The UK’s Vacant Home Crisis: The True Cost of Unoccupied Dwellings

Over the last few years, the housing crisis across the UK has become increasingly evident. Around 280,000 people are estimated to be sleeping rough, and 8.4 million (1 in every 8) people in England alone live in unaffordable, insecure, or overcrowded housing, according to the National Housing Federation.

This crisis has been exacerbated by rising housing costs, stagnant wages, and a lack of affordable housing options. As a result, many individuals and families are struggling to find stable and safe living situations, leading to a growing homelessness problem.

While several local governments have introduced programs and grant schemes to get vacant properties revitalised and back on the market, additional efforts are required to tackle the housing shortage and offer affordable housing solutions for renters in need. There is still a long way to go in order to truly address the housing crisis and provide sustainable solutions for those in need.

Analysing information from various local authorities and central governments in the UK, Sambla has conducted research comparing vacant properties across the UK and finding the true cost of the ongoing issue.

Total Vacancy Data: UK’s Empty Homes in Numbers

Despite government efforts, the number of vacant homes has risen significantly. The latest data shows a 4% increase in vacant properties, totaling nearly 300,000 unused properties (294,452), resulting in a 10% increase in the value of vacant properties to £85,830,124,583.

While the City of Edinburgh and Birmingham are the most affected areas, South East Wales, including Merthyr Tydfil and Vale of Glamorgan, are among the least affected regions.

The areas with the most vacant properties:

Local Authority	Region	Dwellings (Total)	Total Long-Term Vacant Dwellings	Vacant Dwellings per every 100
Aberdeen city	Scotland	124,903	5,594	4
City of, Edinburgh	Scotland	264,592	7,200	3
Liverpool	North West	230,845	5,351	2
Birmingham	West Midlands	452,530	6,399	1
County Durham	North East	251,325	4,279	1

 

Aberdeen comes out on top, with 4 in every 100 residential properties in the city being vacant over a long-term period. In September 2024, councillors in the city declared a ‘housing emergency’ citing a lack of affordable and safe homes available for the area’s residents.

The housing crisis in Aberdeen is exemplified by budget restrictions, the ongoing cost of living crisis, and poor historic building practices, such as the unreliable Reinforced Autoclaved Aerated Concrete (RAAC) technique leading to unsafe homes. Around 350 homes in Aberdeen are not safe due to Reinforced Autoclaved Aerated Concrete (RAAC), a historic building technique.

County Durham and Birmingham both have significant levels of vacant properties, with 1 in every 100 residential homes being left empty. Birmingham has a long-term housing shortage, with the third-highest rate of homelessness in the country, affecting over 16,000 people living in temporary housing and 25,000 on social housing waiting lists. While Durham faces a similar problem of rising rents outpacing the average rate, the area also has a list of 75,000 families waiting to be housed. These rises coincide with drops in new homes built against targets.

The top 5 areas with the least vacant homes:

Local Authority	Region	Dwellings (Total)	Total Long-Term Vacant Dwellings
Isle of Anglesey	North Wales	342,000	23
Torfaen	South East Wales	33,100	22
Ceredigion	Mid and South West Wales	67,300	19
Vale of Glamorgan	South East Wales	66,000	16
Merthyr Tydfil	South East Wales	111,100	5

 

While some areas have thousands of vacant properties, others in the UK have only a handful of empty properties.

All five of the areas in the UK with the lowest levels of vacant properties are in Wales, including Isle of Anglesey, Torfaen, Ceredigion, Vale of Glamorgan, and Merthyr Tydfil. One significant factor contributing to the vacant properties issue is the decreasing rate of new homes being constructed in Wales, exacerbating the housing shortage and affordability challenges in the region. While the construction rate of new homes has increased in England, it has decreased by 45% in Wales over the last 25 years.

One area that highlights this issue is Merthyr Tydfil. While only five vacant dwellings may seem positive on the surface, it does not signify the absence of a housing crisis in the area. Merthyr Tydfil has experienced a significant shortage of all types of property for its residents, anticipating an expenditure of £1.24 million for housing people in temporary accommodation in 2024/25.

Non-Decent Dwellings: How Many Households Fall Short?

Another significant factor exacerbating the housing crisis is the prevalence of non-decent dwellings in the UK, as they do not meet the Decent Homes Standard, dissuading potential renters.

1 in 5 private renters live in non-decent homes. 

Source: UK Government, English Housing Survey

Recent government data found that 3.5 million households in England live in a non-decent dwelling, over half of those with a category 1 hazard, such as mould or damp. Local authority renters were followed by owner occupiers as the second most likely group to live in a poor quality home, with private renters being the most likely. The least likely group to live in a non-decent dwelling was housing association renters, with just 3% of them living in a home with category 1 hazards.

