Nearly
300,000 Homes Empty for more than 6 months
New Halifax research highlights that there are 290,862
private homes in England that have been empty for more than six months, the
government's preferred measure. This is equivalent to 1.6% of all privately
owned dwellings in England. The number of private empty homes has fallen by 6%
in England over the past three years.
21 areas with a high level of empty homes
In 21 local authorities (LAs) at least 3.0% of the private
dwelling stock is empty - nearly double the English average. The most private empty homes
are in Burnley (6.2%), Liverpool (5.6%) and Pendle (5.1%). Nine of the top 21
empty homes areas are located in the North West, while 3 are in the West
Midlands. There was a rise in vacant dwellings in 14 of the 21 LAs with the
highest proportion of empty homes between 2002 and 2005.
House
prices are lower in areas with highest proportion of empty homes
The average house price in 20 of the 21 LAs with the
highest proportion of empty homes trades, on average, at a discount to its
regional average house price. The discount is, on average, £25,470 or
16%. Of the 21 LAs with the most empty homes the discount is largest in Stoke
on Trent, at 35% (£58,100).
19 out of the 21 LAs with the most empty private homes
rank amongst the 20% most deprived areas in England, according to the Indices
of Multiple Deprivation. The DCLG's Multiple Deprivation Indices rank LAs in
England by a range of factors including income, education, health and living
conditions.
Restoring
an Empty home vacant less than 3 years attracts 17.5% VAT
The cost of restoring an empty home attracts the full rate
of VAT (17.5%) unless the property has been vacant for more than 3 years when a
reduced rate of VAT of 5% applies to the renovation. A property vacant more
than 10 years, which is renovated and sold, attracts a zero rate of VAT. New build properties
are not liable for VAT on construction costs.
Table 1: Empty private homes by region
Region |
No Private Empty Homes (Apr
05) |
% of Private Dwelling stock
Empty (Apr 05) |
Change in number of Private
Empty Homes (2002 to 2005) |
North
East |
17,014 |
2.0% |
2,023 |
North
West |
62,351 |
2.6% |
-1,169 |
Yorkshire
& the Humber |
31,261 |
1.8% |
-6,959 |
East
Midlands |
25,493 |
1.6% |
-733 |
West
Midlands |
37,177 |
2.0% |
654 |
East
of England |
25,707 |
1.3% |
-3,404 |
London |
36,164 |
1.5% |
-4,811 |
South
East |
32,647 |
1.1% |
2,144 |
South
West |
23,048 |
1.2% |
-4,756 |
England |
290,862 |
1.6% |
-17,011 |
Figures
based on data from the Department for Communities & Local Government
(DCLG), the Office for National Statistics (ONS) and Halifax's own extensive
housing database.
Ends | 21
Oct 2006 | Halifax