The stark juxtaposition of Britain's empty, multi-million-pound properties and the ongoing housing crisis has been branded 'ludicrous' by readers of UKPulse Media. Correspondence highlighted the 'absurd' illustration of a homeless individual seeking shelter in the portico of a super-mansion, once the UK's most expensive house, which has reportedly lain vacant for years.
This sentiment is echoed by experiences across the country, including a large disused property in Henley-on-Thames that remained empty for over a decade before redevelopment. This situation fuels frustration, particularly among younger generations who struggle to access the housing ladder, despite the continuous construction of new estates often labelled as 'affordable housing'. Many millennials find these properties still out of reach, prompting calls for more meaningful solutions.
In response to this growing concern, suggestions for government action are emerging. One proposal advocates for a targeted levy on long-term empty properties. The revenue generated from such a levy could be ringfenced and directed towards charities and community organisations actively tackling homelessness, addiction, and housing instability. These organisations, it is argued, possess the crucial local knowledge and established relationships needed to make a tangible difference, often lacking only sustainable funding.
Another policy under discussion is the implementation of compulsory sale orders for unused or poorly managed properties. This approach, already considered in Scotland, would see such assets sold at auction, potentially at much lower costs to public funds compared to traditional compulsory purchase orders. Supporters believe this could act as a deterrent against properties being left vacant for extended periods, encouraging owners to bring them back into use or sell them.
The broader context of the UK housing market remains challenging. Recent data from Rightmove for June indicates a modest 0.6% increase in average asking prices month-on-month, bringing the annual growth rate to 0.8%. The average house price now stands at £375,110. While this suggests a more stable market compared to recent volatility, affordability remains a significant hurdle. Mortgage rates, though fluctuating, still present a barrier for many first-time buyers, with Halifax reporting average rates for a two-year fixed deal at around 5.95% and a five-year deal at 5.50% at the end of May. The lack of available and genuinely affordable homes, coupled with high borrowing costs, continues to impact first-time buyers, existing homeowners looking to move, and landlords navigating regulatory changes.
The current situation also raises questions about the effectiveness of existing schemes like Help to Buy, which concluded for new applications in October 2022, and the impact of Stamp Duty Land Tax. While Stamp Duty thresholds were temporarily raised during the pandemic, they have since reverted, adding to the upfront costs of homeownership. The debate over empty properties highlights a societal tension between property as an investment asset and housing as a fundamental necessity, pushing for policies that prioritise community benefit and address widespread housing insecurity.
Source: UKPulse Media Readers, Rightmove, Halifax