How Empty Homes are Pricing Out Local People
Did you know that there are around 600,000 empty properties in the UK? This is around three times more than the official homelessness figure. It doesn’t take a genius to work out that something is seriously wrong.
Squatting is not really the answer, as it doesn’t give stable homes to people that live there, and often costs tens of thousands of pounds in repairs to property owners, who often then hand them over to property guardian companies, that rent them out cheaply to tenants, rather than leave them empty.
You Spot Property rewards you for spotting empty properties. If it meets their criteria, you get a £20 voucher. And if they sell it, you receive 1% of the property price (capped at £10k).
If you see a derelict eyesore, just take a photo and send it to them with the address. For each property sold, the company donates £500 to a local charity too.
My sister mentioned this website to me. I have now received 2 vouchers for M & S. And continue to walk around with my eyes wide open. Anything that looks a bit scruffy is being reported. Who knows, I might even do this full-time. Top idea! Mrs Charles
Action on Empty Homes says the nearer figure is 1 million, if you include holiday homes. It works to retrofit empty homes so they provide affordable accommodation to those that need homes, rather than bulldoze green spaces, to build new ones. You can report empty homes to them.
Why Are Properties in England Left Empty?
You might wonder why so many homes stand unused when people need shelter. The reasons are rarely simple.
- Absentee owners: Sometimes overseas investors buy properties and leave them idle, waiting for prices to rise.
- Inheritance issues: Families caught up in legal disputes may leave homes untouched for years.
- Speculation: Owners keep properties empty, hoping to sell when the market peaks. The house becomes more like a lottery ticket, than a home.
- Disrepair: Major fix-ups can be expensive. When repairs seem unaffordable, owners might give up altogether.
These factors trap useful homes in limbo, while neighbourhoods miss out on new neighbours and fresh energy.
Impact of Empty Properties on Communities
Vacant properties don’t just blend into the background. They often stick out for all the wrong reasons.
- Antisocial behaviour: Unwatched homes attract vandalism, squatting, and other issues that worry neighbours.
- Visual blight: Broken windows, graffiti, and overgrown gardens can quickly signal that no one cares.
- Falling property values: Nearby homes usually lose value, as the street’s reputation declines.
The ripple effect can damage more than just bricks and mortar. It hurts the sense of community and personal safety.
Councils are Now Taxing Empty Homes
The Derbyshire market town of Bolsover is one of the first to bring in an ’empty home tax’, to discourage people from buying second homes that sit empty most of the year.
Owners will have to pay far more than the single council rate if homes are not occupied for over a year. This law won’t apply say to the Armed Forces, who may have to leave homes empty, while abroad.
There are enough empty homes in the wealthy county of Surrey, to house all its homeless people five times over.
Seaside Resorts That Price Out Locals
Many popular seaside resorts like St Ives in Cornwall have effectively priced out local people, from buying their own homes. Rich second-home-owners buy up properties for a week or two surfing each year, then return to London, and leave the properties empty all year.
The prices rise due to more luxurious properties, and local people then can’t afford to buy.
In the affluent Devon seaside town of Salcombe, developers are planning to build £1 million homes, then promise to give the council money to build ‘affordable homes’ elsewhere.
One local councillor says ‘This is creating an artificial community. It has all the yachts bobbing in the sea, but no local people on the ground to keep the town alive’.
Some councils are now fighting back, doubling council tax on second home owners. But that likely won’t make much difference to people with huge amounts of money to pay it.
Also the present law means that many holiday let owners claim 100% tax relief, if they pay business rates (rather than council tax).
How empty homes push up prices and rents
A quick way to see the difference is to separate the types of “empty”:
- Long-term vacant homes with curtains closed for months and post piling up means supplies for homes shrink.
- Rarely-used second homes are busy in summer and quiet the rest of the year, reduces year-round demand for rentals and raises sale prices.
- Short-term lets replace tenancies, with frequent guest turnovers and this cuts long lets and lifts rents for what remains
- ‘Waiting for the right time to sell’ means homes are empty long-term, and this keeps houses off the market for local people.
Less usable housing means tougher competition
First, fewer homes are available for full-time residents. That means fewer viewings, fewer choices, and more people chasing the same front door keys. Landlords and sellers don’t need to advertise for long, because demand is already queued up.
Next comes the price pressure. When several buyers want one property, asking prices become starting points. Bidding wars then become normal, not exceptional. In turn, higher sale prices feed into higher rents, because landlords base rent on what the market will bear and on their own mortgage costs.
Renters feel it fast. If long-term rentals disappear into short-term lets, the remaining pool gets smaller. Tenants then compete harder, offer more upfront, or accept worse conditions. Some households downsize before they’re ready. Others add a longer commute, which costs time and money.
