The Empty Homes Crisis: Why Are So Many Properties Left Vacant?

Over 300,000 properties in England have sat empty for six months or longer, according to recent data. That’s enough homes to house a city the size of Leicester, standing vacant while record numbers of households remain in temporary accommodation. The gap between empty stock and housing need isn’t just frustrating — it points to a deeper set of barriers that keep perfectly usable properties off the market.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

300,000+
Long-term empty homes in England (6+ months)
UK Estates

1,000,000+
Total empty properties including second homes
UK Estates

2015
Year the National Empty Homes Strategy was discontinued
UK Estates

150
Vacant properties transformed by Richmond Council’s pilot in 3 years
UK Estates

These aren’t just abandoned buildings in declining areas. Empty homes sit in every kind of location — from city centres to coastal towns — and they stay empty for very different reasons. Some are caught in probate. Others need expensive repairs their owners can’t afford. A fair number are second homes used only a few weeks a year. Each type needs a different solution, and the tools available to local authorities vary widely. Here’s what you actually need to know.

Probate and legal delays keep inherited homes empty
Inherited properties often sit vacant for months or years while ownership is sorted out. The legal process itself creates a bottleneck that has nothing to do with market demand.

Refurbishment costs block reactivation
Rising renovation expenses mean many owners can’t afford to bring a property up to lettable or saleable standard. Without capital, the home stays empty.

Council tax premiums are the main financial lever
Some councils now charge quadruple council tax on homes empty for over 10 years. It’s the strongest penalty available, but it doesn’t always force action.

Forced sales remain rare but exist
Pembrokeshire has used compulsory purchase orders on persistently empty homes when other measures fail. It’s a last resort, not a common tool.

When you hear “empty homes crisis,” the natural assumption is that these are derelict properties nobody wants. In reality, many are perfectly sound homes held up by legal, financial, or administrative barriers. The central concept here is long-term empty — a property unoccupied for six months or more, which is the standard threshold councils use to track the problem. Short-term vacancy between tenants or sales doesn’t count.

Long-term empty
A residential property that has been unoccupied for six months or more. This is the standard definition used by local authorities in England to identify vacant homes that could potentially be brought back into use.

What I tend to notice is that people lump all empty homes together, but the difference between a probate case and a second home is enormous. The solution for one won’t work for the other.

The real cost of keeping a property empty

Leaving a home vacant isn’t free. The costs stack up in ways many owners don’t expect, and they’re not just about lost rental income. Council tax is the most immediate hit. Under current rules, councils can charge a premium on long-term empty homes — up to double after two years, and as high as quadruple after a decade. That means a property with a Band D council tax of £2,000 could cost its owner £8,000 a year in council tax alone.

Then there’s insurance. Standard home insurance policies often exclude properties left empty for more than 30 or 60 days. Specialist unoccupied property insurance costs significantly more. Add in security costs — boarding up windows, installing alarms, regular inspections — and the annual carrying cost of an empty home can easily run into five figures before you’ve spent a penny on repairs.

Quadruple council tax after 10 years
Some councils now charge four times the standard council tax on homes empty for a decade or more. On a median-value property, that’s thousands of pounds per year in penalties — with no property income to offset it.

For owners who inherited a property and can’t decide what to do, these costs eat into the eventual sale proceeds month by month. For investors sitting on a dormant asset, they reduce the net return. And for councils, the administrative cost of chasing empty home premiums often outweighs the revenue collected. It’s a lose-lose situation that keeps properties frozen out of the market.

If you’re dealing with a property stuck in probate or legal limbo, getting legal advice on estate matters early can prevent months of unnecessary vacancy. The sooner ownership is resolved, the sooner the property can be sold or let.

Where the system falls short

Empty Dwelling Management Orders are rarely used

EDMOs were designed to let councils take over management of long-term empty homes. In theory, they’re a powerful tool. In practice, uptake has been extremely low. The legal threshold is high — councils must prove they’ve exhausted all other options — and the process is expensive. Most authorities find it quicker and cheaper to negotiate voluntarily. The result is that the most stubborn empty homes often stay empty because the legal route is too difficult to pursue.

Refurbishment costs trap owners without capital

A property that needs £40,000 of work to become habitable is a problem for an owner who doesn’t have £40,000. Rising material and labour costs have made this worse. The owner can’t sell it for full market value in its current state, can’t afford to fix it, and can’t get a mortgage on an uninhabitable property. It’s a deadlock. Some councils offer renovation grants or loans, but these are patchy and often oversubscribed. The property sits empty while the owner waits for a solution that may never come.

