The Institute of Public Policy Research has stated that one of the major reasons for the current housing crisis, is that there are hundreds of thousands of homes remaining empty.

Its report is recommending that powers should be given to local authorities to levy a tax on their home owners whose properties are empty, to make sure that they are "populated". If this recommendation is acted upon then it will "mirror" Scotland's initiative.

According to the report there are more than 635,000 empty homes in England, of which approximately 216,000 properties have remained empty for over six months. In the Capital, where obviously rents and mortgages are far higher than the rest of country, there are 60,000 empty homes of which one in three have remained empty for more than half a year.

The Institute calls for the authorities to have increased powers, one of which would be to remove the 50% premium cap council tax for those homes that are empty. The powers would mean that the authorities would be free to decide their own banded council tax premiums on long term empty homes.

The report also states that the local authorities can determine what they consider the length of time a property becomes classed as "long term empty". In effect councils could shorten the time eligibility for the tax from the present two year constraint down to just one year.

If the councils are awarded the controls then they could determine eligibility of the tax and timescales to reflect their own local housing requirements.

The report states that at present England's threshold is two years whilst Scotland's is just one. England's rules for resetting the starting gate for when a property is classed as being inhabited is three months, whereas in Scotland it is six months.

The report further argues that the initiative is not just a "cash cow" but a proper measure to ensure that more homes are inhabited. If owners do not respond to requests from the councils to "fill" their properties, then they should be charged with a payment that equates to 70% of a Band D Council Tax. The Institute calculates that this would generate an extra £110 million throughout England of which £11 million would come from London. The average charge of the levy would be approximately £1,000.

However the Institute is also recommending a much tougher stance that they claim could generate as much as £215 million every year.

Bill Davies, IPPR researcher said: "Long term empty homes are a luxury England cannot afford. With rising house prices, substantial levels of homelessness and lengthy housing waiting lists, empty homes are making the housing crisis worse,

"Short term vacant properties are a natural part of the housing market. Properties will be without residents as estates are disposed of, as sellers await buyers, or as landlords await new tenants. But when properties are left empty over the long term it increases pressure on rents and house prices,

He added: "Local authorities should be allowed more discretion to tax long term empties appropriately and to ensure that those holding on to empty property contribute more to the costs of providing homes for those without them. A more flexible approach to council tax powers is part of the solution to Britain's housing crisis."