Owners get squeezed too. A first-time buyer might manage the monthly mortgage payment, yet still lose out because someone else can move faster. Cash buyers often complete quickly and seem “safer” to sellers, so local buyers with chains or smaller deposits can struggle.
Why homes end up empty (and why it matters
Empty homes don’t all have the same story. Some owners have good reasons, but the market effect can still hurt locals because availability drops.
Common routes into emptiness include:
- Second homes: Buyers pay for lifestyle and flexibility, not for year-round use, so the home leaves the local pool.
- Short-term lets: A landlord may earn more per night, so a long tenancy gets replaced by holiday bookings.
- Probate and inheritance delays: Families can’t sell or rent until legal steps finish, so the property sits unused.
- Waiting for prices to rise: Owners hold back, hoping for a better sale price later, which keeps supply tight today.
- Buy-to-leave investment: Some investors keep a property empty to avoid wear and tenant management.
- Costly repairs: A home needs work, yet the owner can’t afford it, or can’t find builders, so it stays off-limits.
- Landlord exit limbo: A property may sit empty between sale, refurbishment, and re-letting, especially if the owner is unsure what to do next.
None of this is “illegal” by default. Still, every empty home is one less option for the people who keep the place running.
What it does to local people
Housing isn’t just a roof. It shapes whether people can take a job, start a family, or stay near ageing parents. When empty homes drive up prices, the pain doesn’t fall evenly. It lands hardest on people tied to local wages and local shifts.
The strain also builds quietly. You might not see it in one dramatic moment. Instead, it shows up as a slow drip of moves away, longer drives, and “temporary” living arrangements that last for years.
Local wages do not rise fast enough
Affordability is a simple ratio: income versus monthly housing cost, plus the deposit hurdle for buyers. If rent takes half of someone’s pay, the maths breaks quickly. Even a modest rise in rent can wipe out saving.
The gap widens when buyers arrive from higher-wage areas. Remote and hybrid work can be a real benefit, but it also means some households shop with city incomes in towns with smaller pay packets. Local first-time buyers then face a double hit: higher prices and tougher competition.
After that come the knock-on effects. People need bigger deposits, so they save longer. Adult children stay at home because renting would stop them saving at all. Overcrowding becomes common, especially in shared houses. Demand for social housing rises, yet supply rarely keeps pace, so waiting lists grow.
Key workers often get squeezed in the middle. Many earn too much for priority help, but not enough to compete in a heated market. That includes NHS staff, carers, teachers, hospitality workers, tradespeople, and cleaners, the people you notice when they’re suddenly missing.
Empty streets change services, schools, and economies
A town needs year-round residents to stay healthy. When too many homes sit empty, the place can look polished but feel hollow.
For schools, fewer children can mean fewer classes and tighter budgets. Buses and trains respond to demand, so quieter winter months can bring reduced routes and worse timings. Health access can suffer too. GP surgeries and dentists already face pressure, and staffing gets harder when workers can’t live nearby.
Local shops change as well. A bakery that once served commuters may switch to seasonal footfall and souvenirs. That isn’t automatically bad, but it can turn a working town into a weekend product. Winter then becomes a long pause, rather than a normal rhythm.
Meanwhile, employers struggle to fill roles. Care homes can’t run on holidaymakers. Cafés need staff on wet Tuesdays in November. Builders and plumbers can’t respond quickly if they’ve been priced out and live 30 miles away.
Fixes that can help without blame
Council tax premiums on long-term empty homes can push owners to act, especially when paired with solid tracking and enforcement. Grants or low-interest loans can help bring run-down empty properties back into use, which matters where repairs are the main barrier. In extreme cases, compulsory purchase can be a last resort, particularly where a home has sat derelict for years.
Short-term lets sit at the centre of many local debates. Registering them sounds boring, yet it helps councils understand what’s happening street by street. From there, councils can set local limits where housing is tight, and enforce safety and planning rules more fairly.
Planning can help too. In some pressured areas, rules can support full-time residency by shaping new builds towards local needs, not just market demand.
Building and renting options that work
Bringing empty homes back helps, but it won’t solve everything alone. Many places still need more genuinely affordable homes, including social rent and intermediate options that match local wages.
Community land trusts can also keep homes affordable over the long term, because the land is held for community benefit. Where lawful, some developments can prioritise local occupancy, so new homes don’t simply become part-time addresses. On the rental side, encouraging longer tenancies can help families plan their lives. Improving energy efficiency matters too, because lower bills can make a home affordable without touching the rent.
If you want to act locally, keep it simple:
- Check your council’s empty homes figures and housing strategy.
- Ask councillors how they use council tax premiums and enforcement.
- Support local housing groups, including community land trusts.
- Report long-term vacant properties if your council runs a scheme.
Small steps add up, especially when they feed into local consultations.
