New flats left empty as investors play market

Posted: 19 Dec 2006 10:33:50 GMT

Thousands of new homes across the UK are deliberately being left empty, artificially boosting prices by cutting the supply of property, a new report has claimed

Thousands of new homes across the UK are deliberately being left empty, artificially boosting prices by cutting the supply of property, a new report has claimed.

The Inside Housing investigation found that investors are buying up large amounts of new property, particularly smaller flats, and leaving them empty for years at a time.

The calculated investment means that they can take advantage of stock market-beating price growth without suffering the everyday wear and tear and management of tenants.

Up to 50 per cent of new flats in Leeds were found to be empty, as were 40 per cent in Salford and 30 per cent in Hull. Housing experts said the trend was cause for concern.

"Why are these blocks, possibly fully owned, standing entirely idle when we have a housing crisis all around?" asked head of the Joseph Rowntree Foundation Lord Richard Best, who described the trend as "sinister".

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