Insurance News Archive

Government to investigate 'buy-to-leave'

The government has pledged to look into the claims that some investors are buying up property in large towns or cities but leaving them empty, just waiting for house prices to continue their ascent.

While this means investors are not gain from rent payments, they apparently take the view that they are avoiding the hassles involved in having a tenant.

Yvette Cooper, the housing minister, has set her sights on stopping this practice as it exacerbates the shortage of housing.

"We want local councils to take strong action and put more pressure on landlords who are leaving property empty for a long time," she told the Daily Mirror.

"If they rent them out that is fine, but if they are deliberately leaving them empty that is not fair for all the young families and young couples looking for affordable homes."

She highlighted Leeds as one example of where this practice might be taking place as the portion of vacant apartments in the city centre stands at 30 per cent, much higher than the city-wide average of 4.3 per cent.

27 Apr 2007