Empty Properties Cost the Social Housing Sector £1.6 Billion in 2023-24: Urgent Action Needed

Spotlight

Written by Kim Parsons

29/4/25

The social housing sector is facing a significant financial challenge, with new research revealing that over £1.6 billion was spent on empty properties in the 2023-24 period. This staggering amount highlights the growing issue of vacant homes, which not only drain valuable resources but also exacerbate the housing crisis across the UK.

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According to an analysis conducted by Housemark, a leading provider of housing data, more than £1.1 billion of the total was spent on the upkeep and maintenance of these vacant properties. This includes costs associated with repairs, security, and other essential services to ensure these homes are ready for new tenants. An additional £220 million was spent on placing new tenants into these homes, further emphasising the heavy financial strain created by vacancies.

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The financial implications of these empty properties are profound. With over 4 million tenants relying on social housing in the UK, these vacant homes represent a missed opportunity to house individuals and families in desperate need of accommodation. As housing demand continues to outpace supply, the cost of unoccupied homes represents both a logistical and economic burden on the sector.

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Experts argue that the high costs associated with these empty properties stem from a combination of factors. A major contributor is the slow turnover of tenants due to lengthy wait times for repairs and maintenance, particularly in areas where housing stock is aging or in poor condition. Additionally, some housing associations face difficulties filling vacancies due to local market conditions or the availability of affordable housing alternatives.

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The research also found that re-let times for empty properties have been rising, with the average now at 74 days. For standard voids that don’t require major repairs, the re-let time is closer to 50 days. This is a significant increase from five years ago when the average was below 30 days. As a result, many properties are left vacant for longer than necessary, escalating costs and reducing the overall capacity to house people in need.

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Another challenge is the complexity of social housing allocations. In many cases, properties must meet certain standards before they can be re-let, and delays in completing necessary work can cause further disruption. This backlog often leads to properties remaining vacant for longer, adding to the financial strain on housing providers.

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The financial strain on the sector is compounded by the rising costs of construction and materials, which have been exacerbated by economic uncertainty and inflation. As a result, housing providers are left grappling with how to manage their budgets effectively while still fulfilling their social responsibility to provide homes for vulnerable groups.

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The research also highlighted how more properties are being left in poor condition at the end of tenancies due to overstretched teams and resource constraints in tenancy management, requiring more extensive repairs. The sector must adapt to these challenges, with some landlords already prioritising proactive measures like pre-tenancy checks and regular visits to outgoing tenants to address these issues and speed up the process.

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Government intervention and better resource allocation will be crucial in tackling this issue. Experts suggest that more efficient property management, better planning, and investment in repair and maintenance systems could significantly reduce the number of empty properties and the associated costs. Additionally, greater collaboration between local authorities and housing associations may help streamline the process of filling vacancies more quickly.

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For many social housing providers, the priority remains ensuring that every empty property is filled and that the financial burden of unoccupied homes is minimised. However, with continued economic pressures and growing demand, it is clear that more must be done to reduce the number of empty homes in the social housing sector.

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In conclusion, the £1.6 billion spent on empty properties in 2023-24 is a stark reminder of the need for a more strategic approach to property management within the social housing sector.

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By addressing the root causes of vacancy and focusing on efficient solutions, the sector can reduce costs, improve housing availability, and ultimately serve more tenants in need.

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Another opportunity to address the housing crisis involves repurposing derelict and vacant buildings. Across many urban areas, a significant number of buildings, such as former offices, factories, or abandoned council estates, are either empty or in disrepair. These structures could be revitalised and converted into affordable housing for vulnerable groups. The demand for social housing far exceeds supply, and many of these derelict buildings could provide an immediate and cost-effective solution. With proper investment in repairs and conversion, these buildings could quickly accommodate individuals and families struggling to find stable housing.

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The Social Housing Round Table & Rachael Holiday

This also got me thinking about Rachel Holiday. The Social Housing Round Table had Rachel Holiday (Founder of Time To Change West Cumbria) host The Social Housing Round Table on Tackling Homelessness.

Rachel has a remarkable story; I believe I used “Inspiration, Strength, Passion” to describe Rachel and what she has achieved through lived experience. I do not think there is anyone better than Rachel herself to tell her story and just what it is that she achieved, so please do see a link to the recording here: Tackling Homelessness

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Spotlight: Social Housing

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