Homes sitting empty in England

According to a Halifax survey, there are 290,862 private homes in England that have been empty for 6months or more. This figure accounts for 1.6% of all privately owned dwellings in England, although it should be noted this figure has dropped by 6% in England over the last 3years.

Out of 21 local authorities (LA’s), at least 3% are empty. This figure is close to double the English average.

19 of the 21 LA’s with the most empty private homes are also among the 20% most deprived areas in England. This figure is from the ‘Indices of multiple Deprivation’ which arrives at their conclusion by ranking English LA’s over numerous factors including education, health, living conditions and income.

To restore a home empty less than 3years, one would attract the full rate of VAT(17.5%). If the property had been vacant in excess of 3years the a reduced rate of VAT(5%) would be applied. It is worth noting that if a property had been lying empty for more than 10years, then was renovated and sold, a VAT rating of zero would be applied.

Halifax are calling on the government to extend the reduced 5% VAT rate for restoring empty homes to ALL properties vacant for 6months or more, rather than only those in excess of 3years. They estimate the average restoration costs of empty homes to be £28,788 with most of the money being spent on kitchens, wiring, roof, windows and plumbing. Based on this figure, the current VAT figures means restoring a home empty for less than 3years would cost £5038 in VAT and only £1439 for one empty for more than 3years.