

Empty homes are on the rise. So why aren't they being used to resolve the housing lack?


In 1980, when Corina Poore, 36 years of ages and pregnant, very first unlocked to a run-down house in New Cross Gate, south-east London, the estate representative declined to step in with her.


Inside were dead felines, pet dog excrement and dirty mattresses. Pigeons flew in through holes in the roof and there was no indoor toilet. The extreme rotting odor was overwhelming.


Still, Corina decided this was her dream home. It was spacious, the ₤ 24,000 rate was affordable and she made sure that everything was fixable.


After getting a mortgage, she received a grant of ₤ 3,500 from Lewisham council, her regional authority, which spent for repairing the ceiling.


"At that point, ₤ 3,500 was quite a healthy quantity, which I desperately required," remembers Corina.


Some 45 years on, her Victorian four-storey house is worth approximately ₤ 1m - something Corina, a semi-retired film and TV critic who contacted us through Your Voice, Your BBC News, might never ever have managed otherwise.


However, times have actually changed.


Lewisham Council has actually continued to use grants to the owners of empty homes for improvements - some for as much as ₤ 20,000 - but the uptake is low.


Just 22 grants were awarded in the borough in the last 5 years - regardless of it having 2,253 empty homes. A spokesperson for Lewisham Council said that, in addition to the grants, it is working "to ensure homes aren't allowed to remain empty or become derelict in our borough".


At present, however, 775 have been empty for longer than 6 months. Meanwhile, there is a national housing lack, with rising homelessness and long social housing waiting lists.


As of October 2024, there were almost 720,000 empty homes in England, according to the government.


On the face of it, bringing these empty residential or commercial properties back into use would make up a considerable portion of the 1.5 m homes that the Labour government wishes to add to the country's housing stock by the end of its term.


But so far that isn't taking place enough. The question is why, and provided it could, in theory, be a reasonable solution to 2 growing problems, is this a case of a missed out on opportunity - or is the problem more complex still?


Rising long-term empty homes


Not all empty homes are in the dire state of repair that Corina's when was. But roughly 265,000 of them in England have been vacant for longer than six months and are classified by the government as long-lasting empty (LTE). (Wales, Scotland and Northern Ireland have various housing policies, as housing is a devolved matter in the UK.)


Fixing these would also have a significant impact on the communities around them, as long-term empty residential or commercial properties can draw in anti-social behaviour and in some cases reduce an area's value.


Ann Devereaux, of St Werburgh's in Bristol, says that after the residential or commercial property next to her home fell uninhabited, it ended up being a "magnet" for criminal offense.


"It makes me feel frightened when I leave my home or come in in the evening," she added.


The government has actually previously actioned in. The 2010-15 Coalition made financing available via two schemes: the Empty Homes Programme, which offered owners grants to fix their long-lasting empty homes; and the New Homes Bonus scheme, which rewarded councils that brought such residential or commercial properties back into use.


They appeared to have actually made an effect. Between 2010 and 2016, the general number of empty homes come by 20% to 590,000, and crucially, long-term empty homes stopped by 33% to 200,000.


However, in 2016 the federal government then ended the Empty Homes Programme and reduced the rewards from the New Homes Bonus scheme - after which the issue ended up being the sole responsibility of councils.


By 2024, the number of empty homes had sneaked back up by 22% and the variety of LTEs had risen 32%.


A report by the charity Action on Empty Homes concluded it was "likely" that the end of the Coalition's scheme had been an element behind this boost, along with altering housing market conditions and economic uncertainty.


And when it was left up to local authorities to decide what to do about empty homes, the technique varied extensively from place to location.


Councils got innovative - but struggled to resolve it


Currently there is no centralised info about the actions specific English councils have taken considering that 2016, so we contacted each one to ask about their technique.


In overall, 77 of the 245 councils who reacted to the BBC's flexibility of info demands said they continued providing grants or loans. But in many cases, take-up was so low that it didn't prevent the number of long-lasting empty homes from rising.


A couple of councils even ended their financial assistance schemes since of this.


Corina Poore suggests that people may not understand such schemes even exist.


But Benjamin Radstone, a residential or commercial property designer who partners with the public to recognize empty homes, states there is a range of reasons why owners do not use up deals and rewards around empty homes.


"People don't desire to be pressured," he states. "They'll do it when they're prepared to do it."


Other councils have had some success with plans of their own. In Kent, a No Use Empty scheme provides interest-free loans for up to 3 years to owners who will let or sell the residential or commercial property later on.


Though it was established twenty years ago with a reasonably modest pot of ₤ 5m, today it is self-sufficient. Nearly 200 of these loans have actually been provided over the past five years.


