London mayor Sadiq Khan, alongside the Labour-led Westminster City Council, has called for greater powers to seize control of empty residential properties in an attempt to solve the capital’s housing shortage.
Analysis by City Hall has revealed that 30,000 homes – an estimated £20bn of property – are sitting vacant across the capital.
Khan said: “It’s a scandal that so many much-needed homes across London lie vacant in the midst of a housing crisis.”
The highest concentration is in the Royal Borough of Kensington and Chelsea, where the the mayor’s team believe the 1,600 empty properties would collectively be worth more than £2.2bn.
Khan, backed by Westminster City Council leader Adam Hug, is calling on ministers to make it easier for councils to temporarily take over empty homes using empty dwelling management orders, which have been restricted since David Cameron’s government.
He also called on the government to devolve powers to set higher rates of council tax on empty homes. Khan wants to hike the tax to a level that would prove a deterrent for “mega-mansions in areas such as Westminster”, where council tax is not currently a deterrent to people leaving their properties empty.
“This would not only deter absentee international investment, but would free up housing stock across the capital for Londoners,” Khan said.
The level of council tax for empty homes would be decided by local councils at whatever level they deem to be an effective deterrent.
Hug said it was “great that people across the world invest in Westminster, but the reality is that has led to a property market with stratospheric prices, many of which are bought simply as investments rather than to live in”.
He added that the true number of long-term vacant homes was likely to be even higher than the estimates. “It cannot be right that large homes in Westminster sit empty – in some cases falling into decay – while thousands of people face years on waiting lists. Substantial parts of the City become effectively hollowed out by property speculation.”
The mayor’s office cited one property in Knightsbridge – 3 Trevor Square – which has been empty for almost a decade. The Grade II listed, early nineteenth century, four-storey townhouse has four-bedrooms and two reception rooms. It is one of 1,100 empty homes in the City of Westminster which the mayor’s team believes are worth £1.7bn.
Khan acknowledged that a true solution to the problem would require the building of more homes. “Over the last few years we have started building a record number of homes for Londoners,” he said, referencing recent claims of 25,658 affordable homes started in London last year.
“But there is still a long way to go to fix the housing crisis and it will require much greater national investment. Ministers should start by making it easier for councils to bring long-term empty homes back into use so we can continue building a fairer and more prosperous London for everyone.”
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