In a bid to utilize the city’s unused housing stock and address the critical housing shortage, London councils will now double the council tax on homes left vacant for over a year. The measure aims to alleviate the city’s homelessness issue by encouraging property occupation or rental.
Thousands of homeowners in London are set to face increased council tax bills if their properties remain unoccupied for over a year, a policy shift aimed at addressing the city’s housing shortages. This decision, allowing councils to double the council tax on homes vacant for 12 months instead of the previous two years, seeks to motivate owners to occupy or rent out their properties. London has about 34,327 long-term vacant homes, valued at over £20 billion, with boroughs like Southwark, Newham, and Barnet reporting high numbers of empty properties. The push for heightened taxes on unoccupied homes is part of broader efforts to utilize existing housing stock, including charging up to 300% premiums in some cases like Westminster for homes left empty for a decade.
This measure comes amid escalating concerns over homelessness in England, with shocking revelations of families spending decades in temporary accommodation due to the housing crisis. Research indicates that some families have been living in such conditions for over ten years, prompting calls for a legal maximum duration for temporary housing. The crisis is particularly severe in London, where high rents drive more families into temporary, often inadequate living conditions. There have been calls for urgent action and investment in affordable housing to alleviate this worsening situation.
The government, recognizing the urgent need to tackle the long-term vacancy and homelessness issues, has introduced measures and encouraged local councils to implement policies that ensure local families and young people have access to housing. While some councils have begun implementing stricter tariffs on empty homes and second properties, there is a growing consensus on the need for more comprehensive solutions, including building more affordable homes to meet the demands of communities across London and the broader UK.