2,699 homes in the Tower Hamlets area are empty, which represents 1 in 53 homes.
1,035 of those have been empty for more than six months and are worth £457million.
Why are those properties standing empty and deteriorating and why could that become an issue for the whole of Docklands?
A couple of weeks ago was National Empty Homes Week, so I thought I would find out how many homes are empty in the Docklands area – the numbers surprised me, so I wanted to share my thoughts about them with you.
The latest Government statistics show that 1,035 properties
in Tower Hamlets have been empty for more than six months.
Homes that are left empty for an extended period can affect our locality and occasionally invite anti-social behaviour.
With a shortage of housing in the Docklands area, these empty homes must be brought back into use to generate much-needed housing for local people.
As you can see in the first bullet point, some homes are only empty for a short period of time. Yet, those local properties that stand empty for more than six months and then deteriorate become a problem for our local community.
I appreciate there can be many genuine explanations why a property may be left empty for a long time. However, with council house waiting lists at high levels and the shortage of both properties to buy and rent in Docklands, we must ask what is being done about this at Government level and how this could affect the Docklands property market?
The collective value of these 1,035 long-term (6 months or more)
empty houses in Tower Hamlets are worth £457million.
This impacts the Docklands housing market with a lack of properties coming onto the market for sale and rent. This results in house prices being pushed up, making it less affordable for first-time buyers to get on the first step of the housing ladder.
It’s a real shame that many local properties are empty for over six months when there is an increasing demand for accommodation, at a time when there’s such a competitive housing market.
So, one might ask if this issue of long-term empty properties is a new problem? Well, not really.
There were 1,623 homes long-term empty in Tower Hamlets in 2010.
I know our local authority likes to work with property owners of empty homes to bring them back into housing stock as it helps with the housing shortage, even with the help of grants if improvement work is needed for the empty home. Yet, they could use enforcement action where a homeowner is incapable or unwilling to bring their property back into use.
So, what is the Government doing nationally? Homeowners are charged a 50% premium on top of their Council Tax if their home has been empty for two years or more. This can rise to a 300% premium if the property has been empty for ten years or more.
However, the bigger question is, why are all these homes in the Docklands and Tower Hamlets area being left empty?
The real answer is - they are not.
A handful of the properties belong to the local authority and are in poor condition because the tenant trashed the property.
Probate (where the person's estate is put in order and passed onto the beneficiaries of the will) takes between six and twelve months. Most of these long-term properties are being modernised and renovated, whilst other Docklands properties are part of a deceased estate. In other circumstances, some Docklands homes have been left empty after the owner has been placed into a care home, yet there is no Power of Attorney to put the home onto the market.
There is no 'one fix all' to the empty home syndrome in Docklands.
Empty properties in Docklands is not an issue that will sort the housing crisis we are suffering from.
The simple fact is the population is growing faster than the number of houses being built. We need to build more homes.
Whether that means council properties, housing association homes, private landlords or even owner-occupation housing the masses - that's a massive question we could all talk about, day in day out until the cows come home.
So, tell me, what are your thoughts on the matter?
One place for more information is my Docklands Property Market blog. If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Docklands property market together with regular postings on what I consider the best buy to let deals in the Docklands area, then it is well worth reading. You can also email me at firstname.lastname@example.org
If you are in the area feel free to pop into the office which is based at Landmark Estates, 264 Westferry Road, London, E14 3AG
Don’t forget to visit the links below to view back dated deals and Docklands Property News.
Free Valuation - lmlondon.com/value-my-property
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