If you are homeless and desperate, it must be particularly galling to see properties lying around empty. “How can that be fair?” they must ask themselves. A fair question.
The problem is particularly acute in the London Borough of Kensington and Chelsea, home to some of the most expensive properties in the world – many of which are just bought and then left to lie empty while they increase in value.
Recent reports have shown that there are currently 1652 empty homes there, 37% of which have been unoccupied for two years or more.
Kensington & Chelsea you will remember is currently struggling to re-house the families from the Grenfell disaster, many (maybe even most) of whom are still waiting for accommodation.
However, the problem is a national one and research by the Lib Dems has recently found that over 11,000 properties have been lying empty for 11 years or more.
We have the power
It’s not like Local Authorities don’t have powers to deal with this. Local Authorities can increase Council Tax for empty homes, compulsory purchase properties or use Empty Dwelling Management Orders (which came into force in 2006).
Why are these not being used more? Answers could be:
- They are too expensive – Councils cannot afford to pay the compensation required under CPOs, or pay for dwellings to be upgraded so they can be used to house the homeless
- Councils do not have the staff to deal with the work and/or staff have not been trained to deal with these, often complex, procedures
- Council Officers are worried about going against property owners who are rich and powerful (or maybe violent criminals)
- They are using these powers but good stories never get into the news
I suspect it’s a combination of all of these
What can be done about it?
One of the problems specifically with empty homes in wealthy areas is that financial penalties don’t work. Even a 100% increase in Council tax is hardly going to bother a billionaire empty property owner. Sadly different rules tend to apply to the super-rich.
The problem with the other two procedures, in particular, Compulsory Purchase Orders is that they are complex and time-consuming. It would help if special ‘fast-track’ procedures could be introduced for empty properties which are in areas of particular need.
Councils also need to have the funding and the staff to deal with the processes and paperwork – but this is a general problem not specific to empty homes issues.
I suspect however that there are many success stories which never get into the news.
For example, the property next to my Mother’s house (in Norwich) was left empty for several years after the elderly couple who owned it died and their daughters who inherited it obviously did not want to live there, be responsible for renting it out or sell it. It has now been brought up to standard under a Council scheme and is occupied by tenants.
So if you know of any success stories please put them in the comments and let us know.
Action Section
Local Authorities can’t do anything about empty homes unless they know about them. So if there is an empty home near you, you could contact the department that deals with empty home at your Local Authority and tell them.
They are also more likely to do something if there is local pressure so if you feel strongly, set up a pressure group.
If you are wondering whether you could buy an empty property, there is some helpful advice in this article.
The first step is to do a search at the Land Registry and see who owns it. Note that you may be able to get a grant to bring it up to the ‘decent homes standard’ – if you are lucky.
Landlords may also be eligible for an empty property grant – if your property has been empty for more than a year and if you are willing for it to be let to council-nominated tenants on a long-term lease – usually between five and ten years.
But I suspect that it is going to be very hard to deal with those large empty properties in rich London boroughs such as Kensington & Chelsea.
You are right, Westminster has the same problem, I should know, I spent 10 years as their Empty Homes and Compulsory Purchase Officer. We simply couldn’t justify spending 120 million pounds of Public Money to CPO them.
But, just done a nice CPO in Rushden, East Northant on behalf of the council, valued at 125k with works needed of approx 20. going to auction next week.
What percentage of empty homes are social housing properties?
My bet is that remarkably few social housing remains empty for any period of time. Most councils and housing associations who own such properties are under pressure caused by demand far outstripping supply – and that pressure extends to needing to have homes left empty for as short a time as possible between tenants.
Properties will be “void” only for so long as it takes to turn the property around ready to be let to a new customer (for example, minor repair works and safety checks which are done in the time that the property is unoccupied between one tenant and the next).
Organisations will usually have this time as a KPI for the teams responsible for letting the properties. A few weeks for which a property is void is seen as a few weeks too long; the aim is to have a property void for as short a time as possible, sometimes only a few days.
But that might be because the raison d’etre of social landlords is to let out their housing stock; the motives and methods of a rich but absent home-owner can be very different.
It would be nice if that were true RD but the figures don’t bear that out.
50 day voids are common in the social sector;
http://www.beework.co.uk/sjevans/site/index.asp?ID=246&ln=176&rn=244
Average private rented sector void is around 22 days.
I’m not sure that figures from more than 15 years ago reflect the reality in 17/18.
From less than a year ago;
http://www.cabinet.leicester.gov.uk/documents/s83598/voids%20task%20group%20report.pdf
“Council Housing Voids
Targets have not been met and a new norm of around 54 days is being looked at as a benchmark for reducing void times.”
My parents house was empty for nearly 2 years. My father went into hospital (6 weeks) then care (10 weeks) The he died from a fall. We waited over 5 months for the inquest before we could apply for probate which was complicated as my mothers will had not been sorted at the time he died. When that was done we put it on the market, but that was in the winter and it wasn’t until spring that it sold.
It was a semi and the other half was left empty for quite a while in the 80s after our neighbours died. It needed work doing on it (the council had to knock down a wall that was in a dangerous condition) and the son who lived in London was asking too high a price. Eventually it was bought by a builder who had first looked at it a year before but rejected it as the price was too high.
As for letting a council select tenants for a house I own. That would be the very last resort, assuming the mortgage, lease, and even insurance allowed it. Selling up would come first. I know some landlords have had good experiences doing that but others have not. See https://www.propertytribes.com/letting-a-property-to-a-local-council-t-127631342.html
https://www.standard.co.uk/news/london/shocking-waste-of-7500-council-homes-lying-empty-in-london-a3256401.html
“More than 7,500 local authority properties across the capital are lying empty as thousands of Londoners struggle to find a home, figures showed today.”
A disproportionately high amount of empty homes is from local authorities.
Who will guard the guardians themselves?