Annual Impact Report 2024
Why homes become and remain empty
As part of our annual survey, we gather information from EHOs on why homes became empty and why they remain empty. EHOs provide this in relation to their active caseload, where known.
| Why homes become empty | Number of Homes | % of total |
|---|---|---|
| Bought with intention to renovate (no outcome) | 573 | 29.55% |
| Owner moved out without selling or tenancy ended and not re-let | 568 | 29.29% |
| Owner deceased | 428 | 22.07% |
| Other | 158 | 8.15% |
| Owner moved into hospital or care home | 95 | 4.90% |
| Former second home | 86 | 4.44% |
| Repossessed | 31 | 1.60% |
The range of reasons for homes becoming empty are broadly similar to what they have been in previous years. The only significant change was in the percentage of homes becoming empty where owners had brought with the intention of renovating. This was cited as the reason for 29.55% of homes becoming empty this year, up from 22.08% in last year’s survey and 17.4% in 2022.
This suggests an increasing cycle of empty homes, where formerly empty properties are purchased only to become empty again as new owners fail to complete work required on the property. Often this may be because they underestimate the time and cost of the work involved. They may also have not factored in liability for an empty homes council tax premium from the day they brought the property. This means that income intended to be used to renovate the home is instead swallowed up by higher council tax payments.
The extent of this issue is also demonstrated by the reasons for homes remaining empty.
| Why homes remain empty | Number of homes | % of total |
|---|---|---|
| Difficulty locating/engaging with owners | 611 | 24.39% |
| Repairs ongoing | 594 | 23.71% |
| Property inherited: no action taken by owner | 273 | 10.90% |
| Other | 238 | 9.50% |
| Repairs stalled due to financial reasons | 222 | 8.86% |
| Unwilling to sell or rent | 139 | 5.55% |
| Property awaiting grant of confirmation | 120 | 4.79% |
| Owners unsure of end use, needs advice on repairs or options | 95 | 3.79% |
| Difficulty establishing ownership | 72 | 2.87% |
| Legal dispute | 63 | 2.51% |
| Waiting for right time to sell | 49 | 1.96% |
| Unsuccessful marketing (rent or sale) | 29 | 1.16% |
Ongoing repairs and repairs stalled for financial reasons combined accounted for 32.57% of the reasons in all cases. We are pleased that this has been recognised and addressed in a recent amendment to Council Tax Regulations. Where an owner has purchased an empty property, and can produce evidence to establish that it is undergoing repairs or renovations that contribute to the improvement of the property, the council tax premium/surcharge cannot be applied for at least six months after the date property was purchased.
This will hopefully help to reduce the number of properties that are purchased by new owners only to become long term empty because of financial problems.
Of other reasons for homes remaining empty, difficulty locating or engaging with owners as well as difficulty establishing ownership was cited in 27.26% of cases.
This highlights the need for broader powers to be available to address the longstanding problems of owners choosing to walk away from an empty property, refusing to engage with the local authority, and leaving neighbours powerless to do anything to end the problems that the empty home can cause them. In some of the worst cases we have seen, these can include affecting their physical and mental health as they deal with a variety of environmental issues, anti-social behaviour, decline in the value of their own house and a feeling of being trapped in a home they will never be able to sell.
The introduction of legislation to provide for Compulsory Sales Orders or Compulsory Rental Orders can be vital tools to force empty properties to market. This will be particularly useful where properties do not meet the criteria required to be suitable for Compulsory Purchase Orders and where owners are making no attempt to address the deterioration of their home and the problems it is causing to the immediate community.