Empty homes take toll on property prices

Wednesday, 12, Dec 2007 10:13

Living in the vicinity of an empty property can take a financial and psychological toll on UK homeowners, according to new research.

Research from the Halifax bank finds up to 27 per cent of Brits have lived on a street with an empty home at some point in their lives, with many feeling its presence was detrimental.

Some 22 per cent of homeowners thought the presence of an empty property was negative for house prices, while a similar number felt an empty home would reduce their enjoyment of a street.

"The number of empty homes in England has fallen by nearly 20,000 over the past three years but more needs to be done," said Jaedon Green, head of mortgage product development at Halifax.

"One in four people continue to be directly affected by an empty house which they believe has a negative impact on the value of property, their enjoyment of the area and levels of crime."

According to Halifax a quarter of respondents felt the presence of an empty home in their street would have a negative impact on a potential buyer's perceptions of the area.

The research also finds house prices are 17 per cent lower in areas with the highest proportion of empty homes.

The average house price in all 15 of the Local Authorities (LAs) with a high level of empty homes is below the regional average, with prices an average of £30,004 (or 17 per cent) cheaper.

"Rising property prices encourage the rejuvenation of empty homes in many parts of England," said Mr Green.

"However, it is clear more direct action is needed in areas with high levels of empty homes as these are often deprived areas.

"In these areas councils need to make more use of Empty Dwelling Management Orders and consider removing the council tax discount for empty homes."