Empty Homes are on The Rise

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Empty homes are on the increase. So why aren't they being used to solve the housing scarcity?

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


In 1980, when Corina Poore, 36 years old and pregnant, very first opened the door to a derelict home in New Cross Gate, south-east London, the estate representative declined to action in with her.


Inside were dead cats, canine excrement and unclean bed mattress. Pigeons flew in through holes in the roof and there was no indoor toilet. The intense rotting smell was overwhelming.


Still, Corina chose this was her dream home. It was large, the ₤ 24,000 cost was cost effective and she was sure that everything was fixable.


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


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


Some 45 years on, her Victorian four-storey house deserves approximately ₤ 1m - something Corina, a semi-retired film and TV critic who got in touch through Your Voice, Your BBC News, could never have actually afforded otherwise.


However, times have actually changed.


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


Just 22 grants were granted in the district in the last 5 years - in spite of it having 2,253 empty homes. A representative for Lewisham Council stated that, in addition to the grants, it is working "to ensure homes aren't permitted to remain empty or become derelict in our district".


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.


Since October 2024, there were nearly 720,000 empty homes in England, according to the government.


On the face of it, bringing these empty residential or commercial properties back into usage would make up a significant piece of the 1.5 m homes that the Labour government wishes to include to the nation's housing stock by the end of its term.


But up until now that isn't occurring enough. The concern is why, and provided it could, in theory, be a practical solution to two growing issues, is this a case of a missed chance - or is the problem more intricate still?


Rising long-term empty homes


Not all empty homes remain in the alarming state of repair work that Corina's as soon as was. But approximately 265,000 of them in England have been uninhabited for longer than 6 months and are classified by the federal government as long-lasting empty (LTE). (Wales, Scotland and Northern Ireland have different housing policies, as housing is a devolved matter in the UK.)


Fixing these would also have a considerable result on the neighborhoods around them, as long-lasting empty residential or commercial properties can attract anti-social behaviour and sometimes reduce an area's worth.


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


"It makes me feel scared when I leave my house or can be found in at night," she added.


The government has actually formerly actioned in. The 2010-15 Coalition made funding offered by means of 2 schemes: the Empty Homes Programme, which provided owners grants to repair their long-lasting empty homes; and the New Homes Bonus scheme, which rewarded councils that brought such residential or commercial properties back into usage.


They appeared to have made an impact. Between 2010 and 2016, the overall number of empty homes visited 20% to 590,000, and crucially, long-term empty homes visited 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 plan - after which the problem became the sole duty of councils.


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


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


And as soon as it was left approximately local authorities to decide what to do about empty homes, the approach varied commonly from place to location.


Councils got imaginative - but struggled to resolve it


Currently there is no centralised details about the actions private English councils have taken given that 2016, so we contacted every one to ask about their technique.


In total, 77 of the 245 councils who reacted to the BBC's liberty of details requests said they continued supplying grants or loans. But most of the times, take-up was so low that it didn't prevent the variety of long-lasting empty homes from rising.


A few councils even ended their financial support schemes due to the fact that of this.


Corina Poore suggests that people might not realise such schemes even exist.


But Benjamin Radstone, a residential or commercial property developer who partners with the general public to recognize empty homes, states there is a range of reasons that owners do not use up offers 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 schemes of their own. In Kent, a No Use Empty scheme offers interest-free loans for up to three years to owners who will let or offer the residential or commercial property later on.


Though it was set up 20 years ago with a relatively modest pot of ₤ 5m, today it is self-sufficient. Nearly 200 of these loans have been released over the past five years.


Now the council wants to see the scheme expanded nationally. Last year a group of MPs, peers and housing advocates wrote to housing minister Matthew Pennycook advising him to execute it nationwide.


Elsewhere in England, some councils have attempted more imaginative solutions, such as connecting private investors with empty house owners. Almost all councils charge premium council tax rates on long-term empty homes, which can be as much as 300% of standard council tax rates.


But Mr Radstone, who refurbishes empty homes through his business You Spot Residential or commercial property, argues, that this can "push people far from desiring to engage with the council".


Some also argue that this can disincentivise councils from addressing the root problem, as empty homes bring them more earnings through the premium tax rates.


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


Councils do likewise have the power to take legal action against owners of empty homes, however this can be risky, lengthy and expensive.


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


This was the experience of Kent County Council, which states just 18% of its LTEs that were brought back into use did so after interest-free loans were released. In reality 61% did so after guidance was offered to owners around the likes of tax and VAT, raising financing and preparation.


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


A complicated quandary


Part of the problem about there being a quarter of a million long-term empty homes is that this comes at a time when a minimum of 354,000 people in England are believed to be homeless, and 1.33 m homes are on social housing waiting lists.


This is also a time when tenants and purchasers alike speak about a housing crisis in which soaring costs leave residential or commercial properties out of reach.


The Office for National Statistics' definition of price is homes costing less than five times local incomes - which has actually not held true on typical nationally given that 2002.


More homes on the market would help tackle this, too. So why has more not been done to fix, or at least much better address, this contradiction?


The difficulty is that there is no single reason for homes being empty.


One element is the probate system, which can sometimes take a number of years, throughout which time the departed person's house can not be offered. Katie Watson from probate research study company Finders International, believes increasing personnel numbers could help resolve a court backlog.


Then there is the concern that sometimes, councils are unable to track down the owners of empty homes. Jasmine Basran, head of policy and campaigns at homeless charity Crisis, thinks there is a "absence of meaningful data".


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


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


The dispute around premium tax rates


The specialists we spoke to had their own view on the very best services. For Mr Radstone, it is through offering tax relief to purchasers, along with making sure that everyone who gets a mortgage keeps an up-to-date will to prevent probate hold-ups.


Mr Grimshaw, meanwhile, argues that the funds collected from the exceptional tax rates might be used by councils to begin their own loan schemes.


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


One thing many of those I spoke with were consentaneous on, nevertheless, was that the government needs to develop a statutory responsibility for councils to deal with long-term empty homes - and force them to investigate and act.


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


This was part of a "long-lasting prepare for housing" to "assist provide regional people the homes they require", then city government minister Simon Hoare said at the time.


We are yet to see if the new Labour federal government has actually taken the tip of a statutory task on board in its housing technique, although Housing Secretary Angela Rayner has actually said councils will be offered more power to force property managers to rent empty homes.


Meanwhile a representative for the Ministry of Housing, Communities and City government stated: "We are figured out to fix the housing crisis we have inherited, and we understand that having too numerous empty homes in an area can have a considerable effect on local communities.


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


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Back in south-east London, Corina Poore does not totally comprehend why the plan that worked so well for her - and allowed her to become the homeowner 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," says Corina." [There are] individuals out there who would be prepared to do it.


"There are lots of houses that are no place near as bad as mine that most likely simply require a kitchen and a restroom, and I think it should still be encouraged really intensely."


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