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In May this year, property portal Zoopla published an article with the headline “Why half of UK homes fail to sell…”. Their first key takeaway stated that 44% of UK homes listed for sale over the past three years failed to sell. It was a bold statement and highlighted the challenges facing today’s UK property market, rather than putting a positive spin on difficult market conditions.

Over the following weeks, this article was the basis for several other articles, with The Telegraph on 30th June stating that “60% of homes listed in January are still on the market“, and then on 13th July, Property Wire published an article headed “Overpricing leaves 44% of UK homes unsold in three years”. In that article, a London-based estate agent, Josh Endacott, asserted that many asking prices are still based on 2021 and 2022 values, when buyer demand peaked during the pandemic housing boom, yet the market has since shifted significantly. He goes on to say: “The first four weeks of any listing are absolutely critical. It’s when buyer interest is at its highest and when the most serious purchasers are actively comparing properties… If your price is out of step with the market during that window, you lose those buyers, and you are unlikely to get them back.”  Indeed, good advice.

For most owners, whilst taking a long time to sell is very frustrating, the immediate financial implications are not too serious, with agents bearing the marketing costs. Often it is losing their intended purchase that can be most upsetting for those who can’t attract a buyer.

However, that can change for an empty property or vacant home that remains unoccupied for a long period, as several holding costs are easy to overlook but can really add up over time. These include:

• Insurance Costs for Empty Properties – standard building insurance policies usually invalidate claims if a building is left empty for more than 30–60 consecutive days. Yet, it is imperative to have cover which protects empty commercial or residential buildings against fire, storm, flood, vandalism, theft, and property owners’ liability. Insurers will base premiums on circumstances, and their questions must be answered as accurately as possible. If anything changes, it’s important to let them know, as otherwise the policy could become invalid. The insurer can refuse to pay out if a claim is made.

• Council Tax on Empty Homes – it is worth checking with your local authority what charges apply for this. For example, if your property stays empty for more than 1 year, a premium may be applied on top of your usual council tax charge, i.e. a premium of 100% at 1 year, increasing to 200% at 5 years, and a huge 300% increase at 10 years or more! However, for empty properties requiring major repairs, you may be able to apply for an exemption from the premium charge for up to 12 months.

• Utility Bills for Vacant Properties – even though there may be nobody living in the property, standing charges will still apply to maintain existing active supplies for water, gas, and electricity. The temptation is to disconnect; however, that too carries costs, both for disconnection and reconnection. You or your buyer will also need to be added to a waiting list to be reconnected.

• Security Risks of Empty Buildings – depending on the property and the area, the fear of a property being empty is often greater than the actual risk. That said, statistically, empty homes are more vulnerable to burglary, vandalism, and even squatting. Without regular activity, they can attract unwanted attention; opportunistic intruders can quickly identify an unoccupied property, and the longer it remains vacant, the greater the chance of theft, damage, or maintenance issues such as water leaks.

• Property Deterioration While Vacant –apart from fire, water is the main cause of significant damage. Weather alone can lead to problems such as damp and mould, and common building materials – wood, brick, and stone – all react differently to weathering and humidity. Inadequate ventilation in roof spaces, or even blocked air bricks and chimneys, will increase the moisture content of the air, increasing the risk of condensation and mould growth. Dampness is less likely to dry out when ventilation is inadequate, and wood-boring insects and fungi can quickly cause damage. For more information on this matter, make sure you listen to our podcast.

The solution = sell your property by auction

For most commercial and residential estate agents, the market slows as Christmas approaches, with activity dropping from November. Fortunately, empty properties, especially those needing improvement, perform well at auction, and our October and December results are among our strongest: last year we sold 85% of lots offered in October and 89% in December.

If you’re trying to sell an empty property, you may be mindful that there is only a short window between buyers returning from summer holidays in September and the November slowdown. Miss it, and you may face another winter of the issues outlined above, waiting for the New Year market to revive. Even then, a sale agreed in the New Year still requires months of legal work before exchange of contracts.

By contrast, entering our auction offers a very high likelihood of success, with contracts exchanged on the fall of the gavel and completion just four weeks later.

So, how much does it cost to leave a property empty?

The costs can quickly mount up and may include specialist insurance, council tax premiums, standing utility charges, security measures, and maintenance. The longer a property remains vacant, the more expensive it can become, making a quicker sale an attractive option.

If you’re worried about the ongoing costs of owning an empty property, our experienced team at Robinson & Hall Auctions is here to help. Get in touch today for a free, no-obligation auction appraisal and discover how quickly our property auction could help you achieve a secure sale.

📞 01280 818 907

📧 auctions@robinsonandhall.co.uk