Empty Properties in the UK: Solutions and Investment Potential

Over a million homes in England now sit empty. That’s the total vacancy figure recorded in 2025 — more than one million properties that could be housing people, generating income, or strengthening communities. It’s a number that’s been climbing for years, and it tells a story that goes far beyond boarded-up windows and overgrown gardens.

1,022,158
Total empty homes in England (2025)
actiononemptyhomes.org

303,185
Long-term empty homes (over 6 months)
actiononemptyhomes.org

500,000+
Homes possible from converting empty non-residential buildings
lse.ac.uk

175,000
Privately-owned empty non-residential properties in England
lse.ac.uk

I’ve been watching this space for a while now, and what strikes me is how often the conversation about empty properties gets stuck on the problem — the blight, the waste, the missed opportunity. But there’s another side to it. For anyone willing to look past the weeds and the peeling paint, these properties represent one of the most overlooked opportunities in UK real estate. The trick is knowing which ones are worth your time, what you’re actually allowed to do with them, and how to avoid the traps that leave other investors stuck with a money pit. Here’s what you actually need to know.

Over a million empty homes
England has more than 1,022,000 vacant properties, including long-term empties, short-term vacancies, and second homes.

Long-term empties are rising fast
Long-term empty homes hit 303,185 in 2025 — a 14% rise on 2024 and over 50% higher than in 2016.

Conversion potential is huge
LSE research suggests over 500,000 homes could be created by converting empty non-residential buildings like offices and shops.

VAT is a hidden barrier
Most conversions are taxed at 20% VAT, while new builds are typically exempt — making renovation less financially attractive.

What counts as an empty property — and why the definition matters

The most important thing to understand about empty properties is that not all of them are the same. When you hear that there are over a million empty homes in England, it’s easy to picture a thousand derelict terraces waiting to be rescued. The reality is more complicated. The term covers everything from a flat that’s been vacant for three weeks while the owner travels, to a house that’s sat untouched for years after the owner died. The category that matters most for investors is the one the government calls “long-term empty” — a property that’s been unfurnished and unoccupied for more than six months. As of October 2025, there were 303,185 such homes in England, up 14% from the year before.

Long-term empty home
A property liable for council tax that has been unfurnished and not lived in for over six months. This is the category most relevant to investors and renovators, as these properties are often available for purchase or subject to compulsory purchase orders.

What I find telling is that the number of long-term empties is now higher than it was during the pandemic, when the housing market was effectively closed. That’s not a blip — it’s a trend. And within that figure, the single biggest reason a property sits empty is that the owner has died. Over 124,000 homes fall into that category, making up nearly 60% of council tax exempt empties. That means a huge number of these properties are caught up in probate, family disputes, or simply a lack of awareness about what to do next. If you’re looking for opportunities, that’s where you start.

Why empty properties matter — for communities and for investors

An empty property isn’t just a missed opportunity for the owner. It drags down the value of neighbouring homes, attracts vandalism and anti-social behaviour, and puts pressure on local services. For councils, every long-term empty home represents lost council tax revenue and a worsening housing shortage. For investors, it represents something else entirely: a chance to buy below market value, add genuine value through renovation, and either sell at a profit or build a reliable rental income stream.

The scale of the opportunity is hard to ignore. LSE research suggests that more than 500,000 homes could be created by converting empty non-residential buildings — offices, shops, warehouses, and the like. In England alone, there are around 175,000 privately-owned empty non-residential properties sitting idle. That’s a lot of square footage that could be turned into housing, and the government has been slowly nudging the planning system to make it easier.

But here’s the catch that doesn’t get enough airtime. While new builds are typically exempt from VAT, most conversions are taxed at the full 20% rate. That makes renovation projects significantly more expensive than building from scratch, and it’s one of the reasons so many empty properties stay empty. If you’re going to take on a conversion, you need to factor that VAT bill into your budget from day one — not discover it halfway through when the invoices start arriving.

The VAT trap on conversions
Most conversions of empty non-residential buildings are charged 20% VAT, while new builds are typically zero-rated. That can add tens of thousands to a renovation budget — and it’s one of the biggest reasons viable projects never get off the ground.

What I’d do if I were looking at this market today: I’d focus on properties that have been empty for more than six months but less than two years. Those are the ones where the owner is often motivated to sell but hasn’t yet reached the point where the property has deteriorated beyond economical repair. I’d also look hard at the council’s local plan — some areas have declared housing crises and are actively using compulsory purchase orders to force sales of long-term empties. That creates a window where you can buy from the council at a fair price, with clear title and no messy probate issues.

