Empty homes in central London tripled in past five years

By Jacob Phillips, Local Democracy Reporter

The number of empty homes in central London has tripled within five years. There were 1,900 empty properties in Westminster in June 2022, compared to 543 in 2019.

In the past year alone the number of empty homes in the borough has shot up by 546, the Local Democracy Reporting Service can reveal.

The figures are a huge contrast to the number of people waiting for homes in Westminster. More than 4,000 people are on the housing waiting list in the borough and the wait for a new home in the borough can be as long as 10 years.

But although there are nearly 2,000 empty homes in the borough, Westminster City council is only able to charge 292 of these properties.

The number of empty homes in the borough has been slowly rising since 2019. There were 849 empty homes in Westminster in 2020 and 1,354 empty homes in 2021.

Councils are able to charge empty homes four times their council tax rate if they are empty for more than 10 years.

Properties which are owned by members of the armed forces on duties or homes that have been turned into annexes are exempt from the charge.

But Westminster City council is fearful that many “ill-gotten homes” are causing the property market in the area to spiral out of control.

Westminster has seen a 1,200 per cent rise in the number of property owners registered to Russia and a 300 per cent rise in owners registered in Jersey since 2010, according to the Centre for Public Data.

The number of empty homes and second homes is already having a serious impact on wealthy areas of the borough such as Mayfair. The area is being left half-empty as Londoners are priced out of the area, according to Labour councillor Jessica Toale.

She said Mayfair is losing its “vitality” as independent businesses and young families are priced out and she blamed super-rich buying properties that are left empty for the sharp spike in rents.

The council has now launched a new campaign against dirty money in the borough, pledging to make sure businesses pay their fair share of tax and stop foreign property owners from using local properties as a hub for illicit business.

Council leader Adam Hug said in the motion to pass the campaign: “We are proud of the diverse resident population of Westminster, but this data suggests something troubling, that the use of Westminster as a location to hide ill-gotten gains in the property market is spiralling out of control.”

He added: “We want to create a more equitable economy in Westminster, which puts our residents and communities first. The pressure on organisations to pay their fair share of tax has never been stronger.

“With the cost-of-living crisis impacting the most vulnerable in our society, it is only right that the council takes the lead in the promotion of exemplary tax conduct and supports those businesses who pay their fair share of tax – contributing to the vital funding front-line services need.”

Westminster City council has been contacted for further comment.

Pictured top: Westminster City council offices in Victoria (Picture: Hannah Neary)