500,000 Properties Lie Empty
An investigation instigated by the Guardian has discovered some startling statistics about the status of empty properties across the UK. Utilising the Freedom of Information act, the Guardian has found that an astounding 500,000 properties have been left empty for more than 6 months – a figure that could easily put a dent into the waiting list for social housing.
As we are writing this, more than 1.8 million households across the UK are waiting for social housing. Yet as the Empty Homes Agency quickly revealed, by simply harnessing these empty property investments the government could quickly cut this waiting list by up to 25%.
However, despite this study of 274 local authorities, property advisors are still sceptical about the accuracy of these statistics exclaiming that they could easily be higher if you take into account the number of second homes and regeneration projects which have been delayed during the course of the recession.
Regeneration projects in particular have resulted in a large quantity of properties lying empty after property owners were forced to leave their homes during the regeneration process. Similarly, many private sector property developments have purposefully been left unfinished to help prevent property developers incurring council tax charges.
Analysing these statistics it is clear that the government needs to review their approach to this growing housing shortage…
Currently focussed on housing property owners through funding new property builds (a predicted 3 million new builds by 2020), property advisors are asking the government to acknowledge that these empty property investments could cut this list immediately by 25% should they take action now.
Yet, implementing these changes may not be as straightforward as anticipated. According to RICS for every empty property investment which is brought back into use, local councils will see a reduction in the size of their annual central government grants. As a consequence, many councils’ now prefer to intentionally keep these properties empty as they can then benefit from a guaranteed government grant rather than the less reliable income of receiving council tax on a refurbished property.
However, even despite this reluctance by councils to utilise these empty properties, it is undeniable that with their support the government could make a serious dent on the housing shortage. Only time will tell…
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- Million Pound Properties Defy The Odds
- Housing minister encourages self build properties
- Non-energy Efficient Properties Face Mortgage Restriction
Tags: property advisors, property developer, property development, property investment, property owners
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