Posted on 17 December 2025
But what if, your next profitable deal isn’t a new build — it’s an
empty one?
Grants, VAT reliefs, and smart tech tools are opening a
new path for regeneration in the UK. Thousands of buildings across the UK sit empty,
hidden potential just waiting to be unlocked. In 2025, with borrowing costs
rising and economic volatility still too high, financing new developments has
become harder than ever. Appraisals no longer stack up the way they used to,
and planning or regulatory hurdles can easily delay or derail your project.
But here’s the good news:
There’s real financial help available — if you know where to look.
In England, grants for bringing empty homes back into
use are managed locally by councils.
Since the government scrapped its national Empty Homes Programme in 2015,
there’s now no single UK-wide scheme, funding now significantly varies by
postcode.
Most council schemes:
● Require the property to have been empty for over 6 months and be in significant disrepair.
●
Often come with conditions (e.g. letting to
council-nominated tenants or selling after renovation works are completed).
●
Aim to bring properties up to the Decent Homes Standard and boost local
regeneration.
Support can also come in other forms:
● Low-interest loans instead of grants.
●
National
Lottery Heritage Fund grants for properties of historical significance.
●
Regional
programmes in Wales, Scotland, and Northern Ireland, where
national-level empty-homes support still exists.
A good example is Kent’s “No Use Empty” scheme, offering interest-free loans for empty
property redevelopments. It has brought over 3000 homes back into use, opening
a market for properties that traditional lenders would typically avoid.
For example, the renovation of the Old Wine Warehouse
in Ramsgate, Kent was supported by Kent’s no use empty scheme, which provided
£431,500 to help bring the derelict site back into use. The property has since
been transformed into a creative hub including co-working studios, a café/bar,
and a performance space, breathing new life into Ramsgate’s historic town
centre.
Beyond grants, there are various tax incentives built into the UK
system for redeveloping long-term vacant properties.
These include:
●
VAT relief
on refurbishments, renovations, or alterations (5% or 0%, depending on how long
the property has remained vacant for).
●
Reduced Stamp
Duty rates if a property is deemed to be uninhabitable.
Recognising and leveraging these incentives can improve your development appraisal, and in many cases may turn an unviable project into a profitable one.
Bringing derelict buildings back to life isn’t just
good business, it’s part of solving the UK’s generational housing and
regeneration challenge.
Developers who act early could benefit from:
● Lower acquisition costs
●
Access to grants and tax incentives
●
A chance to make a real, tangible social and
environmental impact
●
Long-term value growth
While these incentives exist, many developers simply
don’t know where to begin.
Land Attic, helps identify derelict and underused
properties across the UK — using mapping and open data to pinpoint viable sites
fast.
You can filter by both location,
property type, and ownership, helping match you with properties that
qualify for regeneration funding or redevelopment potential.
The UK’s regeneration story will be written by
developers who see potential in places
where others only see decay.
With VAT relief, local funding, and proptech tools like
Land Attic, there’s never been a
better time to lead the next wave of transformation.
Uncover the full potential of development land using our Development Value and Land Profit calculator.
Land Value Calculator