Financial penalties won’t solve empty homes crisis – Propertymark

There’s some truth in this.

Penalties sound good on paper, but a lot of empty homes aren’t sitting there because owners are ignoring them, it’s often probate delays, funding issues, or properties needing serious work.

Hitting people with higher council tax doesn’t magically fix those problems, and in some cases it just makes it harder to bring the property back into use.

That said, there are cases where homes are left empty long term with no real reason, so some level of pressure is still needed.

Feels like the real answer is a mix, support to help people get properties back into use, and penalties where nothing is being done

Amazing to see the UK relearn the precepts of liberalism like they were never written down.
Bad policy: punish and dis-incentivise private enterprise through regulation and taxes -> private enterprise dries up -> try and correct through more punishment and taxation to coerce private enterprise
Good policy -> avoid intervening to the extent you dis-incentivise private enterprise. Create change through targeted positive incentives
Greece has gotten smarter on this than we are. What they are now offering:
1. Tax breaks when you renovate an apartment offset against income taxes
2. Tax breaks when you renovate a property and return it to the market
It’s funny to see politicians confused that people don’t want to go through the headache and cost of renovating a property, just so the tenant can have a place to live forever they can’t be kicked out of, the government can take half+ or the net profit as tax, and if you make a mistake you can have to pay a massive fine. They seem to think property owners are such greedy SOBs they will do anything for £1.

Reply to the comment left by Paul Gibbens at 03/04/2026 – 03:51
Or god forbid they could make it attractive.

If the government insists on taxing such a large % of landlords income and preventing them freely contracting with tenants, they have an obligation to actually offer to run the operation.

Defence housing Australia does something similar. The local authority should offer a long term fixed rate lease. They fund and organise the renovation, operate the property, and the owner gets paid every month from the government who can take the risk the tenant doesn’t pay (given they are the ones creating the laws).

There is a general view that empty homes relate to rich people like a classic car owner that brings it out in the open for a summer show. A house we refer to as the “Burbs house” is a sad site indeed. Two abandoned Peugeots in the drive, a garage that’s hidden by vegetation, and through thee curtains are lots of cardboard boxes. It has stood empty for more than twenty years. The same house next door is as pretty as a picture. No one lives there. No activity other than the lawns are cut. In other circumstances it might be cash flow issues. Governments who fine people probably make matters worse. I like the comment about local governments seeking to help with renovation but for British people with British families. Placing fines on landlords with block progress on all fronts. The landlord, the tenant, the house, people’s lives generally. However, humanity aside, there is a sentiment that grabbing empty housing stock is the objective and that house ownership is of secondary importance.

Add to this the new problem. They now define a property which has been empty for 1 year as a Long Term Empty property. I definitely do not consider 1 year to be classified as Long Term Empty. I am appealing at the moment against a double council tax charge for a property refurbishment which has been delayed due to Severn Trent and structural issues. I have spoken to the Council Tax Office who say the new premiums are nothing to do with them and have ask me to contact Councillors and not themselves. Emailed 2 Councillors twice last year. no response. I emailed the Council office and a different councillor twice this year. No response.. I haven’t paid the double council tax surcharge for last year and have received a “reminder letter”. I now also have the double Council tax bill for this year. I’m loving the support I get from the Council!!! I feel a fool. What an idiot I am for improving the water supply for all my flats and improving a flat after a long term tenant of 10 years left.

Really interesting perspective—especially the point that financial penalties alone won’t bring empty homes back into use. With over 300,000+ properties sitting vacant, it clearly shows the issue is more structural than just enforcement.

What stands out is the need for practical solutions—support, funding, and better coordination with local authorities. In London particularly, we’re seeing how planning tools like Section 106 agreements can play a role in unlocking housing supply by ensuring developments contribute to affordable homes and community needs.

We recently explored how S106 is being used as a route to unlock new homes in London, and it’s interesting how this ties into the wider conversation here—because increasing supply isn’t just about building new homes, but also making better use of existing stock.

Curious to hear your thoughts—do you think combining incentives (like S106 and grants) with targeted support would work better than penalties alone?

We broke this down here: https://firsthomesscheme.com/web-stories/s106-a-route-to-unlocking-new-homes-in-london/

One possibility is that people in care homes will pay via a “lien” on their home and ownership is with a third party to pay for care.