An estimated £20 billion-worth of residential property could be empty in London, official analysis from the mayor’s office has revealed.
City Hall looked at central government Council Tax data and average house prices by London borough to calculate the value of vacant homes across the capital.
It found that properties worth an estimated £2.2 billion are empty in Kensington and Chelsea alone.
A further four boroughs have more than £1 billion each of vacant homes, according to the study.
The picture varies wildly by London borough. Harrow has 61 empty properties, at an estimated total value of £33.5 million, compared with 2,422 in Southwark worth some £1.3 billion.
It emerged earlier this month that London had 34,327 recorded vacant residences in March 2022 — although some experts claim the true figure could be four times that amount.
Top five London boroughs by empty home numbers
Borough |
Number of empty homes |
Southwark |
2,422 |
Newham |
1,944 |
Barnet |
1,891 |
Lambeth |
1,820 |
Croydon |
1,606 |
Source: City Hall analysis of figures from the Department for Levelling Up, Housing and Communities
Mayor of London Sadiq Khan said it was a “scandal” that so many homes were empty, and called on the government to give local authorities power to set their own levels of Council Tax on unused properties.
“This would not only deter absentee international investment but would free up housing stock across the capital for Londoners,” he said.
“We are also urging ministers to make it easier to allow the temporary take-over of empty homes using Empty Dwelling Management Orders, which have been restricted in recent years.”
Alarming rise in number of empty homes
Westminster City Council leader Adam Hug echoed the mayor’s call.
“The rise in declared vacant homes is alarming as the latest figures show but we know the real numbers are likely to be even higher,” he said.
“It cannot be right that large homes in Westminster sit empty — in some cases falling into decay — while thousands of people face years on waiting lists. Substantial parts of the city become effectively hollowed out by property speculation.”
Westminster has launched an online tool for people to report empty properties but called for further powers from government.
Southwark Council has its own empty-home strategy but also urged ministers to hand down greater powers for local authorities to “take action when overseas investors let homes sit empty”.
Council leader Kieron Williams said the borough was having “real success” with the number of empty homes in Southwark down by a third over the last four years.
He said the majority of council homes listed as long-term empty in the borough were part of large estate renewals where “old, poorly built housing at the end of its life is being replaced by modern council homes for our residents”.
But Williams conceded: “There is more to do, including on homes that are empty long-term, and we are determined to do it, including though our empty homes compulsory purchase fund.”
Top five London boroughs by estimated value of empty homes
Borough |
Estimated value of empty homes |
Kensington & Chelsea |
£2.2 billion |
Southwark |
£1.3 billion |
Westminster |
£1.2 billion |
Barnet |
£1.1 billion |
Camden |
£1.1 billion |
Source: City Hall analysis of figures from the Department for Levelling Up, Housing and Communities and average house prices by borough
Tenant bodies demanded action to bring empty residences back into use.
Conor O’Shea, policy manager at Generation Rent, said: “It is particularly concerning that the number of long-term empty homes in London has increased by 10,000 since 2019, at a time when rents have been surging to historic highs.
“We need to make it more difficult for owners to leave properties empty and deprive locals of much needed homes. A healthier supply of homes will dampen rents, which are forcing people on ordinary incomes further out of London.”
A spokesperson for the London Renters Union added: "At a time when a growing number of families face homelessness, the fact that empty homes are on the rise is a damning indictment of London’s rigged housing system. Decades of government decisions have turned our housing system into a piggy bank for the rich, rather than prioritising everyone’s right to a secure home.
“Solutions to the rental crisis must start with those who are worst affected by it, particularly those on the social housing waiting list. If properties remain empty for long periods of time, the government should take them back into public ownership and convert them into social housing."
A government spokesperson said: “Councils already have a raft of powers to bring empty properties back into use and we are clear they should be using them to deliver new homes for communities.
“They can increase council tax by up to 300 per cent on long-term empty properties, take over empty homes by Compulsory Purchase Orders and Empty Dwelling Management Orders, and convert commercial buildings to residential without the need for a full planning application.
“We have delivered over 2.2 million homes since 2010 and reduced the number of long-term empty homes by more than 50,000 over the same period.”
