Maths: “Bring 5,000 empty homes back into use using new capital funding…”

I am going to dispense with too many convoluted sentences or opinion and get straight to the point. This is really a question of maths.

The Prime Minister and Deputy Prime Minister have announced a major housing and planning package that will help deliver:

“Up to 15,000 affordable homes and bring 5,000 empty homes back into use using new capital funding of £300m and the infrastructure guarantee”

I am interested in the 5,000 empty homes element of this.

Taking a step back, the charity Empty Homes, through much supportive campaigning of Mr George Clark, now has an amount of £3million from government to administer a National Empty Homes Loans fund.

Purely on that £3million, with an average loan of £10,000 per empty property, we’d be looking at 300 empties brought back into use.

Plus, there is the advantage of the repayments of those loans being invested in running the loan scheme, and being recycled to provide loans on an ongoing basis.

Using the same (very simplistic) maths model, to bring back 5,000 empty homes into use, £50million pounds of the £300million would be required.

Now, the initial target of bringing back into use 5,000 empty homes appears not particularly ambitious, when considering the national figure of over 700,000 empties.

However, if the £50million funding is administered through a recyclable method, ie the National Empty Homes Loan fund way, this reinvestment surely has the potential for increasing year-on-year the money available to invest.

While it remains far too little an amount to significantly reduce the 700,000, it surely would have the potential to achieve far greater numbers of empty homes being brought back into use than the 5,000 target released.

I might be wrong, or being far too simplistic!

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