Unfortunately, more than 1 in 10 dependent children in England live in a non-decent home, totalling approximately 1.5 million (13%), with over half residing in a hazardous home with a category 1 hazard present.

People living in rural areas were also much more likely to live in a poor-quality home than those living in urban areas and cities.

 

Region	Percentage of Non-Decent Dwellings
North West England	19%
East Midlands	19%
Yorkshire and the Humber	17%
South West England	17%
East of England	12%
North East England	12%
South East England	11%
London	10%

The average cost to bring a non-decent home up to standard is £9,234 per home.

Source: UK Government, English Housing Survey

There are also cost variations regionally. Residents of non-decent dwellings in the North East of England have the highest costs to repair the homes, averaging £9,508. Followed by London, with costs of £6,823, and the West Midlands cost £6,408. Although some regional differences are due to the difference in types of properties that are more common in those areas, such as larger properties found in rural areas, which are more costly to repair.

Comparing Vacant Properties Across UK Regions

London

London councils reported in October 2024 that over 183,000 residents of the capital, which is equivalent to one in every 50 residents, are living in temporary accommodation and classified as homeless. This marks the highest recorded number of homeless individuals in London.

Our research found that there are over 36,000 properties in London that are classed as long-term vacant. Using average house prices as a reference point, we determined that the total value of these vacant properties is an astounding £21.5 billion.

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Southwark	2920	20	20%	£1,606,000,000
Newham	2053	16	5%	£893,055,000
Barnet	1905	12	0%	£1,171,575,000
Lambeth	1886	13	3%	£1,037,300,000
Kensington and Chelsea	1720	19	9%	£2,334,900,000
Camden	1541	14	13%	£1,186,570,000
Haringey	1468	13	0%	£858,780,000
Hounslow	1420	13	2%	£695,800,000
Merton	1263	14	6%	£713,595,000
City of London	261	34	-11%	£206,190,000

 

Southwark, located in the bustling Thames-side district, stands out as the London borough with the highest level of empty properties. Out of every 1,000 residential properties in the area, 20 are vacant long-term, representing a 20% increase in the last 12 months. The borough currently has around 17,000 people on housing waiting lists and has recently mobilised construction to build over 1,000 new homes to attempt to tackle the growing problem.

Camden is another area that has experienced a notable rise in vacant homes over the past year. Compared to previous data, the latest figures for 2022/23 reveal that over 2,000 people are sleeping on the streets, and 7,600 households are on the housing waiting list. Not everyone with a place to live is in optimal conditions; approximately 40% of residents face overcrowding at home. To tackle the housing crisis, Camden Council has started multiple projects, such as building close to 5,000 new homes, acquiring 280 family-sized homes, and providing repair grants to owners of the 1,541 vacant properties in the area.

South East

The population of the South East of England, excluding London, is estimated to be approximately 9.48 million people. The South East is the most densely populated region in the UK, accommodating nearly one-third of the country’s population, underscoring its pivotal role in the nation’s demographics.

The housing crisis in the south east of England is expected to worsen over the next decade, with a projected shortage of a quarter of a million homes in the region by 2032/33, as indicated by a study conducted by CASE, a group of prominent housing associations in the south-east of England.

According to our research, there are more than 34,000 homes in the South East region that have remained vacant for over 6 months. This amounts to over £13.4 billion worth of housing stock left vacant in the affected areas, reflecting the substantial economic impact of the issue.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Thanet	1143	16	31%	£360,045,000
Folkestone and Hythe	827	15	16%	£262,572,500
Hastings	678	15	-12%	£203,400,000
Dover	806	14	52%	£249,860,000
Canterbury	967	14	34%	£352,955,000
Guildford	779	13	10%	£393,395,000
West Oxfordshire	678	13	10%	£257,640,000
Runnymede	487	13	-9%	£226,942,000
Brighton and Hove	1695	13	6%	£745,376,250
Waverley	708	12	1%	£392,940,000

 

Thanet, located in the South East, has the highest number of long-term vacant dwellings, with over 1,100 properties empty for 6 months or more. In Thanet, 16 out of every 1,000 properties are vacant, showing a significant 31% increase in empty dwellings compared to the previous year. Addressing housing challenges is a top priority for the local authority in Thanet, which has implemented innovative strategies to help residents move from waiting lists to housing. The council’s recent initiatives involve bidding for land to develop social housing and allocating £5m to support homeless residents. The estimated value of £360 million for its vacant properties, based on average house prices in Thanet, could greatly help in addressing the area’s housing challenges.

