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Ed Miliband promises crackdown on 'ghost homes' hoarded by investors Ed Miliband promises crackdown on 'ghost homes' hoarded by investors
(35 minutes later)
The Labour leader, Ed Miliband, has promised to impose council tax premiums on "ghost homes" hoarded by wealthy investors across London. Ed Miliband has promised to impose council tax premiums on "ghost homes" hoarded by wealthy investors across London.
He said he would also close loopholes that allow absentee owners to avoid the empty homes premium by putting in a few items of furniture. He said developers would also be required to market apartments in domestic markets at the same time as offering them to foreigners. The Labour leader said he would also close loopholes that allow absentee owners to avoid the council tax empty homes premium by putting in a few items of furniture. He said developers would also be required to market apartments in domestic markets at the same time as offering them to foreigners.
The promises are part of Labour's push to woo voters who feel squeezed out of the housing market. Last week Miliband proposed to help "generation rent" by introducing greater long-term stability in private sector rents.The promises are part of Labour's push to woo voters who feel squeezed out of the housing market. Last week Miliband proposed to help "generation rent" by introducing greater long-term stability in private sector rents.
Launching Labour's London local elections campaign, Miliband said "We've got to stop this phenomenon of empty properties being bought by overseas investors and nothing done about it. We live in one of the richest, most diverse and exciting cities that has ever existed on the planet, but the connection between the great wealth London creates and everyday family finances has been broken." Launching Labour's London local elections campaign, Miliband said: "We've got to stop this phenomenon of empty properties being bought by overseas investors and nothing done about it. We live in one of the richest, most diverse and exciting cities that has ever existed on the planet, but the connection between the great wealth London creates and everyday family finances has been broken."
The Guardian exposed in January how a third of properties on the most expensive stretch of London's "Billionaires Row" were standing empty, including several huge houses that have fallen into ruin after standing almost completely vacant for a quarter of a century.The Guardian exposed in January how a third of properties on the most expensive stretch of London's "Billionaires Row" were standing empty, including several huge houses that have fallen into ruin after standing almost completely vacant for a quarter of a century.
The Guardian estimated that there was £350m worth of vacant properties on the most prestigious stretch of the Bishops Avenue in north London. There are said to be 60,000 empty properties in London.The Guardian estimated that there was £350m worth of vacant properties on the most prestigious stretch of the Bishops Avenue in north London. There are said to be 60,000 empty properties in London.
Miliband proposed that councils should be entitled to double the council tax for owners who let their flats lie empty and unused. After a property has been empty for a year, councils would have the power to impose a 100% increase on their bills – which this year averages £1,296.44 for a band D home in London.Miliband proposed that councils should be entitled to double the council tax for owners who let their flats lie empty and unused. After a property has been empty for a year, councils would have the power to impose a 100% increase on their bills – which this year averages £1,296.44 for a band D home in London.
Miliband said there was a danger London would become closed to ordinary families unless action was taken to stop them being priced out.Miliband said there was a danger London would become closed to ordinary families unless action was taken to stop them being priced out.
"I think it is increasingly becoming that way," he said. Average house prices in the capital are now £363,000 and are on course to top £500,000 in 2018. And rents rose 9% last year, to a record average of £1,200 a month."I think it is increasingly becoming that way," he said. Average house prices in the capital are now £363,000 and are on course to top £500,000 in 2018. And rents rose 9% last year, to a record average of £1,200 a month.
From April last year, councils have been entitled to impose a surcharge on properties that have been unoccupied and unfurnished for two years or more. The government said the empty homes premium could be up to 50% of the council tax on the property.From April last year, councils have been entitled to impose a surcharge on properties that have been unoccupied and unfurnished for two years or more. The government said the empty homes premium could be up to 50% of the council tax on the property.
Labour said half of Conservative and Lib Dem-run councils in London had failed to use these powers – despite having over 13,000 empty properties. Hillingdon even gives them a tax break if they keep their property empty. Labour said half of Conservative and Lib Dem-run councils in London had failed to use these powers – despite having more than 13,000 empty properties. Hillingdon even gives them a tax break if they keep their property empty.
Every Labour majority council in London has introduced the empty homes premium – which imposes extra council tax on empty homes – to incentivise investors not to leave their properties empty. Fifteen of the 32 London boroughs are controlled by Labour. Every Labour majority council in London has introduced the empty homes premium to incentivise investors not to leave their properties empty. Fifteen of the 32 London boroughs are controlled by Labour.
An exemption exists for dwellings which form part of a single property that is being treated by a resident of that property as part of the main dwelling. An exemption exists for dwellings forming part of a single property that is being treated by a resident of that property as part of the main dwelling.
Empty and second homes have long been subject to discounts but there is growing anger that property in the south-east is being used as a vehicle for asset investment by wealthy foreigners with a consequential ripple effect further down the property market.Empty and second homes have long been subject to discounts but there is growing anger that property in the south-east is being used as a vehicle for asset investment by wealthy foreigners with a consequential ripple effect further down the property market.
Miliband said: "When I think about the prospect of becoming prime minister next year, housing is one of the absolute top priorities because it is in crisis."Miliband said: "When I think about the prospect of becoming prime minister next year, housing is one of the absolute top priorities because it is in crisis."
A survey last month by the CBI showed housing shortages is now one of the biggest threats to the capital's economy.A survey last month by the CBI showed housing shortages is now one of the biggest threats to the capital's economy.