Communities Minister Andrew Stunell said that for every empty property brought back into use, the government will match the council tax raised from it. Councils can then spend the extra money how they want.
There are thought to be 300,000 long term empty properties across England, with many attracting vandalism and anti-social behaviour, bringing down the neighbourhood. Mr Stunell wants residents to point out these properties to their local council so they can tackle the problem.
Under plans recently consulted on, the government will use the New Homes Bonus to match any council tax raised from a property that previously stood empty.
The funding will supplement the £100m already announced as part of the Spending Review for Housing Associations to help bring empty properties back into use.
Mr Stunell said: "Long-term empty properties easily fall into disrepair, and attract the squatters, vandalism and anti-social behaviour that bring down our local neighbourhoods. With as many as 300,000 long-term empty properties across the UK this precious resource is being squandered.
"Empty properties should instead be treated as an asset and brought back into use for those families that need somewhere to live. That's why we're giving local councils powerful new incentives to tackle the problem. The Coalition government is pledging to match the council tax raised for every property brought back into use to help these properties become homes for thousands of families in need.
"It's vital that local communities, councils and owners of empty properties work together to bring properties back into use and begin to tackle this problem that is blighting our local communities."
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