The empty house: a window into Europe’s vacant property problem

The empty house: a window into Europe’s vacant property problem

European governments are providing substantial tax benefits to real estate investors, a policy prevalent across many member states, despite their political differences. Investigate Europe, a journalistic organization, has analyzed the taxation and loopholes surrounding real estate investments across various European countries. This has attracted billions of euros into an overinflated real estate market, leading to a scenario where there are many people without homes while numerous properties remain unoccupied.

The problem of empty housing has persisted in Europe for years. A report from the European Federation of National Organisations working with the Homeless (Feantsa) estimated that one in six properties in Europe are vacant, equating to approximately 38 million empty homes. In some countries like Greece, Portugal, and Bulgaria, the vacancy rate rises to one in four properties.

Data from the Organisation for Economic Cooperation and Development (OECD) revealed that countries like Hungary, Cyprus, Finland, and Ireland have the highest proportions of vacant dwellings. In Hungary, about 12.3% of properties are unoccupied, translating to over 550,000 vacant homes. The issue isn't speculation; rather, many owners lack the funds for renovations, leading to a significant number of empty homes in rural areas across Europe.

Similar issues are observed in Poland, where up to 11% of flats are vacant, often due to local authorities' inability to renovate communal flats. In France, an estimated 8% of homes are unoccupied, with cities like Vichy suffering from a glut of empty houses even as new homes continue to be built. This contradiction arises from the pressure on local governments to meet social housing quotas.

To address the issue of vacant homes, many policymakers are considering the introduction of vacancy taxes. In Austria, local municipalities have been granted the authority to levy taxes on empty flats to combat housing shortages and rising rents. Ireland has also initiated a Vacancy Tax aimed at increasing the supply of homes for rent or purchase, targeting properties occupied as dwellings for less than 30 days in a year.

In the UK, the charity Action on Empty Homes advocates for strategies to bring empty homes back into use, revealing that long-term empty homes have risen significantly while many families remain in temporary accommodations. In London’s financial district, one in three homes is reported to be empty, often held by owners for potential market gains.

In Brussels, a citizen assembly proposed a resolution to tackle the issue of abandoned flats and buildings. Activist groups have created a fictional municipality called “Saint-Vide-Leegbeek” to raise awareness about vacant properties and their potential for housing. However, challenges remain, as developers often prefer to keep properties empty for future value increases rather than renting them out.

The vacant property issue in Europe presents significant challenges that threaten housing affordability, particularly in major urban areas. This ongoing dilemma underscores the need for innovative policy solutions and community efforts to address both the supply of and demand for housing across the continent.