Labour’s commitment to build 1.5 million new homes by the end of parliament may have been
welcomed at first; but has failed to deliver. Approaching two years into their tenure, the housebuilding
targets are moving well out of range, with dwindling stock pushing prices up by roughly 257% since
2000. The latest OBR forecast puts the estimated number of new homes built by 2029-30 at under
1.3 million.
While key reforms to the planning system may be underway, they may not end up being the silver
bullet the government hopes they are to encourage building and growth. Objections to planning
permissions are still high, and private housebuilders - especially in the capital - are holding off on
projects due to concerns over potential profit.
With over 1.3 million households on waiting lists for social housing in England alone, it’s clear that
more creative thinking is needed to address the problem before it gets worse.
A single solution is evidently not available, meaning that it’s imperative the government uses all the
tools at its disposal. One of these, in our view, is tapping into a seriously underutilised resource:
empty and derelict properties.
This month sees National Empty Homes Week - raising awareness of the issue and celebrating the
achievements of those who’ve managed to convert empty properties into habitable homes. As it
stands, over a million homes in England currently stand empty - 309,000 of those are classed as long-
term empty (over six months). Our own research showed that the problem is not going unnoticed
within communities, with over half of the country (52%) passing by a deserted building every day, and
almost half (46%) feeling that the problem in their city was getting worse. Repurposing these
buildings is one of the fastest avenues available to increasing the housing stock for DIY savvy
homeowners and reducing the waiting time for social housing.
The obvious question is what’s stopped us from accessing abandoned homes already? Evidence
suggests that many local authorities are ill equipped to address the sheer number of empty properties
at their feet.
Reform in this area is the first thing to address. The other point to hammer home is the importance of
the private sector to unlocking empty homes. Selling empty homes to private buyers and investors
can save councils money on development costs. However, traditional mortgage products often aren’t
suitable for empty or dilapidated homes, especially where a property is deemed uninhabitable, with no
working kitchen or bathroom, or requires structural work.
Specialist lending can play a role here. Products such as bridging loans give property investors the
short-term funding they need to purchase and improve a property before selling or refinancing onto a
longer term buy-to-let mortgage – at a cheaper rate - once the works are completed. Wider education
on specialist finance, as well as closer cooperation between lenders and local authorities, is needed
for more private parties to invest in empty homes.
Another opportunity to get empty homes into the hands of the private sector is promoting the use of
property auctions, which provide a route to quick sales of overlooked and below market value
properties. Increasingly, these are done online, meaning investors can take a view on properties from
beyond local areas.
We’re under no illusions that the general housing crisis needs serious investment and reforms to be
turned on its head. Long term solutions, however, fail to address the immediate shortfall in housing
stock, both for social housing purposes, as well as for the general public. Our view is that turning
empty and disused buildings into homes and businesses will be an easy win for local authorities, the
government, and communities.
