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Sadiq Khan Presses for Power to Impose Higher Taxes on Empty Second Homes in London

The mayor argues that significantly increasing council tax on vacant properties could alleviate London's housing crisis and fund new developments.

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Overview

  • Mayor Sadiq Khan has formally petitioned the UK Government to grant London boroughs the authority to impose higher council tax rates on empty second homes, exceeding the current 100% premium cap.
  • Khan cited unoccupied 'gold brick' flats in Nine Elms as examples of speculative investments that contribute to the housing crisis by remaining vacant for capital gains.
  • The proposal follows Khan's announcement to explore building on London's green belt, marking a shift from his previous focus on brownfield development to meet the capital's housing needs.
  • London requires 88,000 new homes annually over the next decade to address severe housing shortages, with rising rents and property prices outpacing wage growth.
  • Boroughs currently spend £4 million daily on temporary accommodation due to a lack of affordable housing, while hundreds of thousands remain on social housing waiting lists.