Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
£89bn of Long-Term Empty Homes in England Represents Untapped Opportunity for Agents
More than 300,000 homes across England have been empty for at least six months, according to research from House Buyer Bureau. The figures point to billions of pounds of property sitting outside the sales and rental markets — and, for estate and letting agents, a potentially significant source of untapped instructions and commission.
The scale of the issue
House Buyer Bureau identified 754,264 vacant homes across England, of which 303,185 are classed as long-term vacant. That means 40.2% of England's vacant housing stock has stood empty for more than six months. Using regional average house prices, the firm estimates these properties have a combined value of £88.6bn.
For sales agents, returning some of these homes to market could generate additional instructions and transaction fees. Letting agents could also benefit where owners decide to put vacant properties into the rental market. Even a relatively small proportion returning to either market could create additional business for agents, while also increasing the supply of available homes.
Where the empty homes are concentrated
The opportunity is particularly concentrated in London, where 47,287 homes have remained vacant for more than six months — 45% of the capital's vacant housing stock. House Buyer Bureau puts their combined value at almost £25.8bn, based on an average London property price of £544,814.
Elsewhere, the South East has 42,099 long-term vacant properties worth an estimated £16.1bn, the East of England has 32,123 properties valued at £10.9bn, the North West has 42,606 long-term vacant homes worth an estimated £9.4bn, and the South West has 28,553 properties with a combined estimated value of £8.6bn.
At local authority level, Kensington and Chelsea has 2,030 long-term vacant homes valued at £2.55bn, while Westminster has 2,279 such properties worth an estimated £1.91bn. Camden follows at £1.66bn, Southwark at £1.47bn and Lambeth at £1.24bn. Outside London, Birmingham has 7,060 long-term vacant homes with an estimated value of £1.64bn.
What it means for agents and owners
Chris Hodgkinson, managing director of House Buyer Bureau, said it was remarkable that the sector constantly discusses the need to build hundreds of thousands of additional homes when more than 300,000 existing properties have already been sitting empty for over six months. He noted there is no single reason why a property remains vacant — some require significant work, form part of an estate, have legal complications or simply prove difficult to sell — and that not every empty home can be put back into use overnight.
Hodgkinson said building more homes remains essential but better use should be made of existing stock, and that for owners, the longer a property sits empty, the more of a liability it can become as maintenance, security and ongoing ownership costs mount. Where the conventional sales market isn't providing a solution, he suggested owners may need a more pragmatic approach, such as accepting a lower price for the speed and certainty of a quick sale.
For letting agents and inventory clerks, the figures highlight a potential pipeline of instructions — and of properties that may need professional inventories and condition reports if they return to the rental market.
Source: Property Industry Eye