Tuesday, Oct 30, 2007
Shortage? What housing shortgage?
The Times: Why are they empty?
"[...] The Empty Homes Agency estimates that there are 840,000 empty homes in the UK. National Land Use Database figures indicate that a further 420,000 homes could be established in disused commercial properties in England, including former pubs and space above shops. This adds up to more than one million additional homes – which would make up a third of the Government’s three million target."
Posted by president d szvaselinovic @ 08:30 AM (567 views) Add Comment
10 Comments
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1. harold said...
This just goes to show that the government's statement that "we need to build more houses for first-time buyers..." is, frankly, balls.
2. Kl said...
Money Laundering !!!!!
3. Portobello Pete said...
I used to live on Ladbroke Grove in London which (albeit being only moments from Notting Hill) has a considerable problem with uninhabited buildings. No 172 lies dormant (15 unoccupied studios) as does 194 (5 one bed flats) and the large building on the corner has been behind builders' hoardings for 4 years now. No work has been done on the building in that time it is near completion as you can see the light fittings and the new windows - There must be space for 10 decent one bed flats in the development. This is in just one 100m stretch of terrace, probably rendering 10-15% of the housing stock on this stretch of the street inactive.
I know for a fact that two of the buildings are owned by absentee Australian landlords who will probably not even pay tax on the income generated from the buildings.
However strongly someone may espouse free market ethics, the fact is that it is becoming increasingly difficult to live in London at reasonable cost due to this very practice. Landlords based overseas have no scrutiny placed upon them by the fiscal authorities in the UK and have no interest in conforming to local housing policy or strategy.
Asset values have risen so astronomically in London that they MUST be made subject to tax in order for buildings to be retained in a habitable condition. I would suggest a modest property wealth tax, along the lines imposed in France, that at least imposes an annual charge on landlords that leave buildings empty. Inheritance tax is another important and valuable instrument as it ensures that these precious assets remain within the market and do not simply sit idle across generations.
Homes are not people's sacrosanct castles. They are rooves over our heads, to which everyone living in this country has a right.
4. Ihopeitgoeswithabang said...
Yes but the point is that there has to be empty homes around doesnt there? It's not a question of achieving 100% occupancy of property or anything near that.
When BTL landlords buy they should assume a period time when they cannot rent their homes. That is what brings about a stable housing market.
A figure of 1.5 million empty homes would be much nicer to see.
5. whiteknight said...
lack of supply argument has always been a crock. it was a crock when someone came up with it and it was still a crock when everybody starting repeating it as "received and passed on wisdom".
The bubble in house prices synchronised directly with cheap money and lax lending and borrowing standards. directly. Infact in order to make a 95% confidence judgement call on the fact that it was a crock - you only needed to observe this fact and a small amount of anecdotal evidence.
other arguments it ranks with include the circular argument that its OK to lend a trillion pounds if its backed by(secured on) a trillion pounds with of houses. er no.
6. dohousescrashinthewoods said...
Why build, at great expense, that which you already have sitting idle.
7. Axxo said...
What housing shortage!!, there are hundreds and hundreds of properties available, it's the prices of these houses that are the problem.
Once you take the buy to let guy out of the picture, the prices re-adjust 40% lower, we shut the doors to ever increasing imigrants and lenders lend sensibly with higher interest rates there will be no housing problem!!
8. Spain Boom Bang said...
Wow, just 840K ?
Spain had 3 million empty homes in 2004 !
Imagine how many they are now !!
http://www.idealista.com/pagina/boletin.comentarios?id_noticia=20040904
9. Batterychicken said...
How about a Council Charge of 100% on empty properties and no discount for them being uninhabitable?
That is the reason that the flats in Ladbroke Grove are unfinished - they are currently uninhabited so attract no tax while they appreciate in value. When the landlord sense that the market has turned he (she) will quickly get them finished and sold off.
10. eyeoftheweasel said...
A simple start would be to remove all council tax discounts on vacant homes (including holiday homes). MPs probably wouldn't like that though as most of them probably have at least three homes with the mortgages being paid on expenses.