Recent headlines, including The Telegraph’s stark analysis of the UK’s underwhelming second-home tax crackdown, have reignited debate around long-term vacant properties and their impact on the London housing market. In central London alone, thousands of prime flats and houses remain unoccupied – a staggering contrast to the surging demand for rental homes and first-time buyer stock.

At EBI, we’re on the ground daily and see this paradox play out in real time. New build developments in prime zones may sell out off-plan, but some units sit idle – either held for long-term capital gain or lost in complex offshore ownership structures. Meanwhile, families face bidding wars for modest lets, and first-time buyers are repeatedly priced out due to restricted supply.

The government’s strategy to impose increased council tax surcharges on second homes has been framed as a solution. However, as The Telegraph article highlights, enforcement is patchy and the deterrent is minimal – particularly when dealing with ultra-high-net-worth owners who treat London property as a capital asset rather than a home.

As featured in The Telegraph, Elliot Rainbow, CEO of EBI, commented:

“What we see daily is that tax alone won’t bring these homes back into circulation. The root issue is a lack of incentive and enforcement, especially for those treating property purely as long-term capital gain. It’s time to move from headlines to results.”

EBI continues to advocate for a multi-pronged approach: stronger beneficial ownership transparency, incentives for letting long-vacant stock, and more robust registration-linked enforcement mechanisms. Until policy catches up with investor behaviour, the reality remains stark – London’s empty homes serve no one.