Renovating UK’s 361,000 vacant homes could help tackle housing crisis, says BuildLoan
BuildLoan estimated that bringing these properties back into use would cost £34bn.
Renovating the UK’s growing number of vacant properties could play a key role in addressing the housing crisis, according to analysis from BuildLoan.
The renovation finance provider found that there are around 361,000 long-term vacant homes across the UK, representing a significant untapped resource at a time when housing supply continues to fall short of demand.
BuildLoan estimated that bringing these properties back into use to soften the housing crisis would cost £34bn, a figure that has risen by 19% year-on-year.
The average cost of renovating a long-term vacant property now stands at approximately £95,000, up from £91,250 in 2025 and £87,500 in 2024.
The firm said vacancy levels have increased due to a combination of economic pressures, higher material costs, labour shortages and structural issues within the housing stock.
It added that disruption during the Covid-19 pandemic also contributed to properties remaining empty for longer periods.
At the same time, demand for renovation projects is growing, particularly among couples and young families seeking more affordable ways to access homeownership and add value.
BuildLoan has launched a range of seven renovation finance products aimed at properties that are typically considered unmortgageable, designed to bridge the gap between residential mortgages, bridging finance and heavy refurbishment loans.
The products, funded by building societies including Chorley Building Society, Furness Building Society and the Stafford for Intermediaries, are intended for lighter, non-structural works with a streamlined application process.
Chris Martin, head of product development and lender relationships at BuildLoan, said: “Our analysis suggests the number of long-term vacant properties in the UK has increased since 2025, having already risen steadily for a number of years.
“That represents a huge untapped resource for the housing sector – one that could potentially help solve the housing crisis.
“The problem has always been that there was never a mortgage designed for properties that would be regarded by most lenders are uninhabitable.”
He added: “To be classed as habitable, properties need to have a working kitchen, bathroom and running water, although valuers often deem a property uninhabitable or unsuitable for a mortgage for other reasons.
“Mortgage brokers are taught that if a house isn’t habitable, it isn’t mortgageable. That’s no longer true.
“We can fund these renovations. Given how little progress we have made on building new homes over the last fifty years, renovating vacant properties should be part of the equation as we look to tackle the housing crisis.”
BuildLoan said that, with new build targets continuing to face challenges, renovation of existing housing stock could provide a private sector-led solution to increasing supply and improving affordability.
Related
Brokers cite affordability checks as biggest barrier to expat lending – Suffolk BS
Aspen provides £1.9m refurbishment facility for Bath conversion
SDKA increases BTL title indemnity insurance loan limit to £250,000
CapitAll Finance joins the BDLA
Air and Mortgage Brain partner to support holistic later life lending advice
Step One Finance adopts OMS loan origination platform
HTB appoints Mia House to lead internal BDM team
Simplybiz Mortgages and FIBA add six lenders to specialist property finance panel
61% of homeowners prefer to improve existing homes rather than move, data finds
54% of historical Japanese knotweed locations recorded near built-up areas, analysis finds
Commercial property values down 0.9% in Q3, CBRE finds