Shifting focus to another area grappling with a housing crisis, Brighton and Hove also encounter notable challenges. Earlier this year, Brighton was revealed to be the city in Sussex with the highest number of households waiting for social housing support. Given its significant tourism, Brighton heavily depends on seasonal trade, leading to high housing costs and low earnings for long-term residents. Homelessness and housing insecurity are also common issues in Brighton. The council is conducting a City Plan consultation until January 2025 to collect insights and opinions from the city’s residents, aiming to develop a plan to alleviate the housing crisis in the area. At present, Brighton has close to 1,700 vacant homes that have remained empty for over six months.

South West

The South West of England is experiencing a housing crisis that’s pushing people out of their communities and making it difficult for rural workers to find affordable housing. Years of undersupply have increased house prices and private rents beyond the reach of many, resulting in over-crowding, sofa-surfing, homelessness, and longer council waiting lists.

Our findings have highlighted that there are more than 20,000 vacant properties in the South West of England, representing a total market value of £6 billion GBP.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Cotswold	930	20	19%	£418,500,000
Isles of Scilly	24	19	0%	£13,740,000
Torbay	1237	18	0%	£309,250,000
Exeter	656	12	22%	£196,800,000
Bournemouth, Christchurch and Poole	2165	12	1%	£742,595,000
Forest of Dean	460	11	10%	£131,100,000
Bath and North East Somerset	885	10	6%	£338,070,000
North Devon	519	10	7%	£158,295,000
Stroud	562	10	-9%	£184,055,000
Cheltenham	557	10	-8%	£181,025,000

 

Cotswold, a local authority (LA – Local Authority) which covers the town of Cirencester as well as smaller areas such as Chipping Campden, Tetbury, Stow-on-the-Wold and Moreton-on-Marsh, was found to have the highest number of vacant dwellings in the South West. The larger Cotswolds region which encompasses the Cotswold LA has one of the highest rates of second homes in the UK, with around 1,500 properties classed as a second home. Notable residents who own second homes in the area, such as Jeremy Clarkson in Chipping Norton, have shed light on the struggles that agricultural workers face in the region, as showcased in Clarkson’s Farm TV Series. The Cotswold LA has begun to take measures to overcome the huge housing shortage in the area, such as recently considering implementing an additional tax on second homes that have been vacant for over a year.

Another area which has seen significant growth in long-term vacant properties over the past year is Exeter in Devon. Devon is a tourist hotspot, and during the warmer months when millions of visitors contribute to the local economy, this has a knock-on effect on the residents who call the area home year-round. Local residents report that Exeter in particular has suffered from affordable housing shortages, a lack of support services, and the ongoing cost of living crisis. Currently, 12 out of every 1,000 homes in Exeter have been vacant for over six months, representing 1.2% of homes with an estimated value of £196 million.

West Midlands

In 2023, the median house price in the West Midlands was £265,000, marking an 83% increase over the last decade. In Birmingham, the average property value is 8.5 times higher than the median household income, showing the affordability challenge for residents.

In early 2024, 125,000 families were on social housing waiting lists in the West Midlands, indicating the high demand for housing at this time. Since 2021, the West Midlands has permitted fewer than 20,000 new homes annually, which is well below the estimated yearly need for housing.

While the West Midlands is in the grip of a housing crisis, our research shows that there are almost 29,000 homes in the West Midlands that have been vacant for over six months, representing a total value of £6 billion that could feed into the local economy or offer residence for the thousands of people currently waiting to be homed.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Stoke-on-Trent	1898	16	-5%	£265,720,000
Stratford-on-Avon	996	15	8%	£373,500,000
Rugby	763	15	17%	£213,640,000
Staffordshire Moorlands	640	14	13%	£134,400,000
Birmingham	6399	14	-2%	£1,439,775,000
Wolverhampton	1553	14	4%	£302,835,000
Warwick	922	14	5%	£316,845,300
Wychavon	762	12	35%	£247,648,095
Worcester	573	12	13%	£143,250,000
Malvern Hills	452	12	0%	£146,900,000

East Midlands

The East Midlands saw the highest rise in rents and house prices in the UK in 2022, according to the Office for National Statistics (ONS). Figures show the average house price in the region increased by 12.3% over the year to £256,159, while private rents rose by 5% during the same period.

