FROM 24 AUGUST 2020 BIGISSUE.COM | 27global problem requires a global response.
That’s been made abundantly clear in
the last few months thanks to the battle
against Covid-19.
But that is also true of the social
challenges that follow the health crisis, and
has driven a co-ordinated response to the
problem of empty homes for the first time.
It’s why British campaigners Action on
Empty Homes have joined forces with
Prosper Australia and the Local Initiatives
Support Corporation from the United
States to create the Global Empty Homes
Network (GEHN).
In the middle of a housing crisis, there
are 226,000 long-term empty homes and
253,000 second homes in England and up to
100,000 Airbnb lets standing empty all over
the country.
The Big Issue has been drawing attention
to the issue since 2015 when we launched
our Fill ’Em Up campaign but, like so many
aspects of life, the Covid-19 pandemic has
changed the landscape.
The impact of the virus has put the brakes
on the economy, but it has sped up action on
the launch of GEHN, says Action on Empty
Homes director Will McMahon.
“Covid-19 really sharpened the necessity
of a global response,” he tells The Big
Issue. “It’s a global pandemic impacting on
housing, making people lose their homes
through evictions, through vulture funds,
through lots of different government
responses. It kind of pushed us forward
into what we wanted to do. It accelerated
the process.”
While the UK government has been vocal
and active on the response to rough sleeping
and slashing red tape with planning reforms
during the pandemic, making the best use
of the housing stock we already have has not
got a look in.
McMahon reckons it was a “missed
opportunity” for the government that Action
on Empty Homes’ call for those with spare
property to temporarily give it up to key
workers went unheeded.
And as for the government’s reforms
designed to speed up the planning process
in a bid to deliver desperately neededaffordable homes, the main policy with vacant
buildings was to demolish them and replace
them with housing without the need for a full
planning application.
This is in contrast to the approach taken by local
and regional governments in Spain. In Valencia,
the regional government has exercised first refusal
on a sale of housing by Sabadell Bank to American
private equity firm Cerberus, purchasing 218 homes
at 25 per cent discount of €8.5m and ensuring
that 95 families were paying rent to property
management not wealth investors.
With evictions and the potential for
plummeting house prices on the horizon in the UK
and abroad, the worry is that vulture funds could
swoop in to buy up empty homes and leave them
vacant until the economy recovers – allowing them
to pocket the profits.
“What the Spanish example shows is that if the
government does take action then they get people
to move on their empty home,” says McMahon.
”There’s this thing about the Englishman’s home
being his castle, but actually empty homes are part
of our community and part of society. People only
own them to pass them on the next person and
the next generation. It’s a social asset. And they
recognise this in Spain. We need a bit more of that.”
GEHN has formed to stop even more ‘distressed’
housing stock falling into these hands. It is one
of their 10 principles alongside calls for including
eviction bans for tenants and small businesses,
mortgage suspensions and retrofitting empty
homes to form part of governments’ rebuild
strategy in the post-Covid-19 recovery.
The prospect of wealth investors and vulture
funds scooping up housing is no new development.
As United Nations’ special rapporteur on adequate
housing for six years, human rights lawyer
Leilani Farha has been on the front line of the
global housing crisis, seeing how the last financial
crisis paved the way for investors to stock up on
cheap housing.
After leaving her UN role, she has now started
Shift, a coalition that is battling commodification
and financialisation of the housing market with a
call for a recognised right to housing. Last year her
efforts to battle against this phenomenon were
turned into the documentary Push by filmmaker
Fredrik Gertten.
In the film, Farha goes head-to-head with
Blackstone, an investment group which sold thelast of its stake in Invitation Homes Inc last year,
having made a reported $7bn (£5.3bn) from buying
up vacant properties and renting them out. Last
year Blackstone told The Big Issue that it “hoped to
be part of the solution to chronic under-supply and
under-investment in housing” in European cities.
Instead, Farha warned that housing is “no longer
thought of as a public good. It’s not thought of as a
human right”. Shift is attempting to change that.
And that’s why, as we enter the next financial
crisis, the answer to our housing crisis must come
from elsewhere.
Years of neglect from government after
government means that we need 3.1 million social
homes over the next two decades, according to
the charity Shelter, but already there could be
84 , 000 too few homes delivered this year due to
the pandemic.
