Mayor says current measures are not enough to tackle London’s housing crisis
London Mayor Sir Sadiq Khan has called on the Government to grant councils the authority to significantly raise council tax on empty second homes, potentially more than doubling the current rate.
Speaking on LBC, Sir Sadiq criticised existing powers that allow local authorities to double the tax on vacant second properties, arguing it’s nowhere near sufficient to combat the housing crisis gripping the capital.
“That’s not enough. I want councils to have the power to charge much more for leaving your property vacant,” he said.
The Mayor pointed to the growing number of investment properties sitting idle across the city, particularly in high-end developments such as those in Nine Elms. These luxury flats, often snapped up by overseas investors, are rarely lived in.
“They’ve not been lived in, because those who bought it know equity will go up and the price of the flat will go up, and they don’t need to live there. Wandsworth, great council, the max they can charge is double council tax.
I am not being funny, if you can afford a flat and leave it empty, you can pay double council tax. I think boroughs should be allowed to charge much, much more,” he explained.
Khan is now lobbying Westminster to hand local councils more power to impose steeper taxes on homes left vacant. The move, he believes, would help discourage speculative property ownership and bring more homes back into use.
This call comes hot on the heels of another significant policy shift. Last week, Sir Sadiq revealed he was open to exploring developments on parts of London’s green belt, a marked departure from his long-standing focus on brownfield land.
In a speech, the Mayor sought to dispel popular beliefs about the green belt. “The reality is very different. The green belt can often be low-quality land, poorly maintained and rarely enjoyed by Londoners.”
According to City Hall, the capital needs to build 88,000 new homes annually for the next ten years to meet rising demand.
The numbers paint a stark picture. Since 2000, house prices in London have outpaced wages by more than double. Rents have soared by 40% over the past decade. Meanwhile, London boroughs are spending around £4 million every single day on temporary accommodation.
Thousands of families remain in limbo, stuck on waiting lists for council housing as the supply continues to fall short.
Sir Sadiq Khan’s fresh push for a higher council tax on empty properties highlights growing political pressure to tackle London’s deepening housing crisis. By empowering boroughs to act, the Mayor believes more homes can be brought back into use, and fewer people will be left without a roof over their heads.