Rising rents have made it harder for people in social housing to find alternative accommodation, leading to a reduction in the housing stock available to councils. For instance, in Leicester, 5,000 people become homeless each year due to a lack of affordable housing, resulting in an increase in the number of individuals seeking temporary accommodation provided by the council.

Our research found that the East Midlands has a high percentage of long-term unoccupied homes, with 10 out of every 1,000 homes in the region being vacant for extended periods. The value of unoccupied homes varies by county, with the total value of vacant homes in the East Midlands alone estimated at £4 billion, indicating significant funds tied up in vacant housing stock that could support the local economy.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Bolsover	716	19	12%	£118,852,420
Bassetlaw	882	16	29%	£167,580,000
Newark and Sherwood	837	15	13%	£190,836,000
Erewash	771	15	5%	£160,368,000
Leicester	1951	14	-13%	£448,730,000
Amber Valley	833	14	7%	£183,260,000
Derbyshire Dales	501	14	4%	£164,827,748
Chesterfield	676	13	27%	£123,708,000
West Lindsey	612	13	6%	£137,700,000
North East Derbyshire	626	13	15%	£150,240,000

East of England

The housing crisis in the East of England has reached a critical point. The new Labour government has committed to building 1.5 million new homes, addressing the need for thousands of additional properties in the region.

The East of England has a population of 6.3 million, making it the fourth most densely populated region in the UK. This intensifies the challenges of the housing crisis. According to the Campaign for the Protection of Rural England, the East of England has the second highest rate of homelessness in rural areas in the country. This highlights the seriousness of the issue in the region.

Our research shows that there are 24,000 empty properties in the East of England, collectively valued at £8 billion, highlighting the abundance of untapped housing and financial resources in the region.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Luton	1563	19	55%	£484,530,000
Brentwood	610	17	26%	£288,225,000
East Cambridgeshire	532	13	13%	£175,560,000
Braintree	846	12	27%	£283,410,000
Great Yarmouth	598	12	-2%	£132,756,000
Hertsmere	541	12	-29%	£305,665,000
South Cambridgeshire	845	12	20%	£359,125,000
Tendring	866	12	22%	£242,480,000
Epping Forest	593	10	6%	£303,467,750
Maldon	303	10	22%	£116,655,000

Wales

Wales is facing a housing crisis due to a lack of affordable housing. This has led to homelessness, long waiting lists, cramped living conditions, and exorbitant private rental sector prices. Factors contributing to the crisis include under delivery of new homes, higher interest rates, increased construction costs, regulatory costs, lack of predictability in planning, and the complexity of the planning process.

Wales does not have enough homes. The Welsh Government is working to increase the delivery of affordable housing. Research commissioned by the Welsh Government estimates that over 14,000 new homes are needed in Wales annually for the next 15 years. This is in addition to existing unmet needs and far in excess of current levels of supply.

Our research found that alongside the ongoing issues of the cost of living crisis and a house-building shortage, Wales also has pockets of towns and cities with empty homes. These areas include Newport, Rhondda Cynon Taf, and Wrexham. In these areas, hundreds of homes sit empty for months on end.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Newport	1563	19	11%	£484,530,000
Caerphilly	610	17	-2%	£288,225,000
Pembrokeshire	532	13	21%	£175,560,000
Wrexham	846	12	-35%	£283,410,000
Cardiff	598	12	-10%	£132,756,000
Flintshire	541	12	-51%	£305,665,000
Carmarthenshire	845	12	-29%	£359,125,000
Monmouthshire	866	12	6%	£242,480,000
Gwynedd	593	10	290%	£303,467,750
Rhondda Cynon Taf	303	10	6%	£116,655,000

North West

The North West of England is facing a significant housing shortage due to various factors. The problem of housing shortages in the North West is such as a low supply of new homes, limited land for development, rising rental prices, increased demand for social housing, and low new home density.

The North West also has a unique demographic, with a population density of 533 people per square kilometre, which is higher than all other regions in the UK except for London. While large cities like Manchester and Liverpool have high population rates, the North West also includes rural areas like the Ribble Valley, where residents are at risk of rural homelessness.

According to our recent research on vacant homes in the region, 37,000 properties in the North West have remained unoccupied for the past six months. The North West saw the most alarming rate of vacant homes per 1,000 properties, far exceeding the rates in comparison to other regions in the UK. Wyre had the lowest rate of vacant properties, with only 1 per 1,000 dwellings. In contrast, all other regions in the North West had a minimum of 7 per 1,000 vacant properties.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Liverpool	5351	23	4%	£861,511,000
Blackpool	1382	19	1%	£181,387,500
Preston	1190	18	16%	£190,400,000
Rochdale	1599	16	21%	£290,378,400
Sefton	2118	16	6%	£444,780,000
Blackburn with Darwen	1012	16	3%	£138,644,000
Burnley	678	16	3%	£78,648,000
Rossendale	506	16	0%	£86,020,000
Pendle	632	15	11%	£84,688,000
Bolton	1851	15	12%	£333,180,000

North East

The housing crisis in the North East of England has reached alarming levels, with housing waiting lists surging from 50,000 to over 75,000 in just the last two years.

