August 21, 2025 | 05:27 pm
TEMPO.CO, Jakarta - In 2024, the number of empty homes in London reached a record high of 93,602, surpassing 90,000 for the first time since recording began in 2004, according to statistics from the Ministry of Housing, Communities and Local Government. Despite a decrease in the number of vacant dwellings in the previous year—the first decrease since 2016—the long-term trend of increasing empty homes continues this year, as reported by SW Londoner.
Of the total, 38,386 homes are classified as long-term empty homes, which means these properties are uninhabited and unfurnished for more than six months.
Why Are There So Many Empty Homes in London?
Richard Dunning, a professor at the University of Liverpool specializing in land economy and housing, explained several contributing factors, including shifts caused by COVID-19. He said that although some people left London during the pandemic and then returned, they did not always settle in the same area or form. Instead, many adapted to new ways of working or bought a second home outside London, sometimes retaining property within the city.
The most significant annual increase in the number of empty homes in London occurred in 2020, with a 12.04% increase compared to 2019. The expansion of hybrid work has allowed many employees to continue working flexibly in the city, reducing the need for full-time accommodation.
The vacancy rate this year in London has risen to 2.45%, the highest in the last 14 years, reflecting an ongoing housing supply challenge. Some areas in London, such as Wandsworth, have managed to maintain vacancy rates below 1% since 2015 by providing grant funding to encourage property renovations and providing facilities for residents to report empty homes.
But Dunning pointed out that some level of vacancy is necessary to enable housing market mobility, and there is no consensus on the "perfect level" of vacancy. Furthermore, imposing penalties on long-term empty homeowners would be complicated due to data limitations and practical challenges.
Are There Any Other Countries Experiencing the Empty Homes Crisis?
Although for different reasons, besides the UK, the following countries are experiencing the empty homes phenomenon:
Spain
According to Spanish Property Sight, more than a third (38%) of empty homes in Spain have been left vacant by their owners for over five years. The problem of home vacancies is more severe in rural areas than in major cities. Some empty homes require major renovations and are not in a habitable condition, contributing to the long-term empty home crisis despite high demand in certain areas.
Japan
CNN reported that Japan has about 9 million empty homes ("akiya"), mostly caused by an aging population, low birth rates, and a decreasing population. These vacant properties are largely in rural areas but also appear in urban centers. The high number of empty homes is linked to demographic challenges and has led to a decline in property values.
Portugal
According to the Royal Institution of Chartered Surveyors, about 30.6% of the total housing stock in Portugal is either empty or used as seasonal/holiday homes. This contributes to a relatively high rate of empty homes compared to the overall housing stock.
United States
In the United States, an estimated 15.1 million homes are vacant, representing approximately 10.5% of the housing supply. Many of these are rental units or vacation homes. Several metropolitan areas in Florida have much higher vacancy rates than the national average.
Why Are Homes Left Vacant by Their Owners?
According to a journal cited in Nature, the high number of empty homes worldwide is driven by several social and economic factors, including:
Mismatch Between Supply and Demand
In many places, especially in satellite cities or less desirable neighborhoods, there is an oversupply of housing units that do not match residents' preferences in terms of location, size, or amenities. This leads to vacancies as people prefer to live in more accessible areas or those with better services.
Demographic Shifts
Aging and population decline, as seen in Japan and some rural areas worldwide, contribute to home vacancies as households downsize or move, leaving larger homes empty.
Economic Hardships
Shrinking or economically distressed cities face high vacancy levels due to population loss, foreclosure, and neglect, resulting in long-term empty homes exacerbating urban decline.
Speculative Investment
Some homes remain empty as part of real estate speculation or investment strategy, where properties are left vacant for potential future resale value rather than occupation. This factor is more significant in urban areas with a limited supply.
Housing Policies and Market Conditions
Government housing finance policies, urban renewal programs, and zoning regulations can affect vacancy rates by influencing property values and the attractiveness of specific locations.
Quality of Life Factors
Access to public transportation, proximity to facilities, green spaces, and environmental infrastructure quality heavily influence housing preferences. Areas lacking these may experience increased vacancy rates as people move to more comfortable locations.
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