A London Council could be implementing a first in the policy world as proposals to prevent people purchasing housing as an investment and then leaving them empty (dubbed ‘buy to leave’) are to be consulted on.
Islington Council writes:
Islington Council is to consult on pioneering planning policies that would require new homes to be regularly occupied – in an attempt to halt the rise of so-called ‘buy-to-leave’ properties in the borough. Islington has seen an increase in ‘buy-to-leave’ properties – new homes sold as investments, often marketed off-plan overseas, and left to stand empty – especially in the south of Islington near the City.
According to council research, as many as a third or more of homes in some new developments are potentially vacant. The council is concerned that empty new homes are ‘wasted supply’, making no contribution to meeting Islington’s need for new places to live. Following initial consultation earlier this year, the council has now set out draft planning measures that would stop new homes standing empty and becoming ‘wasted supply’ – requiring that owners of new properties make sure they are occupied. The draft measures represent the first time a local authority has tried to tackle ‘buy-to-leave’ using planning powers.
Under the proposals, new homes could not be left unoccupied or unused for longer than three months, and would have to be occupied for at least 14 days in any three-month period. If a property is left unoccupied for more than three months, the council would be able to take legal action such as seeking an injunction from the High Court against the owner. Persistently breaking the injunction could lead to a fine, prison and even seizure of the empty property.
Cllr James Murray, Islington Council’s executive member for housing and development, said: ‘In Islington, as across London, there is a desperate shortage of housing. It’s wrong when new homes sit there empty purely as investments, when Londoners are desperately trying to find somewhere to live. Our new proposals would make sure that all new homes in Islington are occupied – we want to send a message that ‘buy-to-leave’ is unacceptable.’
The new planning proposals would not affect existing homes, but would be applied to new properties. Consultation on the proposal launches on Monday December 8 and runs until Friday 30 January 2015.
