10 years of rising numbers of wasted empty homes…
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The official numbers:
Long-term empty homes 303,185 - up over 50% since 2016
(51.5% rise since the National Empty Homes Programme ended)
All vacants [excludes second homes] 754,264 UP 28% since 2016
[Total official vacancy 1,022,158 including 267,894 ‘2nd homes’ which have not switched to pay business rates]
Of note:
Class F ‘Council tax exempt empty homes’ 124,064 – up from 72,200 in 2012 – an increase of 72%
- Research with councils suggests this feeds into long-term vacancy – after leaving Class F status many of these have been classified as ‘furnished empties’ and thus as ‘second homes’. These have not been subject to premiums until 2025, where implemented [the first 2nd home premiums become effective April 2025]
Census 2021 suggested higher overall vacancy (of 1.5m) in England [see link for ONS commentary]
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Our insights for national policy:
The Council Tax Premium regime has not reduced numbers.
However, the new premium at one year empty and the new Second Homes Premium do now appear to be incentivising many councils to more effectively categorise previously un-taxed or hidden empty homes.
The constrained EDMO power (after the Coalition Government weakened it) is ineffective
We recommend a more effective power and removal of the two-year wait - one year would be more effective, or a return to six months, as originally envisaged – MHCLG statements suggest action in this area.
The rise in numbers commencing 2017, in both long-term and ‘all vacants’, started immediately after the last national Empty Homes Programme of targeted funding ended [2015/16]
That programme did yield positive results alongside incentives for Councils to act such as New Homes Bonus. Results were achieved both through support for council initiatives and through work with community-based housing providers.
See discussion and evaluations – eg House of Commons Library Report– section on Coalition Govt policy 2012-15.
Growing numbers of empties at a time of intense housing crisis create public concern and represent a missed opportunity to bring more stock back into use more quickly
We call for a new national funding programme with targeted funding devolved to local councils and for support for local community housing initiatives focused on retrofit and bringing empty homes into use
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Our partners share our vision to use empty homes
Alongside partners including Crisis and Shelter we have called for a new Empty Homes Programme
Both Crisis and Shelter have published dedicated reports addressing this opportunity to add urgently needed affordable housing supply, with our input
Crisis in their ‘Lets End Homelessness With Homes - Unlocking the Potential of England’s empty buildings’ report on using empty property to meet the most urgent housing needs and Shelter in their ‘Home Again’ report which includes a proposal for a: ‘10 Cities Empty Homes pilot programme’, [link to report etc .
We recommend targeted use of empties to meet housing need where possible and where this is financially viable [as Shelter have modelled in the ‘Ten Cities’ pilot proposal - and we are confident that even more ambitious results and targets are achievable if linked to a wider acquisition & conversion programme.
Our proposal to use Capital Gains Tax Relief to encourage sales into social use has been supported and adopted by both Shelter and Crisis. This has been proposed as an exit route for over-leveraged small landlords or those unwilling to invest in upgrades to meet new Private Rented Sector regulations.
Work to bring ex-local authority property sold via Right To Buy and other empty stock into use by councils and social housing providers, or for use to meet urgent TA needs, through acquisition by councils, shows the validity of this approach – e.g. London’s ‘Right to Buy Back’ / Council Homes Acquisition Programme
Also relevant is work done on this by the Affordable Housing Commission which proposed a ‘PRS to Social’ Conversion Fund’
The Affordable Housing Commission also produced a full set of proposals to rebalance the nation’s housing system through re-establishing greater access to social and genuinely affordable housing which include these recommendations
Retrofit of empty homes is an opportunity to build skills and experience as we prepare to meet the challenge of NetZero targets.
The easiest home to retrofit is an empty one:
Offers an opportunity to build skills in retrofitting a variety of typical domestic home typologies (as will be required)
Can be used to pilot approaches to training and to support the development and viability of local supply chains (including materials sourcing and manufacturing)
Bottom-up approaches driven by devolution of funding to local councils are likely to be most effective and align with the new Government’s developing approach.
We also produced a set of broader social policy recommendations including implications for regional; devolution in our landmark report with the University of Sheffield on Rural and Coastal Vacancy
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Regional variations with implications for related policy areas:
While long-term empty homes have risen 51.5% across England as a whole, in the period since 2016, they have MORE THAN DOUBLED in London – rising by a massive 138% and there is very significant regional variation.
o This suggests the impact of wealth storage, investment strategies, or other factors such as unrealistic pricing and lack of affordability in newbuild, are keeping more homes empty for longer in the capital.
o A far smaller rise in local authority and Private Registered Provider empties in the capital over this period, some of this due to estate regeneration schemes, is not sufficient to explain this.
o The vacancy level of 1 in every 24 homes empty is now identical in London and the North East.
o Regions exhibit rises very variably, the North East and North West show the least increase ( – see below).
o The South West with one in every 21 homes out of use is the most vacant region.
o The West Midlands is the least vacant region with one home in every 29 currently out of use.You can reach us anytime via our contact page or email. We aim to respond quickly—usually within one business day.
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Regional breakdown of rising numbers of long-term empty homes 2016 [base] – 2025 [most recent data]:
North East: Up 11%
Long-term 18,164; total vacancy 52,699 - 2025 rise: 7%
North West: UP 9% (after a 0.19% drop to 2024)
Long-term 42,606; total 137,158
2025 rise: 10%
Yorks & Humber: Up 28%
Long-term 33,293; total 102,169 2025 rise: 12%
East Midlands: Up 39% [long-term 26,475; total 80,834] – 2025 rise: 9%
West Midlands: Up 54%
Long-term 32,585; total 92,254
2025 rise: 15%
Eastern England: Up 93%
Long-term 32,081; total 112,074
2025 rise: 14%
London: Up 138%
Long-term 47,287; total 161,116
2025 rise: 23%
South East: Up 76%
Long-term 42,099; total 155,579
2025 rise: 17%
South West: Up 58%
Long-term 28,553; total 128,550
2025 rise: 18%
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Comparing 2021 census data to the Council Taxbase reveals a 50% higher residential vacancy rate. Covid impacts on the census have been explored but fail to comprehensively explain this, it is notable that in London as a whole this variation was in excess of 100% - even after counting recorded second homes for that year.
o This underlines the need for more comprehensive and consistent data on residential property ownership and usage [note the ‘hidden’ and ‘unexplained’ vacancy in the ‘tens of thousands’ that Cllr Adam Hug, Local Government Association Housing Spokesperson and Westminster Council Leader cites]
o This suggests implications for upcoming developments in short-let licensing, emphasising the need for a comprehensive scheme for all short lets featuring use of Unique Property Reference Numbers
o It is also critical that the National Private Rented Sector Landlord Database legislated for by the government in the Renters Rights Act 2025 should also use the existing UPRN system to identify homes.
o Alongside a wide range of partners AEH have proposed a UPRN-linked national property usage and ownership register, with access available to local enforcement council officers and HMRC.
o In assessing (and implementing) changes to capital gains tax regimes for either additional properties or primary residential property, improved information on property usage and ownership will be key; this appears to be a significant issue impeding accurate taxation and regulation, both at national and local levels of Government in England.