Making use of the bricks and mortar in place
will be a necessity. The government’s aim to end
rough sleeping means they are looking to house
the almost 15,000 people living in hotels during the
pandemic. The 3 , 300 properties promised within 12
months and the 6,000 “safe, long-term” homes to
follow over four years will not fill that void.
Fixing up the homes that are habitable offers
a quicker response than flattening buildings to
build new ones or going through the process
of developing on brownfield sites. It’s more
environmentally friendly, too, with a lower carbon
footprint than demolishing and starting again.
And there is social value as well. The Scottish
Empty Homes Partnership brought 1 , 412 empty
homes back into use in 2019/20, generating £1.60
for the economy for every £1 spent on renovation.
With the spectre of evictions hanging over
England and the recession-hit economy meaning
cash will be in short supply, preventing empty
homes must be a vital building block in our
housing market rebuild for years to come.
“You’ve got a quarter of a million empty homes
which could have a really big impact on the
homelessness crisis if they were brought into use,”
says McMahon. “We do need more government
intervention, there is no question about it.
“People have to be protected. I can’t see a really
good argument for you losing your home during a
global pandemic to a wealth investor. It just shows
you how upside down everything is.”@Lazergun_NunA9,300 empty homes in Scotland with 830
second homes in WalesHOME TRUTHS252,629 second homes
left empty across England226,000223,2009,300 830252,629Airbnb had 223,200 active listings in the UK,
generating £854m pre-Covid pandemic226,000 long-term empty homes in
England, including 24,677 in LondonFROM 24 AUGUST 2020 BIGISSUE.COM| 27
globalproblemrequiresaglobalresponse.
That’sbeenmadeabundantlyclearin
thelastfewmonthsthankstothebattle
againstCovid-19.
Butthatisalsotrueofthesocial
challengesthatfollowthehealthcrisis,and
hasdrivena co-ordinatedresponsetothe
problemofemptyhomesforthefirsttime.
It’swhyBritishcampaignersActionon
EmptyHomeshavejoinedforceswith
ProsperAustraliaandtheLocalInitiatives
SupportCorporationfromtheUnited
StatestocreatetheGlobalEmptyHomes
Network(GEHN).
Inthemiddleofa housingcrisis,there
are226,000long-termemptyhomesand
253,000secondhomesinEnglandandupto
100,000Airbnbletsstandingemptyallover
thecountry.
TheBigIssuehasbeendrawingattention
totheissuesince 2015 whenwelaunched
ourFill’EmUpcampaignbut,likesomany
aspectsoflife,theCovid-19pandemichas
changedthelandscape.
Theimpactofthevirushasputthebrakes
ontheeconomy,butithasspedupactionon
thelaunchofGEHN,saysActiononEmpty
HomesdirectorWillMcMahon.
“Covid-19reallysharpenedthenecessity
ofa globalresponse,”hetellsTheBig
Issue.“It’s aglobalpandemicimpactingon
housing,makingpeoplelosetheirhomes
throughevictions,throughvulturefunds,
throughlotsofdifferentgovernment
responses. Itkindofpushedusforward
intowhatwewantedto do. It accelerated
theprocess.”
WhiletheUKgovernmenthasbeenvocal
andactiveontheresponsetoroughsleeping
andslashingredtapewithplanningreforms
duringthepandemic,makingthebestuse
ofthehousingstockwealreadyhavehasnot
gotalookin.
McMahonreckonsitwasa “missed
opportunity”forthegovernmentthatAction
onEmptyHomes’callforthosewithspare
propertytotemporarilygiveituptokey
workerswentunheeded.
Andasforthegovernment’sreforms
designedtospeeduptheplanningprocess
in a bid to deliver desperately needed
affordablehomes,themainpolicywithvacant
buildingswastodemolishthemandreplace
themwithhousingwithouttheneedfora full
planningapplication.
Thisisincontrasttotheapproachtakenbylocal
andregionalgovernmentsinSpain.In Valencia,
theregionalgovernmenthasexercisedfirstrefusal
ona saleofhousingbySabadellBanktoAmerican
privateequityfirmCerberus,purchasing218homes
at25percentdiscountof€8.5mandensuring
that 95 familieswerepayingrenttoproperty
managementnotwealthinvestors.
Withevictionsandthepotentialfor
plummetinghousepricesonthehorizonintheUK
andabroad,theworryisthatvulturefundscould
swoopintobuyupemptyhomesandleavethem
vacantuntiltheeconomyrecovers– allowingthem
to pockettheprofits.
