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Councils set to gain powers to reclaim empty private rental homes

New measures are being introduced to help councils tackle empty private rental sector (PRS) homes, allowing local authorities to take over unoccupied properties and bring them back to market. These changes aim to address the growing housing crisis by targeting long-term vacant properties that could be housing tenants.

Tackling the empty homes crisis
The Government’s latest white paper outlines plans to devolve more power to local councils, enabling them to address housing issues in their communities. While details remain unclear, the new measures are expected to mirror Labour’s High Street Rental Auctions scheme, which allows councils to auction off empty retail units after a prolonged vacancy.

According to the white paper, the move is part of a broader strategy to “strengthen the ability of local authorities to set proper strategic direction to address the challenges facing their areas.” This initiative comes on the back of troubling statistics: in England alone, 700,000 homes stand unfurnished and empty, with 265,000 classified as long-term vacant.

Housing Secretary Angela Rayner described the plan as a pivotal step towards empowering local governments. “We will bring new efficiency and accountability to local and regional government… and truly empower the local champions who understand their area, its identity, its strengths, and how to harness them,” she stated.

Landlords express concerns over property rights
Landlords are pushing back against the proposal, citing fears of overreach and potential misuse of these new powers. Many argue that unoccupied homes often have valid reasons for remaining vacant, such as legal disputes, refurbishment delays, or financial constraints.

One landlord, speaking anonymously, shared their apprehension: “It feels like we’re being penalised for circumstances beyond our control. Managing a property isn’t always straightforward, and the idea of councils taking over our homes is deeply worrying.”

The initiative has also reignited debate around Empty Dwelling Management Orders (EDMOs), which give councils the power to seize long-term empty properties. These powers have been scaled back in recent years, but calls to strengthen them – led by London Mayor Sadiq Khan – have gained momentum. Some councils have already introduced measures, such as doubling council tax on long-term empty properties, to discourage landlords from leaving homes vacant.

Balancing local control with fairness
While the Government’s plans aim to address housing shortages, landlords argue the focus should be on incentivising property owners rather than penalising them. “Forcing homes back onto the market without understanding why they’re vacant is short-sighted,” said a representative from a landlord advocacy group. “Instead of creating adversarial policies, the Government should focus on solutions like grants for renovations or tax relief for landlords who bring properties back into use.”

Housing experts have also warned that any heavy-handed approach could disincentivise private investment in the rental market, further exacerbating housing shortages. Local authorities, however, see these powers as essential for tackling long-standing issues.

With 265,000 long-term empty homes and rising rental demand, finding a balanced approach is crucial. Can councils and landlords collaborate to meet tenant needs, or will these new powers create friction in an already strained housing market?

 

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