Why Are There So Many Empty Luxury Homes In London?

The Belize building is located on London’s Old Street, one of the most expensive and fashionable districts in the United Kingdom.

An apartment there can cost more than the US $ 1.5 million.

And those who want to take one for rent, have to be prepared to pay about the US $ 3,000 per month.

But five years after it was finished, the building is half empty.

Local authorities confirm that 42% of the apartments in the building do not report a permanent occupant.

And officials blame a phenomenon known as “buy to leave.”

Wealthy investors, often foreigners, buy properties and leave them empty.

They do not even bother looking for tenants for their properties, says reporter Justin Parkinson of the BBC.

What is the logic?

The phenomenon of empty luxury homes contributes to a worrying trend in the United Kingdom. Although the country faces a severe housing deficit, in England alone, there are 610,123 vacant houses.

And, why would the owners have left those properties unused?

The mayor of London, Boris Johnson has criticized some owners for using houses as “gold bars in the sky,” but adds that imposing restrictions on investment in the city could be a mistake.

For most people, wasting the opportunity to collect massive amounts of rent money from their properties may sound like an expression of financial inconsistency.