In the Housing Green Paper, Housing Minister, Yvette Cooper, admitted that councils could receive new powers to hit investors who intentionally leave properties vacant.
With the government looking at ways of solving the nation’s housing shortage, it feels that it is wasting capacity if it allows properties to be left unoccupied.
Cooper said: “Better use also needs to be made of empty homes – including those left empty long-term by investors and speculators. Councils do already have powers to take action and we will look at the potential for additional incentives for them to do so.”
Gus Park, director of intermediary sales at Mortgage Express, did not believe the number of flats left empty in this way was significant.
“This is overhyped. While it is happening, it’s not on a huge scale. If you get a BTL mortgage, you usually need to collect rent to help pay for it so it’s a pretty dangerous type of property speculation.”
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