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The TaxPayers’ Alliance have investigated the cost of
maintaining properties left empty by local councils in the UK
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Between January 2016 and December 2017, at
least 6,047 council-owned commercial
properties were declared vacant for all or part of
that time.
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The total cost of providing security,
insurance, maintenance and renovation of these properties
was £74,022,38
As households across the UK adjust to the reality of higher
council tax bills this year, the TaxPayers’ Alliance have
revealed the cost of councils maintaining empty properties. The
report launched today reveals that between January 2016 and
December 2017, at least 6,047 council-owned commercial
properties were left vacant, at a cost of £74,022,38.
Non-residential properties can include farms, schools and
libraries. But they also include commercial properties such as
shops and warehouses. This paper highlights that many local
authorities are having to spend substantial sums of money to
maintain empty properties for a potential future tenant or owner.
Click here
to read the full report
Key findings:
- Between January 2016 and December 2017, at
least 6,047 council-owned commercial properties were
declared vacant for all or part of that time.
- The total cost of providing security, insurance,
maintenance and renovation of these properties
was £74,022,381.
- Insuring these properties cost at least £1,329,907. However,
because so many properties are covered by council-wide group
insurance policies, the true cost may be substantially higher
than this figure suggests.
- Security costs, which can vary from full-time monitoring
or putting up security barriers to occasional check-ups on vacant
properties, stood at £7,776,862. The cost of maintaining
these properties meanwhile stood at £8,085,664.
- The cost of renovating vacant commercial properties
was £56,829,947. However, £51,086,616 of this
figure was covered by just 11 properties. The most expensive
renovation undertaken in the time period was of Aberdeen Art
Gallery, which has been plagued by delays amid fears costs have
spiralled beyond its £30 million budget. The delayed opening
has reportedly cost Aberdeen city council hundreds of thousands
in lost revenues alone.
- The area of the UK with the highest number of vacant
council-owned commercial properties was Scotland, at 1,146. The
English region with the highest number of vacant properties was
the East of England with 694.
- Per person, Scotland and Wales are the areas with the
highest number of empty commercial properties. Conversely, the
areas with the least empty commercial properties per person are
London and Northern Ireland.
Commenting on the findings, John O’Connell, Chief Executive
of the TaxPayers’ Alliance said:
“Councils have a duty to maintain properties for future
tenants and owners, so of course some costs will be involved.
Many people will be startled by the total cost of maintaining
empty properties and want an explanation as to why these haven’t
been used or sold by the council. At a time when families are
struggling with the cost of living, and sky high council tax
bills, it’s important that local authorities do all they can to
ensure that they are making decisions with taxpayers in
mind.”