Where people go wrong with empty properties

I’ve seen the same mistakes come up again and again. They’re not hard to avoid once you know what they are, but they can be brutally expensive if you don’t.

Underestimating the true cost of renovation

A property that’s been empty for years has usually been empty for a reason. The roof leaks, the wiring is obsolete, the boiler is condemned, and the damp has been quietly eating away at the floor joists. Buyers often look at the asking price, subtract a rough estimate for cosmetic work, and convince themselves they’ve found a bargain. But the gap between a cosmetic refresh and a full structural renovation can be enormous. A property that’s been empty for more than six months may also have been stripped of its kitchen, bathroom, and fixtures by previous owners or vandals. Always get a full structural survey before you exchange contracts, and add a 20% contingency to whatever the surveyor quotes for repairs.

Ignoring the council tax premium

Councils in England can charge up to double the standard council tax rate on properties that have been empty for more than two years, and some have introduced even steeper premiums for properties empty for five years or more. That’s a cost that can run into thousands of pounds a year, and it applies from the moment you complete the purchase — not from when you finish the renovation. If your project takes 18 months, you could be paying double council tax for most of that time. Check the local authority’s empty homes policy before you make an offer, and factor the premium into your holding costs.

Overlooking the legal tangle of probate properties

The largest single category of long-term empty homes is properties where the owner has died. That means the legal ownership is often unclear, especially if the deceased didn’t leave a will or if multiple beneficiaries are involved. Buying a probate property can take months longer than a standard purchase, and there’s always a risk that a family member will contest the sale. If you’re buying from an executor, make sure they have the legal authority to sell, and consider using a property lawyer who specialises in estate law to handle the conveyancing. It’s not the place to cut corners.

Assuming you can convert anything into anything

Just because a building is empty doesn’t mean you can turn it into flats. Permitted development rights have been expanded in recent years, but they still come with restrictions — especially around fire safety, sound insulation, and natural light. A conversion that requires full planning permission can take a year or more, and there’s no guarantee it will be granted. Before you buy any non-residential property with the intention of converting it, check whether it already has prior approval for change of use, or whether you’ll need to apply from scratch. The difference can make or break the project financially.

→ Scroll right to see all columns

Source: Action on Empty Homes data
CategoryNumber (2025)What it means
Long-term empty (over 6 months)303,185Unfurnished, unoccupied, liable for council tax
Probate-related emptiesOver 124,000Owner has died; nearly 60% of council tax exempt empties
Short-term empty (under 6 months)Nearly 240,000Unfurnished but vacant for less than 6 months
Second homes (furnished, unoccupied)Over 268,000Furnished but not lived in; includes holiday lets
Total vacancy1,022,158All categories combined

What I’d do differently if I were starting over: I’d spend more time on the due diligence and less time on the deal. The empty properties that look like bargains on paper often have hidden costs that only reveal themselves after you’ve committed. A thorough survey, a council tax check, and a conversation with the local planning department are worth every penny they cost.

Writing about topics like this takes real time and research. If you buy something through an Amazon link on this page, I may earn a small commission — at no extra cost to you. It’s one of the things that makes it possible to keep BritWealth free to read. I only link to products that are genuinely relevant to the article.

How to find, buy, and renovate empty properties in the UK

If you’re serious about investing in empty properties, you need a process — not just a wish list. Here’s the approach I’d take, broken down into the steps that actually matter.

Finding the right property before anyone else does

The best empty properties never make it to Rightmove. They’re sold through local estate agents who know the area, through council auctions, or directly to investors who’ve built relationships with probate solicitors and property guardians. Start by identifying the local authorities in your target area that have declared a housing crisis — those are the ones most likely to use compulsory purchase powers, and they often maintain a public register of long-term empty properties. You can also drive around neighbourhoods you know well and look for telltale signs: overgrown gardens, piled-up post, curtains that haven’t moved in months. Then check the council tax records (most councils publish them online) to see how long the property has been empty.

Financing the purchase and renovation

Standard residential mortgages are rarely available for uninhabitable properties. You’ll typically need a bridging loan or a specialist renovation mortgage, both of which come with higher interest rates and shorter repayment terms. The key is to have a clear exit strategy before you borrow — either a sale or a refinance onto a buy-to-let mortgage once the renovation is complete. If you’re converting a non-residential building, the financing gets even more complex, because lenders will want to see planning permission and a detailed cost breakdown before they commit. A financial advisor who understands property development can help you structure the deal in a way that doesn’t leave you exposed.

