The UK is facing a significant challenge with more than 300,000 homes lying empty for over six months, a situation that Propertymark, a leading professional body for property agents, believes cannot be resolved by financial penalties alone. While local authorities often implement council tax surcharges on long-term empty properties, Propertymark suggests that these measures, though potentially generating revenue, do not effectively encourage owners to bring their properties back into use.
The issue of empty homes is particularly pertinent given the ongoing housing shortage across the UK, which continues to drive up property prices and make homeownership increasingly difficult for many. According to recent data from Rightmove, average house prices saw a modest increase of 0.8% in May, reaching a new record high of £375,131. While this growth is slower than previous years, it still contributes to affordability concerns, especially for first-time buyers who are also grappling with elevated mortgage rates. For instance, the average two-year fixed mortgage rate remains around 5.91%, according to Moneyfacts, significantly higher than pre-pandemic levels.
Bringing these vacant properties back into the housing market could offer a partial solution to the supply crunch, potentially easing pressure on both sale and rental markets. For first-time buyers, increased supply could lead to more affordable options, while existing homeowners might see a more stable market. Landlords, too, could benefit from a wider array of properties available for renovation and subsequent rental, though the cost of bringing derelict homes up to standard can be substantial.
Propertymark advocates for a multifaceted approach that extends beyond simple fines. This could include targeted grants for renovation, advice and support for owners facing complex issues like probate or structural problems, and streamlined planning processes for converting or refurbishing neglected buildings. The organisation argues that many empty properties require significant investment and effort to become habitable, and punitive measures alone often do not address the root causes of their vacancy.
Local councils already have powers under the Empty Dwelling Management Orders (EDMOs) to take over and manage properties that have been empty for two years or more, but these are often complex and costly to implement. A more collaborative strategy involving local authorities, property professionals, and community groups might be more effective in identifying barriers to reoccupation and providing practical solutions.
Source: Property118