“WhattheSpanishexampleshowsisthatif the
governmentdoestakeactionthentheygetpeople
to moveon theiremptyhome,”says McMahon.
”There’sthisthingabouttheEnglishman’shome
beinghiscastle,butactuallyemptyhomesarepart
ofourcommunityand partofsociety. Peopleonly
ownthemtopassthemonthenextpersonand
thenextgeneration.It’s asocialasset. And they
recognisethisinSpain.Weneedabitmoreofthat.”
GEHNhasformedtostopevenmore‘distressed’
housingstockfallinginto thesehands.It isone
oftheir 10 principlesalongsidecallsforincluding
evictionbansfortenantsandsmallbusinesses,
mortgagesuspensionsandretrofittingempty
homestoformpartofgovernments’rebuild
strategyinthepost-Covid-19recovery.
Theprospectofwealthinvestorsandvulture
fundsscoopinguphousingisnonewdevelopment.
AsUnitedNations’specialrapporteuronadequate
housingforsixyears,humanrightslawyer
LeilaniFarhahasbeenonthefrontlineofthe
globalhousingcrisis,seeinghow thelastfinancial
crisispavedthewayforinvestorstostockupon
cheaphousing.
AfterleavingherUNrole,shehasnow started
Shift,acoalitionthatisbattlingcommodification
and financialisationofthehousingmarketwitha
callforarecognisedrightto housing.Lastyearher
effortsto battleagainstthisphenomenon were
turnedintothedocumentaryPushby filmmaker
FredrikGertten.
In thefilm,Farhagoeshead-to-head with
Blackstone, an investment group which sold thelastofitsstakeinInvitationHomesInclastyear,
havingmadeareported$7bn (£5.3bn)from buying
upvacantpropertiesandrentingthemout. Last
yearBlackstonetoldTheBigIssuethatit“hopedto
bepartofthesolutiontochronicunder-supplyand
under-investmentinhousing”inEuropean cities.
Instead,Farhawarnedthathousingis“nolonger
thoughtofasapublicgood.It’s notthoughtofasa
humanright”.Shift isattemptingto changethat.
And that’swhy,asweenterthenextfinancial
crisis,theanswertoourhousingcrisismustcome
fromelsewhere.
Yearsofneglectfrom governmentafter
governmentmeans thatweneed3.1millionsocial
homesoverthenexttwodecades,accordingto
thecharityShelter,butalreadytherecouldbe
84 ,000toofewhomesdeliveredthisyeardueto
thepandemic.
Makinguseofthebricksandmortarinplace
willbeanecessity. Thegovernment’s aimtoend
roughsleepingmeanstheyarelookingtohouse
thealmost15,000peoplelivinginhotelsduringthe
pandemic. The 3 ,300propertiespromisedwithin 12
monthsandthe6,000“safe,long-term”homesto
followoverfouryearswillnotfillthatvoid.
Fixingupthehomesthatarehabitableoffers
aquickerresponsethan flatteningbuildingsto
buildnewonesorgoingthroughtheprocess
ofdevelopingon brownfieldsites. It’s more
environmentallyfriendly,too,witha lowercarbon
footprintthan demolishingand startingagain.
And thereissocialvalueaswell.TheScottish
EmptyHomesPartnershipbrought1, 412 empty
homesbackintousein2019/20,generating£1.60
fortheeconomyforevery£1spentonrenovation.
Withthespectreofevictionshangingover
Englandandtherecession-hiteconomymeaning
cashwillbeinshortsupply,preventingempty
homesmustbea vitalbuildingblockinour
housingmarketrebuildforyearsto come.
“You’vegota quarterofa millionemptyhomes
whichcouldhavea reallybigimpactonthe
homelessnesscrisisif theywerebroughtintouse,”
says McMahon.“Wedoneedmoregovernment
intervention,thereisnoquestion aboutit.
“Peoplehaveto beprotected.Ican’t seeareally
goodargumentforyoulosingyourhomeduringa
globalpandemicto awealthinvestor.It just shows
youhowupsidedowneverything is.”@Lazergun_NunA9,300emptyhomesinScotland with 830
second homes in WalesHOME TRUTHS252,629secondhomes
left empty across England226,000223,2009,300 830252,629Airbnbhad223,200activelistingsintheUK,
generating £854m pre-Covid pandemic226,000long-termemptyhomesin
England, including 24,677 in London