Navigating the planning and conversion process

If you’re converting an office, shop, or warehouse into residential use, check whether the property benefits from permitted development rights under Class MA of the General Permitted Development Order. If it does, you can apply for prior approval rather than full planning permission, which is faster and less risky. But prior approval still requires you to meet standards around natural light, floor space, and noise insulation. If the property is listed or in a conservation area, you’ll need full planning permission and listed building consent — and that can take a year or more. My advice: don’t exchange contracts on a conversion project until you’ve had a pre-application meeting with the local planning officer. Their informal feedback will tell you more than any amount of online research.

Managing the renovation without blowing the budget

Renovating an empty property is different from renovating a lived-in one. You don’t have to work around tenants, but you also don’t have heating, electricity, or water — which means every tradesperson will charge a premium for working in a cold, dark, damp building. The smartest move is to get the shell watertight and secure first, then bring in the services, then finish the interiors. A smoke alarm with a long-life battery is a small investment that can save you a lot of hassle during the build — and it’s a legal requirement once the property is habitable. Keep a detailed spreadsheet of every cost, and review it weekly. The projects that go over budget are almost always the ones where the owner stopped tracking expenses after month one.

  • 1
    Identify target properties
    Check council empty property registers, drive target neighbourhoods, and build relationships with local estate agents and probate solicitors.

  • 2
    Conduct full due diligence
    Get a structural survey, check council tax premiums, verify planning status, and confirm the seller has clear legal title.

  • 3
    Secure specialist finance
    Arrange a bridging loan or renovation mortgage with a clear exit strategy — sale or refinance to buy-to-let.

  • 4
    Get the property watertight and secure
    Fix the roof, secure doors and windows, and install temporary heating and lighting before starting internal work.

  • 5
    Complete renovation and exit
    Finish interiors, obtain building regulations sign-off, and either sell or refinance onto a standard buy-to-let mortgage.

Frequently asked questions about empty properties

Can the council force me to sell an empty property?
Yes, through a compulsory purchase order (CPO). Councils are increasingly using CPOs on long-term empty homes, especially in areas with severe housing shortages. If you receive a CPO notice, you have the right to object at a public inquiry, but the process is weighted heavily in the council’s favour.
What’s the difference between an empty home and a second home?
An empty home is unfurnished and unoccupied. A second home is furnished but not lived in as a main residence — for example, a holiday cottage. There are over 268,000 second homes in England, and they’re not included in the long-term empty figures.
Do I pay stamp duty on an empty property purchase?
Yes, standard stamp duty land tax applies. If you already own another property, you’ll pay the higher rate (3% surcharge on top of standard rates). There’s no specific exemption for empty or derelict properties, though some renovation costs may be deductible against capital gains tax when you sell.
Can I live in an empty property while renovating it?
Only if the property is habitable — meaning it has working heating, electricity, water, and sanitation. Most long-term empty homes don’t meet this standard. Living in an uninhabitable property during renovation can also invalidate your insurance and breach your mortgage conditions.
Are there grants available for renovating empty properties?
Some councils offer empty property grants or loans, but they’re not universal and the criteria vary widely. The national Empty Homes Programme ended in 2016, and no direct replacement exists. Check with your local authority’s empty property officer — some areas still have discretionary funds for bringing homes back into use.
What happens if I buy an empty property with sitting tenants?
If the property is empty, there are no sitting tenants. But if you’re buying a property that was previously let and is now vacant, check whether the tenancy was ended legally. An invalid eviction can leave you liable for damages and legal costs. A tenant landlord lawyer can review the paperwork before you commit.

The empty property market isn’t for everyone. It takes patience, capital, and a willingness to deal with uncertainty. But the numbers are hard to ignore: over a million empty homes, rising long-term vacancy rates, and a planning system that’s slowly opening the door to conversions. For anyone who can navigate the legal and financial complexities, the opportunity is real. If this was useful, you might also want to read how to renovate for profit in the UK.

Sources and Further Reading

Property flipping in the UK: risk vs reward — A closer look at whether short-term renovation projects still make financial sense in today’s market.

The UK’s changing rental landscape — What the latest regulatory changes mean for landlords and tenants, and how to adapt your investment strategy.

Empty homes facts and figures. Action on Empty Homes, 2025.

The opportunity in vacancy: empty buildings and the UK housing crisis. London School of Economics, 2025.

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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