A multitude of factors have contributed to this, including rising demand, a lack of available homes, long waiting lists, high rental prices, stagnating wages, demographic growth, and under-occupancy. As councils lose homes through right-to-buy sales, some individuals may face an agonising wait of up to 93 years to secure a home.

The surge in high rental prices can be attributed to the rise in second homes and the prevalence of short-term lets. Rural wages have not increased to keep up with house price increases. The North East is expected to see a significant increase in population by 2040.

Sambla’s research found that over 43,000 properties in the region are long-term vacant, representing a value of £7 billion stuck in disused dwellings.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Middlesbrough	1294	20	3%	£176,631,000
North East Lincolnshire	1414	19	-5%	£214,928,000
County Durham	4279	17	4%	£534,875,000
Calderdale	1579	16	11%	£260,535,000
Sunderland	2067	16	2%	£276,978,000
North Lincolnshire	1198	16	6%	£203,657,005
Bradford	3323	15	-2%	£531,680,000
Kingston upon Hull, City of	1796	14	-6%	£235,276,000
Northumberland	2343	14	10%	£435,680,850
Gateshead	1341	14	0%	£201,150,000

Scotland

Scotland, like England and Wales, is grappling with a housing crisis and shortage that affect residents across various regions. The housing crisis has become so acute in some areas that councils including East Renfrewshire and Argyll and Bute have declared housing emergencies.

Overall, Scotland’s housing crisis, caused by inequality, economic pressure, and urbanisation, requires immediate and ongoing efforts to provide affordable and secure housing for all residents. For example, statistics showing the percentage of income low-income families spend on housing could underscore the severity of the situation.

In response to the growing crisis, the Scottish Parliament has introduced the Housing (Scotland) Bill. This bill requires local authorities to evaluate rental conditions, allows Scottish Ministers to establish rent control areas, and limits rent hikes at the beginning of a tenancy in these areas.

 

	Long-Term Vacant Homes	Vacant Homes per 1,000 Homes	% Change Year on Year	Value of Long Term Vacancies
Shetland Islands	1294	20	13%	£176,631,000
Na h-Eileanan Siar	1414	19	9%	£214,928,000
Aberdeen City	4279	17	-2%	£534,875,000
Highland	1579	16	5%	£260,535,000
Edinburgh, City of	2067	16	4%	£276,978,000
Argyll & Bute	1198	16	13%	£203,657,005
Scottish Borders	3323	15	10%	£531,680,000
Dumfries & Galloway	1796	14	30%	£235,276,000
Aberdeenshire	2343	14	6%	£435,680,850
Orkney Islands	1341	14	19%	£201,150,000

 

Additionally, despite the proposals in the Housing (Scotland) Bill, our research revealed high levels of vacant dwellings in specific areas of Scotland. The Shetland Islands notably have the highest rate of vacant dwellings in Scotland, with 20 vacant properties per 1,000—well above the national average. Likewise, Na h-Eileanan Siar in the Outer Hebrides shows the second highest rate of vacant properties in Scotland, exceeding the national average and revealing a worrying trend in the area.

Conclusion

The value of the total long-term vacant dwellings rose by more than £350,000,000 from 2022-2023, increasing in value by more than 4% in a year.

The vacant housing crisis significantly worsens the shortage of available and decent dwellings, leading to substantial economic losses.

The investigation by Sambla uncovers that in 2023, a whopping £85,830,124,583 was tied up in the combined value of 294452 long-term vacant dwellings across England, Scotland, and Wales. These numbers have risen since 2021, despite Government efforts.

Cities like London, Birmingham, and Edinburgh face the greatest economic consequences. Independent renters in rural areas are at higher risk of residing in poor-quality homes due to the lack of adequate housing. The abundance of vacant properties has the potential to alleviate the housing shortage and offer essential homes for those requiring shelter.

Although the government has tried to limit ‘Buy-to-Leave’ investors and their adverse effects on tourism in regions such as Pembrokeshire, this strategy has not been effective. Addressing the vacant home crisis demands a multifaceted strategy to mitigate its effects on both the local economy and renters throughout the UK.