Buy To Leave

The term ‘buy to leave’ or ‘buy to leave empty’ describes the practice of purchasing residential properties as investments and keeping them unoccupied with the anticipation of their value increasing over time.

Buy-to-leave has become a contentious issue, particularly in the context of the UK housing crisis, with a focus on London. Here, the rapid escalation of property prices has led investors to buy homes off-plan, even before they enter the housing market, with no intention of living in them. This trend has resulted in some newly developed areas being fully sold but largely unoccupied.

Investors, often from overseas, drawn by persistently low interest rates on traditional savings and limited rental returns on properties with high capital values, view London real estate as a’safe haven’ for long-term capital appreciation without the need to lease out the property.

Criticism of buy-to-leave extends to its impact on new developments, where a significant number of unoccupied properties, particularly in managed blocks, can affect the provision of services to the detriment of owner-occupiers.

Many critics, including London’s Evening Standard, have condemned the practice, suggesting it has created ‘ghost towns of the super-rich’. Reports have highlighted instances where large developments have a high proportion of unoccupied units, leading to concerns about underutilization of housing stock.

Efforts to address buy-to-leave include measures such as increasing stamp duty land tax on certain residential purchases and allowing local councils to withdraw council tax discounts for unoccupied properties. Additionally, some local authorities have introduced planning requirements mandating regular occupation of newly built homes.

However, these measures have faced opposition, with arguments that they may discourage investment and hinder the development of affordable housing. Some suggest alternative approaches, such as those seen in Manhattan and Switzerland, where residency requirements or special permits are imposed on property purchasers to deter buy-to-leave practices.