London's Empty Homes: The Opportunity Behind Underused Property
Walk down almost any residential street in London and you will eventually spot one. The curtains have not moved in months. Post is stacking up behind the front door, and weeds are pushing through the path. A few roads away, a family is squeezed into a single room of temporary accommodation, and renters are queuing for every flat that comes up.
It is one of the city’s strangest contradictions. London is desperate for homes, yet tens of thousands of them sit locked and silent. For the people who own them, an empty property is often a slow drain rather than an asset. The good news is that it does not have to stay that way.
How Many Empty Homes London Has Right Now
The numbers are bigger than most people expect. According to the London Assembly, there were 105,138 empty homes in the capital in 2025, around 2.5% of all housing stock. That is roughly one home in every 40, and the highest figure in more than 20 years.
It was not always this way. The share of empty homes in London fell steadily to a low of 1.7% in 2014, before climbing again. The trend is now serious enough that the Assembly’s Housing Committee has opened a formal investigation into what is driving it.
Why Good Homes End Up Empty
There is rarely one simple reason. Some new-build flats are bought purely as investments and left vacant, a practice known as “buy to leave”. Slow letting in some Build to Rent and student blocks keeps other brand-new homes dark.
Many empty homes have far more ordinary stories behind them. The House of Lords Library notes that a large number sit empty after their owner dies. Families may lack the time, money or know-how to deal with an inherited property, and emotional ties can make the decision harder still. Other owners simply cannot afford the renovation work needed before a home can be let.
Councils are part of the picture too, with some of their own homes left empty while they wait for regeneration work or new tenants.
What an Empty Property Really Costs
Leaving a home empty can feel like the safe option. In practice, it rarely is.
Councils can charge an empty homes premium on property that has been unoccupied and substantially unfurnished. The longer it stays that way, the bigger the bill, rising to as much as four times the normal council tax once a home has been empty for ten years.
Then there is the building itself. Unheated, unchecked properties pick up damp, leaks and pests, and they can attract vandalism and break-ins. Once a home has been empty for two years, the council can also apply for an Empty Dwelling Management Order to take over its management.
Turning Underused Space Into Homes
The opportunity is not limited to houses and flats. Research from LSE suggests more than 500,000 homes could be created across the UK by converting empty shops, offices and other non-residential buildings.
These spaces already have utilities, transport links and central locations. Converting them is usually quicker than building from scratch, and it carries a far smaller carbon footprint. It is a practical way to add homes without using up new land.
There is a catch. Most conversions are charged 20% VAT, while new builds are typically exempt. That makes reuse harder to justify financially, and changing it is one of the reforms researchers are pushing for.
Practical Routes for Owners Sitting on an Empty Home
If you own an empty property in London, you have more options than you might think.
The first stop is often your local council. Many boroughs have dedicated empty homes officers, and some offer grants or loans towards renovation, usually with conditions about how the home is let afterwards. It is worth asking before you commit to a large refurbishment budget.
Selling is another route, especially for inherited homes where nobody wants to become a landlord. A sale releases the value tied up in the property and passes it to someone ready to live there.
Some owners choose to lease instead. Councils including Lewisham, Newham and Tower Hamlets lease homes from private owners to ease pressure on temporary accommodation. Providers that specialise in private sector leasing London boroughs rely on, such as City Borough Housing, handle the tenants and day-to-day repairs for an agreed term.
From Locked Doors to Lived-In Homes
That house with the drawn curtains does not have to stay a mystery on the street. Every empty home brought back into use means one more household with somewhere to live, one less property quietly losing value, and one less dark window on a London road.
The homes already exist. What they need is an owner willing to take the next step, and a little help knowing which step to take.