Second homes distort the local market

In tourist areas and amenity-rich locations, second homes can make up a significant share of the housing stock. These properties are occupied only part of the year, but they’re not “empty” in the traditional sense — they’re owned and maintained. The problem is that they reduce the supply of permanent homes for local residents, pushing up prices and rents. Council tax premiums on second homes exist, but they rarely deter buyers with the means to purchase a holiday property. The result is a housing market that works for visitors but not for the people who live there year-round.

Lost revenue from empty homes affects everyone

When a property sits empty, it generates no council tax (or reduced council tax in some cases), no stamp duty from a sale, and no economic activity from occupants. The surrounding area suffers too — empty homes can depress nearby property values and create a negative perception of the neighbourhood. For councils already under financial pressure, every long-term empty home represents lost revenue that could fund local services. The cost isn’t just private; it’s public.

How councils and owners are tackling empty homes

Council tax premiums as the primary deterrent

The most widely used tool is the council tax premium. Councils can charge extra on properties empty for two years or more, with the rate increasing over time. Some now charge quadruple the standard rate after 10 years. The idea is to make it financially painful to leave a property vacant. For owners who can afford to carry an empty home, the premium may not be enough to force action. But for those on tighter margins, it can tip the balance toward selling or renovating.

→ Scroll right to see all columns

Source: UK Estates
Vacancy periodCouncil tax premium (example)Typical annual cost (Band D, £2,000 base)
Less than 2 yearsNone£2,000
2 to 5 years100% extra (double)£4,000
5 to 10 years200% extra (triple)£6,000
10+ years300% extra (quadruple)£8,000

Compulsory purchase and forced sales

When incentives and penalties fail, some councils resort to compulsory purchase orders. Pembrokeshire has used this approach on persistently empty homes, forcing a sale when the owner refuses to act. It’s a lengthy and expensive process, and councils need to demonstrate that the property is causing harm to the local area. But it does send a signal that vacancy isn’t a permanent option. The property lawyers handling these cases need to navigate complex legal frameworks, and the process can take years from start to finish.

Successful local pilot programmes

Some councils have shown what’s possible with focused effort. Richmond Council’s pilot transformed 150 vacant properties into homes over three years. North Kesteven returned more than 300 long-term empty homes to active use over 14 years. These programmes typically combine council tax enforcement with grants, loans, and direct negotiation with owners. They work because they treat each empty home as an individual case rather than applying a blanket policy. The results are real, but they require dedicated staff and funding that many councils don’t have.

The Levelling-up and Regeneration Act 2023

This recent legislation gives councils new powers to bring empty buildings back into use. It allows them to work more closely with landlords and community groups, and it streamlines some of the processes around compulsory purchase. The act is still relatively new, and it’s too early to say how much impact it will have. But it does signal a shift in government thinking — away from the discontinued National Empty Homes Strategy of 2015 and toward a more localised, enforcement-based approach.

Frequently asked questions about empty homes

How long does a property need to be empty before it’s counted as long-term vacant?
Six months is the standard threshold used by councils in England. Properties empty for less than that are considered short-term vacancies, which are normal in a functioning housing market.
Can a council force me to sell my empty home?
Yes, through a compulsory purchase order, but it’s rare. The council must prove it has exhausted all other options and that the empty property is harming the local area. The process is lengthy and expensive.
What happens to council tax on an empty inherited property?
Most councils offer a exemption for up to six months while probate is ongoing. After that, the full council tax applies, and premiums may kick in if the property remains empty long-term.
Are second homes treated the same as long-term empty homes?
Not exactly. Second homes are occupied intermittently, so they don’t meet the six-month threshold. But councils can charge a premium of up to 100% on second homes, and some do.
What financial help is available to renovate an empty property?
Some councils offer grants or loans for bringing empty homes back into use, but availability varies widely. There’s no national scheme. Check with your local authority’s empty homes officer.
Does an empty home affect property values in the area?
Yes. Long-term empty homes can depress surrounding property values and create a negative perception of the neighbourhood. They also reduce local demand by taking housing stock out of circulation.

Empty homes won’t fix themselves

The scale of the empty homes problem — over 300,000 long-term vacant properties in England alone — means there’s no single solution. Council tax premiums work for some owners but not others. Compulsory purchase is too slow and expensive to use widely. The most effective programmes combine enforcement with practical support, treating each empty home as a unique case. The Levelling-up and Regeneration Act 2023 gives councils more tools, but tools only work when someone uses them.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Why UK Office Spaces Are Being Converted Into Residential Properties.

Sources and Further Reading

Are UK Garden Cities the Solution to the Housing Crisis or Just a Dream? — Explores another approach to increasing housing supply through planned new communities.

Generation Rent No More: Innovative Solutions for UK Homeownership — Looks at alternative routes into homeownership for those priced out of the market.

UK Estates (2024). Why Are So Many UK Homes Empty Amid a Housing Crisis? 🔗

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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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