Now the council desires to see the plan broadened nationally. In 2015 a group of MPs, peers and housing advocates composed to housing minister Matthew Pennycook advising him to execute it nationwide.


Elsewhere in England, some councils have actually attempted more innovative solutions, such as linking personal investors with empty homeowners. Almost all councils charge premium council tax rates on long-lasting empty homes, which can be as much as 300% of basic council tax rates.


But Mr Radstone, who empty homes through his company You Spot Residential or commercial property, argues, that this can "push individuals away from wanting to engage with the council".


Some likewise argue that this can disincentivise councils from resolving the root issue, as empty homes bring them more earnings through the superior tax rates.


"We're now in a position where councils are really stating, 'Well, we're being rewarded for homes being left empty longer,'" says Adam Cliff, policy lead at the Empty Homes Network.


Councils do likewise have the power to take legal action versus owners of empty homes, but this can be dangerous, time-consuming and pricey.


And while loans and grants can be utilized to target about 10-20% of long-term empty homes, Mr Cliff approximates, you would need to use other processes to get most of them back into use, he states.


This was the experience of Kent County Council, which says just 18% of its LTEs that were revived into use did so after interest-free loans were provided. In truth 61% did so after recommendations was used to owners around the likes of tax and VAT, raising financing and preparation.


"If a council has 2,000 empty homes," Mr Cliff states, "they need 2,000 various options."


A complicated dilemma


Part of the quandary about there being a quarter of a million long-lasting empty homes is that this comes at a time when at least 354,000 individuals in England are thought to be homeless, and 1.33 m families are on social housing waiting lists.


This is likewise a time when tenants and buyers alike discuss a housing crisis in which skyrocketing costs leave residential or commercial properties out of reach.


The Office for National Statistics' definition of price is homes selling for less than 5 times regional revenues - which has not held true usually nationally considering that 2002.


More homes on the market would help tackle this, too. So why has more not been done to solve, or a minimum of better address, this contradiction?


The challenge is that there is no single factor for homes being empty.


One element is the probate system, which can sometimes take a number of years, during which time the departed person's home can not be offered. Katie Watson from probate research study firm Finders International, thinks increasing personnel numbers could assist attend to a court backlog.


Then there is the concern that sometimes, councils are unable to find the owners of empty homes. Jasmine Basran, head of policy and campaigns at homeless charity Crisis, believes there is a "lack of coherent information".


When the BBC approached English councils, the information we were supplied about the condition and factor for homes being empty covered only around 13% of their LTE stock.


This implies councils are "blind to their potential", argues Ms Basran.


The argument around exceptional tax rates


The specialists we talked to had their own view on the very best services. For Mr Radstone, it is through providing tax relief to buyers, along with making sure that everybody who takes out a mortgage keeps an up-to-date will to avoid probate hold-ups.


Mr Grimshaw, meanwhile, argues that the funds collected from the premium tax rates could be used by councils to start their own loan plans.


But Mr Cliff argues councils without an empty homes strategy should not be allowed to charge premiums.


Something most of those I talked to were consentaneous on, however, was that the government must develop a statutory duty for councils to attend to long-term empty homes - and require them to examine and act.


The former Conservative federal government didn't present this - although in March 2024 it did enable councils to double council tax on empty residential or commercial properties after 12 months instead of 2 years.


This belonged to a "long-lasting strategy for housing" to "assist offer local individuals the homes they need", then local government minister Simon Hoare said at the time.


We are yet to see if the brand-new Labour government has actually taken the suggestion of a statutory responsibility on board in its housing technique, although Housing Secretary Angela Rayner has actually stated councils will be given more power to require property owners to rent empty homes.


Meanwhile a representative for the Ministry of Housing, Communities and Local Government said: "We are figured out to fix the housing crisis we have inherited, and we understand that having too lots of empty homes in an area can have a significant effect on regional communities.


"That's why councils have strong powers to increase council tax on LTEs, and we will strengthen councils' powers to take control of the management of empty homes, with additional updates to be provided in due course."


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Back in south-east London, Corina Poore doesn't totally comprehend why the plan that worked so well for her - and permitted her to become the house owner of a ₤ 1m residential or commercial property - isn't doing the very same today.


She believes it could still be a method of getting young people to make empty homes habitable too.


"When you're young you can do these things," states Corina." [There are] individuals out there who would be prepared to do it.


"There are lots of homes that are nowhere near as bad as mine that most likely just require a kitchen and a bathroom, and I think it should still be encouraged really vigorously."


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